Chapter XX: Part II: of the Regulations relates to dealers in de-natured alcohol, and

manufacturers using the same.

"SEC. 58. Alcohol de-natured by use of methyl alcohol and benzine as provided in section 26 of these regulations is to be classed as _completely de-natured alcohol_. Alcohol de-natured in any other manner will be classed as _specially de-natured alcohol_."

DE-NATURED ALCOHOL NOT TO BE STORED ON CERTAIN PREMISES, AND NOT TO BE
USED FOR CERTAIN PURPOSES.

"SEC. 59. Neither completely nor specially de-natured alcohol shall be kept or stored on the premises of the following classes of persons, to wit: dealers in wines, fermented liquors or distilled spirits, rectifiers of spirits, manufacturers of and dealers in beverages of any kind, manufacturers of liquid medicinal preparations, or distillers (except as to such de-natured alcohol in stamped packages as is manufactured by themselves), manufacturers of vinegar by the vaporizing process and the use of a still and mash, wort, or wash, and persons who, in the course of business, have or keep distilled spirits, wines, or malt liquors, or other beverages stored on their premises. _Provided_, That druggists are exempt from the above provisions."

CAN NOT BE USED IN MANUFACTURING BEVERAGES, ETC.

"SEC. 60. Anyone using de-natured alcohol for the manufacture of any beverage or liquid medicinal preparation, or who knowingly sells any beverage or liquid medicinal preparation made in whole or in part from such alcohol, becomes subject to the penalties prescribed in section 2 of the Act of June 7, 1906."

Under the language of this law it is held that de-natured alcohol can not be used in the preparation of any article to be used as a component part in the preparation of any beverage or liquid medicinal preparation.

A person, firm, or corporation desiring to sell de-natured alcohol, must make application, in proper form, to the district collector on or before the first of July each year, and if the provisions of the law have been violated the permit may be withdrawn (Sections 61 to 65).

Sections 66 to 71 relate to the keeping of records by collector, and wholesale and retail dealers.

RETAIL DEALERS TO KEEP RECORD.

"SEC. 72. Retail dealers in de-natured alcohol shall keep a record, in which they shall enter the date upon which they receive any package or packages of de-natured alcohol, the person from whom received, the serial numbers of the packages, the serial numbers of the de-natured alcohol stamps the wine and proof gallons, and the date upon which packages are opened for retail.

The transcript for each month's business as shown by this record must be prepared, signed, and sworn to and forwarded to the collector of internal revenue of the district in which the dealer is located before the 10th of the following month. This transcript must be signed and sworn to by the dealer himself or by his duly authorized agent."

LABELS TO BE PLACED ON RETAIL PACKAGES.

"SEC. 73. Retail dealers in de-natured alcohol must provide themselves with labels upon which the words "De-Natured Alcohol" have been printed in plain, legible letters. The printing shall be red on white. A label of this character must be affixed by the dealer to the container, whatever it may be, in the case of each sale of de-natured alcohol made by him."

STAMPS TO BE DESTROYED WHEN PACKAGE IS EMPTY.

"SEC. 74. As soon as the stamped packages of de-natured alcohol are empty the dealer or manufacturer, as the case may be, must thoroughly obliterate and completely destroy all marks, stamps, and brands on the packages.

The stamps shall under no circumstances be re-used, and the packages shall not be refilled until _all_ the marks, stamps, and brands shall have been removed and destroyed."

MANUFACTURERS USING COMPLETELY DE-NATURED ALCOHOL TO SECURE PERMIT.

"SEC. 75. Manufacturers desiring to use completely de-natured alcohol, such as is put upon the market for sale generally, may use such alcohol in their business subject to the following restrictions:

A manufacturer using less than an average of 50 gallons of de-natured alcohol per month will not be required to secure permit from the collector or to keep records or make returns showing the alcohol received and used.

Manufacturers who use as much as 50 gallons of completely de-natured alcohol a month must procure such alcohol in stamped packages, and before beginning business the manufacturer must make application to the collector of the proper district for permit, in which application he will state the exact location of his place of business, describing the lot or tract of land upon which the plant is located, and must keep the alcohol in a locked room until used.

"SEC. 79. As the agents adapted to and adopted for use in complete de-naturation render the alcohol de-natured unfit for use in many industries in which ethyl alcohol, withdrawn free of tax, can be profitably employed, therefore in order to give full scope to the operation of the law, special de-naturants will be authorized when absolutely necessary. Yet the strictest surveillance must be exercised in the handling of alcohol incompletely or specially de-natured."

FORMULA FOR SPECIAL DE-NATURANTS TO BE SUBMITTED TO THE COMMISSIONER.

"SEC. 80. The Commissioner of Internal Revenue will consider any formula for special de-naturation that may be submitted by any manufacturer in any art or industry and will determine (1) whether or not the manufacture in which it is proposed to use the alcohol belongs to a class in which tax-free alcohol withdrawn under the provisions of this act can be used. (2) whether or not it is practicable to permit the use of the proposed de-naturant and at the same time properly safeguard the revenue. But one special de-naturant will be authorized for the same class of industries, unless it shall be shown that there is good reason for additional special de-naturants."

The Commissioner will announce from time to time the formulas of de-naturants that will be permitted in the several classes of industries in which tax-free alcohol can be used.

The specially or incompletely de-natured alcohol can only be used by special permission, for which the manufacturer must apply, at the same time giving full details as to business, plant, premises, the special de-naturants desired to be used, and the reason therefor, etc. (Section 81).