United States v. Eaton

• Decision Date: 25 April 1892
• Citation: 144 U.S. 677,12 S.Ct. 764,36 L.Ed. 591
• Parties: UNITED STATES v. EATON
• Court: U.S. Supreme Court

144 U.S. 677

12 S.Ct. 764

36 L.Ed. 591

UNITED STATES v. EATON.

April 25, 1892.

This case comes to this court on a certificate of division in opinion between the judges of the circuit court of the United States for the district of Massachusetts.

At May term, 1888, of that court, an indictment was found by the grand jury against George R. Eaton, containing two counts. The first count alleged that on the 1st of November, 1886, and on divers days thereafter, up to and until the 28th of June, 1887, at Boston, in that district, and at a place of business situated therein, the defendant was engaged in the business, avocation, and employment of a wholesale dealer in oleomargarine, and was subject and liable to all needful regulations made by the commissioner of internal revenue of the United States, with the approval of the secretary of the treasury, for the carrying into effect of the act of congress approved August 2, 1886, c. 840, (24 St. p. 209,) entitled 'An act defining 'butter,' also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine;' that, at the times above mentioned, said regulations were well known to the defendant, and it became his duty to keep a book showing the oleomargarine received by him, and from whom the same was received, and also showing the oleomargarine disposed of by him, and to whom the same was sold or delivered, in accordance with the regulations made by the commissioner of internal revenue and approved by the secretary of the treasury on August 25, 1886; and that, at the times above mentioned, he willfully, knowingly, and unlawfully failed to keep such book showing the matters above stated, as required by law. The second count alleged, with the other averments contained in the first count, that it became the duty of the defendant to make a monthly return to the collector of internal revenue, showing the oleomargarine received by the defendant, and from whom it was received, and also that disposed of by him, and to whom it was sold or delivered, in accordance with said regulations; and that, at the times above mentioned, he willfully, knowingly, and unlawfully failed to make such monthly return to the collector of internal revenue, as required by law. The defendant filed a demurrer to the indictment, alleging that it was insufficient in law.

At the hearing in the circuit court on the demurrer, the following questions arose, upon which the judges by whom the court was held were divided in opinion; and those questions were stated and certified to this court: 'First. Whether a wholesale dealer in oleomargarine, who knowingly and willfully fails and omits to keep a book showing the oleomargarine received by him and from whom the same was received, and also showing the oleomargarine disposed of by him and to whom the same was sold or delivered, as required by the regulations made by the commissioner of internal revenue, with the approval of the secretary of the treasury, August 25, 1886, is liable to the penalty imposed by section 18 of the act of congress approved August 2, 1886, entitled 'An act defining 'butter,' also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine.' 24 St. p. 209. Second. Whether a wholesale dealer in oleomargarine, who knowingly and willfully fails and omits to make monthly returns to the collector of internal revenue, showing the oleomargarine received by him and from whom the same was received, and also showing the oleomargarine disposed of by him and to whom the same was sold or delivered, as required by the said regulations, is liable to the penalty mentioned in the first question.'

Asst. Atty. Gen. Parker, for the United States.

[Argument of Counsel from pages 680-682 intentionally omitted] P. A. Collins, for defendant.

Mr. Justice BLATCHFORD delivered the opinion of the court.

Sections 1 and 2 of the act in question define what is 'butter' and what is 'oleomargarine.'

Section 3 imposes special taxes of certain amounts on manufacturers of oleomargarine, on wholesale dealers therein, and on retail dealers therein.

Section 4 imposes a penalty on manufacturers, wholesale dealers, and retail dealers, for carrying on those respective businesses without having paid the special tax therefor.

Section 5 provides that every manufacturer of oleomargarine shall file, with the collector of internal revenue of the district in which his manufactory is located, such notices, inventories, and bonds, shall keep such books, render such returns of materials and products, put up such signs, affix such number to his factory, and conduct his business under such surveillance of officers and agents, as the commissioner of interpal revenue, with the approval of the secretary of the treasury, may, by regulation, require. But that section imposes no penalty for a noncompliance with its provisions.

Section 6 contains requirements in regard to the packing of oleomargarine by manufacturers, and in regard to the packages in which sales shall be made by manufacturers, wholesale dealers, and retail dealers, and imposes a penalty for the violation of its requirements.

Section 7 contains requirements as to putting a label on each package by the manufacturer, and imposes a penalty for not doing it.

Section 8 provides for collecting a tax of two cents a pound on the article from the manufacturer by coupon stamps, and applies the requirements of law as to stamps relating to tobacco and snuff.

Section 9 provides for assessing and collecting the tax which has not been paid by stamps, and declares that such tax shall be in addition to the penalties imposed by law for the sale or removal of the article without the payment of such tax.

Section 10 provides for an additional tax on imported oleomargarine, by stamps to be affixed and canceled while it is in the custody of customs officers, and for warehousing the article; and it imposes a penalty for a violation of the section by a customs officer, and a penalty for selling or offering for sale imported oleomargarine not put up in packages and stamped as provided by the act.

Section 11 imposes a penalty for purchasing or receiving for sale any oleomargarine not branded or stamped according to law, and section 12 a penalty for purchasing the article or receiving it for sale from a manufacturer who has not paid the special tax.

Section 13 requires the destruction of stamps on packages which have been emptied, and imposes a penalty for the failure to do so.

Section 14 provides for the appointment of chemists and microscopists, and authorizes the commissioner of internal revenue to decide what articles are taxable under the act, and what substances made in imitation or semblance of butter, and intended for human consumption, contain ingredients deleterious to the public health, and also provides for appeals from the decision of the commissioner of internal revenue to a board of three officers whose decision shall be final.

Section 15 provides for the forfeiture of packages which are not stamed, and of packages intended for human consumption which contain ingredients so adjudged to be deleterious to the public health, and imposes a penalty for removing or defacing stamps, marks, or brands on packages containing oleomargarine taxed as provided in the act.

Section 16 contains a provision for the export of oleomargarine to a foreign country without the payment of tax or affixing stamps, under regulations to be made...