United States v. U. S. Industrial Alcohol Co.

CHESNUT, District Judge.

In this suit at law the Government of the United States sues to recover from the defendants internal revenue taxes in the amount of $8,140,514.88, alleged to be due under the Revenue Act of 1926, § 900' (44 Stat. 104, USCA title 26> § 245), effective February 26, 1926. Subdivision (3) provides a tax on distilled spirits in bond at the rate of $1.10' per gallon. Subdivision (4) reads as follows:

“(4) On and after February 26, 1926, on all distilled’ spirits which are diverted to beverage purposes or for use in the manufacture or production of any article used or intended…