On motion of Hon. Martin Burrell (Minister of Customs and Inland Revenue), the House went into committee to consider the following proposed resolution, Mr. Boivin in the Chair:
Resolved, That it is expedient to bring in a measure to amend the Inland Revenue Aot, chapter 51 of the Revised Statutes of 1906, and to provide:-
1. That the definition of " chemical still " in paragraph (g) of section 3 of the said Act be amended so as to include the provision that " chemical still " shall mean any distilling apparatus the measured content of which is less than fifty gallons; and that section 150 be amended by providing that a chemist or druggist using a chemical still, the measured content of which does not exceed three gallons, may be permitted to use the same upon registration as provided therein;
2. That the definition of " standard leaf tobacco " in paragraph (c) of section 8 be amended so as to include the provision that " standard leaf tobacco " as applied to any kind of tobacco means that which contains ten per cent or more of moisture;
3. That section 155 be amended to provide for abatements to be allowed in the computation of duty upon spirits, for shrinkage by evaporation while maturing, when stored in warehouse in wooden or in ventilated metal
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4. That sction 171 be amended to provide that the Governor in Council may suspend, during such period or periods as he may deem necessary, the operation of subsection 4 of this section, which provides that no spirits subject to excise which have not been warehoused for at least two years shall be entered for consumption ;
5. That section 180, respecting distilling without license, be amended by increasing the penalty of not less than $100 for a first offence to a penalty of not less than $200; and that section 185, respecting the sale of spirits unlawfully manufactured, be amended by increasing the penalties for a first offence not exceeding $50, and not less than $10, and for each subsequent offence, a penalty of $100, to penalties respectively not exceeding $500 and not less than $200, and for each subsequent offence a penalty of $500 ;
6. That section 180, respecting distilling without lioense, be further amended by adding a subsection to provide that in every prosecution under this section, the certificate of analysis from a Departmental Analyst shall be accepted as evidence of the alcoholic content of the beer or wash suitable for the manufacture of spirits;
7. That subsection 1 of section 198 be amended to provide that the bond to be given by a brewer shall be in the sum of $2,000 instead of $1,000;
8. That section 252 be amended to provide that the excise duty on spirits used in any bonded factory in the production of vinegar, on every gallon of the strength of proof by Sykes' hydrometer, shall be 27 cents, and so in proportion for any greater or less strength and for any less quantity than a gallon;
9. That section 255 be amended that there may be a remission of duty on malt used in the manufacture of vinegar, or malt used in combination with cereals, in such proportion as is established by the Governor in Council;
10. That subsection 2 of section 266 of the said Act, as enacted by section 7 of chapter 34 of the statutes of 1908, be amended to provide that the words "Methyl Hydrate-Poison" in black letters not less than one-quarter inch in height be affixed by containers of methyl alcohol in medicinal preparations intended for external use;
11. That section 267 be amended to provide that the Governor in Council may from time to time make regulations respecting the sale of spirits to be used for any chemical or manufacturing purposes riot otherwise provided for;
12. That section 282 be amended by adding a subsection to provide that the Department may authorize the preparation of tobacco and cigars in packages of such size and the issue of stamps in such denominations to govern the same as may appear advisable, but as to the necessity or advisability of issuing such stamps, the department shall be the sole judge;
13. That section 316, as enacted by section 19 of chapter 34 of the statutes of 1908, be
amended to provide that no less quantity than 5,000 cigars shall be entered for warehouse by one entry, and except for export no less quantity than 2,000 cigars shall be ex-warehoused by one entry;
14. That the 6aid Act be amended by adding 'thereto a section, 328B, to provide (1) that
every person who desires to pack or cure Cana-lian Leaf Tobacco shall make application to the Collector of Inland Revenue for the division in which his premises are situated, for a license therefor; for which license the packer shall pay a sum of $50 and furnish a bond of a guarantee company, approved by the Department, for the sum of $1,000; and he shall keep such books and make such returns as shall be required by the Department; (2) that the Minister may make such regulations as he deems advisable respecting the sale of Canadian Leaf Tobacco by cultivators, packers and retail dealers and for the carrying out of the provisions of this proposed section; (3) that a packer, for the purpose of this section, is a person or firm, other than a cultivator and other than a retail merchant selling direct to a consumer, who prepares, packs or keeps Canadian Raw Leaf Tobacco for sale to a licensed packer, licensed manufacturer, licensed cultivator, retail merchant, or for export; and (4) that the penalty for violating any provision of this section or refusing or neglecting to comply with the requirements of the Act or any regulations made thereunder, shall be a fine of not less than fifty dollars and not exceeding two hundred dollars or to imprisonment for a term not exceeding two months or to both fine and imprisonment, and all Canadian Leaf Tobacco found in the possession of any person so violating this section shall be forfeited to His Majesty ;
15. That section 366 and 367 be repealed, and in lieu thereof it be enacted that acetic acid may only be sold under the name of acetic acid, and no manufacturer, vendor or other dealer in the same shall be permitted to sell or offer for sale acetic acid under the name or as a substitute for vinegar, and that the penalty for violation of this provision shall be not less than $200, and all acetic acid found on the premises wherein any such offence is committed shall be forfeited to the Crown, and shall be seized by any officer of Inland Revenue and dealt with accordingly.
16. That section 251, relating to the supply of wood naphtha, wood alcohol, or methylated or other denaturalized spirit to be used for manufacturing purposes in Canada, and Part X of the said Act, as enacted by chapter 34 of the statutes of 1968, respecting the manufacture of wood alcohol, be repealed, and that in lieu thereof a new Part X be enacted to provide:-
(a) That "denatured alcohol" shall mean alcohol in suitable admixture with such de-naturants as to render it in the judgment of the Minister non-potable, and to prevent recovery of the ethyl alcohol; and "especially denatured alcohol" shall mean alcohol in suitable admixture with such special denaturants as have been approved by the Minister;
(b) That denatured alcohol and specially denatured alcohol which is intended for use in the arts and industries, or for fuel, light or power, or for any mechanical purpose, may be manufactured in Canada, free from excise duty;
(c) That except as provided by this Part no alcohol shall be manufactured, denatured or
recovered in Canada except in distilleries thereto licensed; ' [DOT]
(d) That denatured alcohol shall be sold, delivered and transported without restriction to dealers, manufacturers and other persons, but specially denatured alcohol shall only be sold or delivered under a departmental permit to dealers and manufacturers, to be used in the. arts and industries in cases where denatured alcohol would be unsuitable, and shall only be moved or transported under such conditions as the Minister may, by regulations, prescribe;
(e) That no alcohol shall be manufactured or sold under the provisions of this Part for beverage purposes ;
(f) That the recovery of alcohol after it has been used for industrial purposes, and its redistillation and purification shall only be done on the premises in which the alcohol was used or at a duly licensed distillery, and all alcohol recovered on the premises aforesaid must be used in the same manufacturing establishment in which it was originally used ;
(g) That labels on vessels containing wood alcohol or denatured alcohol shall bear the words "Methyl-Hydrate-Poison" in black letters on white ground not less than one-fourth of an inch in height.
(h) That as respects wood alcohol a license shall be required to carry on its manufacture, approved by the district inspector, and the manufacturer shall, jointly with a guarantee company approved by the Department, enter into a bond to His Majesty in the sum of $4,000, conditioned for the rendering of all accounts, inventories and returns required by law, for the payment of all penalties incurred by the licensee, and for faithful compliance with the requirements of the Act; and the person in whose favour a license is granted shall pay a license fee of one dollar upon receiving such license;
(i) That any person who holds in possession, sells, exchanges or delivers any alcohol or specially denatured alcohol contrary to the provisions of this Part shall be liable upon summary conviction, to a penalty of not less than two hundred dollars and not exceeding five hundred dollars ; and all the provisions of Part II of the said Act respecting bonded manufacturers, licensee, and the obligations of persons holding them, the keeping of books of accounts and the making of returns, and all provisions respecting penalties, so far as applicable, shall apply to the manufacture of wood alcohol, the manufacture, denaturing, special denaturing and recovery of alcohol, and the persons licensed as herein provided.
