A-56547, NOVEMBER 20, 1934, 14 COMP. GEN. 398

A-56547: Nov 20, 1934

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UNITED STATES COMMISSIONERS - FEES - VIOLATIONS OF INTERNAL REVENUE LIQUOR LAWS WHEN COMPLAINTS FILED WITH A UNITED STATES COMMISSIONER CHARGING VIOLATIONS OF INTERNAL REVENUE LIQUOR LAWS ARE SWORN TO BY AN "INVESTIGATOR" OF THE ALCOHOL TAX UNIT. IT IS NOT NECESSARY THAT THE COMPLAINT BE FIRST APPROVED IN WRITING BY A UNITED STATES DISTRICT ATTORNEY IN ORDER TO ENTITLE THE COMMISSIONER TO THE STATUTORY FEES FOR THE ISSUANCE OF THE WARRANT OF ARREST THEREON. WHO HAVE BEEN APPOINTED AS INVESTIGATORS. ARE AT PRESENT CHARGED WITH THE DUTY OF APPREHENDING VIOLATORS OF THE INTERNAL-REVENUE LIQUOR LAWS AND SWEARING OUT WARRANTS OF ARREST. THE PERFORMANCE OF THIS DUTY IS BEING DELAYED IN MANY INSTANCES THROUGHOUT THE COUNTRY AS THE RESULT OF A RECENT CONSTRUCTION PLACED ON THE ACT OF MAY 28.

A-56547, NOVEMBER 20, 1934, 14 COMP. GEN. 398

UNITED STATES COMMISSIONERS - FEES - VIOLATIONS OF INTERNAL REVENUE LIQUOR LAWS WHEN COMPLAINTS FILED WITH A UNITED STATES COMMISSIONER CHARGING VIOLATIONS OF INTERNAL REVENUE LIQUOR LAWS ARE SWORN TO BY AN "INVESTIGATOR" OF THE ALCOHOL TAX UNIT, BUREAU OF INTERNAL REVENUE, WHO MAY BE REGARDED AS A "DEPUTY COLLECTOR OF INTERNAL REVENUE OR A REVENUE AGENT" RATHER THAN AS A "PRIVATE CITIZEN" WITHIN THE MEANING AND INTENT OF SECTION 19 OF THE ACT OF MAY 28, 1896, 29 STAT. 184, AS AMENDED, BY THE ACT OF MARCH 2, 1901, 31 STAT. 956, IT IS NOT NECESSARY THAT THE COMPLAINT BE FIRST APPROVED IN WRITING BY A UNITED STATES DISTRICT ATTORNEY IN ORDER TO ENTITLE THE COMMISSIONER TO THE STATUTORY FEES FOR THE ISSUANCE OF THE WARRANT OF ARREST THEREON.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, NOVEMBER 20, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF OCTOBER 12, 1934, AS FOLLOWS:

OPERATIVES OF THE ALCOHOL TAX UNIT, BUREAU OF INTERNAL REVENUE, WHO HAVE BEEN APPOINTED AS INVESTIGATORS, ARE AT PRESENT CHARGED WITH THE DUTY OF APPREHENDING VIOLATORS OF THE INTERNAL-REVENUE LIQUOR LAWS AND SWEARING OUT WARRANTS OF ARREST. THE PERFORMANCE OF THIS DUTY IS BEING DELAYED IN MANY INSTANCES THROUGHOUT THE COUNTRY AS THE RESULT OF A RECENT CONSTRUCTION PLACED ON THE ACT OF MAY 28, 1896, BY YOUR OFFICE, TO THE EFFECT THAT WARRANTS OF ARREST IN INTERNAL-REVENUE CASES CANNOT BE ISSUED UPON SWORN COMPLAINS OF THESE INVESTIGATORS UNLESS FIRST APPROVED IN WRITING BY THE UNITED STATES DISTRICT ATTORNEY.

THE ACT REFERRED TO PERMITS THE IMMEDIATE ISSUANCE OF WARRANTS OF ARREST IF THE COMPLAINT IS MADE BY COLLECTORS, DEPUTY COLLECTORS, OF INTERNAL- REVENUE AGENTS. THESE OFFICERS ARE NO LONGER CHARGED WITH THE DUTY OF SWEARING OUT WARRANTS IN LIQUOR CASES. THAT DUTY, BY OPERATION OF LAW, HAS DEVOLVED UPON INVESTIGATORS, WHO NOW STAND IN THE PLACE OF THE OFFICERS NAMED IN THE STATUTE.

THE ATTACHED MEMORANDUM SUBMITTED BY MR. BERKSHIRE, CHIEF ATTORNEY, ALCOHOL TAX UNIT, FULLY EXPLAINS THE SITUATION, AND COVERS THE APPLICABLE STATUTES, EXECUTIVE ORDER, ETC., ON THE SUBJECT.

IT WILL BE HIGHLY APPRECIATED IF YOU WOULD GIVE CONSIDERATION TO THIS MATTER, AS NOW PRESENTED; AND, SHOULD YOU DEEM IT PROPER, AMEND THE RULING MADE IN THE CASE OF UNITED STATES COMMISSIONER LOCKHART, SAN ANTONIO, TEXAS, IN ORDER THAT MUCH-NEEDED RELIEF MAY BE AFFORDED IN THE PROMPT ENFORCEMENT OF THE INTERNAL-REVENUE LIQUOR LAWS.

IN THE MEMORANDUM, DATED OCTOBER 3, 1934, OF THE CHIEF ATTORNEY, ALCOHOL TAX UNIT, BUREAU OF INTERNAL REVENUE, TO WHICH YOU REFER IN THE THIRD PARAGRAPH OF YOUR SAID LETTER, IT IS STATED:

THE RULING OF THE COMPTROLLER GENERAL WAS THE RESULT OF HIS CONSTRUCTION OF THE ACT OF MAY 28, 1896 (29 STAT. 184), AS AMENDED BY THE ACT OF MARCH 2, 1901 (31 STAT. 956, TITLE 18, U.S.C. 954). SAID ACT, AS AMENDED, READS AS FOLLOWS:

"EXCEPT AS PROVIDED IN SECTION 591 OF TITLE 28, WARRANTS OF ARREST FOR VIOLATIONS OF INTERNAL-REVENUE LAWS MAY BE ISSUED BY UNITED STATES COMMISSIONERS UPON THE SWORN COMPLAINT OF A UNITED STATES DISTRICT ATTORNEY, ASSISTANT U.S. DISTRICT ATTORNEY, COLLECTOR, OR DEPUTY COLLECTOR OF INTERNAL REVENUE OR REVENUE AGENT OR PRIVATE CITIZEN; BUT NO SUCH WARRANT OF ARREST SHALL BE ISSUED UPON THE SWORN COMPLAINT OF A PRIVATE CITIZEN UNLESS FIRST APPROVED IN WRITING BY A UNITED STATES DISTRICT ATTORNEY.'

IT WILL BE OBSERVED THAT UNDER THE LETTER OF THE STATUTE, SWORN COMPLAINTS EXECUTED BY A COLLECTOR OR DEPUTY COLLECTOR OF INTERNAL REVENUE, OR REVENUE AGENT, ARE NOT REQUIRED TO BE APPROVED IN WRITING BY A UNITED STATES DISTRICT ATTORNEY AS A CONDITION PRECEDENT TO THE ISSUANCE BY A UNITED STATES COMMISSIONER OF A WARRANT OF ARREST FOR VIOLATIONS OF THE INTERNAL-REVENUE LAWS.

THE DUTY OF SWEARING OUT WARRANTS FOR VIOLATIONS OF THE INTERNAL REVENUE LIQUOR LAWS HAS DEVOLVED, SINCE THE ENACTMENT OF THE LEGISLATION ABOVE QUOTED, UPON INVESTIGATORS OF THE ALCOHOL TAX UNIT. THE REFUSAL OF UNITED STATES COMMISSIONERS TO ISSUE WARRANTS UPON COMPLAINT OF SAID INVESTIGATORS, IN THE ABSENCE OF PRIOR APPROVAL IN WRITING OF THE COMPLAINT BY THE UNITED STATES ATTORNEY, IS CAUSING SERIOUS DELAYS IN THE ARREST OF VIOLATORS OF THE INTERNAL-REVENUE LIQUOR LAWS, DUE TO THE FACT THAT A UNITED STATES DISTRICT ATTORNEY IS NOT ALWAYS READILY AVAILABLE TO APPROVE THE COMPLAINT. FREQUENTLY THE UNITED STATES DISTRICT ATTORNEY'S HEADQUARTERS IS REMOTE FROM THE STATION OF THE UNITED STATES COMMISSIONER BEFORE WHOM THE INVESTIGATOR APPEARS. THE ESTABLISHED RULE IS THAT WHERE AN INVESTIGATOR ARRESTS A PERSON CAUGHT IN THE ACT OF VIOLATING THE INTERNAL-REVENUE LIQUOR LAWS, THE PRISONER MUST BE TAKEN BEFORE THE NEAREST UNITED STATES COMMISSIONER WHO IS AUTHORIZED GENERALLY TO ISSUE WARRANTS OF ARREST AND ACT AS A COMMITTING MAGISTRATE. ATTACHED EXCERPT FROM A LETTER WRITTEN BY THE UNITED STATES ATTORNEY AT LITTLE ROCK, ARK., SHOWS THE SERIOUS NATURE OF DELAYS INCIDENT TO THE COMPTROLLER'S ADVERSE DECISION.

WHILE THE WORD "INVESTIGATOR" DOES NOT APPEAR IN THE STATUTE CITED, THAT OFFICIAL, UNDER SUBSEQUENT ACTS OF CONGRESS, DEPARTMENT REGULATIONS, AND EXECUTIVE ORDERS, HAS BEEN SUBSTITUTED FOR, AND HAS TAKEN THE PLACE OF THE DEPUTY COLLECTOR OF INTERNAL REVENUE AND THE REVENUE AGENT IN PERFORMING THE DUTY OF DETECTING AND APPREHENDING VIOLATORS OF THE INTERNAL REVENUE LIQUOR LAWS. IT IS ALSO THE DUTY OF THE INVESTIGATOR TO APPEAR AS WITNESS AGAINST THE VIOLATOR AND TO ASSIST IN HIS PROSECUTION. THIS IS HIS DUTY TO THE EXCLUSION OF THE DEPUTY COLLECTOR AND INTERNAL-REVENUE AGENT, WHO FORMERLY PERFORMED THOSE FUNCTIONS.

IN TRACING THE PRESENT RIGHTS OF THE OFFICER NOW DESIGNATED AS "INVESTIGATOR," ALCOHOL TAX UNIT, INTERNAL REVENUE BUREAU, TO PERFORM THE FUNCTIONS OF ENFORCING THE INTERNAL REVENUE LIQUOR LAWS, PREVIOUSLY CONFERRED UPON DEPUTY COLLECTORS AND INTERNAL-REVENUE AGENTS, ATTENTION IS INVITED TO THE FOLLOWING:

THE ACT OF MARCH 3, 1927, 44 STAT. 1381, CREATING A BUREAU OF PROHIBITION IN THE DEPARTMENT OF THE TREASURY, PROVIDED:

"SEC. 4. (A) THE RIGHTS, PRIVILEGES, POWERS, AND DUTIES CONFERRED OR IMPOSED UPON THE COMMISSIONER OF INTERNAL REVENUE AND HIS ASSISTANTS, AGENTS, AND INSPECTORS, BY ANY LAW IN RESPECT OF THE TAXATION, IMPORTATION, EXPORTATION, TRANSPORTATION, MANUFACTURE, PRODUCTION, COMPOUNDING, SALE, EXCHANGE, DISPENSING, GIVING AWAY, POSSESSION, OR USE OF BEVERAGES, INTOXICATING LIQUORS, OR NARCOTIC DRUGS, OR BY THE NATIONAL PROHIBITION ACT, AS AMENDED, OR ANY OTHER LAW RELATING TO THE ENFORCEMENT OF THE EIGHTEEN AMENDMENT, ARE HEREBY TRANSFERRED TO, AND CONFERRED AND IMPOSED UPON, THE SECRETARY OF THE TREASURY.

"/B) THE SECRETARY OF THE TREASURY IS AUTHORIZED TO CONFER OR IMPOSE ANY OF SUCH RIGHTS, PRIVILEGES, POWERS, AND DUTIES UPON THE COMMISSIONER OF PROHIBITION, OR ANY OF THE OFFICERS OR EMPLOYEES OF THE BUREAU OF PROHIBITION, AND TO CONFER OR IMPOSE UPON THE COMMISSIONER OF INTERNAL REVENUE, OR ANY OF THE OFFICERS OR EMPLOYEES OF THE BUREAU OF INTERNAL REVENUE, ANY OF SUCH RIGHTS, PRIVILEGES, POWERS, AND DUTIES WHICH, IN THE OPINION OF THE SECRETARY, MAY BE NECESSARY IN CONNECTION WITH INTERNAL- REVENUE TAXES.

"SEC. 5. (A) THE SECRETARY OF THE TREASURY IS AUTHORIZED TO TRANSFER TO THE BUREAU OF PROHIBITION SUCH RECORDS, PROPERTY (INCLUDING OFFICE EQUIPMENT), AND PERSONNEL OF THE OFFICE OF THE COMMISSIONER OF INTERNAL REVENUE AS MAY BE NECESSARY FOR THE EXERCISE BY THE BUREAU OF PROHIBITION OF THE FUNCTIONS VESTED IN IT.

"/B) THE COMMISSIONER OF PROHIBITION, WITH THE APPROVAL OF THE SECRETARY OF THE TREASURY, IS AUTHORIZED TO APPOINT IN THE BUREAU OF PROHIBITION SUCH EMPLOYEES IN THE FIELD SERVICE AS HE MAY DEEM NECESSARY, BUT ALL APPOINTMENTS OF SUCH EMPLOYEES SHALL BE MADE SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE LAWS, NOTWITHSTANDING THE PROVISIONS OF SECTION 38 OF THE NATIONAL PROHIBITION ACT, AS AMENDED. THE TERM OF OFFICE OF ANY PERSON WHO IS TRANSFERRED, UNDER THIS SECTION, TO THE BUREAU OF PROHIBITION, AND WHO WAS NOT APPOINTED SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE LAWS, SHALL EXPIRE UPON THE EXPIRATION OF SIX MONTHS FROM THE EFFECTIVE DATE OF THIS ACT.'

IN CONFORMITY WITH, AND UNDER AUTHORITY CONFERRED BY, THE ABOVE SECTIONS, THE SECRETARY OF THE TREASURY ON APRIL 1, 1927, ISSUED AN ORDER (TREASURY DECISION NO. 1) PRESCRIBING THE DUTIES AND POWERS OF OFFICERS AND EMPLOYEES OF THE BUREAU OF PROHIBITION, INCLUDING THE FIELD SERVICE THEREOF. COPY OF SAID ORDER (TREASURY DECISION NO. 1) IS ATTACHED HERETO FOR CONVENIENT REFERENCE.

SECTION IV THEREOF CONFERRED UPON THE COMMISSIONER OF PROHIBITION ALL THE POWERS, DUTIES, ETC., PREVIOUSLY CONFERRED UPON THE COMMISSIONER OF INTERNAL REVENUE BY THE NATIONAL PROHIBITION ACT, AS AMENDED, AND ALL POWERS RESPECTING INTERNAL REVENUE BONDED WAREHOUSES, ETC. THE RECEIPT AND ACCOUNTING FOR MONEYS WAS RESERVED TO COLLECTORS OF INTERNAL REVENUE. THERE WAS ALSO CONFERRED UPON THE COMMISSIONER OF PROHIBITION ALL POWERS AND DUTIES PREVIOUSLY CONFERRED UPON THE COMMISSIONER OF INTERNAL REVENUE "BY ANY LAW" INSOFAR AS SUCH POWERS AND DUTIES RELATED TO---

(A) THE PRODUCTION, CUSTODY, AND SUPERVISION OF DISTILLED SPIRITS, ALCOHOL, WINES, FERMENTED LIQUORS, CEREAL BEVERAGES, DENATURED ALCOHOL, AND OTHER SUCH LIQUORS AND LIQUIDS;

(B) THE ESTABLISHMENT, CONSTRUCTION, OPERATION, CUSTODY, AND SUPERVISION OF DISTILLERIES, INDUSTRIAL ALCOHOL PLANTS, BONDED WAREHOUSES, DENATURING PLANTS, WINERIES, BONDED WINE STOREROOMS, BREWERIES, RECTIFYING HOUSES, DEALCOHOLIZING PLANTS, CEREAL BEVERAGE PLANTS, AND OTHER PLACES AT WHICH SUCH SPIRITS, LIQUORS, OR LIQUIDS ARE PRODUCED OR STORED.

(C) THE DETERMINATION, ASSERTION, AND COMPROMISE OF LIABILITY FOR, AND THE INSTITUTION AND COMPROMISE OF SUITS FOR THE RECOVERY OF, INTERNAL- REVENUE TAXES AND PENALTIES, BUT ONLY IN CASE A VIOLATION OF LAW RELATING TO THE ENFORCEMENT OF THE 18TH AMENDMENT IS INVOLVED, EXCEPT THAT ALL MONEYS SHALL BE RECEIVED AND ACCOUNTED FOR BY THE COLLECTORS OF INTERNAL REVENUE, UNDER THE DIRECTION OF THE COMMISSIONER OF INTERNAL REVENUE;

(D) INQUIRIES AND INVESTIGATIONS RELATING TO THE FILING OF RETURNS FOR OCCUPATIONAL AND COMMODITY TAXES AND PENALTIES IN RESPECT OF INTOXICATING LIQUORS, CEREAL BEVERAGES AND DENATURED ALCOHOL;

(E) THE SEIZURE, FOR VIOLATION OF THE INTERNAL-REVENUE LAWS RELATING TO INTOXICATING LIQUORS, CEREAL BEVERAGES AND DENATURED ALCOHOL, OF PROPERTY, WHETHER REAL OR PERSONAL (EXCEPT SEIZURE UNDER DISTRAINT WARRANT), AND THE CUSTODY, CONTROL, SALE AND DISPOSITION OF PROPERTY SO SEIZED;

(F) THE DISCHARGE OF LIENS, UNDER SECTION 902 OF THE REVENUE ACT OF 1926.

SECTION V OF THE ORDER (TREASURY DECISION NO. 1) PROVIDED:

"THERE ARE HEREBY CONFERRED AND IMPOSED UPON THE OFFICERS AND EMPLOYEES OF THE BUREAU OF PROHIBITION, INCLUDING AGENTS, INSPECTORS, AND OTHER EMPLOYEES IN THE FIELD SERVICE OF THE BUREAU OF PROHIBITION, ALL THE RIGHTS, PRIVILEGES, POWERS AND DUTIES CONFERRED OR IMPOSED UPON THE ASSISTANTS, AGENTS AND INSPECTORS OF THE COMMISSIONER OF INTERNAL REVENUE AND WHICH ARE TRANSFERRED TO AND CONFERRED AND IMPOSED UPON THE SECRETARY OF THE TREASURY BY SUBDIVISION (A) OF SECTION 4 OF THE ABOVE ACT OF MARCH 3, 1927. (1) BY ANY LAW INSOFAR AS SUCH RIGHTS, PRIVILEGES, POWERS, AND DUTIES RELATE TO ANY OF THE MATTERS REFERRED TO IN PARAGRAPH (2) OF SECTION IV OF THIS ORDER, OR (2) BY ANY LAW REFERRED TO IN PARAGRAPH (1) OF SECTION IV OF THIS ORDER.'

SECTIONS VIII AND IX CONFERRED UPON THE COMMISSIONER OF INTERNAL REVENUE, AND UPON HIS ASSISTANTS, AGENTS, AND INSPECTORS, RESPECTIVELY, ALL THE POWERS AND DUTIES CONFERRED (PREVIOUSLY) UPON THEM EXCEPT THE POWERS AND DUTIES CONFERRED "UPON ANY PERSON" BY SECTIONS IV, VI AND VII OF THE ORDER, BUT NOT EXCEPTING POWERS, DUTIES, ETC., RELATING TO "INTERNAL- REVENUE TAXES" WHERE NO VIOLATION OF THE LAW RELATING TO THE ENFORCEMENT OF THE EIGHTEENTH AMENDMENT IS INVOLVED.

FOLLOWING THE ESTABLISHMENT OF THE BUREAU OF PROHIBITION IN THE TREASURY DEPARTMENT, VIOLATIONS OF THE INTERNAL-REVENUE LAWS, INSOFAR AS THEY RELATED TO THE TRAFFIC IN LIQUOR, WERE HANDLED BY SAID BUREAU AND ITS FIELD FORCE CONTINUOUSLY UNTIL JULY 1, 1930. ON THAT DATE THE NAME OF THE BUREAU WAS CHANGED TO THE "BUREAU OF INDUSTRIAL ALCOHOL" UNDER THE ACT OF MAY 27, 1930, 46 STAT. 427, WHICH DELEGATED TO THE ATTORNEY GENERAL CERTAIN FUNCTIONS IN THE ADMINISTRATION OF THE NATIONAL PROHIBITION ACT AND CREATED A "BUREAU OF PROHIBITION IN THE DEPARTMENT OF JUSTICE.' SAID ACT, KNOWN AS THE "PROHIBITION REORGANIZATION ACT OF 1930," CONFERRED CERTAIN POWERS UPON THE ATTORNEY GENERAL TO ENFORCE THE NATIONAL PROHIBITION ACT, AND TO INVESTIGATE VIOLATION OF THE INTERNAL-REVENUE LAWS WHERE A VIOLATION OF THE NATIONAL PROHIBITION ACT WAS INVOLVED. THE DELEGATION OF THOSE POWERS AS ENUMERATED IN SECTION IV (A) OF THE ACT LEFT WITH THE BUREAU OF INDUSTRIAL ALCOHOL ALL OTHER FUNCTIONS WHICH IT HAD BEEN PERFORMING WHEN THE "PROHIBITION

THE AUTHORITY OF THE SECRETARY OF THE TREASURY TO DELEGATE BY TREASURY DECISION NO. 1 TO THE THEN COMMISSIONER OF PROHIBITION AND HIS FIELD AGENTS, THE RIGHTS, PRIVILEGES, POWERS, AND DUTIES UNDER THE ACT OF MARCH 3, 1927, WAS CHALLENGED IN THE COURTS. THE SECRETARY'S AUTHORITY TO MAKE SUCH DELEGATION HAS BEEN REPEATEDLY UPHELD. SEE DE MILO PERFUME CO. V. CAMPBELL, 27 FED.2ND. 568; UNITED STATES V. DIBELLA, 28 FED.2ND, 805; WYNNE V. MELLON, 52 FED.2ND, 404; AND DORAN V. KZIER CO., 60 FED.2ND, 259.

EXECUTIVE ORDER NO. 6639, WHICH BECAME EFFECTIVE MAY 10, 1934, ABOLISHED THE BUREAU OF INDUSTRIAL ALCOHOL AND THE OFFICE OF COMMISSIONER OF INDUSTRIAL ALCOHOL, AND TRANSFERRED TO THE COMMISSIONER OF INTERNAL REVENUE AND HIS ASSISTANTS, AGENTS, AND INSPECTORS THE "AUTHORITY, RIGHTS, PRIVILEGES, POWERS, AND DUTIES CONFERRED AND IMPOSED BY LAW UPON THE COMMISSIONER OF INDUSTRIAL ALCOHOL," LIKEWISE THE POWERS, DUTIES, ETC., CONFERRED AND IMPOSED UPON THE ATTORNEY GENERAL BY THE ACT OF MAY 27, 1930, EXCEPT CERTAIN FUNCTIONS IN CONNECTION WITH VIOLATIONS OF THE NATIONAL PROHIBITION ACT OCCURRING PRIOR TO THE REPEAL OF THE EIGHTEENTH AMENDMENT, ETC. SAID ORDER ALSO TRANSFERRED TO THE BUREAU OF INTERNAL REVENUE THE OFFICERS AND EMPLOYEES OF THE BUREAU OF INDUSTRIAL ALCOHOL, AND OFFICERS AND EMPLOYEES OF THE ALCOHOL BEVERAGE UNIT OF THE DIVISION OF INVESTIGATION, DEPARTMENT OF JUSTICE, EXCEPT THOSE OF "THE TAXES AND PENALTIES SECTION OF SAID UNIT.'

IN ADDITION TO THE POWERS AND DUTIES TRANSFERRED TO THE COMMISSIONER OF INDUSTRIAL ALCOHOL (THEN THE COMMISSIONER OF PROHIBITION) BY TREASURY DECISION NO. 1, AS ABOVE SET FORTH, AND RECOMMITTED SPECIFICALLY TO THE COMMISSIONER OF INTERNAL REVENUE, HIS ASSISTANTS, AGENTS, AND INSPECTORS BY EXECUTIVE ORDER NO. 6639, THERE WAS ALSO, BY THAT EXECUTIVE ORDER, TRANSFERRED TO THE COMMISSIONER OF INTERNAL REVENUE, HIS ASSISTANTS, AGENTS, AND INSPECTORS, POWERS AND DUTIES WHICH WERE VESTED IN THE COMMISSIONER OF INDUSTRIAL ALCOHOL BY THE APPROPRIATION ACT OF MARCH 15, 1934.

IT WILL BE NOTED THAT WHEN THIS APPROPRIATION ACT WAS PASSED, EXECUTIVE ORDER NO. 6639 HAD BEEN SUBMITTED TO CONGRESS, AND HAD BEEN PENDING THEREFOR 5 DAYS. CONSEQUENTLY, WHEN THE EXECUTIVE ORDER BECAME EFFECTIVE MAY 10, 1934, THE COMMISSIONER OF INTERNAL REVENUE, HIS ASSISTANTS, AGENTS, AND INSPECTORS BECAME VESTED WITH THE ADDITIONAL AUTHORITY TO ENFORCE THE ACTS ENUMERATED IN SAID APPROPRIATION ACT AS FOLLOWS:

"* * * THE NATIONAL PROHIBITION ACT AS AMENDED AND SUPPLEMENTED (U.S.C., TITLE 27) AND INTERNAL-REVENUE LAWS, PURSUANT TO THE ACT OF MARCH 3, 1927, U.S.C., SUPP. VI, TITLE 5, SECS. 281-281E), AND THE ACT OF MAY 27, 1930 (U.S.C., SUPP. VI, TITLE 27, SECS. 103-108), AND THE PROVISIONS OF THE ACT OF MARCH 22, 1933 (48 STAT. 16), AS AMENDED AND THE "LIQUOR TAXING ACT OF 1934," APPROVED JANUARY 11, 1934.'

UNDER THIS LAST GRANT OF POWER BY THE CONGRESS, AND ITS IMMEDIATE TRANSFER AS STATED, THE COMMISSIONER OF INTERNAL REVENUE AND HIS ASSISTANTS, AGENTS, AND INSPECTORS, WERE VESTED WITH AUTHORITY TO ENFORCE THE LAWS ENUMERATED IN THE ACT OF MARCH 15, 1934, INCLUDING THE ACT OF MAY 28, 1896, REGARDLESS OF WHETHER SUCH ASSISTANTS, AGENTS, AND INSPECTORS WERE DENOMINATED AS COLLECTORS, DEPUTY COLLECTORS, INTERNAL REVENUE AGENTS, OR AS INVESTIGATORS, INSPECTORS, ETC.

UPON THE ACCOMPLISHMENTS OF THIS FINAL TRANSFER OF THE ENFORCEMENT OF THE INTERNAL REVENUE LIQUOR LAWS ALONG WITH THE FIELD FORCES CHARGED WITH THE DUTY OF ADMINISTERING AND ENFORCING SAID LAWS, THERE WAS ESTABLISHED IN THE BUREAU OF INTERNAL REVENUE A UNIT KNOWN AS THE "ALCOHOL TAX UNIT" TO HANDLE THIS WORK. UNDER DATE OF MAY 10, 1934, TREASURY DECISION 4432, SIGNED BY THE COMMISSIONER OF INTERNAL REVENUE AND APPROVED BY THE SECRETARY OF THE TREASURY, WAS PROMULGATED. IT ESTABLISHED IN THE BUREAU OF INTERNAL REVENUE, THE ALCOHOL TAX UNIT AND DEFINED ITS JURISDICTION.

AN EXAMINATION OF THE TREASURY DECISION 4432 (SEC. 2), COPY ATTACHED, SHOWS THAT THE ALCOHOL TAX UNIT IS CHARGED WITH THE ADMINISTRATION OF THE INTERNAL REVENUE LIQUOR LAWS PRACTICALLY IN THEIR ENTIRETY, SAVING TO THE COLLECTORS OF INTERNAL REVENUE THE RECEIPT AND ACCOUNTING FOR MONEYS (WHICH FUNCTIONS THEY HAD ALWAYS RETAINED), AND THE DUTY OF MAKING "ROUTINE" INSPECTIONS OF PLACES OF BUSINESS OF RETAIL DEALERS IN LIQUORS.

SECTION 3 OF THE TREASURY DECISION 4432 READS AS FOLLOWS:

"3. THERE ARE CONFERRED AND IMPOSED UPON THE DEPUTY COMMISSIONER OF INTERNAL REVENUE IN CHARGE OF THE ALCOHOL TAX UNIT, AND THE ASSISTANTS, INSPECTORS, AND AGENTS UNDER HIS SUPERVISION, SUBJECT TO THE DIRECTION OF THE COMMISSIONER OF INTERNAL REVENUE AND SUBJECT TO SUCH REGULATIONS AS HE MAY PRESCRIBE FROM TIME TO TIME WITH THE APPROVAL OF THE SECRETARY OF THE TREASURY, ALL THE RIGHTS, PRIVILEGES, POWERS, AND DUTIES CONFERRED AND IMPOSED UPON THE SECRETARY OF THE TREASURY AND/OR THE COMMISSIONER OF INTERNAL REVENUE UNDER THE PROVISIONS OF THE EXECUTIVE ORDER OF MARCH 10, 1934 (NO. 6639), AND OF SECTION (A) OF THE ACT APPROVED MARCH 3, 1927, ENTITLED "AN ACT TO CREATE A BUREAU OF CUSTOMS AND A BUREAU OF PROHIBITION IN THE DEPARTMENT OF THE TREASURY," IN SO FAR AS THEY RELATE TO THE DUTIES TO BE PERFORMED BY THE ALCOHOL TAX UNIT AS ENUMERATED IN PARAGRAPH 2 HEREOF.'

THE "ASSISTANTS, INSPECTORS, AND AGENTS" UNDER THE SUPERVISION OF THE DEPUTY COMMISSIONER OF THE ALCOHOL TAX UNIT INCLUDE THE "INVESTIGATOR" WHO NOW HAS IMPOSED UPON HIM THE DUTY OF APPREHENDING, ARRESTING, AND PROSECUTING VIOLATORS OF THE INTERNAL REVENUE LIQUOR LAWS. THESE DUTIES IN RESPECT TO SAID LAWS ARE THE SAME AS WERE PERFORMED BY DEPUTY COLLECTORS AND INTERNAL REVENUE AGENTS AT THE TIME THE ACT OF MAY 28, 1896, WAS PASSED, AND AT THE TIME IT WAS AMENDED ON MARCH 2, 1901. WILL BE SEEN THAT THE DUTY OF SWEARING OUT WARRANTS FOR THESE PARTICULAR VIOLATIONS WAS, BY OPERATION OF LAW, TAKEN FROM DEPUTY COLLECTORS AND INTERNAL REVENUE AGENTS, AND IMPOSED UPON OTHER FIELD OFFICERS SPECIALLY CHARGED WITH THAT DUTY, WHICH FIELD OFFICERS ARE NOW KNOWN AS "INVESTIGATORS" OF THE ALCOHOL TAX UNIT, BUREAU OF INTERNAL REVENUE.

IT APPEARS, THEREFORE, THAT THE OFFICER NOW DESIGNATED AS INVESTIGATOR IS CLOTHED WITH ALL THE PRIVILEGES, DUTIES, AND FUNCTIONS THAT A DEPUTY COLLECTOR OR REVENUE AGENT FORMERLY WAS CLOTHED WITH IN THE MATTER OF DETECTING AND PROSECUTING VIOLATORS OF THE INTERNAL REVENUE LIQUOR LAWS.

IT THUS APPEARS THAT PURSUANT TO STATUTORY AUTHORIZATION, EXECUTIVE ORDERS, AND AUTHORIZED TREASURY REGULATIONS THE EMPLOYEES OF THE ALCOHOL TAX UNIT OF THE BUREAU OF INTERNAL REVENUE WHO ARE DESIGNATED AS "INVESTIGATORS" NOW ARE CLOTHED WITH ALL THE POWERS, DUTIES, AND FUNCTIONS THAT THE DEPUTY COLLECTOR OF INTERNAL REVENUE FORMERLY HAD IN THE MATTER OF DETECTING AND PROSECUTING VIOLATORS OF THE INTERNAL REVENUE LIQUOR LAWS. THEREFORE, IT APPEARS THAT OPERATIVES OF THE ALCOHOL TAX UNIT, BUREAU OF INTERNAL REVENUE, WHO HAVE BEEN APPOINTED AS "INVESTIGATORS," ARE NOW CHARGED WITH THE DUTY OF APPREHENDING VIOLATORS OF THE INTERNAL REVENUE LIQUOR LAWS, HAVING SUCCEEDED THE DEPUTY COLLECTORS OF INTERNAL REVENUE AS TO SUCH DUTY.

UNDER THE CIRCUMSTANCES DISCLOSED BY THE PRESENT RECORD, IT WOULD SEEM TO BE CLEAR THAT THE STATUTORY AUTHORITY CONFERRED UPON UNITED STATES COMMISSIONERS BY THE ACT OF MAY 28, 1896, C. 252, SECTION 19, 29 STAT. 184, AS AMENDED BY THE ACT OF MARCH 2, 1901, C. 614, 31 STAT. 956 (TITLE 18, U.S.C. P. 594), TO ISSUE WARRANTS OF ARREST FOR VIOLATIONS OF INTERNAL REVENUE LAWS ,UPON THE SWORN COMPLAINT OF A * * * DEPUTY COLLECTOR OF INTERNAL REVENUE, OR REVENUE AGENT," MAY NOW BE CONSTRUED, INSOFAR AS VIOLATORS OF THE INTERNAL REVENUE LIQUOR LAWS ARE CONCERNED, TO AUTHORIZE THE ISSUANCE OF WARRANTS OF ARREST UPON THE SWORN COMPLAINT OF AN "INVESTIGATOR" OF THE SAID ALCOHOL TAX UNIT.

ACCORDINGLY, WHERE COMPLAINTS FILED WITH A UNITED STATES COMMISSIONER CHARGING VIOLATION OF THE INTERNAL REVENUE LIQUOR LAWS ARE SWORN TO BY AN "INVESTIGATOR" OF THE ALCOHOL TAX UNIT, BUREAU OF INTERNAL REVENUE, IT IS NOT NECESSARY THAT SAME FIRST BE APPROVED IN WRITING BY A UNITED STATES DISTRICT ATTORNEY IN ORDER TO ENTITLE THE COMMISSIONER TO THE STATUTORY FEE ALLOWABLE FOR THE ISSUING OF THE WARRANTS OF ARREST THEREON.

THE DECISION OF AUGUST 6, 1934, A-56547, CASE OF P. A. LOCKHART, UNITED STATES COMMISSIONER, WESTERN DISTRICT OF TEXAS, IS HEREBY MODIFIED ACCORDINGLY.