In the spring of 1906 the National .Congress passed an act which became a law January 1, 1907, permitting the withdrawal from bond, tax free, of domestic alcohol, when denatured or rendered unfit for a beverage by the addition of certain materials repugnant to the taste and smell. A portion of this act reads as follows:
“Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That from and after January first, nineteen hundred and seven, domestic alcohol of such degree of proof as may be prescribed by the Commissioner of Internal Revenue and approved by the Secretary of the Treasury, may be withdrawn from bond without the payment of internal revenue tax, for use in the arts and industries, and for fuel, light and power provided said alcohol shall have been mixed in the presence and under the direction of an authorized Government officer, after withdrawal from the distillery warehouse, with methyl alcohol or other denaturing material or materials, or admixture of the same, suitable to the use for which the alcohol is withdrawn, but which destroys its character as a beverage and renders it unfit for liquid medicinal purposes; such denaturing to be done upon the application of any registered distillery in denaturing bonded warehouses specially designated or set apart for denaturating purposes only, and under conditions prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury.”
Davidson, J. B. and King, M. L.
"Comparative values of alcohol and gasoline for light and power.,"
Bulletin: Vol. 8
, Article 1.
Available at: https://lib.dr.iastate.edu/bulletin/vol8/iss93/1