Theodore R. McKeldin, Governor                     229

115C. (Definitions—Cost, in General), (a) "Cost of the whole-
saler" means the basic cost of cigarettes to the wholesaler plus a
markup to cover the cost of doing business by the wholesaler plus
the full face value of any cigarette taxes payable by the wholesaler
on the cigarettes sold. In the absence of satisfactory proof of a
lesser cost of doing business by any wholesaler, his cost of doing
business shall be presumed to be four per cent, of the basic cost of
cigarettes to him. Any fractional part of a cent, amounting to one-
tenth of a cent or more, in the cost to the wholesaler per carton
of ten packages (or per unbroken case of a single brand sold in case
lots by the wholesaler to any single retailer) shall be rounded off
to the next higher cent.

(b)  "Basic cost of cigarettes" means the invoice cost of cigarettes
to the retailer or wholesaler as the case may be or the replacement
cost of cigarettes to the retailer or wholesaler (i.e., the cost for which
cigarettes could have been bought by the wholesaler or retailer at
any time within SO days prior to the date of sale by the wholesaler
or retailer if bought in the same quantity as the last purchase made
by him), whichever is lower, plus in-freight charges to the whole-
saler not otherwise included in invoice or replacement cost, less all
trade discounts and discounts for cash, plus cartage to the retailer
if done or paid for by the wholesaler or the retailer as the case may
be. In the absence of satisfactory proof of a lesser amount, cartage
shall be presumed to be three-fourths of one per cent, of the sum of
invoice cost or replacement cost, whichever is lower, as aforesaid,
plus in-freight charges as aforesaid, if any, minus all trade discounts
and discounts for cash.

(c)  "Cost to the retailer" means the basic cost of cigarettes to
the retailer plus a markup to cover the cost of doing business by the
retailer. In the absence of satisfactory proof of a lesser cost of doing
business by any retailer, the cost of doing business by the retailer
shall be presumed to be 8 per cent, of the basic cost of cigarettes to
the retailer. Any fractional part of a cent per carton of ten packages
amounting to one-tenth of a cent or more in the cost to the retailer
as aforesaid shall be rounded off to the next higher cent.

115D. (Miscellaneous Special Cost Provisions), (a) (Sales of
Cigarettes at Wholesale on Cash Basis.) In any sale of cigarettes
at wholesale on a cash basis (i.e., where cigarettes are not delivered
unless the full price thereof is received by the seller at or before
delivery) the presumptive wholesale mark-up of four per cent, pro-
vided in sub-section (a) of the preceding section may be reduced to
not less than 3 3/4%.

(b)   (Seller at Both Retail and Wholesale). Any person who is
engaged in the business of making sales both at retail and at whole-
sale is a retailer as herein defined as to the retail portion of his
business, and a wholesaler as to the wholesale portion.

(c)  (Retailer and Vending Machine Operator Receiving Wholesaler
Discounts). Any vending machine operator, as herein defined, and
any retailer who purchases cigarettes at prices ordinarily invoiced
to a wholesaler and receives the wholesaler's dicsounts thereon, shall
first add to his basic cost of cigarettes the four per cent, mark-up
to cover the cost of doing business as a wholesaler, and then, on the
resultant sum, the retail mark-up of eight per cent, as herein pro-