DEPARTMENT OF THE TREASURY
                Bureau of Alcohol, Tobacco and Firearms
                         Washington, DC 20226

                                                           T:T:F:JBC
                                                           

                              FEB 25 1976

Gentlemen:

The January 15, 1976, issue of the Shotgun News contains an
advertisement by you offering for sale a "Wallet-Holster" designed
specifically for concealing and firing a High-Standard derringer
pistol and other derringer pistols.

Section 179.11 of Part 179, Title 27, Code of Federal Regulations,
defines a pistol as follows: A weapon originally designed, made,
and intended to fire a small projectile (bullet) from one or more
barrels when held in one hand, and having (a) a chamber(s) as an
integral part(s) of, or permanently aligned with, the bore(s); and
(b) a short stock designed to be gripped by one hand and at an
angle to and extending below the line of the bore(s).  The term
shall not include any gadget device, any gun altered or converted
to resemble a pistol, any gun that fires more than one shot,
without manual reloading, by a single function of the trigger, or
any small portable gun such as: Nazi belt buckle pistol, glove
pistol, or a one-hand stock gun designed to fire fixed shotgun
ammunition.

Placing the High-Standard derringer in the "Wallet-Holster" negates
the use of the birdshead type stock which can no longer be gripped
by the hand in the conventional manner.  The derringer thus becomes
a concealed gadget device in the same category as a can gun, a belt
buckle pistol, or a cigarette lighter gun, and is classified as
"any other weapon" in the amended National Firearms Act of 1968.

                                 - 2 -

There is no violation of the National Firearms Act in the mere
possession of a derringer with a rifled bore, nor in making,
transferring, or receiving a "Wallet-Holster" designed to contain
the derringer.  However, any person who might possess the installed
combination of the High-Standard derringer or any other derringer
designed to be carried and fired in the "Wallet Holster" would be
in possession of a "firearm" as defined in Section 5845(a)(5) of
the Act.  Such a firearm is subject to the tax imposed under
Section 5821, and to the making provisions of Section 5822  of the
Act.  Sections 5811 and 5812 on transfer taxes and transfer
provisions are also applicable.  Publication 603 (Rev. 6-74) and
its 1975 Supplement, ATF P 5300.5, which contains the sections of
law mentioned above, are enclosed for your convenient reference.

We strongly recommend that you publish a warning sheet which
outlines the status of these commodities to accompany the sale of
each "Wallet-Holster."  Such action on your part would be prudent
business practice.  Please contact us or our nearest Alcohol,
Tobacco and Firearms Office is you have any questions concerning
the contents of this letter.

                           Sincerely yours,

                           A. Atley Peterson
                       Acting Assistant Director
                  (Technical and Scientific Services)

Enclosure