The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-06-07
Important to BANKERS ind brokers.
UNITED STATES CIRCUIT COURT.
V,.f.

Before Judge Nelson
JrSE 6--The United States u.s. Robert L. Cutting Jr., and
j. W. Cutting-Ths is action involving what appears
to be verata qucso among the legal fraternity and was
brou ht with view Of testing the soundness of
the other Of dissentent opinions In this particular
instance the suit ia brought by the Commissioner
Of Internal Revenue, who, assisted by the legal
Of the United States District Attorney and others
learned in the law supports certain construction
of the ninety ninth section OF the Internal Revenue act
which entirely at variance with that held by the de-
PENDANTS and their cousel. The question: as il affects
the immediate ISSUE would not be OF much consequence
TO either side but Its decision great deal depends
to the government in the shape OF revenue from a
and wealthy class in the community, and to
bankers and brokers tax tax upon portion Of
their business. good many similar cases will be de-
cided by this onc-the present having been merely
whole matter TO the judgment Of the Court The
questions submitted are Are the defendants liable
by the ninety ninth section on sales of stocks, COIN
bonds and securities owned and held by them,
and in thor own right. as well as on those made by
them AZ brokers for others and for n commission
Should this question be answered afnrmatvey, judg
ment would necessarily be rendered against the de.
PENDANTS for the amount claimed with costs, without
prejudice the right Of the United States TO claim and
any further sums that might be found TO
be due TO the said defendants for duties II negatively,
judgment must be rendered In favor Of the defendants
with costs and the action dismissed 10 either case II
is of great importance 10 the ltigane there being
Mr. DICKINSON United States District Attorney for the
government in opening his argument sadThe question
submitted 70 his Honor whether licensed brokers
or bankers either Them liable 70 pay tar duty
on their saes Of stocks bonds coin, bullion, moneys,
securities &C. made their account and not for and
account Of Others under the provision Of the ninety
ninth section Of the act Of June, 1854, as amended
by the act Of March, 1895. BY section II OF said
oct provided that no person. nrm company or cor
poraton shall be engaged In prosecute, or carry
on any trade, business, profession, &C, until
no shall have obtained . license for the same
BY subdivision OF section 70, the cost OF bankers
license In nxed and banker within the meaning OF tho
act In defined 70 be follows:"Every person, nrm or
corporation and every corporate ~ other hank having
place Of business where accoants opened or moneys
loaned, &C. where Stocks bonds bullion bills Of o..
change promasory notes ere reviewed for discount
sale" BY subdivision Of tire same section, brokers'
are defined 70 bc:-"Evcry person, nrn OF company,
except such - hold Licences bankers, whese business
h broke 70 negotiate purchases or sales Of stock,
other securities for themselves Others shall be re-
garded ~ brokers under this sct providing thai any
person holding . license - Q banker shall not
be required 70 lake license broker" BY section %
provided that all brokers and bankers doing business
"A brokers shall be subjected to pay the following duties
and rates Of duties sales OF merchandise, moneys,
stocks bonds, foreign exchange uncurrent money, &c
Now, the primary object OF the act Mr. Dickinson con
tended, vas TO secure revenue and, secondly, an In
creased revenue, by the amendment OF March, 1893
The act defines banker who receives stocks,
bonds, bullion, moneys notes. &C, for sale, and bro
ker 40 ono Who whether he cells for himself others
the securities enumerated, fhan pay duties all and
saS ssass u Meeh. &C.. whether er othsn and % cam