The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-05-21

The Commissioner OF Internal Revenue has rendered
decision OF taxing sales Of government secari
ties aud other stocks sold by brokers 10 each other
tber own account Hitherto they have not regarded the
law in this light, and they therefore 'sxerciscd
upon the subject They have been 10 the habit OF max
Ing return the sales their account only
thereby assuming privileges for themselves which the
latter could enjoy The sales Of gold and stocks
is however one which, 10 the absence of a tax all
esbcs clearly incon sistent, and the which pro-
voked the gold tax having died out II longer be
resumed 70 useful purpose The present taS law Is
OF gruItie which stands in great need OF
vision. Everything taxed and yet the revenue pro-
duced Is less thln might be derived from the taxation OF
few leading articles Of consumption. This is matter
which calls for the investigation OF the
Tax Commission a, Washington, which De.
teve has not yet commenced It's labors,
but which ought been done before this time in
accordance with the authority given by Congress. Tho
declsioo referred TO is here gven:-
TRRAsuar DEPARTMENT
OryIcv INTERNAL REvESUr,
WASHINGTON, May 12. 1895
SAVIOUR communication Of May 3, In relation to the
application OF the brokers be relieved from the tax
upon the sales Of their stocks has been received and
examined
II does no, seem to be necessary take up and
consider your several positions Ia detail; but will
question at issue
Section ninety nine imposes tax upon the sales Of
bankers doing business brokers. IL does
not undertake To define what meant by the term
brokers" The tax Is imposed upon the sales OF mer
chandse. produce bullion, stocks. exchange notes &c,
and therefore, by VS. terms embraces at least three
classes OF brokers the distinction between whom Is well
Understood. In erecrting the ac, VIC must seek the
meaning OF the term bfoker and in doing shouid
naturally look first other parts of the act to
" the Term Ia therein denned am not aware that
we are confined 10 any particular portion OF the act for
this but II such definition 10 given, the Legislature ncor
poraed into that part OF the law which Is The most con
venien having regard to the subject matter IN tho
Iauv HrA ,uAr f11
section seventy nine specifically defined aud
the several classes accurately distinguished and having
found tbs need look no further. Congress having
made the It's interpreter, are not at liberty
10 20 outside of II for denni,ou cannot admit that
chs act Is made up o several disconnected parts inde
pendeny Of each other n your art division sections
ono 70 nfty two inclusive stricken out all the rest
must fall because thsse would DO no organlzson and
che balance stricken out there would be nothing
Cor the organization or officers to execute. The
Amendments 70 the act, inserting 10 the definition OF
ga broker" ~ given w the old law the words, ';or
themselves Others" and striking out tho provision
were made for commission, "a suggestive BuI On.
dcrsiaud your argument W rect mainly upon tho
position that this dennaon has no application 70 section
che definition given 10 paragraph nine section seventy
soo, above referred TO- must govern and that the tax
mua be collected upoe sales Of Stocks &C., whether
where a party il dolug business commercial
broker and also sss rs sws Dc act ss' IN
oacr fcr sale goods on his own accOune he H. dealer
sud liable 10 The license tax graduated upon the amount
OF hes sales UPON bis sales - broker Re pays TIE YAK
sspcsed BY section ninety alns upen his ss,ss %
caor he pays the license tax impoeo ~ eeeson seven.
~ nine. paragraphs Two and three. NY.
Bankers afe MOI required 10 take iiconso ~ Dr0kem
Do. f they do busip--s brctss. ~ srs iiasls 70
Ahc las imposed by section ninety nse sn9 q The same
rate ~ brokers' and the broker who should throw aside
hs license as broter sndtake bankers cense, could
6nd himself In no bett pceiton than bebre he wousA
mot 10 that way relieve himself from single liability
nndcr this section.
The proposition TO tar sales 10 which ycu rsfsr snd
shich did not pass Congress- upon tire snlsg -
ecuriics and hcrere has bearing upon the p1sssus
o.c4lion.
Sahs 4 pursuing the argument, furthgr must hcsd