New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-08-07

INTERNAL REVENUE DECISION.

INTERNAL REVENUE DECISION.
The Commissioner of Internal Revenue has
Just made the following important decision relative to
brokers' sales and dealers licenses;
Under the second Of section &c Of the Act Of
June 80 1864 the license tax OF wholesale desiers 20
DO determined by the amount OF their annu sales ana
the question arises shall the sales made through
broker be included in ascsr.aining said amounti
1t is claimed such sales not TO be included In
cases where they are completed by the broker ana
who're the books OF the dealer are kept Us to show
clearly that the merchandise claimed to DO exempt
wassod through broker.
In the popular Of the word broker an agent
employed to effect bargains and contracts. as middle
man or negotistor between buyer and seller for cyr
pensatiou payable by the latter. commonly called
brokerage. He takes no possession as broker OF the
subject matter OF negotiation. He generally contracts
in the names Of those who employ him. See Websters
Unabridged Dictionary.l
The Revenue Act defines Commercial Broker" TO
be ANY person or firm whose business 1t is, as
or merchandise, not otherwise provided Tor, &C., &C.
Brokers are required by the Act to take out licenses
Brokers and Bankers doing business as oros' aye SUD
joct to the payment Of certain taxes upon their sales
(Sec. 99 All the definitions go to show that the busi
ness OF broker Is peculiar and entirely dlsthcI from
that Of wholesale dealer. and certain specihed taxes
are imposed upon him q broker The amount OF THIS
tax is made 10 depend upon the amount OF his business
OF his liability under the law to pay certain percent.
age his sales there can be no doubt de Is neverthe,
ess simply an agent OF the person who employs him. and
his agency in most may be regarded as limited
one His acts not binding until ratified by his prn-
cpal the completion Of the bargain and SALE by suoh
ratification and by the delivery OF the goods Is then the
act of the principal alone The entire transaction Is the
act OF the principal 1t Is familiar maxim OF the law
that whatever person does through his agent ne does
himself" and when dealer places his merchandise in
the hands OF broker his special agent the sale s
none the less made by himself simply because the law
imposes certain and duties upon the parcu
lar class Of agents which he has seen fit TO employ
1t is objected that under this construction OF the law
two.fold license tax Is imposed upon the sales OF
GERS The same objection might however, be made.
and with equal plausibity, when goods aud merchan-
disc pass by sale through the hands OF several different
dealers each Of whom Is required to have acense Dased
upon the amount OF his sales.
The fact that the dealer is compelled to take out II.
cense based upon the entire amount Of sales made both
BY himself and through broker does not relieve the
broker from his liability to pay the taxes chsrgeabe
against him He negotates his sales as broker" in
the manner such negotiations are usually made by
brokers; and he Is required to pay percentage upon
duty. The letter OF the law even. does not require that
tho sale shosld be actually made and completed BY him.
to render him liable to taxation. Section 80 requires
brokers and bankers doing business as pay
a percentage, not upon sales made by them. but upon
"s sales" This phraseology Is retained throughout
the entire section. aud 1t Is not unfair to infer that Con-
gress designed to tax brokers upon the sales OF mer
chandse &c in which they had performed their duties
az brokers' and for which they are entitled TO broker
age.
on sales OF their stocks, bonds &C.. &c. as well as
those belonging TO others"
liza wholesale dealer takes license sue,ionesr
and sells his own goods well the goods OF dnother
person. at auction he would not under the law
strued by this Office be relieved from tie payment OF
the percentage tax imposed by section ". II then
Wholesale dealers license does not relieve him from the
payment of the lawful taxes when he sells his oDn goods
together with the goods OF another as broker Or auc'
toneer II hardly be claimed that any other person
who acts rs his agent In the capacity OF broker or auo
.hv ha oil akaHfh
1t must be held. therefore. that the sales which
wholesale dealer make through brokers and
to bo included in the amount OF annual sales upon
which the license OF such dealer is based aud that the
license OF the wholesale dealer does not rele's the
brokers and auctioneers through whom he makes his
sales from their liability TO taxation under sections W
and " of the act Of june 80 1864.
PRIzR CASES
The claims of the officers and crews of the
following list Of vessels with their prizes have been
admitted at the Fourth Auditors Office, and are now
ready for payment;
Mary Ann and q bales OF cotton, captnred by Itas.
ca; Susan. captured by Roebrck % bales OF cotton
Waves and cargo. captured by Conemaugh; oscar
CAPTURED by San Jacinto and tenders; Roebnck, cap
tured by San Jacinto and tenders; William. captured
by San Jacinto and tenders; bales Of cotton and
barrels turpenne captured by San Jacinto and tend
ers Lila, captured by Quaker Cityi sai.boats and
cargoes captured by Corypheus Josephine captured
Sonoma Lydia. captured by Beaurcgard; Julia. cap.
tured by Chooura; 207 bales Of cotton. captured Dy
Prairie Bird Romeo Exchange Louisville. Marmors'
and Petrol; General Finnegan. captured BY san "a;
cinto and tenders Two Sisters, Fox, Sea Bird. ana
ceoa Britannia. and Trstran Shandy; Hancock. cap
tured by Supaower; sloop Neptune captured BY san
flower and tenders, stonewall Honduras anu , .,
Badrer CAPTURED by Ades boats and bales cotton.
captured by Commodore. sloop. captussd, by y, II.
Lee, Minnie. captured by Beaursgard; Ms'iaA oap
tured by Penobscot.
INTERNAL REVENUE RECEIPTS
I'LL. -. Can, Intnrnal Revenue on Sal.