The south-western. [volume] (Shreveport, La.) 1852-1870, 1866-04-11
Licenses Of Wholesale Dealers.

Licenses of Wholesale Dealers
Our attention has been, several times, called to a
circular issued by Thomas Philips assistant assessor of
this district addressed to the wholesale merchants of
this place. in regard to the reassessment Of their
licenses, on the ground that the first assessment was
moderated. Here Is the circular alluded to
ASST Assessors OFFICE, U. S. IsrEESAL REVENUE,
1lth Digision, 80 District Of Lollisiana
March 80 1866
Sir-You are hereby notified to make a return of
the total amount of your sales from the ist Of July,
1866, to the lst of April, 1866, to me, within ten
days in order to enable me TO make reassessment
of your license as wholesale dealer in accordance
with section 80 of the internal revenue laws. All
sales Of cotton made by you, or your account,
must be included as part Of your sales, as also all
sales Of cotton made by YOU, on commission, for
others. Yours, ob't,
Thomas PHILLIFs, A. A.
From the above, it will be seen that a Wholesale
dealer is required return not only his sales
but those made by his commission merchant on bis
account, as his sales, although the commission
merchant has already paid the proper tax. This pay
ing tax twice the capital invested in one adycn-
ture is where the shoe pinches According to this
ruling Of the assessor, that is what our wholesale
dealers compelled to do. Without any further
internal revenue laws bearing on the case, and the
decision Of the treasury department in similar case
and leave the reader to draw his own conclusions.
The following is section 50, spoken of in the asses
sors circular
Sec SO. Ahd be Il further enacted That where the
annual gross receipts sales of any apothecaries
coheetoners, eating-houses tobacconists, or retail
dealers, except retail dealers in spiruous and malt
li0uOrS lnll not pxppad thn If onn
dollars such apothecares confectioners eating houses
obacconists and retail dealers shall be required
to take out pay for license anything in this act to
the contrary notwithstanding; the amount or est
mated amount OF such annual sales to be ascertaned
or estimated in such manner the commissioner of
internal revenue shall prescribe and SO of all other
annual sales or receipts where the rate of license is
graduated by the amount of sales or receipts; and
where the amount Of the license rate has been in
creased, or is liable to be increased by law above
the amount of any existing license to any person,
firm, or company, or has been underslated under
estimated such person, firm, or company shall be
again assessed and pay the amount of such increase
which shall be Endorsed the original license which
shall thereafter be held good and sufficient. g..
Section 70 relates to the amount Of the license for
wholesale Dealers and is as follows:
Sec 49, Aud be it further enacted
3D. Wholesale dealers, whose annual sales do not
exceed fifty thousand dollars shall pay fifty dollars
Tor eaCD ucenSe ana II exceeding nifty thousand dol
lars, for every additional thousand dollars in excess
of fifty thousand dollars, one dollar. Every person
shall be regarded wholesale dealer under this act
whose business it is to sell offer to sell any goods
wares, merchandise Of foreign domestic produc-
tion not including wines, spirits malt liquors.
whose annual sales exceed twenty-five thousand dol
lars. And the license required by any wholesale
dealer shall not be for less than his sales
for the previous year. unless he has made proposes
to make change in his business that WILL in the
Judgment of the assessor assistant assessor reduce
the amount of his annual sales; shall any license
as wholesale dealer allow any person to act as
commercial broker: pr0rided that any license under
stated may and shall be again assessed and that no
person holding license wholesale dealer in liquors
shall be required to take additional license on ac-
count of the sale Of other goods, wares merchan
disc on the same premises.
According to the assessors ruling, be is compelled
to make reasscssnent on the ground that the first
moderated He bases his ruling on the following
decision of the treasury department issued at Wash
ington, August 5, 1865:
Under the second paragraph of section 70 of the
act Of June 80, 1865, the license tax Of wholesale
dealers is to be determined by the Of their an
nua sales, and the question arises Shall the sales
made through a broker be included in ascertaining
said amount?
is claimed that such sales are not to be included
in where they completed by the broker and
where the books of the dealer kept as to show
clearly that the merchandise claimed to be exempt
was sold through broker.
In the ordinary sense Of the word broker Is an
agent employed effect bargains and contracts as
middle man, negotiator between buyer and seller
for a compensation payable by the latter commonly
called brokerage. He takes possession as broker
of the sub ect matter of negotiation. He generally
contracts in the names of those who employ him /
(See w ebsters unabridged dictionary
The revenue act defines a commercial hrOkerr tn
be "any person firm whose business it is as bro
ker to negotiate sales purchases Of goods wares
produce, merchandise not otherwise provided for"
&c, &c.
Brokers are required by the act to take out licenses
Brokers, and bankers doing business brokers' are
subject to the payment Of certain taxes on their sales
Section 99) All the definitions go to show that the
business of a broker is peculiar and entirely distinct
from that of wholesale dealer, and certain specified
axes are imposed upon ham as broker The amount
IF this tax is made to depend upon the amount Of his
business. Of his liability under the law to pay GER
ain percentage upon his sales there can be no doubt.
He IT, nevertheless, simply an agent Of the person
who employs him, and his agency in most cases may
De regarded limited His acts are not bind
ng until ratified by his principal. The completion of
he bargain and sale by such ratification and BY the
delivery Of the goods is then, the act of the principal
lone The entire transaction is the act of the prin-
ipal 1t is a familiar maxim of the law that what
ver person does through his agent, he does him
elf and when dealer places bis merchandise in the
lands of a broker as his special agent, the sale is
zone the less made by himself simply because the
aw imposes certain obligations aud duties upon the
particular class Of agents which he has seen fit to
mploY.
1t is objected that under this construction of the
aw twofod license tax is imposed upon the sales of
Wholesale dealers made through brokers and auction
ers. The same objection might, however, be made
nth equal pausibilty, where goods and merchandise
ass by sale through the hands Of several different
callers each Of whom is required to have license
ased upon the amount of his sales.
The fact that the dealer is compelled to take out
censc based upon the entire amount Of sales made {
9th by himself and through broker, does not re-
eve the broker from his liability to pay the taxes
hargeable against him.
He negotiates bis sales as a broker" in the man
er such negotiations are usually made by brokers
nd he is required to pay percentage upon those $
lies in which he has performed his peculiar duty
he letter of the law, even, does require that the
lie should be actually made and completed by him, to
,nder him liable to taxation. Section 90 requires >
brokers, and bankers doing business brokers, to
ay percentage, not merely upon sales made by Fl
lem, but upon the sales" This phraseology is re- !
lined throughout the entire section, and it is not
r to infer that congress designed tax brokers mon
tha aAIps' nf merchandise Gn in which tbay had