, 1869-08-20
ings OF Judge Nccunn upon any such grounds Q
irEe9ulaatJ had the Judge any Jurisdiction I
uaIe nnIurdef In tbs pFeul$e6.
REVENUE DECISION.
The Tax on Bank8ra to be Enforced
Fashfn3son (August ~ Despateh to lie cs1.sin4an
Commercial

The Tax on Bankers to be Enforced.
Easha,7.an lAugust - Despa.eh to lie cs,..in.an
cossmeIesaa.
the New York brokers who sh1d BEEN saeaSsesj Jo<
d hsary tax on their dealings In stoekn Ac, hsa
brought the matter hefotn the ComntsGtouer q;
argue The 4ucsrons involved. To-day COceml..
siouer Dc!ano decided tnss the brokers saouiii b..
a1e Ine 5fsat = o. Seat ~ T. Business
corcclus the general publ1c, since the conmis-
Eoret's dectai01 bGtu48 To the Treasury about onn
hundred thousand dollars per week from soarce1
which have never paid tax before. The following
Is cory Of khe decision:
"ln the matter 0! Wood i Reich, It IT, Calming
to he brokers and bsnkera
"The application Of Wool i Reich, and others,
Of New YORK. but residing IN Brooalyn. srts
Se u s so Circuit tor se Eassfa H.,
ta1es ansi penalties alleged to be due from then,
jane = ISL Tho apnteaats faaher state
struetlon sisen + to ~, snas section by .ae late
hitherto known anh taxed al brokers, parties
Whoae business It xas to purchase aoi sell s:orks,
bonds, bullion, colued money, &C, Tor themselves
were engaged iu the business Of banking. AMI lla-
bic TO tax Of 1-A OF one per cent Oh thr average
amount Of money employed IL payment lot 9ach
aaa s1ls' sellers v.taeni eompiesips esu,r.::s
BY ceIlverine and receiving: THY IL,
III 20 means .sa Of % tnawtns t,t sucn II tas sy
Claim would te made, and respectfully submit th..
hartshr Of mating such constructions rctru.r
tlTc They claim thnt tho business OF bGFln., anu
selling s1fCGa, bundK, .kc., has ulElsS been con-
slcrc.l 10 be that u broker, anil thes Ask t',a.
uu6er A circumstances, the Commissioner ,!lrct:
IA IN ff r. 1..7,
and thar. bF the authority vested In Him, he grant
immunity from penalties for AeXclf flsla1e II
Mske correct tetrrns, until decision upon the
question Vt ISSUE shall tie rendered
"So Argument mas been EabmtEsci with the np-
pcxtlun, but tnl among thu papers nlcd m 4
former case fr1lt1ng to t,1ntcr9' taxes, psintei
argument ~ counsel Oh this question. Tht Atleu.
tory provisions which require construction in thls
matter, arc ~ follows: Article !, Section -, act
Of seth June. 1sest provides that every person,
cfe.,Its t open W tepD.!t, collection of money
o. currency subject 10 be paid III sel.isted on
draft cheek o. order or where nioncy z adranccd
ur losHetl on saeks bonits bullion, bills Of cI-
chaD2c or rtOEs>cry notes. Or whcre atocka.
bonds, lE,llion, p,lls af eAchanxs or rromissorJ
nuses nre rtccisc1l for discount uF Eac, shall TIC
rrgnr1tcd ~ tauser.
*ArEIcfe .. .arle section. provides that cYeEy
person. firm Or COMPANY Whusc business u Il TO
ncgnints rnrrhase- or sales Of stocks bouds, e1-
change. bullion, culnetl MunF9. bank GsJtes, TruE1-
'ssUrJ nUtcs. or other accurttirs, fur themselves
u1hefT. shall liz Irenrsd IL hrokcts: provided
buH1 Aa! ttIfuu& HHflpQ pAi1 lHf 4rrfaAl TAX NJ
lauArss. shall not hs required IL par the spcc.al
fAx ~ b1ukrrn
"set!on %. sanle aet. rro rides that there shall
e~ tAt,i uu all sales 'na.!u ~ hrolcra, banksnr
bAoatfs, y Hhcshrr nude fur The hr1rft u othrsA
hF "a i1rr uWu nrruuEf. lin following taxeH: that
Is tu s1,. utHn all sales Muh cUtrnrts tur AAlc. or
stt'tf. M,n'ff. Ruhl ar'! silver t'ullon. ansS
rnIn, praluizusy noes Or utl,rz satustt,ra tax II
lhr mir hf onc l'rF ecHt lor rEetE eIV1 Of thI
Auiuune q such Ralts or c0rtflc.n Ani! Gn al
aaIrs s'nl ronstac's for " sale nrxJ,ac,t ami
rLF
= sneciai 'ax ~ q arpket, hunk OF hanknr, my
Ro'i or s1scr lhtlll?n, ro!1s or pfont ~ory notes,
1wn IHpL~rty. thrfn shall t,a lal.i Lax at &hr
ratr nf n'o crf,sa tor r*rFy flod Of etEonnt ar
surt pars. v raH,rsasA SECTION In lrs.s,,rs ths
taxes that Aro ~ l@ rAId ~ tho links aua haux-
nEk irun ilIelr ui0uhtf Ertntns. auu thu t,cIaIty
tuF aHy rriuaM OF negltet ~ tcudcF rrtufn An't
|as lncnk
AT Ia tu. The enforcement, Ut .hIa prns.y tha.
Inc nc,lunx III aursihn hxtu tten eoHMuucs'1.
hut II IN lHlHalTsLAl fur tht pAE}tuscr Vi fh1 inquiry
~ ~iait particularly 1he psu7,aluu Ut tbs soc1ah
Il att"ars by thrs1 citations thht tuhRrrA1 hnz
rrH raEetnl to oxc1uhu all popular drnnittsnA OF
tm:atins which II " lntsadr.l u lax, ami has an,-
salIc.l In thu stAtuls Tho tirnnitton by which tho
rlnnse u ~ be GotasilurA- This meaning as thu
fcEfh tanker nnd broker II there stAHtt with rre.-
n w r. nIess a ns u ,1 s ~. .p n
who s"cpa place Of hnsinsss ~hes:
other oud tqulvoc4l words, makes It h!s
buattleaa ~ receive md seI slotks luft wI.a h1u
fur ihst rufpoM, tn1s: hs r9atdch us banker:
Mil IL " equally clear that eSrry person Wt1usu
bu%!ntsA II 1t u ncr',ttAta p1Echsses OF sals4 VI
sturk., must bt regarded ~ 4 hrukrf. When WY
nt! distinction thrFp usAic 10 tho very same Beo-
tlOn between tho btlsnrsa Of Negotiating sales or
stock, In impossible to suppose That thu. huslutAs
Of nexulatnx sales INCLUDES the Act vi FrceiYllS
iArnt thut brokers arc ,.!s,'1ed nfo .~o c.n.,o.-
the Irg1ltaz brotrr who purchases ant! sells stocka
bonds ac on commission " ~ hts awn account:
receiving and delivering the halle sud
1n1lcF Drctnf1Fx, VINO RCf uI1ly for
,mali .ta. commission, n','.I, , nn1 without
.irs,s ~ rres. oI sss assIId A nIpperts aua i;
|urther utguh thAt the xusu acxuttate liza two
alraatngA To nr2o1tate may b. merely maxim.
contract, or It may actun1iy complete the Trans.
.rtton hy the Trceips or delivery ot tho property.
L Ii ministerial how brOktEs are Ca4sined IN New
.%rt II ~ s5s not @ - sassae ;sa, ,h IN s1s ssnu
1errun ~ II regular broker. who ruErhasea ant
'c,ls stocks, reccIsnK aud delivering the same;
,or arr there meanings of The word legotlate
|, II IL used IN this Stale, l mn cuustrn!nbi
o deny entirely lhe statement that to me-
1ut!ate may b merely making contract
he receipt or delivery of sue property. When ths
contract Is ,nadr. negotiation Is cnded. The 10,
told Is merely the execution Of the cnnt!nct, anu
III this negotiation takes no part The neX0uator
nf = contract may be authorized BY his eMployeF
nrw capacity, aud he caunus merge one capacity
In The Uhcr by lnarcuEliels describing hts sunse-
qucnt proceedings AZ only completing hts trnnsat-
bargain maker, who handleA neither property nor
Proceeds, and has no oppoEtnntt to make
ae s OUT ae e f"n 81 ,t5sss s!saf m s
receives tile proceeds Of the aales mingles them
with his own finds, and eau make prunt oat u
Is s' be IA! ~ 1 n,ake rroais from .icrosi1 II wa
classified As u BANKER. for the purposes OF taxa
.ion Just because he adds to hls function OF nsRo-
ItatlnE. an Advancement by whtct he mar Use ne
proceeds Of his sales as business capital Any
person v In has place Of business where he IT,
hat is done by tanker III making such sales, lie
cplubiurs the very acts designated In The statuts
as distinguishing banker, and, therefore, he
TERED to ealiz a,tea.lon 10 ,hs rnrassoi-
ce5 Of the ninety. ninth section. wnerp
a 1IaGe ,ns1 sIoks5: conals., ss eea
ceded that persons who complete transactions OF
saIe By receiving md ie',Etsing stock. are still
20 this question until II II shown that Congress
Epeaks Of persons n brokers' Who have place Of
scs ,1ea s:lya Il Td,s section aiso speats Of con-
raets Ter sa1e neRptlate1 on account OF otherA by
sessohs no ART uot even brokers'; hat there Ii no
neir iusiness TO negotiate such eontrac;s
Flthou; becoming liable to b. taxed
or kss = Is .n5aa ~.
eri casual person into broker, nor every BAc
nd delivery that ~oald convert = broker into
II does not, in the contemplation Of tho statute.
Dske psact'ce OF FrcetstnF stocks whose sAle ha
eFctiAteA, be cannot well he regarded
anler, md such sale ulaIe by him IL p.,,pefly
described III = sale made By q osukes. twas
he 0htttt Of this section tu reach all sale4 Anu
for sale, made ~ Que pefsOn on &C
ount OF another, and rot 10 furnish 1ednit1ou
iErlfy defined. TIE rule that III parts OF eha
tatutc Are 10 he tnkcn together, III explaining
he meaning Of each part, ls applicable 0uly
Ehcn there ls . reasonable question ahoat fh'
ur1ninR nj the latter and Is wholly tnapplir. .t.!.
n y precise definition. II may D. aided. how
EVER, with reference 70 khe meaning Of the trrul
Il GottAe used tn the Reseuty-et9bth section, thai
he very section alluded to tnumcEatra -atGs ruit'
nl cnntracts for aales Negotiated, ami thus ill.,
lies ltnnltton Of she trEtl bJ lta application
After careful confederation Of the Rtatule
IN Ut the npirtuu that person whnsc b4atucsAtk
to hrEntinte purchases or s1lus OF merchandise
: t2nkET aecorttng TO the meaning Of StA'tA,n
:. act nj the 3tth June, 1854 II he has plac,' ot
'uht1tas, where he receives lrptn htherA Atort1
sEoie Baic he neRutistcR: Or where money II nj
anced or loaned Oh Etoek."