, 1869-08-24

I orE1oN OF JUDGE sAs{ss.
~ ne matter Ct Wood L Ricb and other
e'aa''ns 70 oe brokers and not bansera
H1n colan.5us Deano, con.,ntss;oae1 Of arnt asa1
The application Of Wood L Rich and otba,<
9ankeTs and brokers, doing business ia the cjty i
NeW Yolk, but residing u Brooklyn, sets fort1
c4eat stas eaTe 6een eS anst
te lh 1ot Lae recovery Of certatn taxes and penal
yes alleged to be due from them as bankers nnde,
ncnns ~ q me act o1 st June 1851 The ap
npon construction given to that section by thc
late Assessor, M1. T. D. Webster, ssholdlpT thai
ea Ras HnoWn and taxed as aslrokerpar-
stocks, bonds, bullion, coined money, &C., &C., for
tGnemselyes and others as set forth IN Article 8,
3 ,s1Tere engaged in the business Of bank
ING ana liable to tax Of one-twentJ J-fourth Of cue
peiAeent On the average AMOUNT ot money en-.
n peyedh u payment for such purchases and hold
merely found purchasers anu sellers wti1ont conao
pletiog the Contract By "deI1Fcring mi reca,s.
f6gn t6gg! ~ TIney also ante that Pof to Apfn 70
claims would be made, and respectfuliY suhm;f
@ tae hardship Of making auch Construction retro
actaTe;w @ & They claim that TIC business of b1yiny
considered to be that Of broker: and fRey s1 ssF
daat under AZ circumstances, Ioa direct the dis-
ta'1t TtaontlnnAnce q the suits now commenced, and
SaaI, q tle authority vested in you, they may be-
assured OF immunity nom penalties fof alleged
neglect to make correct returns until -four Ga.
sderea M a1e aass9n ns ssus shall be con
this u application; but find among the papers fted
u ,',,nt iormef ease relating 10 6ankers' taxes
me statutory provisions which red1ire constT9c.
non y tnls matter are as follows:
Sfaass 1s taf e9e,T . Of the act Of June
having q place Of business where credifs ara
opened By the deposit or collection Of ase
~ currency snb1ect to be paid or RENTED upon
of loaned on stocks, bonds, bullion, bills Of ex.
cnange Or .prom!ssory notes, or where STOCKS.
bonds, bullion, bills of exchange Of promissor3;
regarded as banker"
Article Q OF the game section. provides that
II negaats saes Hass or bonss
stocks, exchange. bullion, coined money, bank
n,otes REomsaofy notes Of other securities, for
ker, provided, that any person having paid the
speslaal ta1 as banker shall not be required to
Secton - of tie sane Ct nroytdes :. that tber
shall Be paid on all GALES made by brokers, banfs
or bankere, whether made for the benent Of Others
Is 10 say: Upon oil sales and contracts for a5a of
atocKs bonds, gold and silver; bullion and coin.
pionissotY notes Or other hecurtties tar at the
amount OF such sales or contracts; and on-aII |
;ales and contracts for sale negotiated and made
s1y aPet @ q ha1a ne
gold or silver, bullion, coin, promissou notes,
tocks, bonds or other securities not his or tneIr
'Hn property there shal be paid tax at the rate
y nFe cents for every hundred dollars OF the |
AMOUNT OF such sales Or contracts"
aects9n liO provides the taxes that are to be
q 'a!a ~ oanks Or bankers, the character and form
einsal Or neglect to render return and payment |
ls 1or the enforcement Of this penalty rhat the
cslon8 u question hare been commenced; but it ]
tate particularly the provisions Of the seclton.
u appears hy these citations that Congress has
'eep e poaaf1. to sTSi1de al popular definitions
'dn moodiea n ne statute the definitions By which
s19s Il Is 70 BE- eo1stfnea The meaning Of the
~ precision, and you are not ut liberty to iooh
10 pursue L eiear ras tss eVe
received or Of e1 v obeS sa
1u,vaieat 1,n words. makes Il his business to re-
ear tnat erev perBon Wnose business It Is to
egodate purchaaes or sales Of Stocks" must Be
lus made In the very same eectton between lie
1slneas Of receiving stocks for sale and The bust
ess o. negotiating sales Of stocks it Is impossible
c11t;p , taa& onslness OF negotiating sales
ock- ~~ 'Do
i has ben stated in argument that $. brokers are
and sells stocks, bonds, &c, On CON-
ission, Or On bis own account receiving and de- I
,eling ne same and smaller operators: who #,
7 9n)y for small commission, and without capI- i
!, IN nndlng sellers and purchasers at speclned
ice. 81 deslred property" And it ts further
geo Tat ne Word "negottaten has two mean
act or it may actuaIly complete the tsansaction
! me receipt Or deltSey of property.
II is lmmatersal bow brokers arc classified in j
le Laws The statnte shows that there Is no s1ch
5Eoa r n as regular broker who purchases aud /
en- az 1t Is nsed In this statute am conatfain-
'o negotiate maz e merely making q COZ ,
The receipt or delivery Of the property" when
9 contract u made, negotiatio9 u ended. The !.
eetps I 70, 9f atosn rnfenased ana the delivery Of
1cs, and In this negotiation taxes no part. The
2otator OF contract nay be authorized BY :
Ia In new capacity, and he cannot merge one
pacltJ IN the other bJ 1n8ccur71e1y describing {
81 eansea1ent proceedings as only compleung
The ne2ottator Of sale for another Is bargain
akert who handles neither property nGT pro- 4
eds, and has 20 opportunity to naEe ptodc out :
any tRnlls arising from the sale. Tha receiver c
stocks Tor sale receives the proceeds Of the r.
les, mtugles them with his own funds, and can lit
afa y profit ou5 of .aem 80 long as they remain
poatts. He vas CLASSIFIED is bauseF for p1r- is
seq OF Taxation, lust because he adds to his !
1snon o. negotlaung a arrangement oy Which. / s
pit23 any pefaon Vho has placa Of business, {
lere he receIYes the stockB whose s2le ha negu~
tes, does ~ that = done bJ banker IN r.aktng
~ 0AA&Rt AQ [QQ4A141C6 cay a&L8 l
the statue. as distinguishing q. banker, aud, / S
erefore, must be taxed a. banker.
The argument EatfTed to calls Jour at4antpn to c
aph1aseology Of The ninety ninth section, where t
lea made by brokers are 'Meutaaed. It i8 !
lined that Congress has thus conceded that | &
rBon8 WHO coMpleta the transaction Of, sale by !
,eiVing and delivering the stock aIa-stiu pnlT ,
DketA Suc1 an argument Ii ln3pplIcabIe to snis |
eston until it Is shown that Congress- speaks OF
rBonA - brokers, who have place Qf b1siness
lere they make II their vocation TO- effect such n
eas The section also speaks OF contracts for >
e: Negotiated, or on account Of others, by per- I
- who are Aos even brokers' but this 1s no con- b
sa1ou that 3uch persons mag make It their buA-
- TO negotiate such contrAct& Witho1t becom- Il
Liable TO be taxed as hFoxets, undoubtedly 1t Is
every neBQttatpT Of contract khas would con- J
= casual per1ou into brpker,' nor ese1y sAe
deliSery that would eonyer. d broker mo d
o1eE. II banker has no place Of nu1ioess oe t
e not, n contemplation Of the statate, MAKE 6
acttce Of receiving the stocks whose sAa ae III
l1ates, he cannot yell be regafded g pauSett b
such sale made By him u properly descnDeQ t
sale made By broker. It EaS the object OF fnls
,ti0n to reach Ill coriE4ct2 for GALS and Eales
lde by one pelsou on account ot another, and i
ito fufnith. q definition Of terms already de. n
ed The rule that al1 parts Of Statute are to be
Ken toQetbef in. expiafntDg the meaning Of each
+ ta applicable pnlT where there Il a reasonable
estlon about the meaning Of the latter aud Is
,nIly 1pappItrab1e to precise dedn1uon. It may =
added, however, with reference to the maa1- :
Of the tenn negotiate" !" as used In thsEeveu-
section. that fhe dnDeAfe0 7