New-York tribune., 1872-06-15
THE DISPUTED TAX on wALL-sT. CAPITAL

THE DISPUTED TAX on WALL-ST. CAPITAL
DISTINCTIONS BETWEEN BANKERS AND BROKERS
IMPORTANT TO BUSINESS MEN.
The suit of Hiram NJ Northrup and Joseph F. Chick
asa sheridan SHOOK which ny before JOse codrut sitting
n ,s, United for the Southern District Of NsVYorf
s day, sgo Of = brought from Mr. SHOOK as
Solicitor Revenue, assessed sales Of
asees bonds. and buop by plaintiffs and Other broker
made under the 9h section Of the act 4 H
stAiues page 2i which s tIoker and bsrkef
bup as brokers' shsn be subject to certain d1u hH'alUns
- TAI on sales
he PLAINTIFF denied that their sales governed by the words Of
the sstoe vhie the Government ohe'f' ~
sed upon leve ard collecting which the Jrufs itee7on
Dad under protest -
ames Dooire opening argument On lehsi Of the prnf
ted hat proper ppea made The Department 81 wash
tor t th reclamation q these ta1ee be Illegally assessed aud
td beer rejected The Ou therefore brought FOR money bad and
,soeved ssump and the plea WAS The
tpcrk Nj Chck Of the plaintiffs was to testify generally
levied aud 10 show three cfertn
a e. Transactions business bankers Frs that portion
a. assessed faes Of their Iropey 'nd that
rmucts had foTWsdd to them upon which they had
sade advances proceeds placed the credit Of
customers, subject draft the large ~ or larger
Dan ose rd where sales
aoe purchasing and earyug stocks bonds and bullion on margin
stccls the plaintiffs bsnknghouse IN
sdysnce Of 90 per cent Of tter
% which The plaintiffs retained the MONEY advanced By ibem
far the greater part of tle assessed and col
sced
Mr. DooIte lire Of argument The following eject: Under
idea excluded when sells bic ovH property Under
,ceks bonds and gold RENTED sold
Fsmbuse The plaintiffs their advances the sales emstey
pahhfs business bankers tht power sell being
sn incident The auhcu by statute 70 receive TIE securities
advance money upon them It transaction in which
brokers' bankers doing business boters
J1sy lsd Hglt A. creditor peogees and bankers to sell
The thru class Of than either both Of the
se sbd which The customer advances margin involves much
~ Prior tbs delivery Of and payment the stocks sD
simply negotiation for purchase Amer purchase and
shvey upou tie securities by the bankers they
,ien and be them and her until so and when sold the
sTof 6rst reimburse The bauke anl the balance after
sac deposited the credit Of the The question srses
~teer when hes sales made be plaintiffs sell them bankers
brokers statute bankers
tpg business bTot other questions here
volved FRET What bankei SoHd What broker TAisd.
tofs7s uy 6e business
- tsuAsrs, Htere Is .he line Of dfineiori
bsol ~bO place Of oVspes where c. Ope0d by th
fpsa collection Of money suec to be RENTED pan
money Advanced loaned upon stock
Oer securities received
SScou sale Brokers persons whose business except sne
bold licenses bankers negodste purchases sales
Fcts other seeues All depends therefore the legs
meaning Of the word broker. Parsons, ia hs work o.
copusds. daws this sharp dstinetiOni FACTORS sn
equally sgents with this difference the factor
iltus With the properly which the subject matter Of thigeny
n story on ASeasy biofe one Tbo makes bargain With
,ihe and receives commission for 50 dong broker Is mere M
HeaS ssfn other RaT and & be- nsyS5 % ss IN 4 MS 0SR os
em and authorized buy sell them bis
Nj cited Of Markham Jsudon ~ Y Re.
porte D. ground
IRON broker whose business simply buy M he
fmed that sharp line Of between business
lckef broker and lie business Of banker banker and thar
dssa6b he depends Reca attention OF tie Court
e Of Congress defining broker and the privileges conferred
argued that The TRANSACTIONS either loan
upon stocks else purchase of sloes by the BANKER
.bnfeH with his mopey end whichever il was the sale
banker Il he received It in pledge for loan
h n s Il oe bis own account the sale when be made H. sale
NJ de hy The ereo himself ard therefore vas not made
~ MIN As Gong business b0kef Mr. D0ohttle, referring
= me license imposed upon every banker Of 800 apd 81 fo
sdtops 900 capital SO 0O and the further tAI Of Ian
al one Der cent upon Of deposits mone subject to
ra,msut by bek h represented BY certificate OF De-
s<at or Otherwise, whether paySbls demand o. a.
,,sms Eare ds-sated that independently o t6ese burdens
an wporAnt consideration that the proceeds The sales M
St H. Ies S and collected entered go the tery deposits
T Se The bsnfrr and that the msrgu deposited BY The 9s
osr r tbe purpose carving the business s also ! = os
,oagt monthly deposits kucb burdens woui not be and are Iot IN
y net 70 he favored end cosd bsye been intended BY
NOuges.