Morning journal and courier., 1889-07-24
THE INVESTMENT TAX LAW.

1t Will Go Into Eject August 1-Fea-
lures Of the New Law.
The investment tax law passed by the last
General Assembly, imposing tax on in-
vestment companies and brokers will 60 into
effect August LIST. The following, which will
interest many, was issued yesterday from
the State treasurer's Office:
On and after that date 1t will not be law
full within this State for any person to en-
gage or aid in any manner in selling or nego-
tiating bonds or notes secured by mortgage
of real estate not situated in this State, or
any note or bond of any investment company
payment of which is secured by pledges of
such real estate mortgages, unless such per-
son procures from this Office a certificate of
authority to engage in such business or is
named in like certificate obtained by cor
poration of which he is an officer or agent.
Such certificates cannot be issued until
August let, but applications therefor can
now be filed.
In case any corporation desires such a. GER
ti6cate it must state under the laws of what
State 1t is organized, where 1oca ted and the
names and residences of all persons who are
to be authorized as its agents in this State to
transact such business. The names Of all it's
officers who are actively engaged in its busi-
ness in this State should be given and in
cluded in said certificate.
All corporations other than those Connec-
ticut corporations whose shares of stock are
taxed in this STATED and all brokers, in or
der to obtain such certificate must file in this
Office ga bond with satisfactory surety, in a
sum not less than five hundred dollars nor
more than five thousand dollars"
The surety must be resident of this State
and not o married woman, and must make
an affidavit on the bond that he is worth over
oil svIa oh Alvn kxryn he mt r>f
bond.
If the applicant desires to give bond of
less than five thousand dollars he must fur
nish this Office with statement showing
the amount of such investment bonds sold
by him during the year from July l, 1888, to
July l, 1889. The amount of bond will then
be fixed.
Under the provisions of section every in
vestment broker will be entitled to deduct
from the amount of bonds sold or negotiated
by him in this State, the amount of said
bonds which before said sale or negotiation
had been made exempt from taxation under
the provisions of section 9, and will then
only be Obliged to pay to the State one per
centum on the amount of the balance of said
bonds, etc., so sold.
The same person may be named in two or
more certificates as agent of different corpor-
atoms or as an individual broker, in which
last case a separate bond will be required.
The returns which are required by the pro-
visions of section and section 9 to be made
in January, 1890, will cover sales, etc., only
from August 1, 1889, when the law goes into
effect, to January 1, 1890.
The returns thereafter will cover the whole
period of the preceding year.
Section 9 provides that any person may
take or send to this Office any bond, note or
other chose in action. This does not include
"bank stock" but includes generally evil
denoes of indebtedness from one party to an
other.
It will not be necessary for the owner or
holder of the bond, note, etc., personally to
present the note. The owner may send 1t to
this Office by any other party; such owners
name need not be disclosed. I am only re-
quired to record "the name and address of
the party presenting the same"
1t Is not deemed best at present to author
ize persons in other parts of the State to re-
csive the tax and make the endorsement pro.
vided for In said statute. This matter will
receive later consideration. ...-..
Mortgage loans upon real estate In this
State are not affected by the law and cannot
be registered at this Office and sworn off I'm.
less such loans are in excess of the assessed
value of such mortgaged real estate. The
several towns of the State are not deprived of
the full taxable value of all real estate.