New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-05-06
THAT TAX on A STOCK EXCHANGE SEAT.
AN ERRONEOUS INFERENCE DRAWN FROM
JUSTICE BEEKMANS DECISION.
BATTLE CREEK, MICH.

AN ERRONEOUS INFERENCE DRAWN FROM
JUSTICE BEEKMAN's DECISION.
decision of Justice Beekman. Of the Supreme
Court, sustaining the action OF City Marshal In
levying upon the seat of nonresident broker IN
the New-York Stock Exchange for unpaid personal
taxes created impression in some quarters that
seats in the various exchanges are subject to taxa
ton. There eleven hundred seats in the Stock
Exchange. valued at $4,000 each.
President Barker of the Tax Department said
yesterday that the impression erroneous.
The defendant in the suit In question:" he said.
was assessed for capital invested in business. He
failed to pay the amount of tax due from him. and
the matter finally reached the Attorney for the
Collection Of Arrears OF Taxes and through him
the City Marshal charged with the duty OF coll
lec,ing such taxes The defaulting taxpayer was
a resident of New-Jersey and no property OF his
found here liable to seizure. The marshal
then attached the brokers' seat in the Stock Ex-
change, and advertised # for sale satisfy the
city's demand Justice Beekman has simply con-
frmed the course pursued holding that a seat In
the Stock Exchange is liable to attachment under
such circumstances
But the Tax Department does not seats
Of this kind for taxation any more than It as
sesses lawyers library. a physicians instru-
ments clergyman's theological books or Q
tinkers tools"
Francis L. Eames. the president OF the Elk.
change said yesterday I'm 1869 or 1870 when seats
were made transferable, they assessed as per-
sonal property. When the matter brought up
In court the assessment was promptly set aside.
and has never since been levied A membership In
the Stock Exchange consists in the right to go on
the floor of the Exchange ard transact business.
No certificate OF membership is issued. and there
Is nothing to assess Ii is much the
membership in a club. although II conveys more
important privileges than a membership in a club.
1t is not, of course. the duty OF the Exchange TO
appeal from assessment on an individual MEM
ber but of the member himself"
In his decision. Justice Bcckman said:
When a member dies his membership may be dis.
posed of by the committee whose duty IL Is 10 pay
over the proceeds the OF the deceased after
Der has been deprived OF his membership his seat
may be disposed of for his beneht. IL Is a matter
Of common knowledge that these seats are OF large
pecunary value and for many years have been SOLD
and transferred for large sums OF money, with
the sanction of the Exchange, which Is never un.
reasonably withheld. The respondent however, con.
tends that the value of his does not represent
money invested In his seat. In this think he Is
mistaken. The statute under which the tax has
been imposed provides thnt nonresidents ao,nSS
on all sums invested in any manner In said bust
ness. the same II they were residents OF the
State" The papers show that the respondent was
actively engaged in business in this city as sock
broker prior to the assessment complained OF. lie
purchase the seat I'm for s2050O in additiA,
the regular imitation fee of 5000 II also appears
that In 1891 and 1875 the average price for such
seat was $4,000 The right 10 trade upon the floor
the conduct of the business of buying and selling
stocks and bonds the market is controlled by the
Exchange. and access is confined to Its members.
How highly the privilege Is valued Is shown by the
large brokers willing TO pay for IL.
AS the respondent Is engaged In business In the
State and has invested money I'm such business
within the meaning OF the statute. the assessment
was properly made by the Tax Commissioners and
the order for the payment Of tax must issue