The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1898-08-09

This Region.
Not much comfort is allowed to ship
pers in a recent ruling by N. b. Scott,
commissioner of internal revenue. a
copy of the ruling has been received IN
this city by Collector Penman. 1t d.
rects common carriers to pay the
stamp tax but affords the shipper
vague redress If he is forced to bear
the expense.
All common carriers, so designated
by common law or statute, must pro-
vide the shipper with "a stamped Dill
of ladng or receipt. This is impera-
tive and the burden of paying the tax
falls upon the carrier. But, should the
carrier refuse to take goods or make
any shipment unless the shipper pays
the tax, no remedy for the aggrieved
party or parties is provided, either in
the war revenue or internal redress
law. They must seek redress by pro-
cess of common law or statute which
provides for the duties of carriers
toward shippers.
Regarding the stamping of tele-
grams and sleeping car tickets" ex-
plicit instructions are given to collec-
tors and internal revenue agents. They
shall confine themselves in their exam
ination Of the telegraph and sleeping
car companies files, to merely ascer-
tain whether the law has been complied
with. The purpose is to avoid unnec-
essary probing into private acts of said
companies.
HOW TO CANCEL.
Directions are given concerning the
Cancellation of documentary and pro-
| prietary internal revenue stamps" In
any and all cases stamps must be can
celled either by writing the initials
of the person so doing across the face
of the stamp, and also marking month.
| day and year thereon, or by using an
| linking stamp or perforating machine.
| This applies in all cases whether the
| stamp is adhesive to or printed upon
| any check, draft, etc.
Concerning the computation of the
| tax upon capital in returns by banks,
| the law holds that all surplus and un-
| divided profits must be included in the
computation and become taxable. Com
putation is based upon the capital and
surplus for the preceding fiscal year.
If the capital and surplus vary from
| time to time during the preceding fis-
| cal year, an average can be taken, as
was done under act of June &c. 1864.
| At that time it was found necessary in
| the case of deposits to add all amounts
| at the close of business for each busi-
ness day, and then divide by the num-
ber of business days. The average
would thus be easily obtained. This
method hould be adopted under the
| new law. The need of averaging is
obviously greatest as to undivided
| profits. 1t is held to be improper to
reduce the amount of undivided profits
| by unaccrued interest or by profits to
| be divided"
| Companies doing a life insurance bus
| mess as a purely cooperative or NUT
| ual company, who issue no stock, and
| have no stock holders, and where all
| profits or surplus assets go to its MEM
| bers in the'way of dividends, reduction
of premiums or additions to policies
in case of death must come under the
| head of "fraternal' or "benefciary'
status in order to escape taxation as
| life insurance companies.
| Many companies as described above
charge their premiums at fixed rates,
| payable at stipulated times, as in the
case of ordinary life insurance and not
according to the assessment plan usu-
| ally adopted by cooperative insurance
| companies Such companies do not,
| therefore, become exempt and are
clearly taxable as life insurance COM
ranies.
| TELEGRAPH EXEMPTION.
| Concerning the exemption of certain
telegraph messages of railroad COM
ranies, much confusion seems to ex-
list. Exemption alone is given to all
communications referring to all joint
and mutual business in which there is
a .oint interest and responsibility to
III" Iublic. No stamping is, therefore,
required. Further. 'it should be def
nitely understood, however, that mes
sagcs to a connecting line, in relation
to the business of one line alone, are
not included in the exemption"
All exhibitions of Edison's kineto-
scopes require a payment of a special
tax of so in each state wherever any
exhibition is given. This holds good
in every instance, even if as one per-
son says he Twill donate 25 per cent
of the receipts of the exhibition Ia
the public school," The person eXhib-
iting must pay the tax in every state
he enters, no one payment being suffi-
cient for all.
In estimating the amount of special
tax required from bankers under the
first paragraph of section 2, act OF
June l3, 1898, all borrowed capital must
be taken into account. This is impera-
tive in every instance.
Particular instructions are given in
reference to the matter of money or.
ders sent by telegraph or express. AL
ae taxable at the rate of cents pei
order. Banks are also liable to this taN
wherever any monies are transferred
by telegraphc order" in addition tC
the tax on the dispatch or telegram.
Where stamps, printed from private
, dies, are used for the payment of taS
, upon proprietary articles, instead OF
cancellation by initials and date, sucf
stamps shall be so affixed on the box
bottle or package that in opening the
same or using the contents thereof, thu
, said stamp shall be effectually de-
. | stroyed."
, Those persons who are or may bt
, engaged in shaving notes, miners dut
bills, county orders or court cost bills
or engages in any of these exceedingly
profitable and much followed pursuits,
are not liable to the collection of a tal