Arizona republican., 1898-10-07
TAX ON PUTS AND CALLS
Two CenfS on Each $iOC of Stock
 AcrSedto 0e Purchased.

Washington, Oct. 6.-The comniS- sioner Of internal revenue today rel- dared 8 decision that puts calls, '
 and spreads instead of being tax able at 10 cents each as brokers memo ranGuIn, as has been the practice
 should bear stamps at the rate of 2 cents for each S1G0 Of par value as memoTandum fer the future transfer
 Of stock. h reply to a prominent Wall s~reet dealer in these privileges, who submitted the forms used iii the trans actions and asked what taxes were re-
 QuiTed thereon, the commissioner said that designated as q put" appeared to
 be an agreement by the person who is
 sued it 10 purchase any specified nun
 Der of shares of stock at an agreed
 price at any time within certain per
 iod. The ''can' appeared to be an
 agreement to sell any specified number
 of shares Of stock at an agreed price
 within certain period, and the "spre2d'' seemed to be an agreement to sell or buy, all three Of the papers be ing agreements with the bearer there
 Of
 The first paragraph of schedule 4 os
 the war revenue act, he continues, is very clean in it's requirements that on all sales CT agresms snts to sell, or mem
 cranda Of sales or deliveries CT trans- ferS of shares or certificates Of stock
 in any association or corporation q tax Of two cents cl each S100 Of par value or fraction thereof should he paid,
 whether the sale CT agreement to seil as made upon or shown by the books
 Of the association, company, or cor poraitiOp, CT by any assignment. i1
 blank, or by any deliveries, or by any paper CT agreement or memorandum
 or other evidence Of transfer or sale,
 whether e1titliHg the holder in any manner to the benefit Of such stock or
 to secure the official payment Of money
 or for the future transfer Of any stock.
 It further specifies that in case Of an
 agreement to sell there shall be made
 and delivered by the seller to the buy
 CT bill or memorandum Of such sale,
 to which the s5amp shall bs affixed, and
 any bill or memorandum Of sale or
 agreement to sell shall show the date
 thereof, the name Of the seller, the
 amount Of the sale, and tne matter CT thing to which iit refers; and a pen atty is imposed upon any person or his
 agent or broker who shall make any
 such sale without having the proper
 stamps affixed thereto.
 It appears to be the intention Of the
 law to include in is imposition Of tax in such cases the agreements to sell and fer the future transfer as well as the actual sales and transfers Of stock and to include such agreements as tax able whether or not they are af,erward completed. The ''cali'' privileges is sued by the broker submitting the blank forms are undoubtedly agree 1nents to sell stock, barring name upon demand Of the bearer Of the privileges, while the put comes also as plainly within the terms Of the law declaring Z '.any paper, agreement Of memorandum
 for the future transfer Of stock subject to taxation. The spread" priv 1 ilege is an instrument that includes the
 agreements contained in both the cali
 and put and all the papers evidenc- i ing such agreement must be stamped to the amount required by the act. Ii the transaction in any cases is com ple.ed by a transfer of dhe stock, no further tax will be due, the tax having already been paid upon the agreement made for such transfer.