The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-07-02

of Internal Revenue
Rules on Various Points.

WASHINGTON, June @.--On the ques-
ton Of taat part OF schedule A, of the act
OF June g. 1895 imposing ii tax ION each
original issue, whether on organization or
reorganization. of certificates of stock" Il
Is held by the commissioner OF internal
revenue. in a circular issued yesterday that
the meaning OF the words original issue"
as therein used. is limited and controlled
by the words whether on an organization
or reorganization" and therefore the only
taxes on certificates of stock on each $50
of face value or fraction thereof impos-
ed by this act. are those certificates issued
on or after July /. 1888. on organization
or reorganization OF the company. 1t s
held further that In the case OF a corpora
ton having (for instance) an authorized
capital stock OF A.00o zoo, of which il has
issued only 500 600 prior TO July l. 1898. and
on or after that date finds 1t necessary TO
make one more additional ISSUE. under the
authority possessed 10y it. each additional
issue thus made s AN original ISSUE"
within the terms and meaning OF the stat
ute under construction, and the certifi-
Gates of such issue are subject to tie
stamp tax.
Wherever an original certificate issued is
presented by the holder 10 the company
or corporation for the issue OF another
certificate or certificates in leu thereof,
the certificate or certificates thereupon is-
tffcate could not, under the language and
limitation OF the statute above recited. re-
quire any stamp. as long as there is no
sale agreement to sell. or memorandum
Of sale or transfer OF any of those certifi-
Gates issued in lieu Of the original
In case Of sale. where the evidence o:
transfer Is shown only by the books Of the
company, a tax OF 2 cents is required 70 be
pari on each 500 OF face value or fraction
nd he s-t1 ina
is required 10 lie placed upon such books.
Where the change OF owners is by GER
tlicate that is to say. the executed au-
thority to transfer is contained on the
lack Of the stock certificate. which Is TO be
transferred on the back of the stock. the
stamp must be placed on the transfer GER
tihoates: that Is TO say. upon the sur
rendered certificate containing the trans
fer. In cases OF agreements 10 sell or
whore the transfer ~ by delivery Of toe
certificate assigned in blank. there must 30
executed a memorandum thereof. to which
the stamp is required TO be affixed!
Under the ruling herein stated. In case
(that NAV b. Supposed Of a man who is
the owner Of 4 certificate for TOO shares %
stock and wishes TO sell ten OF them 20
another person, the result being that one
certificate would be issued for the ten
shares sold and another additional certl-
f1rate for the ninety shares remaining with
him. the result being that the ninety shares
issued with the certificate for ten shares
sols) In lieu thereof. Goe7 not require any
starnp and she certificate for the ten shares
does not require Il stamp representing the
lax Of cents on each 500 or face value
" fraction thereof, as it Is not an original
issue.
The only stamp required with reference
70 these certificates IS q stamp on the
,~3iisfer % the shares sold. representing
-. "a
If face. value or fraction thereon
In another case stated for iIlustratlon1
whore man holds several certificates for
shares o. stock aggregating ln shares. and
for his convenience calls upon the company
10 issue 70 h'n IN liet thereof, one Ger
fiAcate FOR Inl st&ares there being no sale
~ agreement To sell. or memorandum Of
sale or delivery transfer az this new
certificate. tho statute does not require the
afnxing o. any stamp thereto.