New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-30
LEGAL POINTS INVOLVED.
Az OPINION FROM COUNSEL OF THE
PRODUCE EXCHANGE ON THE
WAR TAX.
-,,,, n,sr1vcT1oN BFTwEEN A COMMISSION MER-
GIANT AND 4 BROKEK DISCUsSED-

so DOUBLE TAX INTENDED
nj. t,.a-a ~ Managers of the Produce Exchange,
~ fev, DAYS ago decided to send the Law COM
roi,tee and Superintendent Howe 10 washington Il"
eudeavor 20 secure from the treasury Department
d.enife rulings upon certain features or the VAR
p.verue law which directly affect me business ol
rvceanee meplbers Will probably rescind that ac-
49,, and wifi he guided instead by the opinion OF
49,. Exchanges counsel. Baldwin & Backmar as
80 mo correct Interpretation Of the sections In ques
toa The opinion is as follows
J. y Hove. Esq. Superintendent New iorK r'ou-
n.sr Sir: With reference 10 the provision OF the
"@T H soeca tax Ak" Of So YOU inquire whether
mission merchant is liable for TINS tax s.arng rHa
merchants and others are brokers In our 9pii nH
I. orscr' however. that there may be no misunder-
sftnolrs as 10 what we mean by a commission
merchant viii say that we use the term as mi
Tir1f'.g ar agcn; employed TO purchase or sell
goods on commission. either in his own name OF ~
ihe Of his principal ana VINO Is lnt' d s 10
v.,h the possession management. control ana as
Josal of the goods bought or soic mere Is a G's
-rcuOn between commission merchant anu q
brokcr \ broker is an agent employed to make
i.rrains and contracts between other persons IN
matters of trade He is but go-between n or ne
EQUATOR between two PRINCIPALS and is defined as
contracts relative TO property with the custody OF
which be has no concern we are toId tilAI most
brokerage business in which case they are haole
soconaIThe act provides that Upon each sale.
agreement OF sale OF agreement 20 sell any prod
,rade or other similar place either for present or
f,1re delivery for each 800 in value of SAID sale
or acrecnSnt of sale or agreement TO sell one
CENT: ana far each additional 500 fractional part
thereof in excess u 500 one cent
You ask If a contract for future delivery is mado
Of The floor Of the Exchange whether such sale is
ifah.. for the above Of one cent per 500. To
mira ~The act further provides as follows: Con.
Broe mote or bnn9s Of axs shg SI
notes of hand real estate; pIoerty OF any k,ld or
such. for each note or MEMORANDUM OF sac "o'
Otherwise provided for in this act. ten cents -
You n c %nf fbe TAX Sh Of dne csn pr o has
bon paid? Answer: In our opinion it does not
cor3y1cfs made on the noor of the Exchange for
future del.very-at the time Of sal or at the time
Y,oyides that on every such sale there shall be
made ard delivered by the seller 70 the buyer a
a stamp or stamps in value equal to the amount
Of he aX on such sale II Is unhouheddy thS Nv m,
afxing the stamp at the time OF the sale and not
the tine Of deysry Of hg m p To To
determine the amount OF the at the time Of the
or measured before the value Of the property sold
be determined. In such cases the making OF
inc agreement OF sale and the aiilxng OF the stamp
mus; necessarily be postponed until such required
BALDWIN & BLACKMAR
Members OF the Stock Exchange have been rails
Ing the question whether they are TO be taxed as
bankers or brokers both. Ii makes differ
ence to them for a broker need pay only tax or
$50 a year while banker must pay annually so
tax on a capital Of $4,000 less. and s. additional
Oh each s. 900 In excess OF $500 The law how
ever. seems to be explicit in not imposing dou-
bic tax Secretary Ely. OF the Stock Exchange
yesterday defined the difference between bankers
and brokers' from the statute in these words
4 banker Is a person firm having place OF
business that receives money on deposit subJect 10
withdrawal. by means Of drafts or checks thet
lends money stocks. bonds, bullion. eXchange OF
other securities or receives stock BONDS. bullion,
exchange or other securities for sale. Such nave
10 pay the bankers Brokers. on the contrary
toners. .,. r--1.
The Consolidated Stock and Petroleum Exchange
Yesterday issued a pamphlet giving the clearing
House regulations for railroad securities and Tor
rratn optI ms amended in accordance with the
PROVISION. OF the War Revenue law covering the
sections printed.
The reported opinion OF ex-secretary Richard
Oney TO the effect that the stock and bond trans
Yer tax applies only 20 corporations organized or re-
crganzed after July !. and not to existing corpora
lions was received with surprise BY W all street
II was generally believed that Mr.. Olrey had not
been correctly quoted.
4 special dispatch from the Treasury Department
hes decided that agents OF railroad companies ana
clerks and employees Of importing houses attending
exclusively 10 the business OF their company or Nrm
are not 70 be cassed Custom House brokers' ana
are therefore not subject 70 the tax Of SO