The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1898-07-01

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posted respecting its workings
The Chicago Record. in speaking
about the measure, says it presents
many problems TO be solved nv busi-
ness men. On few points the treasury
department has published brief inter
pretations of the law, but on many Of
the most important issues the intent OF
congress is in doubt. The stamp taxes
go into effect to-day, and banks, stock
exchanges and other business organi-
zations are making preparations to
meet the new requirements.
The Record says The provision for
the taxation Of bank capital at the rate
OF $50 on the employment Of S25, 900 OF
capital and So for each additional 81 900
OF capital and surplus raises the ques-
tion ms TO what is surplus. In reply to
this question the law committee Of an
association OF bankers and brokers
says " Surplus is cumulated prof S Of
any other income or amounts received
by the banker or company not part
of and included in the regular capital
Of it's business; divisible profits. endi-
vided Eet earnings. income from any
source in excess OF the operations Of
the business, when used in the bust
ness, should be considered as sur
plus"
The commissioner Of internal reve
nue., in reply TO the inquiry Of manu-
featuring concern which occasionally y
lends on collateral the cash reserved
for the payment of dividends, whether
IL would be subject to the bank tax,
set forth the rule that manufacturing
companies having on hand cash surplus
waiting use IN payment OF dividends,
which surplus meanwhile is loaned
upon collateral, are required 20 pay
special taxes as banks" The ruling
concludes
"The emount of the ecial tax to
be paid is required to be estimated
upon the amoInt of capital used in the
business. The fact that any manufac-
turer, manufacturing company or firm
makes use of its surplus and is doing II
banking bu mess does not involve II in
special tax liability estimated upon the
entire amount Of It's capital used by it
in its manufacturing business. 1t is
held, therefore, that it is not this
amount, but simply the amount Of the
surplus on hard for the purpose of
making loans, that is to be taken as a
basis for estimating the amount Of the
/ t.1 a.. a. .AN hn 20
amount loaned within the year, but
the entire amount OF surplus on hand
out OF which loans may be made.
Another ruling, relating to bank
'hecks, declare that stamps need not
De affixed TO checks dat d and issued
prior to July /. Such checks may be
Negotiated and paid wi hout the stamp
,fter July /, but evasion OF the law by
dating back, when actually issued July
or af er, will not be per nitted The
New York stock exchange has provided
fer the payment by the customer Of
the tax OF 81 on the sale Of every 100
shares Of stock by declaring that pay
ment OF this tax by the broker shall be
regarded as violation Of the constitu-
tion Of the stock exchange. This prec-
edent will be followed by the stock ex-
changes Of other cities.
Counsel for the New York clearing
house, with reference to the tax on
promissory notes, have advised pursuit
OF the policy adopted at the time OF the
civil war. Some old notes on contracts
then in use have been secured, and
those TO be used after July will be
modelled after them, During the civil
war banks made loans from day TO day
with securities or commodities as col
lateral, without the use OF a note or
contract upon which a stamp was nee
essary. These advances were not CON
sidered Of the same nature as ordinary
loans on promissory notes. The inten-
tion Of congress is not to put a prohib-
itory tax upon call loans, such as
strict Interpretation OF the law seems
to demand, adding over per cent
year to the ordinary money rate.
Money, therefore, will be loaned on
call on collateral without notes.
The tax Of cent on each 500 OF
value on sales Of products or merehan-
disc has caused considerable agitation
among grain and cotton brokers. II is
uncertain whether this law is intended
TO cover grain options In the opinion
Of an attorney consulted by the Chica-
go board of trade the tax does not APP
ply on sales OF grain for future deliv-
cry. The tax is pay able only on the
selling value OF the article sold, The
seller must deliver TO the buyer mem
orandum or other evidence Of sale.
The question whether the insurance
tax affects the gratuity funds OF the
New York and Chicago stock exchanges
aud those OF other business Organiza-
tions throughout the country has been
answered negatively by a number of
legal authorities consulted in New
York and Chicago.
The treasury department has decided
that the legacy taxes apply only to the
estates Of persons dying after the law
took effect on June Is. Estates pro-
bated and settled after that date, but
belonging to persons who died before