Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-12-10
WANTS ANTIQUITIES REMOVED
WOULD NOT IMPOSE TAX on
BROKERS MEMORANDA.
Urges That II BE Clearly Stated Who
Shall Pay the Tax on kilograms
and Bills of Lading-As
to Sleeping Car
Tickets.

ley, of the house ways and means commit
tee, has received q letter from the COM
missioner of internal revenue, n. B. Scott,
recommending 4 number of amendments
| TO the act of June 12 1898, known rs the
! war revenue act. The recommendations
| cover changes of an administrative char
acter under schedules A and Il. also for
| the monthly payment of excise taxes on
| sugar relineres and for penalty for fail
| ing to stamp parlor car tickets. Further
provisions are suggested as TO the exami-
nations by internal revenue Office of arti-
| cles subject to Internal revenue taxes.
The following are some of the proposed
amendments:
In paragraph l. section ., relative to
bankers, insert in the proper place the
| following: Undivided profits shall be
| considered as surplus in estimating the
tax due from banks: provided. that the
| word capital shall not be understood 10
| mean money borrowed or received from
time TO time as deposits in the usual course
of business from any person not 4 partner
| of, nor interested in, the bank, association
or firm"
Paragraph T. section 9. relative to COM
mercial brokers' The supreme court
held, in the case of Slack VS.. Tucker, %
Wall S2l, that persons who receive. into
/ their possession any goods or merchan-
be regarded as commercial brokers.
This relieves rlany persons who would
otherwise be liable. There is no tax i'm
posed commission merchants, auction
GERS or real estate agents or brokers. There
seems no special reason for singing out
commercial brokers ana requiring spe-
cial tax for them, especially as the tax
falls. in the main. on a poorer class of
people. l recommend therefore, that the
tax on commercial brokers be repealed
or that other classes of business, such as
commission merchants and real estate
agents, be also required to pay special tax.
Paragraph of section 2-Lectures,
whether illustrated by stereopticon CT
otherwise, should not De regarded as exhi-
btions or shows, and should be exempt
from payment of special tax, as should
also local clubs amateur performers.
charging a price of admission for their
entertainments only for the purpose of
meeting their expenses and not for pecu-
mary profit.
Add to the paragraph in schedule A. rel
ative to bank checks. the following: Pro
vided, that papers in the nature of re-
ceipts or otherwise. used as bank checks
or orders for the payment of money, shall
be taxable as checks, except in the case
of withdrawal of funds from savings banks
by depositor on presentation of his bank
book" or else impose tax on all receipts.
provided that any instrument purport-
ing on its face to be statement OF weights
or rates of merchandise, when cashed as
a check or order for the payment of mon
ey, shall be held liable to stamp tax, the
same as a check.
Under the head OF Express and Freight"
in schedule A add the following:
And provided, also, that no stamped re-
I,n1l h. ro1 for an
bale. bundle, box, article or package
transported for the United States govern
ment, nor for such bales, bundles or pack
ages as are transported by such companies
or persons without charge thereon"
I Also amend the. paragraph by providing
distinctly who shall aftix and pay for the
stamps required on receipts bills Of
lading.
The stamp tax on mortgages or pledges,
schedule A, should, in my opinion, be re-
moved: also. on the assignment or transfer
OF mortgages, leases, policies Of insurance,
renewals of agreements, etc. AS there is a
tax on promissory notes, the tax on mort
cages is double taxation and falls on the
debtor class.
If thought best not to repeal this tax,
suggest, in order to relieve parties from
double taxation, provision of this kind:
NO stamp duty shall be required on any
power of attorney accompanying bond or
note, or pledge, or certificate of stock when
such bond or note or pledge, or certificate
of stock shall have affixed thereto the
stamp or stamps denoting the duty re-
quired and whenever any bond or note
shall be secured by a mortgage, but one
stamp shall be required to be placed on
such papers: Provided. that the stamp
duty placed thereon is the highest rate re-
quired for such instruments, or either Of
them"
| Insert in the proper place n provision that
no stamp shall be required on deeds of
release.
Strike out, under the head of contracts, -
| the provision taxing brokers' note or mem
| orandum of sale of goods or merchandise
| stocks bonds, exchange, notes of hand
real estate or property of any description
| issued by brokers or persons acting as
| such 10 cents. If brokers pay the special
tax required that should be deemed sufi-
cient.
The provisions for taxing sales of stock
products and merchandise in the first and
second paragraphs of schedule 4 should
| be amended so as 10 remove doubts, and
| antiquities.
Amend the paragraph imposing l cent on
| teIegraphic dispatches SO as to make It
| definite and certain as to who is to aftix
| and pay for the stamp. the telegraph COM
pany or the person who sends the dispatch
Amend section 20 follows: Beginning
! with provided strike out all the rest of
| the section, and substitute the following:
| THE taxes provided for in schedule OF
| this act. shall apply to all patent, trade
mark or proprietary medicinal articles and
| TO all medicinal articles which are put up
| In style or manner similar TO that of pat
| ent. trademark, or proprietary medicines
! in general. which are advertised on the
package or otherwise as remedies or spe-
| cities for any ailment or as having any
! special claim to merit, or to any peculiar
| advantage in mode of preparation. quality.
| use or effect: provided: That no stamp tax
! shall be imposed upon any medicinal drug
| or mixture of drugs sold to, or for the
use of any person when prepared for said
person according TO the written recipe or
prescription of any practicing physician or
! surgeon. by a druggist or pharmacist SELL
! ing at retail only.
The effect of this amendment will be to
! eliminate from section 70 the provision that
| no stamp tax shall be imposed upon any
! uncompounded medicinal drug or chemical.
Amend the provisions of section q. impos-
| Ing excise tax on persons. firms. companies;
| and corporations engaged in refining petro-
| leum and sugar so as to require the tax
| to be assessed and paid monthly
| Amend section 2S. relative 10 stamp tax
| on parlor car and sleeping car tickets by
stamps No penalty is provided. as the
| law stands. the tax Is not imposed un-
| der schedule A, where 1t properly belongs.
Add to section 2s. fifth subdivision: Pro
| yided. that when person, entitled to a
| legacy or beneficial interest in such prop
! erty. is an alien or has resided outside of
| the United States for period of five years,
| the tax or duty upon the share OF such
person shall be at the rate of $ for each
| and every 500 dollars of the clear value
| thereof, without regard to any degree of
consanguinity that may exist.
I make the following recommenda tion
! also in regard section 10 of the act of