New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-24
THE BROKERS AND THE WAR TAN
THE BKOKEINo |f.N1 IT.
DECISION OF THE STOCK EXCHANGE COMM r."
WELL. REcE1vED-A QUESTION AS

IT.. a.o,sio, n. the Governing Committee OF uio
Soy rxchange that the custome. ana no' '"e
broker shall pay the war tax upon Sa'eS VA
was well received yesterday by inc H"e''D'l' -
the Exchange They do not thihN INA ~ 80
viii lessen trading. II conditions are ldNoi" 0'e
active speculation. They tnlhK' 100 "' .ho
,,on ~ the question which was reached Is ."r
v,h. ono because Il will distribute the tax "!ue'y
rhnraas - the brokers were forced 10 pay 'he '"N
,be aggregate burden would fall upon com
narat,yelv small number OF men anu """'"
NTH extreme heavlness Besides' ue! '"''N
when the time comes for readjusung 'he wal 20
alton system now about to 60 into effect II VIII oe
.as,er ~ have the tax or stock sales modihen OF
,oroved - the customers are the payers NJ u Inn"
~ the brokers carrying II
Tha governing body Of the Consolidated STOCK
md Petroleum Exchange Yesterday 5"3'nOo
held a long meeting. al which the opinion % ''''
Fxcnarre's attorneys sullivan & Cromwell. upon
several points submitted to them AS 70 the opera
tion and effect OF the War Revenue law IN us
r.lat,ons n the Exchange was discussed ana ap
nroved The part Of the opinion when "ou'n
sesro n hear unon the subject Of the incidence OF
the tax upon stock transactions is as follows.
Question. What relation does the Exchange s .Hs.
tain toward the me na%ssr IN ST oherWse
Answer We think the relation Of the Exchange
attenton has been called it. 20 the transactions
of individuals acting as brokers or pahhets " ~
eass ar for others. for the sale purchase o
stocks or merchandise. These iransac nots a..
nscassarilv the acts Of the members. and are not
in anv sense the acts OF the Exchange
The meaning OF this Is. apparently that me
broker on this Exchange will be AT liberty 10 as
sunne the tax himself II he deems such action
profitable and desirable IN order 70 attract adoi
tional business
The Board Of Managers Of the Produce tXchanee
me, Yesterday TO discuss several questions relating
IN the proper construction OF sections Of the new
law which affec, the business Of the Exchange
members II was decided TO send the Law Com
rnittee consisting o. Chairman Edward 1. fiee
Henry A Niece and Herbert Barber. together
with Superintendent Howe, 10 washington al an
offcials and endeavor TO obtain rulings upon tnem
for the guidance Of the Exchange. similar meet
Ing was held Yesterday by the Board 81 Managers
OF the Cotton Exchange, who decided thdt one OF
her number should accompany the Produce EN-
changes representatives. on their trp 10 the "a,
tional capital. as the problems sought 10 De- sow
by the two exchanges are practically the SANE
New points are daily being raised in Wall Street
to the bank check tax Thousands OF checks VII
be drawn on June 80. IN payment or interest ana
other expenses These checks, when mailed can
not reach many OF the persons 70 whom they are
addressed before July l. when the ~" lah goes
into effect The question l. asked. Who is 70 pay
for the stamps? The payer draws the check hefore
the lax is imposed upon Il. so l. would appear thhf
he Is under no legal obligation ~ attach the stamp
10 II on the other hand, the pay"e Would seem
10 be legally entitled to receive n complete cheek
for the sum due him, ard an unstamped check
after July Is an incomplete check. winch Whl nor
he received by a bank Mast the payee, therefore,
attach the stamp 20 his check In order 10 ohia.n
the sum due him on the face Of such check