The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1898-09-19
COTTON TICKETS AND STAMPS.
when the Ticket Is Presented at
Bank It Is like q Check-W hat
the Law Says.

Some confusion exists THROUGHOUT ine 5
south as 90 how the revenue -I" "Po''N0
to transactions in cotton. ..,..
Many have taken the poslloh lHal w
cotton ticket which is given IN some p!ay'@
by the warehouse man to me 1G S','irI
should not carry revenue sJhlP td,o
believed that this cotton ticket - III nv
nature of a warehouse certificate ana per
haps is liable to n tax Of % cents, as Wa -
house certificates proper take 10 PEI
In order 70 get an official ruling on these
questions. Mr. H. II. North, cashier OIL
the First National bunk al Newman ''a.'
wrote to the commissioner OF internal r.
enue al Washington. In reply, Mr. W "STh,
the acting commissioner, Sdld tldl LlH
cotton tcket which the seller receives ""'
presents at the bank is in the nature o. ~
check LecauSe money is pald Oh IL, anu II
should bear the 2-cent stamp.
Mr.. Wilson does not say VINO FhorlH
anix this stanp-tnc Warchous" man, VINO
issues the ticket or the seller. VINO gets
The custom of buying and selling cotton
In the interior towns wares IN dIlI'Ititt
nlaccs in some points the farmer haui5
in one two or more bales of cotton, sells
them on the street tO q buyer VINO leiS
him to take the cotton to tae warehouse
have it weighed and get ticket ms 3
ticket IS received by the banks ana casnod
inst as a check would be. At nlght Nne
buyer goes to the bank, takes up the
tickets which have been issued by the
warehouse man during the day. ana gives
ona check to cover the full amount.
In other places, the cotton buyer places
his money with a merchant. Inc buyer
STAYS at the warehouse where the cotton
is weighed and sampled The seller gets
n ticket which he takes to the store ana
trades out or receives cash for as ne PIE
fcrs. The merchants are usually elad L"
do t'hi9 for thc buyers because the farmer
generally trades at the store where ne gets
NIr, Wilson, of the internal revenue office
at Washington, says in his letter to MI
North
Cashier the First National Bank. Newman.
Ga. Sir: This Office is in receipt of your
letter of August 50, 1898, submitting a NOM
orandum check used by the cotton buyers
OF your city.
You state when farmer stores his cot
ron the WarehouSerHan issues him re-
ceipt like the one incosed. The buyer pur-
chasing the cotton uses the receipt as
memorandum check to the bank. The
seller OF the cotton presents the check at
the bank and the buyer calls at the close
Of each days business and takes up these
memorandum tickets with one check: You
ask is the receipt subject to taxation?
''You are informed first. that the receipt
IS operative as an order for the payment
Of money when used in the way that you
state. 1t is subject TO tax of cents for
this reason.
"As 70 its taxahility as a warehouse re-
CENT this office informs you that the ctr
cufnstances governing it's issue determine
this question. From the face OF the receipt
il appears to be only a weighers ccr
tihcate 1t has this clause in it, however:
Received from ---, one bale cotton,
marks. numbers, etc, as per margin, sub
tect to presentation of this receipt only.
on paying customary expenses and all ad-
vances. Acts Of providence and fire eX-
copied.
IF the phrase ION paying customary cx-
Dcnses' includes a charge for storage OF the
cotton covered by the receipt, 1t is ware
house receipt, under the act Of Juno 70.
1855 The instrument that Is evidence OF
a storage for which storage charge Is
made is in the opinion of this office, ware
house receipt and is subject to a tax OF
25 cents. If it is a simple weigher's Ger
tifcate and not representative Of stor-
age for which a storage charge is made
as SUCH it is exempt from taxation. Re
spectfuly. G. W. WILSON,
Acting Commissioner"