The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1898-10-20
MORE DECISIONS.
Another Batch Of Rulings on Stamp Tax
es from the Washington Department.

'"St'S' SaNSh VI NdHHkS vi stamp an
es from the Washington Department.
The deputy internal revenue collect
or for this district is still kept busy at
tending to the duties of his office and
large share of his time is spent out
of the city Mr.. Winslow says that
no sooner have the duties of one month
been attended to, than it is necessary
to begin looking after the collections
for the next month.
Yesterday he received a new set Of
instructions from Commissioner Scott
at Washington, among them notifca-
tion that the tax on the rebate check in
use by conductors on railroads and al
so the tax on excess baggage had been
repealed, on account of the opinion
given by the attorney general. The
following decisions just received are Of
interest:
There is no provision of law by which
a special tax stamp issued to one per-
son can be transferred to and made use
of by any other person. except in the
single instance of the death of the
special taxpayer.
When bankers borrow money and it
is used and employed as capital, it
must be taken into account when est
mating the amount of special tax re-
quired to be paid by bankers. Money
placed with bankers by customers upon
time certificates of deposit should not
be included as part Of the capital en-
ployed during the year
Whenever a corporation issues bond
and there accrues to the corporation a
benefit or consideration for issuing the
same the bond is subject to taxation
This rule, however, exempts from taxa
ton a registered bond sent in for can
collation., with directions to issue and
register in its stead bond to another
| person 1t also exempts from taxation
the issuing of q registered bond in lieu
of coupon bond, both being issued by
the same corporation.
A party is involved in liability as a
banker whose business it is to sell
stocks and bonds for clients, also city
script and county warrants on commits
sion, or for a fee.
A person who in the month of July
engages in any business for which a
special tax is required to be paid, must
pay the tax for the entire year begin
ming July LIST, and if he thereafter takes
| in a partner, the firm thus created
must also pay a special tax, reckoned
from the first day of the month in
which it began the business to the first
day of July following, and take out a
]
rebate or allowance on account of the
tax paid by the person in question for
| the business carried on by him individ-
ually prior to the creation of the firm.
When the capital of a bank exceeds
$4,000 the tax of 81 additional to the
$50 special tax is only required to be
paid on each $1,000 over and above the
$4,000 of capital For any excess that
is less than $1,000 no additional special
tax is required.
A pc rson who carries on the business
of a broker both in stocks and other
| securities and in grain, merchandise or
produce, is required to pay the special
tax of $50 as a broker and a special
tax also of 500 as a commercial broker.
| Collectors should ascertain and re-
| port for assessment all such cases in
their districts where both the special
tax stamps are not held by these brok-
ers.
Persons who represent several firms
and give entire services to them and
sell only from their quotations are Ii
able as commercial brokers, unless they
can show that they are under agree
ment with such firms to act only for
them, and are excluded from negotiat-
ing purchases or sales for other pur-
poses.
The attorney general holds that the
| law which makes it the duty of the
carrier to issue a bill of lading or a re-
ceipt to a person from whom any goods
are accepted for transportation, and to
stamp the same, does not apply to bag
gage received by railroad companies
and carried upon the same train with
the owner, whether such baggage be
the quantity allowed ordinarily by the
rules of the railroad company or is in
excess of such amount.
The ruling that rebate checks is
sued by conductors being the excess on
fare collected on trains, which are re-
deemable by the company's agent on
presentation, are liable to stamp tax
has been revoked, in view of the opin-
ion of the attorney general Taxes
which have been paid enormously, ac-
eording to this decision, can be refund
ed upon proper application being made
therefor.
The telling of fortunes for money is
not business or exhibition as involves
the fortune teller in special tax liability
under section of the act of June 49,
1898
If renewal receipts issued in connec-
ton with life insurance policies operate
as new insurance, they should be
stamped the same as an insurance
policy. But if the renewal receipts are
simply for the yearly or monthly pre-
miums, they require no stamp.
An order for the payment of money
given by the secretary of a lodge or
society on it's treasurer in favor Of q
third party, must be stamped at the
rate of two cents each.