The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-07-30
ANOTHER BATCH OF INTEREST
ING DECISIONS
REvERSALS OF PRIOR DICTA
How the Tax Reaches All Trades and
Occupations and Leaves Few
Loopholes of Escape
OFFICE OF THE HERALD,
Los Angeles. Jl1ly 90 1893


ford ample food for discussion and its inter-
of decisions" intended for the illumination
carrying on the war.
Below Will be found the very latest sum-
mary of these decisions as rendered by Com
missioner Scott of the internal revenue bu-
reau. The list is of the greatest interest at
the present time, but it must not be taken
rs final, nor as irrevocable. In one import
int point Commissioner Scott appears al
ready to have reversed himself, namely in
regard to the requirement for a ten cent
stamp on a notarial certificate Of acknowl-
edgement. On the 9th of June last he tele-
graphed to this city an answer to an inquiry
that such stamp was not needed. In the
table below it will be seen that he gives an
opposite decision. This particular question
Is up again for discussion, being of large
Importance, and final word on the sub
ect is expected very shortly Meantime
safety requires the affiXing of such stamp
10 all Acknowledgements.
No Stamps on Government Checks
Checks drawn by the United States dis
bursting officers in performance OF dutes
required by law against public funds stand
two-cent internal revenue stamp thereon.
And all checks drawn by officers of states.
counties and municipalities for the dis
charge of the obligations of states. coun-
ties and municipalities are exempt under
Sec. of the act.
Warehouse Receipts
The exemption from tax on warehouse
receipts for agricultural products is re-
stricted to receipts for products OF this
TOD NV ha ont
grower thereof in the regular course of
trade for SALE This does not exempt ware
house receipts for such products in case
the property deposited has already passed
from the ownership of the actual grower.
Inland Bills of Exchange
An inland bill of exchange, within the
meaning of this act, is bill of exchange
drawn and made payable anywhere in the
United States.
Any order for payment of money drawn
In but not payable out of. the United
States, if drawn singly. is subject to tax
of four cents for one hundred dollars or
less and for each additional hundred dol
lars or fraction, four cents.
Stock Certificates, Etc.
Where certificates of shares are sold and
delivered before July l entry or register on
corporate books after June 30 does not re-
quire stamps.
New certificates of stock issued to holder
N lieu of original certificates. and remain
Ing in his ownership, do not require stamps.
When certificate of stock is sold the stamp
tax is paid on memorandum thereof. Upon
transfer of this certificate to purchasers
pane, no additional tax for such transfer
Is required.
Stamps on Orders for Cash
A person has to place a stamp on an order
for cash drawn on a merchant by one Of
his customers.
Deposits Drawing Interest
Certificates of deposit drawing interest.
Il left a certain time, are taxable the same
as promissory notes.
Savings Bank Withdrawals
The withdrawal of funds by depositor
on the presentation of his bank book to the
savings bank does not require a stamp If
there is nothing accompanying it in the
form of an order for the payment OF money.
Receipts given for the withdrawal of saw
lngs account not subject to check do not
require any stamp. Where certificates Of
stock are delivered as collateral the stock
Is to be forfeited only upon condition of
failure to pay the debt for which it Is
pledged; stamp is required as pledge and
not as a sale.
Real Estate Mortgage Notes
Real estate mortgage notes require to be
btdmpeu IN duulllOH 10 lHe stamps plaCeQ
on the mortgage. Where there is pledge
of property accompanying any promissory
note, which pledge Is subject to stamp tax
under Schedule A, this stamp tax must be
paid, Notwithstanding the fact that
stamp is also required on the note connect
ed with 1t.
Extensions of Promissory Notes
In cases of loans on real estate, where
promissory notes are given, which are not
paid at maturity, but on which an extern
sion of time of payment is granted, without
the taking of a new note, it is held that
every such extension Is renewal of the
note within the meaning of statute. and
that the requisite stamp must be affixed for
every such renewal or extension.
This also applies to notes discounted be-
fore July falling due on or after that date
The person who signs and Issues a bank
check without affixing the proper stamp,
becomes involved in liability to penalties
under Section 10 of the act, unless 1t is
shown that he had no design to evade the
payment of the stamp tax, and that the
requisite stamp was affixed and Cancelled
by the bank or person upon whom it was
drawn before payment.
Where a check is presented at a bank
without having the requisite stamp affixed,
the bank If 1t pays such unstamped check,
becomes liable to the penalty provided by
Section 10 of the act. Bank may cure de-
feet by affixing proper stamp.
Cooperative Fire Companies
Only purely cooperative or mutual fire
Insurance companies carried on by the
members thereof solely for the protection
of their property and not for profit are
exempted from taxation. Assessment ben
eficiary life insurance associations insuring
their own members and not for profit come
within the exemption provision. Exemption
given to fraternal beneficiary life insurance
life associations applies also to fraternal
beneficiary accident insurance associa-
lions.
Bucket Shop Memoranda
Bucket shop proprietors giving memo-
randa of transactins are required to pay
special tax as brokers.
Excess Baggage
Baggage forwarded by railroad company
or express, subject to extra charges, comes
within the law requiring stamp on bill of
lading or other evidence Of receipt and for
wardng.
1t is the duty Of carriers to issue bill of
lading or receipt for goods accepted by
them for shipment, and to affix the stamp
and penalty is prescribed for failure to do
10. Mere local operators for the delivery Of
packages, baggage and such like with the
limits of the same town or city, are not re-
tuired to give bills Of lading; although such