Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1898-08-04

Deputy Collector OF Internal Revenue
Wells has received from N. B. Scott,
Internal Revenue missioner. letter
Informing him Of the following rulings
concerning the new war tax law:
No stamp Is sequirsd on ordinary
receipts.
The exemption from tax on ware
house receipts for agricultural products
ia restricted to receipts for products OF
this kind, which are deposited by thu
actual grower thereof in the regular
oourae Of trade or sale. This does not
exempt warehouse receipts for such
products in case the property deposited
has already passed from the owner
ship of the actual grower.
An inland bill of exchange within
the meaning of tine act, is bill of ex-
change drawn and made payable any
where in the United States.
Any order for the payment of money
drawn In, but payable out Of the United
States, if drawn singly, is subject to
tax OF A cents for 500 or less. and for
each additional 500 or fraction cents.
Where certificates of shares were sold
and delivered before J uly 1st, 1898, entry
of transfer on corporate books after
June 30th doea not require stamp.
holder in lieu of original certificate. and
remaining in his ownership, do not re-
quire stamps. When certificate of
stock Ia sold and the stamp tax lie paid
on the memorandum thereof, upon the
transfer o! yhisseerti ticats to the pur-
chassr's namB, no additional tax for the
transfer is required, Where one GER
tificate represents several shares Of
Htock however large the. number of
shares), on the transfer of this certifi-
cate the stamp tax ia to be reckoned on
its face value aud not on the face
value of each separate share of stock
which it represents.
A 2-oent Htamp~is required on an
order for cash drawn on a merchant by
one of his customers
Certificates of~flepoHit drawing in
terest, il left certain time. are taxable
tho same as promissory notes.
The withdrawal of funds by a de-.
positor on the presentation of his bank
book to the savings bank does not re-
qpire stamp, II there is nothing
accompanying it in the form of an
order for the payment Of money.
If papers in the nature Of receipts
are given in lieu Of checks and are
used as commercial negotiable instru-
ments, they are checks and not receipts
and are subject to tax.
Where certificates of stock are de-
livered as collateral, the stock to be
forfeited only upon condition Of failure
to pay the debt for which Ii is pledged,
stamp lie required as pledge and not
ne sale.
Real estate mortgage notes require TO
be stamped, in addition to the stamps
placed on the mortgage.
Where there 10 a pledge Of property
accompanying any promissory note,
which pledge is subieut to stamp tax
under schedule A. this stamp tax must
be paid, notwithstanding the fact that
stamp is also required on the note
connected with it,
Only purely cooperative or mutual
fire insurance companies carried on by
the members thereof solely for the pro-
lection Of their own property, and not
for profit. are exempted from taxation.
Assessment beneficiary life insurance
associations insurine their own mem.
bers, and not for profit, come within
-the exempting provision. The exemp.
tion given to fraternal beneficiary life
insurance associations applies also tc
fraiernal beneficiary accident insurance
associations. tA@Ef
In cases of loans on real estate, wher
promissory notes are given, which ar,
not paid at maturity, but on which ar
extension OF time of payment il
granted, without the taking of a nav
note. it is held that every such ex
tension ia q renewaijof the note within
the meaning of the stature, and tina
the requisite stamp must be affixed TO
every such renewal or extension. Thi
also applies to notes discounted befor
July LIST. falling due on or after tina
date.
The person who signs and Issues ,
bank check, without affixing the prope
stamp, becomes involved in liability Il
penalties under section 10 of the act
unless it ia shown thar he had n
design to evade the payment OF tn
stamp tax, and that the iequisIt
stamp was affixed and cancelled by tb
bank person upon whom il was drawn
before payment. Where check |
presented to a bank without havip,
the requisite stamp affixed, the bank
ii it pays such unstamped check, be
comes liable to the penalty provides
by section 10 of the act. The han
may cure the defect by sffixing th
proper stamp.
Bucket chop proprietors giving memo
rapdum Of transactions are required I
pay special tax aa brokers.
Whers tax OF 10 cents is maid O
the bill of lading for goods expor tee
1t is held that no stamp tax is require
to be paid on copies of such bills {
lading. On inland bills of lading eac
duplicate requires a stamp of the yalu
of one cent. Bills of lading for @,
portations by railroad to Britieh Mort
America require 1O-cent stamp.
wharf receipt given to shipper, i
exchange for which bill of lading
issued, does not require stamp. Ba.
gage forwarded by railroad company
express, subject to extra charges, com,
within the law requiring u stamp Q
the bill OF lading or other evidence
receipt and forwarding. 1t is the dut
Of carriers TO issus a bill Of lauing ,
receipt for goods accepted by them I,
shipment and to afBx the stamp, and
penalty is prescribed for failure to {
SO. Mere local operators for the d
livery of packages, baggage and SUE
like, within the limits of the san
town or city are not required to gil
bills Of lading. Although such operate
may give receipt for articles to
delivered, such receipt is not requirl
to be stamped. A mere carrier, aH Z
instance, . person with horse al
wagon, who does local delivery bus
ness 10 city or town, is not includ
within the above requirement The ca
riers. which were intended to be i
cluded within the terms of schedule !
under the lead of express .ai
Freight" are such as are engaged