The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1898-07-29
War Tax Rulings
Baltimore Sum-

baltimore sum-
Considerable concern is shown by
corporation officials as to the proper
Interpretation of the war tax law. A
humber OF queries have been sent to
the commissioner of internal venue
Scott, at Washington, asking for OFF,
cial construction Of the various pro-
VISIONS. In response to one Of these
requests the following reply was sent:
0 the question Of the construction
Of the part of schedule A of imposing
stamp tax on each original issue.
whether on organization or %reorgani-
cation, OF certificates OF stock it is
held that the meaning of the words
original issue as herein used, is linn
tied and controlled by the words
whether on organization or reorgan-
ization.' and that, therefore, the only
certificates of stock On which the tax
of 5 ent on each 800 Of face value
or fraction thereof is imposed by this
act are those certificates issued on or
after July /, 1898, on the organization
or reorganization of a company.
In the case of a corporation hav-
ing (for instance) an authorized CAPT.
tai stock of 81, 600, 900, of which il has
issued only $500, 600 prior to July 1,
1898, and on or after that date finds
it necessary to make n o + more ad-
dltional issues, under the authority
possessed by it, each additional issue
thus made as an original issue with
in the terms and meaning Of the stat
ute here under consideration, and the
certificates Of such isue are subject
to the samp tax
Where any original certificate is
sued is presented by the holder to the
company or corporation for the is
suance of another certificate or certi-
Gates thereupon issued to take the
place of the original certificate could
not, under the language and limita-
ton of the statute above cited, require
any stamp as long as there is no sale,
nor agreement 20 sell, nor
dunn of sale, nor transfer of any Of
| these certificates issued in lieu of the
| original.
I'm case of sale where the evidence
| Of transfer is shown only by the
books of the company a tax of 2 cents
is required to be paid on each 500
| of face value or fraction thereof, and
| the stamp representing this is requir-
| ed to be placed upon such books.
Where the change of ownership is
by transfer of certificate, that is to
say, the executed authority to rams
! fer is contained on the back Of the
| stock certificate which is to be trans
| fered, the stamp must be placed on
| the transfer certificate; that is to say,
| upon the surrendered certificate ON
| tanning the transfer.
I'm case of agreement to sell, or
| where the transfer is by delivery Of
the certificate signed in blank, there
| must be executed a memorandum
| thereof, to which the stamp is reQuir-
| ed to be affixed. Under the ruling
| herein stated, in a case (that may be
| supposedly of a man who is the owner
| Of a certificate for 100 shares of stock,
| and wished to sell ten of these to
| another person, the result being that
one certificate would be issued for the
ten shares sold, and also an addition
| al certificate for the 80 shares still re-
| naming in him, the certificate for 80
| shares, issued with the certificate for
| 10 shares sold) in lieu thereof, does
| nOt require any stamp, and the GER
| tificate for the 10 shares does not re-
| quire a stamp representing the tax of
| five cents on each hundred dollars Of
| face value or fraction thereof, as it is
| not an original issue. The only stamp
| required with reference to these certifi-
| Gates is a stamp on the transfer of
| the 10 shares sold, representing pay
| ment of the tax of 2 cents on each hun
| ord dollars of face value or fraction
| thereof.
"In another case, Stated for illus
tration), where a man holds several
| certificates for shares Of stock aggre-
| eating one hundred shares, there being
| convenience calls upon the company
| to issue to him in lieu thereof one
| certificate for 100 shares, there being
no sale, nor agreement to sell, nor
memorandum of sale or delivery or
transfer of this new certificate, the
| statute does not require the affixing
of any stamp thereto"