New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-07-01
TAX on STOCK CERTIFICATES.
COMMISSIONER OF INTERNAL REVENUE DEFINES
ORIGINAL. ISSUE"

COMMISSIONER OF INTERNAL REVENUE DEFINES
ORIGINAL. ISSUE"
WASHINGTON June Son the question OF the con-
struction of that part of Schedule OF the acl Oh
June e. 1885, imposing tax ION each Original isSue
whether on organization or reorganization. OF GER
ufcates o. stock" IL is held by the CommSs'one'
of Internal Revenue. in a circular Issued To-Day
that the meaning OF the words Original issue' as
therein used IS limited and controlled oy the "o'us
whether on organization or reorganizauoi' anu
that therefore, the only certificates OF stoch Oh
which the tex of FIVE cents ION each hundred do.
lars Of face value or fraction thereof IS imposed
by this act arc those certificates issued on or ai'er
July J. 1895 on the organization or reorganization
OF a company.
1t is held further that in the case OF corpora
ton having 0or instance authorized capitai
stock of 100000 Of which 1t has issued only
800 go prior to July l. 1888 and on or after 'na'
date finds II necessary 20 make one or more aoH-
uonal issues under the authority possessed ny H.
each additional issue thus made is an "orieihel IS
sue" within the terms and meaning 81 the "a'ne
under consideration and the certificates - sncA Is
sue are subject to the stamp tax
Where any original certificate issued Is Ircs' ntSo
by the holder 20 the oompan! or .'59"' ' 'o' ~
Issuance OF another certtcate o. - i. =, -, -
thereof the certificate or cHriiacates there PHh -
sue TO take The place OF ne onsns, I'm ~
could not, under the language ana I'm, .,m 20
the statute abOve re"lted require any stamp az
memorandum Of sale. or transfer Of airy Of nos"
certificate issueo IN len OF - origin. .,s,.- &c
shown Only ov tne books o, tho COMPANY, tsA o.
two cents = -equ ed - be paid on %. n 90 OF
face value or fraction thereof. and tho stamp rep
resentipg this IL 1equ.Ned 10 te placed np"n sr'h
books
Where the char sc Of ownership is l.. transfe-
certificate, that is 30 say the executed an ..oil'H
10 transfer Is contained tho back or the Sior x
certificate which = 20 he transferred. me stamp
must be place. the transfer C5tfihcate; ira Is
20 say. upon the surrendered cerNHCa'e containing
the transfer.
transfer IL by delivery o. the certificate assigned
IN blank, there must be executed a menortnHNnl
thereof. TO which the stamp Is required IN %" hf
dxed
Under the ruling herein stated. IN a case chat
may be supposed of man who y tho owns: Ct a
certificate TO! 100 shares Of stock and wishes 20
cell ten OF them 70 another person. IN" result DO
ing that certificate would he Issued foI the
ten shares sJld. and also an additional certificate
9or the ninety shares stil lemainins with him the
certificate for ninety shares issued with the GER
thca te for ten shares sold in lieu thereof. does no.
require any stamp and the certificate for the ten
tax OF five cents on each 500 face value or fraC
ton thereof II IS not original issue The
only stamp required with reference 20 those cerin
Gates is stamp the transfer OF thu ten shares
sold. representing payment Of the TAX Of TWO cents
each 800 % face value or fraction thereof.
In another case stated for illustration. where a
man holds several certificates for shares OF stock
aggregatng 100 shares, and FOR his convenience
calls upor the company to issue 70 him N ieu
thereof one certificate for 100 shares there being no
sale, or agreement 10 sell. or memOTandum Of
sale or deliver transfer OF his c"Ttincale
the statute uoes not require the afhxing Of any
stamp thereto.