The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-07-17

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WASHINGTON, d. c., June 29, 1898.
Sir: On the question of the construction q
that part of schedule A of the act of June le.
1885, imposing stamp tax on each original
issue, whether on organization or reorganiza-
ton, of certificates Of stock" it is held that
the meaning of the words original issue" as
herein used is limited and controlled by the
words whether on organization or reorganiza-
ton" and that therefore, the only certificates
Of stock on which the tax of cents ION each
800 OF face value or fraction thereof is i'm
posed by this act are those certificates issued
on or after July /, 1898, on the organization or
reorganization of a company.
In the case of corporation having. for in
of which it has issued only $500. 900 prior to July
l. 1898. and on and after that date finds it
sues. under the authority possessed by 1t, each
additional issue thus made is an original
statute here under consideration and the GER
tificates of such issue are subject to the stamp
Where any original certificate issued is pre-
sented by the holder to the company OF cor
poration for the issuance of another certificate
or certifcateS in lieu thereof, the certificate or
certificates thereupon issued to take the place
of the original certificate could not, under the
language and limitation of the statute above
sale nor agreement to SELL nor memorandum
Of sale. nor transfer Of any Of these certf-
In case of sale where the evidence of trans
fer is shown only by the books OF the COM
on each hundred dollars of face value or frac-
ton thereof; and the stamp representing this
Is required TO be placed upon Such DOCKS.
Where the change of ownership is by trans
fer certihcate-that is to say, the executed au-
thority to transfer Is contained the back of
the stock certificate which is to be transferred
the stamp must be placed the transfer GER
tificate-that is to say, upon the surrendered
certificate containing the transfer.
In cases of agreements to sell, where the
transfer is by delivery of the certificate as
signed in blank there must be executed a
memorandum thereof, to which the stamp is
required to be affixed.
Under the ruling herein stated, in case
chat may be supposedly Of man who is the
owner of certificate for 100 shares of stock
and wishes to sell ten of these to another per-
son, the result being that one certificate would
be issued for the 10 shares sold. and also an ad-
ditional certificate for the 80 shares still re-
naming in him. the certificate for 90 shares
issued with the certificate for 10 shares sold)
In lieu Thereof, does not require any stamp; and
the certificate for the 10 shares does not re-
quire stamp representing the tax of 5 cents
on each hundred dollars of face value or frac-
ton thereof, as it is not original issue The
only stamp required with reference to these
certificates is a stamp the transfer of the
10 shares sold representing payment of the tax
of cents on each hundred dollars of face value
or fraction thereof
In another case Stated for illustration where
a man holds several certificates for shares of
stock aggregating 100 shares and for his con-
venience, calls upon the company to issue to
him in lieu thereof one certificate for 100
shares there being no sale, nor agreement to