The herald., 1898-08-23

nxn pocu1ezHTs OF THAT MA
kU1H 1HoUInR A sTA1rr


Judge Shaw yesterday rendered an i'm
portant opinion In the matter of revenue
stAmps on ofdcial and other bonds. In
which he holds that all notary bonds and
all other official bonds require 50-cent
stamp
Owing to the large number Of inquiries
made In regard to the necessity for stamp
Ing bonds presented to the court for ap-
pToval, under the provisions Of the rev.
enus law. and Of amount Of stamps re-
Qu1red, Judge Shaw has deemed it proper
to make statement Of the conclusions he
has reached ON the subject.
In discussing the matter he says:
THE provisions In regard to this matter
are found In the portion Of the revenue act
DESIGNATED as schedule A. This schedule Is
divided into clauses, which are not num-
bersd. but each Of which has an appropri-
ate gub-heading. The first clause upon this
subject. In order. is as follows.
-" 'Bond--For indemnifying any person
or persons. firm or corporation. who shall
have bscome bound or engaged as surety
for the payment Of any sum of money. or
for the due execution or performance Of
the duties Of any office or position. and to
account for money received by virtue
ton. except such as may be required in
legal proceedings. not otherwise provided
for In this schedule, so cents
1.-THE other clause concerning the matter
n found in the portion of the act devoted
to insurance. There is clause relating to
life insurance, another relating to marine,
inland and nfe insurance, and the one here
in question follows these and is as follows:
~ a
anteel--Each policy of insurance or bond
or obligation Of the nature Of indemnity for
loss. damage or liability issued or renewed
by any person, association, company or
corporation sransacting the business of
accident, fidelity, employers liability, plate
glass, steam boiler. burglary, elevator. au-
tomato sprinkler, or other branch Of IN
surance Except life. marine. inland and
IRE insurance. and each bond, undertake
Ing or recognizance. conditioned for the
performance Of the duties Of any office or
position. or for the doing or not doing OF
anything therein specified. or other obli-
cation OF the nature Of indemnity, and
each contract or obligation guar
anteeings the validity or legality OF
bonds or other obligations issued
by any state. county, municipal or
other public body or organization. or guar
anteeing titles to real estate or mercantile
credits executed or guaranteed by any A.
deity. guarantee or surety company upon
the amount Of premium charged. one-half
OF per cent on each dollar or fractional
part thereof
''Under the first clause above set forth It
II clear that all rotaries' bonds and all
other official bonds require stamp to the
amount of 50 cents in order to comply with
the law; also that all bonds fled IN any
action or proceeding In court arc excepted
from this provision Of the law, and do not
require any stamp under this clause. The
kinds Of bonds thus excepted include ad-
ministrator'E, executors and guardians
bonds, bonds OF receivers and all bonds
and undertakings required by the code or
provided for therein in connection with any
action or proceeding In the court.
;. The latter clause. in my opinion. does
not purport to require a stamp on the bond
as such. It is intended to be tax upon
the revenue Of persons engaged in the bust
ness Of casualty; fidelity or guarantee In
surance. and Is not in reality tax upon
the bond at all, but Is a tax upon the pre-
MUM charged for the insurance. 1t ap-
plies not only to premiums charged for as
Stunning the liability of surety upon a
bond of indemnity Of other bond but also
to premiums charged for any other risk as
gumed. by such person or corporation mem
toned in the clause quoted.
'It follows, therefore that when the
surety upon an official bond happens to
be some Incorporation authorized under the
laws Of this state to become sureties upon
such bonds. the corporation so becoming
q surety must pay the tax provided for in
this clause: that Is to say. one-han Of one
cent upon each dolla: Of the premium
charged, an tdhis stamp tax is in addition
to the 80 cents which 1t Is provided in the
first clause must be paid as stamp tax
upon tho bond itself. Upon all bonds not
required in legal proceedings where the
sureties are natural persons not engaged
in the business of fidelity or guarantee In
surance. the bond must bear a stamp Of 50
cents only.
Upon all bonds where the surety Is a
person or corporation engaged In the bust.
ness Of fidelity or guarantee insurance,
In addition to the 50 cent stamp required
by the first clause quoted. the bond must
also be stamped for the amount of tax re-
quired by the second clause quoted, that
Is, the amount which will be necessary to
pay one-half OF one cent on each dollar
of the premium charged by the surety.
This last mentioned tax is required to be
paid upon all bonds, whether required In
legal proceedings or otherwise, where such
insurance company is a surety. there being
no exception in that clause excluding bonds
required In legal proceedings"
FNf = y
SAN DIEGO WATER CASES
Two Qeciaiona Rendered hx Iudra Rosa