Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1898-07-09
rAx on mININa srocKs.
Tho Law l. Interpreted by Denver inter
nal Revenue Collector.

The placing OF 80 many different con.
atructions upon the revenue law per-
talnlng 20 mining stock transactions.
has caused to be issued by Internal
Revenue Collector Howbcrt. or Denver.
the following letter of Instructions gov
crning all such transactions lngsmuch
AZ local brokers have been ut sea as
to the proper Interpretation OF the law.
the letter was handed In by O.. broker
this morning and read before the mcm-
bcrs Of the stock exchange. Says Sir.
liowbcrt:
To Mining and other Stock Brokersi
In future. with reference 10 the war
revenue tax on the purchus, and sales
OF mining stocks you Will be guided by
the following construction % the act.
on all sales OF shares or certificates
Of stock In any corporation, except
/ original issue. on each 800 face value
or fraction thereof. two cents.
EVIDENCE OF TRANSFER
whore evidence of transfer IL shown
only 10y the hooks 81 the company. the
stamp should be placed upon The riuD
uf the stock books. as FOR Instance.
whore II n an original Issue.
When change ~ ownership IL by
transfer OF the certificate not designed
~ blank. stamp should be placed upon
the certificate.
And In case N an agreement to sell.
OF whore the certificate II assigned IN
blank, there shall be made and delivered
hy the seller to the buyer "a memoran-
dunn NJ sale. to which the stamp shall
be- Affixed. This memorandum should
show the date thereof. names of seller
and buyer amount ~ sale. face value
Of stock and the matter or thing TO
which 10 refers. For Illustration. sup
pose that "a" AZ a broker. sells To
/ ~" another hrdkofi 900 shares ~ Port
land stock at 800 par value. assigned
IN blank. both brokers acting either Cor
themselves ~ FOR customers. "a" should
Elyc ~" the memorandum Of the sale
In substantially the following formi
800 July ?, 1888.
/ 1000 shares ~ Portland par value ti.O0
per shasrc. $1,000 face value.
/ To which should be- affixed stamps 10 the
/ value OF 90 cents when ~" Tor his
| customer, has the certificate ~ stock
! transferred ON the books ~ the Port
] land Mining company there Will be- no
/ further stamps necessary ON this al
l the Intent uf the law being that but
| ono payment 81 stamps shall be- made
I upon each sale.
The memorandum ~ sale should IN all
| cases be attached 10, and accompany.
| the stock certificate when presented to
] the secretary Of the company Tor trans
FER Into the name ~ ~" or his Gus.
toner. This VIII be prlma facle evidence
to the secretary that the tax has been
! paid on the sale. and warrants him In
issuing new certificate In the name ~
/ -" or his customer. without further
stamping.
ANOTHER ENAMPLE.
suppose In case -" has ccrtln-
| cate ~ 1000 shares OF Portland stand.
| Ing In his name and sells same g. "B.
| ming IN rs" name In the blank on
I said certificate. the stamp In this case
| should Dc affixed to the cert inrate Itself
ana not TO any bill or memorandum Of
sale.
a person hnving a certificate for 1000
| shares ana selling 100 shares thereof
/ can have the same issued to pur-
chaser, and new certificate for 500
/ shares lnsued 60 himself. and on this
I transaction would only pay cents. or
| only upon 100 shares actually sold.
one having number OF certificates
| agEroratlng 1000 shares and wishing
90 consolidate them into one certificate.
can do Ho without the payment 81 any
l tax, " there should be no actual sale.
on each original Issue ~ certificates
~ stock by any company or corpora
| ton, thorr shall be stamped on the
| stub In stock books on each 500 face
| value. or fraction thereof. the sum ~ o
cents documentary stamps. ny original
Issue II meant. nm issue whore the
stock has not heretofore been issued
or Transferred by certificate In any
manner
For Illustration, company On cnpl-
I tnllEcd Tor on' million shares and la-
sues 20 amy nerson or persons "A GER
/ tincnte for the total capitalization In
| payment for property. this Issue would
b. subject 10 the tax Of . cents ON each
800 face value (unloHa issued prior 10
/ July !. 1880, ~ This would clearly be
/ nm original issue. should anld person
/ donate back % the treasury N tho
| company. say 100000 shares. said shares
10 donated Would not he considered
ORIGINAL Issue when sold and issued
be relulrcd 10 Wamp M Tho rate of Q
cents for each 800 face value.