The record-union., 1898-07-16
TO STAMP, OR NOT ToSTAMp
THE QUESTION THAT AGITATES
BUSINESS PEOPLE.
Some Light on a Law That Has
Been 1mperfectly Under
stood.

Been Imperfectly Under
stood.
NOBODY seems to know just what the
provisions of the new revenue law are.
Lawyers, city and county officials, lit
lgants and professional people Sener-
ally are at loss to know just how 20
construe the law, while but few have
even read it,
The other day County Clerk Hamil-
ton sent telegram of inquiry to Com
missioner of Internal Revenue Scott
at washington as to whether or not
stamps We're required on claims against
the county filed with the Board of Su-
pervisors. The reply came back:
Stamps must be put on all certifi-
Gates required by law"
This was as clear as mud to the
clerk, and he now knows no more about
it than he did before he paid for that
telegram.
County Auditor Cohn has received
from Collector Bell statement that all
marginal releases of mortgages are
Certificates within the meaning of the
law, and that with each release 10
cent stamp must be placed on the mar
gin of the book. For the convenience
and information of persons having busi-
ness with his Office Mr.. Cohn has pre-
pared the following:
Deeds-When the actual value exceeds
800 and does not exceed $500. ......... so
And for each additional $500 in value
or fraction thereof .................. 80
Mortgages and trust deeds real
estate and personal property
ceeding $1,000 and not exceeding
And on each additional $500 or frac-
ton thereof Observation-Disclosures. 25
Assignment or transfer OF mortgages
and leases or the renewal or con-
tinuance of any agreement or con-
tract, same tax as on the original
instrument.
Leases, agreements or contracts-f
fer a period not exceeding l year. %
If for a period exceeding l year and
If for a period Exceeding 3 vearsn co
Power OF attorney ACKNOWLEDGEMENTS 70
MUST STATE FULL VALUE.
Henceforth all deeds and other docu-
nents relating to the transfer of real
estate must state the full value Of the
property, in order to determine the
amount of stamps to be affixed. The
custom has been, in most instances, to
omit these figures, 81 or So or other
small sums being used to denote the
consideration. Competent lawyers who
have looked into the matter are ad-
vising their clients not to neglect af-
fixing the stamps and TO state in such
papers the real consideration involved
in the transaction.
The only thing like an official opinion
that has yet been given in the matter
is an informal one by United States At
torney Henry S. Foote. 1t was in reply
to a query by c. p. Owen, Recorder of
Santa Clara County. Mr.. owen wired
to Judge Foote the following: "Consid-
Grafton in a deed SO; known value Of
property 5000. Parties refuse to pay
tax on value claiming the law says
consideration What shall 1 do-re-
fuse the document"
Judge Foote replied by letter to the
effect that he was not authorized in his
official capacity to give opinions 10 other
than Federal officials, but he would say
unofficially, without hesitation, that the
amount of the stamp 10 be affixed on
the deed must be the real ''considera-
ton of value of the property conveyed,
on the basis of the law under the head
of CONVEYANCE LAS a matter of course,
persons cannot convey property by put
ting i'll a nominal consideration instead
Of the real consideration or value" adds
the Judge. II cannot be your adviser
as to refusing the document or other
wise"
Internal Revenue Collector Lynch OF
San Francisco said: Under the War
Revenue Act a man has no more right
to understate the value of the property
in a deed than he would have to give
wrong sttement as to proof spirits.
In all cases of violations Of revenue the
United States interprets the law in its
own favor In other words, il gives
itself the benefit of the doubt"
A. NJ Speck, real estate dealer of
that city. said that not much complaint
had been made by clients on account of
the stamp tax on deeds, rent receipts
and other documents involving real es-
tate The owners of the property fur
nish the stamps. except in the case OF
leases, the stamps for which are fur
nished half and half by the parties
With regard to the custom Of placing a
fictitious consideration in deeds, Mr.
Speck said that he had been advised by
his attorney that such a proceeding
rendered the deeds of no more account
than so much waste paper. He added
that if litigant could prove that the
deed the validity of which he might
De cOnteSUnS was stamped Al less lildi
the tax on the actual consideration he
could have il thrown out of court.
Section 6 of the Act provides the pen
alties for a violation of the law, anC
is as follows:
That if any person or persons shall
make, sign or issue, or cause to be
made, signed or issued, any instru-
ment, document or paper Of any
kind or description whatsoever.
without the same being duly stamp
ed for denoting the tax hereby inn
posed thereon or without having
thereupon an adhesive stamp to de-
note said tax. such person or per-
sons shall be deemed guilty OF mis-
demeanor, and upon conviction
thereof shall pay a fine of not more
than S100 at the discretion of the