The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-08-05
POSTAL MONEY ORDERS.
Tax of Two Cents Must He Paid, but
No Stamps Are to Be AfFlxed.

Tax of Two Cents Must he Paid, but
No Stamps Are to Be AHixsd.
WASHINGTON, Aug. 4.-The revenue act,
which took effect July /, prescribed a gov
eminent tax of cents on each United
States postal money order. instructions
were issued in advance to all money-order
postoffices that this tax was to be collected
not by affixing stamps to the orders, but by
charging cents TO the buyers of money or
ders in addition to the regular fee. This 2
cents is to be accounted for separately by
postmasters to the auditor for the POST
office Department, and the gross amount of
the collections, estimated at $500 900 per an
mum, will be transferred from the postal
revenue to the internal revenue fund quar-
terly by the auditor. In spite of the plain
instructions sent out, money orders are now
coming in to the auditors office with reve-
nue. stamps affixed. Some of them have evil
IDENTIFY been affixed and Cancelled by post
masters, others by purchasers of money or
ders, and still others. and most numer-
ously, by payees when they receipt for the
money. All this is double payment of tax,
for the selling postmaster will in every case
be required to account for cents on each
order sold. No revenue stamps are in any
case to be attached to United States postal
money orders. q
The commissioner of internal revenue to-
day rendered a decision in which he, holds,
in effect, that persons engaged In manu-
featuring sugar from cane or beets and
who do not buy and refine other sugars are
not subject to the tax imposed by the new
war revenue act.
The commissioner OF internal revemue has
also rendered a decision on the liability of
cooperative and mutual insurance compa-
MES to tax under the war revenue act.
After quoting that part of the act appli-
cable to the case the commissioner says
that 1t is clear from the language used that
the exemptions made are not intended to-
apply TO life insurance companies, although
organized and conducted on the mutual
plan, unless such companies ARE frater-
nal beneficiary or purely local@ in
ular company under consideration, 1t is
stated that it is purely cooperative or mu-
tual, issues no stock and has no stock
holders and all of the profits or surplus
assets go to its members in the way of div
idends. reductions of premiums or additions
ton the commissioner in his letter says:
THE term 'fraternar or beneficiary, as
used in connection with life insurance COM
panies, would seem to have no application
to the company you represent: and. admitx
ting 1t to be a purely cooperative associa-
tion as claimed, its business, 1t appears is
not confined to any particular locality, nor
conducted exclusively for the benefit of its
members without profit. Upon examination
of the form of policy submitted by you, l
also find that the premiums charged are al
certain fixed rates. and payable at stipu
lated times, as in the case of ordinary life
insurance and not according to the sssessA
insurance companies. From the examina-
ton given am clearly of the opinion that
the policies issued by your company 10 not
come within the exemption referred to-