Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1899-11-23
Decision Of Judge woolson on the
Stamp Law Reversed.
an IMPORTANT QUESTION DECIDED.
Transfers OF Mortgage by Mere 0psr-
alton of Law DO Not Require
Revenue Stamps to Give
Them Validity.

WORTH OF Ottumwa, In common with
such centers all over the country, was
greatly stirred up about a week ago
by the decision of Judge Woolson of
the United States district court for
Iowa. in the celebrated case involving
the title to part of tt sortgaged-p las-
tered Gillett cattle, , ,zed by United
States marshal frot Jamison Bros, OF
Louisa county, while the same were in
transit through Burlington.
Judge Woolson held that the mort-f
cages We're invalid and could not be
introduced as evidence because they
did not bear.revenue stamps, for each
assignment of the note for which the
mortgage was given as security, equiv
alent to those originally required on the
mortgage. Opposed to this it was held
by some burlington lawyers that mort
cages transferred through operation Of
law, that is as security accompanying
an assignment of note, did not require
such stamp; that the transfer of the
mortgage was merely an incident, a le-
gal consequence inseparable from the
act of assigning the note; and thar the
law did not contemplate the taxation Of
an incident, due to the operation of
law, but of documents actually exc.
cured.
This view, unknown TO Judge Wool
son and all others interested in the case,
had already been adopted by the COM
missioner of internal revenue, at WASH
ington in a decision not made public
at the time of the recent trial, and its
effect is to nullify Judge Woolson's de-
cIsion; at the same time it gives great
relief to many anxious holders of as
signed notes secured by mortgage, of
which species of property there is un-
told millions in existence. A report of
the matter is made as follows by the
Keokuk Gate City:
"There is new light on the subject of
stamping transfers of mortgages when
the transfer is solely by operation OF
law in selling the note secured by the,
mortgage endorsed in blank or other
wise.
"Ihe commissioner OF internal reve-f
nue. has decided that such transfers do
not require internal revenue stamps
In the celebrated decision in the federal
court here last month, Judge Woolson.
held that such transfers must be stamps
ed, and the big cattle case came to
sudden close because of the lack of the
| stamps.
Thousands of millions of commercial
paper is interested in The decision, and
some holders of commercial mortgages
| in keokuk wrote to the commissioner
Iof internal revenue for decision from
him. The reply is in the form OF copy
of letter dated in September, which
| is rs follows:
| Washington, d. C..,sept IA, 1s99-H.
C. Fl. Jarold. Esq, Collector Fifth Dis
| trict, Newark, n. J.-Sir: / am in re-
GENT OF your, letter of August "a, 1899,
in which you submit letter under date
of august IS, from Jacob i. Ward, as
sistant counsel of the Prudential Insur-
ance company, in which this gentle-
man states that his company is asked
| to assign y promissory note secured by
4 deed of trust covering real estate in
the state of Missouri. and he asks if
1.-The assignment of this note operates as
an assignment of the deed of trust and
tnron which taxation would accrue
las an assignment of mortgage or
deed CT trust.
"Ih;s office advises you that the as
sirni'ent Of this note by an indorse-
ment with or w:thou: recourse does
rot operate :'.i AZ assignment of the
deed OF trust Viewed from the stand
point of.inipr,tai revenue taxation and
on which = ~ e. AL avs gnmeut Of
a mortgage would 3cc.ue. The assignee
or imlorsse of sti5h note is entitled to
1.-the provisions cf the .IIst in regard to
the sale, etc. ii he is bona fde holder
of the note, and if the party who orig
inally executed the more fails to pay the
same, but such an Endorsement of
note is not considered TO be by this Of
flee i taxable assignment of the deed
of trust. and you will please inform Mr..
Ward accordingly.
Respectfully yours,
| 'siqned) &c. w. Wilson,
| W "Commissioner.'
can interesting thing about this is,
that this decision was made before the
case was in the federal court here, but
was not printed in any pamphlet of de-
| cisions Judge Wooson said Mt the
| time that if there was a commissioners
decision he would be inclined to follow
| il. The law is that for purposes of col
lecting the tax the decisions OF the
commissioner are above the courts to
the extent that the tax is collected or
4 not, is he decides, and If any party feels
aggrieved the latter may sue to get the
4 tax paid back to him. On the other
hand, the federal courts are jealously
the sole judges OF their own rules OF
evidence, and the question here was
/ whether the transfer had TO be stamped
because it WAS offered in evidence and
the law says that any paper not stamp-
ed that should be stamped may not be
admitted in evidence.
1'From what Judge Woolson said at
the time, there seems no chance of any
conflict of authority or argument be-.
tween the commissioner and the court.
Judge Woolson said or very plainly in
timated that he hoped the attorneys
would find a commissioners decision
on the point to relieve him of making
"a decision de noyo. The case in court
here is considered settled and ended.
II the lawyers had known of this com
missioner's decision, previously made
and not published, the cnse would
probably have ended in different man
ner, il not with different result.
sThe decision printed above goes
anyhow, and it will greatly relieve the
minds of thousands of holders OF COM
mercial paper"