Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1899-01-12
tNrEnNAL nEvEsUr DEoIsIoss.
Coiisctor Leitch ADVISED Of Important
Rulings by Commissioner scott.

W ihtCi ipNtliut, hao bCth dNf ioch
of the following important war tax
rulings by Commissioner N. B. Scott:
New certificates Of stock issued to
holder in lieu of original certificate,
| and remaining in his ownership, do
| not require stamps. When certificate
| of stock is sold and stamp tax is paid
on memorandum thereof, upon transfer
of this certificate to purchasers name
no additional tax for such transfer is
required. Where one certificate repre-
sents several shares of stock (however
large the number of shares), on transfer
OF this certificate the stamp tax is to
| be reckoned on its face value, and not
on the face value of each separate share
of stock which it represents. Trans
fers of stock from parties occupying
| fiducfary relationships, to those for
whom they held the stock, are transfers
! subject to taxation. A owns certifi-
cate of 100 shares of stock; he trans
| fers 80 shares to b there are two GER
tifcates of SO shares each issued in lieu
| Of the 100 share certificate, 80 shares
going to A and 80 shares to 3. The
| tax imposed is on the transfer to b |;
| there is no tax on AS transfer to him
self.
When a sale is made of livestock at
a livestock exchange or any similar
place, or an agreement of sale, or an
agreement to sell entered into, the seller
must give to the buyer bill, or mem
orandum, or other evidence of such sale,
1 agreement of sale, or agreement to sell,
to which must be affixed the stamp re-
| quired, viz, | cent for each 500 in
value of such sale, agreement of sale, or
agreement to sell, and cent for each
additional 800 or fractional part
| thereof. II live stock is sold at an ex-
change or board of trade, or other SINH
| lar place, either for present or future
delivery, the sale, agreement of sale, or
agreement to sell must be evidenced by
u bill, memorandum, or agreement to
be delivered by the seller to the buyer,
and this evidence should have the
stamp affixed as required in the act,
each 800 or fraction thereof an addi-
tional cent.
In regard to who shall pay for stamps
required on documents, this office can
not dictate. 1t is the duty of tho per-
son, firm, or corporation issuing the
| instrument to see that it is duly
stamped, and penalty is provided for
neglect in so doing, and the inference
is drawn that the person, firm orr cor
poration issuing the instrument shall
pay for the stamp required. Proprie-
tary stamps can not be used on docu
ments. In regard to the cancellation of
internal revenue adhesive stamps,
which the law requires to be by writ
ing or stamping the initials of the per-
sons using the same, and the date upon
which the stamp shall be attached or
used, it is held that the initials and
the year alone will be sufficient. This
cancellation may be by writing or i'm
printing with hand stamp. Old
stamps issued under repealed acts can
not be used in lieu of stamps required
by the present law.
Tickets issued in the United States
for passage ON vessel not sailing from
any port Of the United States, but from
Canadian port Tor other foreign
port), are not subject to stamp tax.
The only passage ticket for which
stamp tax is required to be paid by
this statute is ticket issued for trans
portation of the passenger "by any ves-
sci from port in the United States to
foreign port When, therefore, to
such passenger ticket there is attached
another ticket emitting the passenger,
after his arrival at the foreign port, to
transportation to various points in
Europe, or elsewhere, such additional
ticket is not subject to stamp tax. The
stamp tax for passenger ticket may be
affixed thereto and cancelled at the time
and place where it is issued, or it may
be affixed and cancelled at the pier be-
fore the passenger boards the vessel.
Where one passenger ticket is issued,
even though it contains several names,
| httt 10 i5 30 L.
paid thereon. There is no exemption
from the stamp tax Oh charity tickets
issued at low rates..
Telegraphic messages sent by the
Associated Press over their own private
lines to different newspapers are not
required to be stamped. When one
uses leased Western Union telegraph
wire, for which he pays stipulated
annual rental, and has the exclusive
use, and for which he employs his own
operator, stamp tax is not required to
be paid by him on messages sent by
him over this wire relating to his own
private business. If the sender OF a
dispatch Is Government or State
officer in the discharge of duty in
carrying out governmental functions
required by law in operating the ma
chinery of the Government, the dis
patch is exempt; but if the act is
simply that which the officer does in.
dividually in the interest of private
person or outside party to serve such
private person or ontside party In
dividually, then the dispatch must be
stamped. The payment of tax on mes
sages transmitted by telegraph com
pany, and subsequently received and
transmitted by a telephone company,
does not exempt the last-named com
pany from the payment of tax on the
message SO transmitted. A telegraphic
dispatch or message is required to be
stamped by the person who makes,
signs, or issues it.
Where telephone companies have
lines extending into more than one
collection district, the return may be
made to the collector of that district
in which the principal business office
of the company is located Contracts
and agreements between subscribers
and telephone companies for tho placing
of telephone, and payment therefor,
are not subject to stamp tax.
Stamps should be affixed to ware
house receipts for goods, merchandise,
or property held on storage in public OF
private warehouses, by the warehouse
men. Ii the actual grower of tobacco,
which is an agricultural product, de-
posits the same in warehouse in the
regular course of trade for sale and
takes warehouse receipt, this receipt
is exempt from the stamp tax when IL
is issued, and it is not required to be
stamped at any time after its issuance
tif the tobacco which it represents re-
mains in warehouse as it was originally
| 6appsitad nv tho prowarl alfhopoh thf