The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-06-28
WHICH DUPLICATE is LIABLE.
A REVENUE TAX QUESTION OF IN
TEREsT TO SHIPPERS.

Must Revenue Stamps Be Placed Up
on the Consignee's or the Masters
COpy of n Foreign Ship Charter.
The Question Taken Up by Presi-
dent Purse of the Board of Trade
at Request of Local Shippers-FOr-
eiGn shipping Interests Affected
and the Question May Become an
International One.
The question raised by Capt. D. G. Purse
,aefore Collector of Internal Revenue Ruck-
or at Atlanta as 10 which duplicate of a
ships charter party, where the. charter
was made abroad, is liable to the internal
revenue stamp tax, is likely to prove of
more than local interest.
So far as known none of the characters
of vessels abroad at American ports have
been afixing the internal revenue stamps
TO foreign charter parties. The question
was only recently raised in Savannah as
the consignees and brokers of vessels here
had not considered themselves liable for
the stamp tax where the charter was made
abroad, especially as the laws of Great
Britain and other foreign countries re-
ouire such charters to be stamped when
made within tneir boundaries.
The question whether foreign charter
parties are liable to the tax was
raised here some time since by
Deputy Collector Theodore Basch who
reported to Collector Rucker that such
charters were not being stamped here. A
case was made against a broker here and
referred to the collector at Atlanta who
in turn referred the matter as to the
charters liability to the commissioner of
internal revenue at Washington The
case was that of the British Steamship
City of Worcester, chartered in Liverpool
In 1898, to load either at Savannah or
Wilmington. to proceed to Bremen or
Hamburg, the charter being made by w.
W Wilson, of Savannah and New York.
A decision was rendered by Acting Com
missioner Robert Williams, Jr., May 81,
the decision reaching Savannah by way
of Atlanta on June 3. In his decision the
acting commissioner says: The charter
being made by a person in this country
to load in this country though signed (by
proxy given by cable message) in Liver
pool where the original is kept and what
is called a copy, but really a duplicate
sent 10 this country. You ask to be in
formed whether this copy or duplicate is
subject to taxation under the act of June
duplicate or copy of the charter is an
original evidence in this country of the
vessels charter and is the evidence ac-
cepted by the master and all concerned
it has all the force and effect of an origi-
nal and in the opinion of this office should
be stamped under the act of June IS. 1885,
Immediately upon the receipt of THIS de-
cision the collector in atlanta notified sew
eral of the firms engaged in foreign trade
here that he had been informed that they
had certain number of charter parties
unstamped, which were liable to the tax
under the law and ruling of the commits
sioner of internal revenue. He requested
TO be informed why the papers had not
been stamped in order that the commits
sioner might possibly relieve them of the
90 per cent. penalty already accrued, and
to remit the amount of tax due.
The tax in question is from SO to $40
for each charter party the latter sum be-
ing charged for all vessels of 800 tons
and over. As practically all vessels trad
ing foreign from this port are over 600
tons the brokers would have been re-
quired to pay the maximum amount In
es oh instance, and as a number of foreign
charters have been made since the law
went into effect the aggregate sum which
would be required of the local shippers
would be quite an item, to say nothing
of the 30 per cent. penalty additional
This is not the only question raised by
the decision of the commissioner, however.
The decision just quoted simply states that
the copy or duplicate of the charter ac-
cepted in this country as the original evil
dence of the charter is liable to the tax.
The commissioner was evidently unaware
of the fact that it is customary to furnish
several of these duplicates, one each bein G
sent to the consignee and broker, if they
be separate parties and the master of the
vessel being also provided with duplicate,
1t is provided in the charter that in case
haf fhr, 81
les or duplicates that the one held by the
captain of the vessel shall be accepted as
authority, and that he shall be governed in
his movements by the copy which he hclds.
1t is evident at once that it is a m after
of considerable Importance to the chnrter-
ers of the vessel, which copy is required
to be stamped. If the copy in the hands
of the consignees, then the expense falls
upon them. If the copy in the he nds of
the ship captain then the burden falls up
on the foreign shipowner. Naturally the
chartererS are anxious TO shift the expense
to other shoulders. They are al so desir-
Gus of being relieved from the pc nalty for
noncompliance with the law and they fur
Their hope to be relieved from the. payment
OF the back taxes which have accumula-
ted, as the vessels for which these char
ters We're obtained have for the most part,
loaded and departed for foreign ports and
the consignees are without p over to re-
coup themselves for the lossesJ they would
incur
Al the request of the local fhippers Capt.
Purse, president of tn e Board of
Trade, took the matter up with Collector
Rucker, appearing before him in Atlanta
this week and submitting an argument in
behalf of the shippers. At Capt. Purses
request the collector agrt red to take the
matter up with the commissioner at
Washington for the purpose of obtaining
decision as 10 which copy or duplicate
of foreign charter is subject to the
stamp tax. Capt. P rise argued, of
course, that the duplica q in the hands OF
the master of the yes sci should be ac-
copied as the original evidence in this
country as the terms If the charter pro-
vide that this copy 81 iail govern in case
Of any difference or dI spute.
Capt. Purse also ar gued that the decs-
ion of the commissi, ,ner making foreign
charter parties subj ect to the tax act
should not be made retroactive, and that
the shippers should be relieved both from
nor oil fxr . ~ .f ~,