Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1899-04-26
.AN',IMPORTANT RULING.
Duties of Registers and Re-
corders Of Deeds Outlined.
ssUGD BY COMMISSIONER WILSON

PENALTY FOR FAILURE TO PROP.
ERLY STAMP DOCUMENTS AND
PAPERS ISSUED BY THEM.
Deputy Internal Revenue Collector
Leitch has received the following ruling
from the Treasury Department relative
10 the duties of recorders and registers
OF deeds:
washington. d. c.. April IA, 1899
"rhe attention Of collectors and other
officers Of internal revenue is specially |
directed to the appended circular AFFECT
ing the duties of recorders ard registers |
under the act Of June Is, 1898: also to
the rulings under the amendment to |
Schedule A. approved February 2S, 1898.
Section IL. That any person or per-
sons who shall register, issue, sell, or
transfer, or who shall cause to be issued,
registered sold or transferred any in
strument, document or paper Of any
kind or description whatsoever mention
ed in Schedule A Of this act, without the
same being duly stamped, or having
thereupon an adhesive stamp for denot
Gng the tax chargeable thereon, and can
Atltu IA Alt lldAliltA AtNAAltu ny AAMf
with intent to evade the provisions OF
this act. shall be deemed guilty Of a mis-
dcmeanor. and upon conviction thereof
shall be punished by fine not exceeding
$50. or by Imprisonment not exceeding six
months, or BOTH IN the discretion OF the
count; and such instrument. document
or paper. not being stamped according to
law, shall be deemed invalid and Of no
effect.
Section a.. That hereafter no lnstru-
ment paper or document required by
law to be stamped, which has been sign
ed or issued without being duly stamped,
or with deficient stamp, nor any copy
thereof, shall be recorded or admitted. or
used as evidence in any court until a le-
gal stamp or stamps denoting the
amount Of tax, shall have been affixed
thereto. as prescribed by law.
Section 10. That II shall not lac lawful
to record or register any instrument
paper or document required by law to be
stamped unless a stamp or stamps OF the
proper amount shall-have been affixed
and Cancelled in the manner. prescribed
by law; and the record registry, oi
transfer OF any such instruments upor
which the proper stamp or stamps afore
said shall not have been affixed and can
celed as aforesaid shall not be used II
evidence.
1T WI be seen that the duties imposed
upon registers and recorders OF deed
with respect to the enforcement Of th'
war revenue act are very important, In
Guiding, ais they do. the very essentia
function Of deciding whether an instru
ment is sufficiently stamped before ad
hitting the same to record.
''As an aid to such officers In the dis
charge Of their duties, a copy Of com
pilation Of decisions rendered by tn
commissioner of internal revenue undo
the War-Revenue act Of June iS- 1895 ha
been forwarded to them by mail TIL
compilation Includes the rulings Of thi
office up TO January l. 1899 In the ap
pendix wiz be found circular sos, re
vlsed. dated November a. 1898, which ha
been corrected to correspond with tn
rulings made up to January 1, 1899.
"The principal rulings Affecting deed
and mortgages made since that date ar
as follows:
Ruling No. 90 In circular SOB, revised
Is modified to read as follows:
"A deed or mortgage executed and de
llvered prior to July /. 1895, is subject
stamp tax when offered for registratio
after that date only IN states where b
state law registration Is necessary
pass title or establish valid lien Whe
Instruments executed and delivered pri'
20 July ]. 1895. pass title or establish
valid lien, without registration, they {
not require a stamp.
ION the 2Sth OF February. 1899, q
amendment to Schedule a Of the wa
revenue act was approved. to the follow
ing effect:
whenever any bond or note shall
secured by a mortgage, or q deed
trust. but one stamp shall be required
be placed upon such papers: Provide
That the stamp tax placed thereon shl
be the highest rate required for said
struments, or either Of them.
Under this amendment it has be
held
I'D In stamping promissory notes
cured by a mortgage. the comparison
made between the mortgage and one no
and that the larger note, II more tn
one note is secured by the mortgal
For instance, the sum Of 81 400 Is borro
Cd, and to secure the payment OF Il
sum a mortgage is executed for II
amount securing the payment Of t
notes-one for $500, payable in one y,
and one for 5000, payable in two yea
Comparison IN this instance is made
tween the mortgage and the larger nc
which note Is subject to tax of
cents and the mortgage securing
same to a tax Of % cents; therefore.
mortgage should be stamped.
III, instead Of executing two notes,
note for 1900 were executed, the grea
tax would accrue on the note, a 81
promissory note being subject TO a
Of IS cents and the mortgage securing
same being subject TO a tax Of 25 Gel
therefore, the si.iOO note would be the
strument that should be stamped.
when a mortgage Is given to sec
the payment Of a sum exceeding 81
said 1850 Indebtedness being represeI
by promissory note, the greater "a
ton will always accrue upon the m
gage, but up to this amount Of 81 800
question of whether or not more Z
one note Is executed should be taken