Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-04-19

debtedness, and whether payable on
demand or on time, requires to be-
stamped at the rate of 9 cents for each
dollars of face value or frac-
tional mart thereof. Interest accrued,
OF to accrue, on promissory note,
forms no part of the face value of such
note in determining the amount on
which tax is to be computed. Each 20.
newal OF a promissory note requires
stamping at the same rate as an orig.
inal note. and payment of interest in
of 4 matured note is consid-.
cred to be renewal of the same.
(2) Pledges Of stocks. bonds, ETC., as
collateral security for the payment of
loans, are liable to tax under the pro-
visions of that paragraph of Schedule
\ headed Mortgage or pledge" at the
rate of 25 cents for each $500 or
fractional part thereof in excess of
ST 900.
''e stock, however. is hypothecat-
ed as security for the payment of
money simply by the delivery of the
certificates to the lender, or deposited
as a basis of credit without a mort
gage or other written instrument be-
ing executed or made, whereby the said
stock is pledged to secure the pay
ment of a definite and certain sum Ut
money!" no tax is imposed on such
transaction.
(3) As modifying the foregoing rul-
ings to certain extent, attention is
called to the amendment of February
IS, 1899, to the war revenue act, which
is in the following language:
Whenever any bond or note shall
be secured by mortgage OF deed of
trust, but one stamp shall be required
to be placed upon such papers: Pro-
vided, that the stamp tax placed there
on shall be the highest rate required
for said instruments, or either of
of them"
A pledge of stock or other personal
property has been ruled to be within
the purview of the above amendment,
so that when a promissory note or
boz is secured by an instrument of
pledge, but one tax accrues, and that
tax is the highest required on either
instrument, as parties may elect.
q. w. Wilson, Commissioner.
From Wednesdays Daily.
Deputy Revenue Collector S. L. Vest
IS in receipt of the bulletin printed by
the treasury department, containing
ruling by G. w. Wilson, commissioner
of internal revenue. One of the rul-
ings relates TO the post stamping of
instruments after twelve months from
the date of issue, and holds. that such
instruments are valid if no fraud was
intended. This opinion dissents from
the holding Of the judge of a Mary land
circuit court and also from holding
made by the late Judge Woolson, in
each of which cases instruments We're
declared invalid because not stamped
at the time of issue. Following is the
ruling in full:
Treasury Department, Office of the
Commissioner of Internal Revenue,
Washington, ID. c., April 5, 19O0.-Sir:
Yours of the Goth ultino is received,
in which you refer to treasury decis-
ion 1850 as to post stamping instru-
ments after twelve months, and ask
whether in such cases the cash should
be taken and reported on form So, or
the person presenting the instrument
be allowed to affiN the stamp, and in
the latter case who shall cancel the
stamp?
"The issuer of the instrument or
party in interest Should purchase, af-
fix, and cancel the stamp. You have
no duty in such case except to supply
the stamp in return for the purchase
price. 1t would be a superfuous act
for you to note on the instrument that
the tax has been paid. but the penalty
has not been RENTED, and instrument
is not validated.
Il note what you say as to the hard
ship of the law in imposing a penal5y
of So, which can not be. RENTED after
twelve months; that if the law could
be amended so as to impose penalty
of double the tax it would be desira-
bic.
You state that a number of far
mers have brought unstamped deeds
to you which only required a 5O-cent
stamp. You would like to be able to
advise them that they can avoid the
penalty by paying the stamp tax on
the old deeds and have new deeds eX-
ecuted and properly stamped.
80 far as concerns the government,
no objection could be made to the
course suggested in any case where
the omission of the stamp was with
out fraudulent intent. In such cases
as stated in treasury decision 21,539,
the stamp tax will be accepted, and if
the holder of the instrument is salts
fed to allow it to remain invalid, it is
not the concern of the government.
Such invalidity is sufficient penalty
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times of execution. The new instru-
ment, of course, if stamped when exc
cuted, incurs no penalty. The grantee
or mortgage should, however, consid-
er the possibility of an adverse right
being acquired in good faith between
the dates of execution of the first and
second instruments. The law specifi-
cally protects such right by the last
proviso to section 10 of the act of June
10, 1898. Except for such possibility,
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