The Leon reporter. (Leon, Iowa) 1887-1930, 1900-04-05
,mpoRrAaT DECISION.
Mortgage Rendered invalid by Failure to
Affix Revenue Stamp.

| IMPORTANT DECISION.
Mortg age Rendered. invalid by Failure to
Affix Revenue Stamp.
ruling Of exceeding public interest
was received by Collector kemble from
Washington yesterday, says the Bur
lington Hawkeye, being a decision rem
dered by Judge Stake. of the Fourth
judicial district Of Maryland on the ef-
feet Of failure to stamp an assignment of
a mortgage, holding that subsequent
stamping has no retroactive effect in i'm
parting validity. The decision is a
sweeping one and in direct line with the
ruling of the late Judge Woolson IN the
cattle case in which Burlington attor-
neys are interested.
Collector kemble said yesterday that
there were similar cases of frequent oc-
currence in this district, and the decis-
ion might put stop to this practice.
1t is given IN full us follows:
Treasury Department, Office of Com.
missioner of Internal Revenue, Wash.
ington, d. c., March l, l9O0.--The APP
pended opinion OF the circuit court of
the Fourth judicial district Of Maryland,
relative to the stamping of conveyances,
is promulgated for the information of
collectors Of internal. revenue and 9TH
ers concerned.
q. w. WILSON. Commissioner.
STATEMENT OF The CASE.
On the 9th day Of March, 1880, Henry
Hartle executed mortgage of certain
lands to Benjamin South to secure the
payment of the sum of $1,000. This
mortgage contained power of sale to
the mortgages in default of payment
On the 18th day Of September, 1889, the
administrators Of the mortgages assign
ed the mortgages to George w. Smith jr.
and Josephus Ground, who subsequent
ly, on the l4th day Of October, 1898,
assigned it 10 Lewis j. Ground. On the
l4th day of November, 1899, George w.
Smith jr. Josephus Ground and Lewis j
Ground all joined in an assignment and
transfer of the mortgage to Henry f.
Wlngert. Default having been made
in the payment of the money, Mr.. Win
CERT, in the execution of the power Of
sale contained in the mortgage offered
the property at public sale on the 18th
day of December, 1899, and sold it to
Mrs Laura K. Zeigler for sum amount.
ing to $l0,556. The purchaser now
comes into court and excerpts to the
ratification of the sale upon the ground
that at the time the sale was made there
was not United States internal revenue
stamp on the assignment OF November
IA, 1899, from Smith and Ground to
Wingert.
Extract from decision of Hon. Edward
Stake, associate judge Of circuit court,
Maryland:
1 Sections IA and Is Of the war revenue
act of congress Of June Is, 1898, are as
follows:
"Sec IA That hereafter no instru-
ment, paper or document required by
Law to be stamped, which has been sign
ed or issued without being duly stamp
ed, or with deficient stamp, nor any
lcopy thereof, shaHbe recorded or adj
mitted, or used as evidence in any cour,
until a legal stamp, or stamps, denoting
the amount of tax, shall have been at.
fixed thereto, as prescribed by law.
4
"Sec. Is That it shall not be lawful
to record or register any instrument,
paper, or document required by laY-Jttes
be stamped unless stamp Or stamps o
the proper amount shall have been at
fixed and Cancelled in tie manner pre-
scribed by lew; and the record, registry
o. transfer of any such instruments up
OF mich the proper stamp or stamp
aforesaid shall not have been affixed
and Cancelled as aforesaid, shall not b
u led in evidence.
Subsequently, on the 18th day Of Jar
.uary,. 1900, the proper amount OF Unite
Estates internal revenue stamps was a
fixed by .thecoleetor Of internal revenr
under the provision, Of the above recite
action. Section 49,
The question presented is, what is Il
qualifying effect Of the inadmissabili
of the transfer of assignment in eyiden
upon the sale Of December IL, lSe
The abse nee of any adjudicaticns as
the effect of the war revenue act of Ju
Is, 1898, makes this new question
: determination. The law does not nj
/ essarily consist of presidents or adJuo
2 ed cases, but of the principles viii
: 1un through the cases which, VIII
: properly applied, produce legal con'
quence to the facts Of the controyer
(see Judge Buchanan in State vs. Buc
! anan, 5 H. & j., 81, and Judge Magl
! der in State VS.. Smith, 6 Gill, 42S
/ The principle that understand to
we'll established in this state is th
every statute is to be construed as pl
spective in it's operation unless the
!. tention of the legislature that it shall
~ retroactive is clearly ex ,ressed in
| (Baueher vs. Nelson, 8 Gill, 3O3; Sta
Norwood 10 Nil oOf. Clark