The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-21
Opinion by Assistant Attorney Gener-
al Boyd Prepared for the Sec
retary of the Treasury.
BIG CONTRACT CANCELLED
CHICAGO FIRM UNABLE TO BUILD
SAN PEDRO BREAKWATER.
Action of Congressional Committees,
Reports from Consuls and 9th
er Washington Miscellany.

WASHINGTON, March Ex-senator Nc
Comas, from the Senate committee on
privileges and elections, to-day presented
the report of that committee on the matter
of protest against the continuance of Hon.
N. B. Scott, of West Virginia. in his seat
as senator from that State. The report
is concurred in by all the members of the
committee except Senator Pettus. and it
recommends the adoption of the following
resolutions:
Resolved That Nathan B. Scott has
been duly elected as a senator from the
State of West Virginia for the term of six
years commencing on the 4th of March,
1899, and that he is entitled to a seat in
the Senate as SUCH.
The committee discussed all the objec-
tions of the protestants, but the greater
part of the report is devoted to the charges
that the two hold-over senator's, Messrs.
Getsendanner and Pearson, voted for Mr..
Scott while they held commissions in the
volunteer army, and that the agreement
whereby contests in the Legisla ture were
suspended while a joint assembly for the
election OF a senator was held was void as
against public policy. The first of these
points is dismissed the ground that the
State Senate passed favorably upon the
qualifications as members of the two SOL
dier senators. On this point the committee
says:
THE Senate of West Virginia is the only
| tribunal which could either hear or deter
mine lawfully these objections to the quail
ifications of Senators Getsendanner and
Pearson. Its judgment in their favor is
final. The Senate of the United States has
not authority TO originate, hear or deter
N he ytIa float finnS f.f
those who acted and voted as members of
the Senate of the State"
On the point raised as to the joint as
| sembly the committee says: at may be
| that wrong and injustice to members and
contestants was done and intended to be
done upon one side or the other or on both
sides; There is no evidence. of force or
fraud in these transactions in the docu-
ments or facts before u.s. The unanimous
vote in both houses upon resolutions post
poning pending contests for seats dis
| proves duress, If the word duress has
meaning in this remonstrance. We cannot
say that such an agreement as this be-
| tween ten men, and favored afterward by
all members. is void as against public pol
Icy. We cannot declare void the unani-
nous act OF the Senate or the unanimous
act of the House, of like pacific purpose
Nor can We perceive how it 'vitiated said
election :" -
The resolution was placed on the Senate
| calendar. Mr.. McComas stated that Mr.
| Pettus, of Alabama, would present
minority report. -"
| Assistant Attorney General James E.
| Boyd to-day rendered an opinion to Secre-
| tary Gage. which is approved by the attor-
ney general, on the question as to the tax
| ability of transactions known as "call
loans" Mr.. Boyd holds that in order to
bring these transactions within the pro-
| visions of the paragraph of Schedule A of
the war revenue act levying a tax on mort
/ cages and pledging as security for the pay
ment OF money the property, whether real
| or personal, conveyed in the mortgage or
pledge, must be definitely described therein
| and must also be made as security for the
| payment of a definite and certain sum of
money loaned at the time or previously due
and owing. or, forborne to be paid, being
payable; that there is no document. paper
or instrument executed. made or issued in
the transactions described as call loans
which comes within the above require
ments, and that such transactions are not
therefore, stampable as mortgages or
pledges Of property to secure the payment
| of money.
The second point treated of in the opinion
as to the liability of such transactions to
stamp tax under the first paragraph of
| Schedule A of the war revenue act as a
| delivery of stock to secure the future paw
ment of money. The assistant attorney
| general decides that an analysis of the
PORTION of the said paragraph pertaining to
| this matter leads him to the conclusion
that its construction should be as follows:
ION all sales made by any delivery to Sc
cure the future payment of money, on each
| 500 of face value, cents" The result is
\ that a mere hypothecation of shares of
| stock as collateral security, or as a basis
| of credit unaccompanied by agreements or
| contracts of sale stipulations which
make such shares security for the payment
| of a definite and certain sum of money at
the time or previously due and owing, or
! forborne to be paid being payable, is not
| a taxable transaction under the provisions
| CT the war revenue act. In the opinion the
| general proposition laid down that the
taxes required by Schedule of the act
| referred to are paid by the use of docu-
/ mentary stamps. and that in order 10 coll
| lect the same some document instrument
| or paper. written or printed such as is con-
| templated by the statute, to which the
stamp can be affixed. must be made, signed
| or issued.
| The commissioner of internal revenue has
decided that when instruments convey
| standing or cut timber they are not taxa
| BILE as conveyances. If under them the
grantee acquires the use of the real estate
for the purpose of erecting sawmills. etc.
the document is taxable under the para
graph in Schedule A of the war revenue
act relating TO leases. He has also decided
that eight ounces of standard extracts or
perfumery, must be regarded as retail
package. and that quantities In excess OF