The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1900-07-02
How the Stamps
Must be Affixed.
Ruling On SUI jecr by lnterual
revenue Collectors
Oftit g.

Il. ~. FTick. deputy collector OF inter
nal revenue. has sent to the Honolulu 4
stock Exchange a ruling on the matter
Of afiixing stamps to stock transfers.
Internal Revenue Service, District of |
HAWAII. Collectors Office, Honolu- !
la. II. a., June -. 1900.
Mr.. g. J. FaIk. Secretary. Honolulu
Stock Exchange. honolulu, IL. T.:
Sir:-In reply to your request for rul
ings on the affiXing of stamps for trans
fers Of stock. beg leave to submit the
following ruling made by the Commits
sioner OF Internal Revenue:
!. when stock is transferred for
which no certificate has been issued.
and the evidence of transfer Is shown
only by the books of the company. the
stamps should be paced upon such
books.
2 Where the change OF ownership
Is by the transfer OF certificate, and
the certificate cOntairs b ank form OF
assignment on the back. which is filled
In BY the insertion Of the name of the
person to whom the stock Is transfer
red, the stamp should be paced upon
the certificate.
3. I'm case of an agreement to sell.
or where the transfer is. by the deliv-
cry Of the certificate. signed in blank.
the name Of the transferee or vendee
to be filled in afterwards. there should
be made ana delivered by the seller to
the buyer ttfS or memora- dun of sale
to which the amp sh5u b. aTixed."
The rulings X. IN above follow exact
" the method OF Sflixing stamps pre-
scribed by the War Revenue Act. The
| third method OF transferring stock re
/ ferTed to above is the one in common
use. Whenever stock endorsed in b ank
/ Is passed from one holder to another
/ the law ..Jsolutely requires that the
I stamps should be affixed 10 a memo
IA rdum Of sale II is not Legal. In such
case, TO affiX the stamps either to the
| certificate which passes or TO the Ger
Il tihcate issued in lieu thereof by the
| secretary Of the company. Congress
undoubtedly possessed the power TO pre-
/ scribe the method OF paying the tax.
| as well as the amount to be paid. and
stamps must be affixed i'm the exact
manner prescribed By law.
on transfers Of stock the seller or
his agent should affix and cancel the
niece sary stamps. The seller. the buyer.
and their brokers or agents are AL liable
to fine and Imprisonment II the stamps
are not affixed.
When certificates which have been
transferred are presented to the COM
pany for cancellation. and the owner
or broker assures the company that tn 2
transfer tax has been paid. the COM
pany issues new certificates ~ lieu OF
the old certificates without stamps. TIE
NohlillSSlOner OF Internal revenue rules
upon this point as follows:
Upon sales Of certificates OF stock OF
| n company made by broker. where the
transfer is by delivery OF the certificate
assigned in blank. the broker is re ruired
10 afnN the requisite stamps to his
memorandum Of such ea'e: ard uDon his
assurance that this has been done. there
is no responsibility upon the company
IN the issuance Of certificates In new
names in lieu Of Cd certificates caucel-
81. II II IL found thereafter that the
brokers have failed 10 comply with the
requirements Of the law. with refer
erce 10 the stamping Of their memo
randuns Of SALE the criminal liability
Is uDon them"
Respectfully yours.
v. ~. FRICK.
Deputy Collector in Charge.