The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-13
REVENUE STAMP
ON MORTGAGES
Failure to Stamp lnvaIidates
the Conveyance.
ORANGE CIDER is TAXABLE
INSTRUCTIONS TO REVENUE OFF
GERS IN REGARD TO IT.
DOESN'T APPLY TO INTERVIEWED JUICE
Owners of Machines Rented to Another forfeit
the Machines if Used to Defraud the
Government Though Not Rem
ted for that Purpose.

Three decisions of general interest and
Importance have been received here from
the United States Treasury department.
The first one is the opinion of Judge
Stake, of the Circuit court of Maryland,
constituting the war-revenue act relative
10 the stamping of conveyances In this
decision it is held that the failure to
stamp an assignment of mortgage IN
no retroactive effect in imparting validity.
On this point Judge Stake says:
No such retroactive intention is either eX-
pressed be implied from the language
ot the act of Congress of June IL. 1883. In fact
such provision would tend to great extent to
destroy its effectiveness as revenue measure
The clear purpose of the act Of Congress Is TO
take away from transfers and assignments any
probative character and to render them or no
legal validity until they are subsequently stamp
ed in compliance with the provision OF the act.
The subsequent stamping IS to be taken as nm.
parting legal validity only from that point OF
time. To iudicially legislate into this proyis-
ion a retroactive effect would be 10 make the act
of transfer effective from the beginning without
regard 10 the restriction OF the act OF Congress
and invite a disregard of the stamp duties by
Withholding the stamp tax until some future
emergency should arise for exhibiting the trans
fer.
The second decision is by Judge NJ
Pherson, of the District court of Penn
syvania defining the operation of forfe!
lures in case of property belonging % IL
9ocent parties used for fraudulent prr-
poses.
The suit was for the forfeit of the ma
chinery and other apparatus used by
Jacobs, of Philadelphia, in manufacturing
cigars at the time he committed such big
frauds on the government. The machines
were covered by patent rights and were
leased by Jacobs for an annual rental
price. The owners of the machines con-
tended that their property was not liza
BILE to forfeiture, as they were innocent
of fraud themselves and did not know that
the machines would be used by the lessees
in fraud of the government; they further
denied the right. of the government to
claim the forfeiture of the machines anG
to sell them to purchasers under a judg-
ment of forfeiture, with right to use
them in disregard of the patent rights
of the owners of the title
The decision is clear in respect to
the principle of absolute forfeiture of
such property without regard to its own
ership:
Ii the owner of such apparatus chooses to lease
il to, or in any way to put it into the hands
of. person engaged in the manufacture of
cigars, he must be regarded as transferring the
possession with the knowledge that the apparatus
may be put to unlawful use, and may. there
fore, be liable to the penalty of forfeiture. He
takes the risk, therefore, that the manufactures
will conduct his business in accordance with law;
and ii the risk falls out against him, he can not
he heard 10 set up his own ignorance of the
manufacturers illegal conduct his own limo
cenee of unlawful intent pertinent anology,
I think, may be found in the case of an ownet
of personal property who puts it upon the prem
know that the law permits the distraint of prop
erty upon the premises Of it does not fall within
certain excepted classcS) for the non-payment OF
rent: and he can not therefore he heard to com
plain that he did not know either that the ten
ants rent unpaid or that his own property
might be applied TO pay another mans debt
The third decision is a ruling by Com
missioner Wilson in regard to adulterated
elders, such as grape cider, peach cider,
and orange cider, so often sold at soda
q fountains. This ruling is in the nature
of instructions to internal revenue colec-
tors and agents. and is as follows
II has come TO the knowledge of this office
that manufacturers of called elders are plac
ing upon the market a compound or adultera
ton under the name of cider containing wine
VI spiritS in such quantities as to render INC
manufacturer liable to special tax as rectlher.
These compounds authorizations are compose
of sugar, tartaric acid, or vinegar WINE, SUI
plate of lime water, etc, and CherrV' orahe &
peach or other fruit extracts, to flavor the mix
ture or adulteration so as TO produce the va
rious kinds of so-called cider, for example, grape
cider orange cider. peach cider, etc, as desired
One of the results of this practice on the par
of these manufacturers is to misead persons WIi'
deal in said compounds, and Incur naplhN u
special tax with respect to the same. IN most