Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-04-03


decided by Il higher court
You will continue to follow the rul-
ing of this office, and insisn that all
such bonds shall be stamped by the
principal at the rate of so cents each,
and if in any case a fidelity or guaran-
ty company becomes surety on such
bonds, additional stamps, at the rate
OF one-half of one cent on each dollar
of the. premium charged, are required.
LII the persons executing such bonds
refuse TO pay the, tax by atfiNing the
proper stamps, you will report them
for assessment. a.
The parties can make a test ques-
ton, if they desire, by instituting a
suit against you for the, recovery of
the tax after the same has been paid
and a claim for refund has been made
in the manner provided by the stat
utes. Respectfully,
Robt. Williams, Jr.,
Acting Commissioner.
H. c. Grenner,
Collector 1st district ST. Louis, Mo.
Definition of Broker.
| Herewith is returned to you at
your request the newspaper clipping
which you transmitted to. this office
with your letter wherein it is stated
that the terms of the new revenue
law are such that any person who
buys note, township warrant. or any
other variety of negotiable instrument
even tho he purchases but a single
warrant. and that for a very small
amount, becomes in. the, meaning of
the law a ioroker. and as such is re-
quired to take out a license and that
Il
township warrant is, strictly speaking,
a violator of the law, and subject to a
heavy fine.
This statement is completely errone-
Gus. No person is required to pay spe-
cial tax as :, broker under the war
revenue act unless lit is his Cuisines
to negotiate purchases or
sales" of securities. Under the deci-
sion of the supreme court the word
| Cuisines" is to be regarded as con-
trolling word in this definition; ana a
single instance of the purchase OF sale
of securities Cor rare or occasional
transactions of this kind) is not siiffi-
Gent to constitute flfe business com
templated by the statute. ~ ~ &
Ii 1T is further set ifer5 h in this, news
paper clipping that public warrants
| drawn on j public treasurer are not
required TO bear revenue stamps when
presented by the drawee; but if the
| warrant is transferred before payment
| it becomes a negotiable instrument.
! and must have revenue stamp affixed"
This statement is also erroneous. 1t
is held that internal ..revsnue stamps
are notarequiredso on these publicswar-
rants, even when transferred before
| payment. Respectfully,
Robt.s Williams, Jr.,
Acting Commissioner.
| d. Lewis,
| President Jansen Bank, Jansen. Neb.
| Timber Deeds
When instruments convey standing or
cut timber they are not taxable ascon-
veyances. It under them the gram
tee acquires the Use of the real es-
| mills, etc, the document is taxable
| under the paragraph in Schedule A
relating to leases. etc.
| Treasury Department,
Office of Commissioner of Internal
Revenue,
Washington, d. c., March &c, 1900.
Sir: l am in receipt of your letter
of the 9th instant, in which you in
close articles of agreement relating 10
| the sale of timber; and you ask ii this
ldocument is subject to taxation.
In reply, you are advised that the
Instrument is not a conveyance within
the meaning of the act. Under it GER
| tain classes of timber are sold, either
standing or cut, but this is not suffi-
| cient to tax the document under the
| paragraph relating to conyeyances.
Under this document the grantee
acquires the right to the use of the
land on which the timber stands. This
| use is one that enables him TO erect
sawmills, to cut the timber down, to
saw, manufacture, and carry it away;
| in other words, he has the use of the
real estate until he has removed the
| timber. The document is, therefore,
taxable under the paragraph in Sched-
ule A reading as follows:
| Lease. agreement, memorandum, or
contract for the hire, use. or rent of
any land, tenement, or portion there
| Of
IL for period of time not exceed
ing one year, twenty-five cents.
If for period of time exceeding one
year and not exceeding three years,
fifty cents.
If for a period exceeding three years,
one dollar.
You are requested to advise all in
quirers us above. Respectfully,
Robt. Williams, Jr.,
! Acting Commissioner.
H. T.. Hershey,
Collector Ninth District, Lancaster, Pa.
A question with relation to prefer
ence in bankruptcy proceedings has
just been settled in the United States
circuit court of appeals for the seventh
circuit, which decision is of profound
interest not only to Ottumwa jobbers
but to all who in their business extend
credit of one kind or another. A SINH
lar question came up in the bankrupt
cy proceedings of SeidSchlag d. Dussel
of Leeds, but owing to 4 settlement be-
tween the various creditors it never
Went any further.
| Judge jenkins, of the circuit court,
holds that the section of the banllrupt-
cy act providing that the claim of a
creditor who has received preference
shall not be allowed unless he surren-
! der his preference means that credi-
tor who has actually received what
NAV have been n partial naymant 5nf y,