Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-03-17
REVENUE RULINGS
Failure to Attach Stamp to Mort
gage lnvalidates Conveyance.
Important Decisions Sent Out From United
statos Treasury Department Operation
of Forfciturcs- Matter of Adultorated
elders Instructions to Revenue onlcers


and Importance have been sent out
from the United States Treasury De-
partment
The first one is the opinion Of Judge
Stake, of the Circuit court of Mary
land constituting the war-reyenue act
relative to the stamping OF convey
ances. In this decision 1t is held that
the failure TO stamp an assignment Of
n mortgage invalidates It and subse-
quent stamping has no retroactive eff
feet in imparting validity. On this
point Judge Stake says:
No such retroactive intention is
either expressed or can be implied
from the language OF the act of Con-
gross OF June 10. 1895. III fact such n
provision would tend to great extent
TO destroy its effectiveness as n rev
ehue measure. The clear purpose of
thel act of Congress is to take away
from transfers and assignments any
prohative charter and to render them
OF no legal validity until they are sub
sequently stamped in compliance with
inc provision of the act. The subse-
quent stamping is to be taken as i'm
parting legal validity only from that
point of time. To judicially legis-
late into this provision e retroactive
effect would be to make the act of
transfer effective from the beginning
without regard to the restriction of
the act of Congress. and invite dis
regard of the stamp duties by with
holding the stamp tax until some flu
trrc emergency should arise for ex-
hfbiting the transfer
OPERATION OF FORFEITUREs.
The second decision is by Judge Nc
PEerson, of the District court of Penn
sylvania, defining the operation of for
textures In case of-property belonging
TO innocent parties used for fraudulent
purposes.
The suit was for the forfeiture of the
machinery and other apparatus used
by Jacobs. of Philadelphia, in manu-
facturing cigars at the time he COM
mitted such big frauds on the govern
ment. The machines were covered by
patent rights and were leased by JAG
obs for an annual rental price The
owners of the machines contended
that their property was not liza
Die to forfeiture. as they We're
innocent of fraud themselves and
did not know that the machines
would be used by the lessess in fraud
OF the government: they further de-
MED tn right of the government to
claim the forfeiture of the machines
and to sell them to purchasers under
Judgement or 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 It's
ownership.
If the owner of such apparatus
chooses to lease 1t to, or in any way TO
put it into the hands of, a person en-
gagged In the manufacture of cigars he
must be regarded as transferring the
possession with the knowledge that
the apparatus may be put to an un-
lawful use. and may, therefore, he
liable to the penalty Of forfeiture. He
takes the risk, therefore that the
manufacturer will conduct his bust
ness In accordance with law; and if
the risk falls out against him he can
not be heard to set up his own ignor-
ance OF the manufac turer's illegal con-
duct or his own innocence of unlawful
intent. y pertinent analogy, I think.
may he found in the case OF an owner
OF personal property who puts it upon
the premises OF a. tenant Such an
owner Is bound TO know that the law
permits the distraint of property upon
the premises Of 1T does not fall within
certain excepted classes) for the nom
payment OF rent; and he cannot there
fore be heard to complain that he did
not know either that the tenants rent
was unpaid or that his own property
might be applied to pay another mans
debt.
ADULTERATED elders.
The third decision is a ruling by Com
missioner Wilson in regard to adult
Grated cider, such as grape cider.
peach cider. and orange cider, so often
sold at soda fountains. This ruling Is
in the nature of instructions to inter-
nal revenue collectors and agents, and
is as follows:
1t has come to the knowledge of this