Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1901-08-05
MAIL
Misconception of the Recent Or.
der on That Subject Is
Correc led.
NOT so RADICAL as CONSTRUED
Tax OH Farm Products Sold Through
an Exchange-RuIingo on
That Matter.

Washington, Aug. 5.-Third ASsiS.
| tant Postmaster General Madden has
| issued Il circular OF Instructions to ali
pOstmasters correcting an apparent
misconception of the purpOrt of por
| tions OF the rectn order relative 10
second class mail. This circular an.
| nOunceS that a publication once prop
erly admitted to the second class. and
regularly passing in the mails under
that classification, whether mailed by
the publisher or a news agent. will
not have its privilege revoked except
upon formal notice from the depart
nent to the postmaster.
What the Circular Has to Say.
The Circular says: An entirely new
publication or suspended one reSum-
ing issue. having second class priv
iicge, is subject 10 the regular condi-
tiOns and restrictions. Where publica-
tionS use premiums. guessing contests,
etc, to induce subscriptions the de
partment will not hold such SubScrip-
tions to he illegitimate for the time be-
ing. or until the publishers have had
an opportunity to change their practices
with as little financial loss AS possible
TO conform to the new regulations.
Such alleged subscriptions must not be
to amendment. and in no case will the
nOn-enforcement of the amended regu-
latiOns extend beyond October l, next.
VIII Go Into Eject Oct. 1.
News agents recognized as such
need not at present make application
on the new form for permission to mail
second class matter at the pound rate.
but must execute such application on
this form prior TO October l. if il can
be done then without embarrassment.
The enforcement imediately of the pro-
visions of amended regulations :iJl,
excluding from the pound rate unSold
or Creturnl copies, when sent fro
news agents TO news agents, has been
decided TO he inequitable. and the
present rights along this line remain
undisturbed for the present. gut th-
requirement. must be enforcement
generally by Oct. l.
Taxation of Four Products.
Washington. Aug. Reconnaissance
Yerlles. of the internal revenue bureau,
has received letter from a grain com
pany in, LIe northwest asking whether
the memoranda of sales of farmers
products on an exchange or boadr of
trade are exempt from TAX by the
10 paragraph two of
schedule \ of the amended war rev
enue act of March =. 1901. The writer
assumes that il never was the intPn-
tion of the law that farmers and others
selling actual grain should pay a tax.
and that il applies only 10 those who
sell futures without ever intending
their delivery. The writer heferS -
pecially to sales of grain Ito arrive"
and states that he is constantly max
ing sales for farmers on the Duluth
Board of Trade. which he thinks
should he exempt from tax.
Ruling OF the Commissioner.
In reply the commissioner rules that
grain sold on Il board Of trade or ex-
TO arrive" may he exempt
from tax if at the tim" of sale the
grain * on a vessel. boat or car. and
in actual course of transportation. II
the sale is made before the grain has
been shipped. or if the grain has ar |
rived at its destination. the eXemp-
ton does not apply. In order to de- |
termine the fact whether merchandise |
sold is actually i'm course of trans |
Dortation at the time Of sale a bill |
IF lading iS indiSpensably necessary. |
I'm case a hill OF lading cannot he con- |
furnished to accompany the |
of sale. n certified copy |
may be used instead Of the original.