The times., 1901-06-25
LOCAL BUSINESS NOTES.
a FURRY Due to "a Traction Rumor
and Its Explanation.

a FURRY Due to Traction Rumor
and Its Explanation.
despatch to local newspaper from
Norfolk, published on Sunday. recited
| that John G. Tilton, a Norfolk lawyer
has filed with the Norfolk clerk of the
court a power of attorney for the Wash
ington Traction and Electric Company
and that he will this week enter an ap-
pearance in the suit filed against the COM
pany for a receiver some weeks ago The
despatch was the cause of good deal
of comment, some of it almost excited, in
F Street yesterday. Persons who had
been inclined toward pessimism regarding
the affairs of the syndicate suggested
that this action on the part of Mr.. Tilton
could only mean mat the company in
tends to fight the suit for a receiver. 1t
was guessed from this that MI. Nc
Dermott, the receiver appointed by Judge
Golf, was only a temporary officer. IL
was further surmised that the Washing
ton Traction and Electric Company and
the United States Mortgage and Trust
Company, which filed the suit for re-
ceiver must have had a fight over some
thing.
There were some serious discrepancies
in these surmises, however, and they
eral 1t was pointed out, for instance,
that as far as known the company is con-
trolled by the same parties who own the
controlling interests in the bonds, both
being represented by the United States
Mortgage and Trust Company. The only
one that could act for the company in
answering the suit would be these inter-
ests But il was these interests them
selves that brought the suit, and the street
was unwilling to believe that they would
first apply for a receiver and then hSht
against his appointment, especially as
they can secure his discharge without
fight as soon as they wish it
the United States Mortgage and Trust
Company and ws.c its choice for re-
ceiver. He is relative or President
Young. OF the trust company. He is also
friendly to the railway company, having
been its president before he was Its re-
ceiver, and still being president OF the
several constituent companies or the con-
cern. 1t may be noted IN TINS connectlon
that Mr. McDermott, as the chief officer
of the company, would be the man that
would represent It In It's fight against
receiver, If any fight were TO De maze.
Being himself the receiver, he Wou!d De
placed in somewhat awkward position
Mr.. McDermott Is not temporary re-
cefver. He was appointed by Judge Con
with fun and permanent powers 10 act
In that capacity until the receiyership Is
1t was learned at the Office of the
Washington Traction and Electric Com
panv last night that Mr.. Tilton was en-
powered to act as its attorney month
or more ago, before the receiver had been
appointed or thought OF. The Virginia
laws require that any company 1nccrpO-
rating in the State shall have legal
representative in the State and it was in
pursuance of this law, 1t is said, that Mr..
Tflton was given the power of attorney.
It is said that there has been some de-
lay by him in fling his power OF attor-
ney with the clerk of the court. AS far
as can be learned. the affairs of the COM
pany and it's receivership have undergone
no change during the past week
The Commissioner OF Internal Revenue
Yesterday decided that the claim of the
deputy collector OF internal revenue maue
last week against the firm of w B. Hibbs
& Co. for double tax on all stock trans
actions, was a mistaken one, and that
the firm will not be required to pay any
tax additional to the one already paid
on its stock transactions. The decision
is a most important one, as it affects
practically every broker doing a commits
sion stock brokerage business and in
wolves the payment of millions of dollars
of taxes. The decision is in accordance
with the view regarding the matter uni
formly taken by brokerage and financial
people throughout the country.
The point involved in the contention of
the collector was fully described in The
Times last week. The claim for the extra
tax was based on the recent act of Con
eress, which was intended to compel
bucket shops to pay q double tax. This
law was worded to compel the payment
of tax on every transaction in stocks
not made on a stock exchange. The col
lector acting to a certain extent under
the direction of Commissioner Yerkes, il
is understood, held that two transactions,
at least are made when a customer in
Washington orders the purchase of securi-
ties through his commission broker in
this city.
According to this contention, the stock
Is purchased by a New York house and
then sold to the Washington house, which,
in turn, sells the stock to its customer.
The transaction in Washington necessari-
" would not be made "on any exchange"
The commission brokerage business, how
ever, has always been conducted on the
theory that customer buys stocks on
the New York exchange simply employ
ing the different brokers through whose
hands his order passes as his agents.
The decision of the commissioner uphoids
the latter view, that only one transac-
ton is involved. With regard to this class
of tranactionS at least, the collector is
now instructed that no bucket shop law
can be made 10 apply
The Baltimore Stock Exchange has noti-
fed the Washington Stock Exchange that
it will not be able to accept the invitation
of the latter for a trip to Chesapeake
Beach next Thursday. The Baltimore eX-
change has longer sessions than the
Washington board and 1t would have been
necessary to close the exchange in order
to make the trip. 1t is understood, how
ever, that a number of the Baltimore
brokers will individually accept the invi
tatiOn
The excursion as planned promises to
be an affair of some circumstance and
moment The trip will be- made on
special Pullman train, the interests of
which, 1t is understood will be looked
after by President Mears,. of the Chesa-
peake Beach Railway, himself, Mr.. Mears
having a warm place in his heart for
many of the members of the board and
for the board as a body. The outing will
begin at New York Avenue and Fifteenth
Street at 80 O'Clock Thursday afternoon,
where cars will be taken for Chesapeake
Junction The time of return for the