The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-02-01
A TAX ON BUCKET SHOPS.
Amendments to The War Tax Reduc-
ton Act. A Rebate on Tobacco
Tax.
(By the Associated Press. J

Washington, Jan. 31--The Senate Com
mittee on Finance today reported num-
Der of amendments to the War Revenue
Reduction Act. A new section is created
covering stock transactions. 1t says that
every person, association -opartnership,
or corporation who directly, or as agent
makes CT offers TO make contracts, trades,
transactions, etc, respecting the pur-
chase or sale of any stock. bonds, or
other securities for closing, adjusting,
or settling such contracts, ETC., with re-
ference to the public market quotations
OF prices made on any board OF trade cr
exchange and without bona fide trans
action on such board or exchange, or
wherein either or both parties TO the
transactions contemplate that such con-
tracts, etc, may be deemed closed or
terminated when the public market quo
tations on the articles named shall reach
a certain figure and every such concern
conducting what is commonly known as
"bucketshop" shall pay stamp tax
of one cent on each one hundred dollars
in value of the merchandise covered or
pretended to be covered and also tax
of two cents al each one hundred dollars
of the face value OF all stocks, bonds or
other securities covered or pretended to
be covered by each and all of such con-
tracts, etc. 1t is provided, however, that
the payment OF any tax imposed by this
section shall not exempt any such con-
Germ from any penalty CT punishment pro-
vided by the laws Of any State for carry
ing on such business, or the making of
such contracts etc; within such State,
or to authorize such business contrary to
the laws of such State. or in any place
prohibited by municipal law; nor shall
such tax payment prohibit any State from
placing a duty or tax on the same trade
or business for State or other purposes
Every such person, association, etc, shall
pay an annual special tax of nifty dollars
and for each brancn office. wherever es
tablished an annual special tax in addi-
ton Of fifty dollars, which said tax shall
be paid within thirty days after the pass
age of this act by every person, etc,
now engaged in such business and from
and after the passage of this act, by
such person, etc, proposing to engage
in the business aforesaid before COM
mencing such business.
Provision is MADE compelling all per-
sons or associations doing business under
this section, to file notice under oath
with a collector, giving the names of
persons, or members and officers of the
corporation, their residence, and place
where the business is carried on. Books
must be kept by such firms showing all
transactions subject to inspecting by col
lectors. Penalties are provided making
1t a misdemeanor If any of the provi-
sions of the act is not carried out; fines
of $500 TO $1,000 and Imprisonment of
three months 10 two years being the
penalty.
A rebate provision relating to tobacco
is added as follows:
THAT on all original and unbroken fac
tory packages of smoking and manufac-
tured tobacco and snuff. and cigars held
by manufacturers or dealers at the time
such discount or reduction of tax shall
go into effect upon which the tax has
been paid, there shall be allowed a draw
back or rebate of the full amount of such
discount or reduction of tax, but the same
shall not apply in any case where the
claim has not been presented within six
ty days following the date of the reduc
ton: and such rebate to manufacturers
may be paid in stamps at the reduced
rate; and no claim shall be allowed or
drawback paid for less amount than ten
dollfs. Il shall be the duty of the Com
missioner of Internal Revenue, with the
approval of the Secretary of the Treasu-
ry TO adopt such rules and regulations
and to prescribe and furnish such blanks
and forms as may be necessary to carry
this section into effect"
Another new section is added to take
immediate effect authorizing the Secre-
tary of the Treasury to appoint COM
natent DerSnn IN conduct any necessary
investigation to secure the efficient en-
forcement of the tax imposed upon lega-
cies aud distributtSe shares Of personal