New-York tribune., 1901-08-02
TAKES BIG RISK FOR A TEST;
BROKER WILL BE ARRESTED AT HIS
OWN INVITATION.
FRIENDS SAY IF COURTS DECIDE AGAINST
HIM HE MIGHT BE FINED OVER A
MILLION AND GET FIVE
HUNDRED YEARS M
RRISON

George c. Thomas. one of the directors of the
consolidated Stock and Petroleum Exchange
is to be arrested to-day on his own invitation
ny an agent of the Internal Revenue Depart
ment In order to give occasion for the ar
rest Nh Thomas has openly refused to comply
with the regulations under which Charles II.
treat. the Collector of Internal Revenue for the
I'D District of New-York has been collecting
Tor the government 50 for every one hundred
shares of stock sold by the brokers in the ex-
changes. The tax stock transfers has been
part of the war tax. Mr.. Thomas and other
brokers' were advised months ago by lawyers
that the tax was unconstitutional. MIR. Thomas
decided to make a test case by transferring
STOCK without afixing the stamps and paying
the tax
On May 22 Mr.. Thomas began to defy the
collector OF Internal Revenue. and, in order
that there should be no concealment of his dis
obedience of the revenue law, he made a
port to his legal advisers. and the lawyers sent
notice to Collector Treat. Mr.. Thomas has con-
tinued to transfer stocks unstamped since May.
and the lawyers have continued TO keep Mr.
Treat informed of the brokers' contumacious
attitude, but the Collector made no move to
enforce the regulations in the case Of Mr..
Thomas until yesterday, when a revenue agent
waited upon Mr.. Thomas and told him to appear
a
and be arrested
1t was learned yesterday afternoon that there
was an arrangement to have Mr.. Thomas taken
before United States Commissi Oner Shields and
held for trial on the charge of violating the In
ternal Revenue law. Mr. Thomas will be able to
give bail, and his counsel will demur to his trial
on the ground that the law providing for the tax
ne refused TO pay is unconstitutional If the
contention of the lawyers is sustained by the
courts, Mr. Thomas gets off easily. II the law
is declared to be constitutional he has no de-
fence and must plead guilty TO the charge of
violating the law.
Some friends OF Mr. Thomas said yesterday
that ne was taking great risk in making the
test case. The penalty for violating the tax
regulation is fine of not less than $500 and
not more than 81 900 or Imprisonment for six
months. or both. in the discretion of the court.
AS Mr. Thomas has been refusing to pay the tax
Tor more than two months, his friends say that
ne has made himself liable 10 fines amounting
10 more than 100000 and to imprisonment for
about five hundred years. He reported TO
nave said yesterday that he might be willing to
be kept in Jail five hundred years II the fines
were remitted. Many brokers will be interested
IN the case of Mr. Thomas. because the tax on
stock transfers Will have TO stop If the law Is
declared unconstitutional. and brokers who have
paid the tax will have claims against the gov
ernment for the amount OF the tax collected.
MI Thomes is a popular broker in Wall Street
and has been well known there for years. He
formerly was connected with a firm having
membership in the Stock Exchange but a Few
years ago he became a member of the Consoli-
dated Stock ana Petroleum. fxcharrc~ ana was
elected q director.