Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-03-17
REVENUE Dept.
IS AFTER BROKERS
A Ruling That Stretches Law Over
New Glass.
UTAH SUGAR Is INCLUDED.
Capt Wheelock Of the Internal Heve-
nue. Dept Says Mining stock nrok-
ers Pursue Loosest Methods.

The Hawkshaws OF the government
revenue department have again des-
cended upon Salt Lake, and there Is
once more a hurrying and scurrylnB
among mining brokers, who are liable
this time to be brought up standing
for their failure to pay rigid attention
to the requirements OF the law with
reference to revenue stamps. Capt G.
H. Wheelock. special agent Of the de-
partment. has been In the city the past
several days investigating local condl-
tions. He claims that there Is all sorts
Of oosenoss going on among mining
stock brokers In their methods Of trans
ferring stocks and that certificates
sometimes pass through a half dozen
hands with only one revenue stamp az
fixed, The brokers were warned some
time ago that II they were caught re-
peating their loose methods q second
time the government would take yigor-
Gus action against them.
Capt Wheelock also made an an
nouncement regarding buyers and sell.
ers Of commercial stocks, which VIII
cause something Of sensation IL his
views are correct His first business on
arriving IN Salt Lake was 10 call at
the office Of the Utah Sugar company
to see whether the stamp law had been
fully complied with on the recent large
transfer Of stock. He found the neces
sary stamps, amounting 10 something
like SlG5, affixed TO the cancelled certi-
hCates and properly Cancelled a er
examining the books he made the STAGE
ment that the officers Of the company
and all other persons who had been
buying and selling the stock were LA
bic for q tax az brokers' He reported
his findings to Washington. and 1t Is
understood included In the list the
names Of those liable for the tax that
Of H. q, Whitney, secretary of the
sugar company Mr.. whitney in add-
ton to being Il considerable stakeholder
In the company, had sent out circulars
by the order Of the board Of directors
TO all stockholders, inviting those who
wished to participate IN the recent sale
Of stock to send their certificates to
him. Under instructions from the
board, he acted as the stockholders
agent, selling their stock for them and
renting them the proceeds. Techni-
cally Cept Wheelock Is said to claim
that this was an act Of brokerage
IL Ia understood that other large cor
poratlons In the city will be lnvestigat-
cd, and that all persons and officers of |
companies who have been buying and |
selling stock will be reported as liable |
Cor the payment Of license. which Ia |
$50 per year with an added penalty Of |
S25 per year II such a course Is taken, |
capt Wheelook win have to take up |
his residence In Salt Lake Indefinitely. |
and doubtless call on the government |
for heavy increase In the number Of |
his deputies.
Mr. Whitney Of the sugar company, |
made the following statement:
THE revenue inspector called at my |
office the day after the recent sale Of
sugar stock was announced In the pa
! ers, for the purpose Of seeing whether !
the necessary revenue stamps had
been affixed 60 the Cancelled certificates.
lie OF course found that they had
been In the course Of his examination
Of the books he saw the numerous
Of stock which everyone in
Salt Lake knows have. been taking
/ lace IN the past two or three years,
and | understand his ruling Is that
those who have bought the stock even
though they bought It for themselves,
u they made any prof. out Of IT, are
liable 20 be called on to pay a brokers'
license II $50 year.
such q ruling seems TO me absurd
II would make brokers Of several humid
red private persons, merchants. bank
ars, clerks, ladies as well as gentlemen.
and most of the officers Of the company
who have been showing their faith in
tie company by buying It's stock for
the past several years | am happy to
gay that | am one Of these, and my
rnly regret is that did not buy more
and that ! ever sold any. 10 say that
this constitutes brokerage seems TO me
and II the revenue Of
fcers propose 10 examine the books Of
every corporation in Salt Lake to see
what private persons or what officials
are buying or selling their stocks--.it
strikes me that they win not only have
their hands full. but that they will be
intering upon lire Of espionage that
he law never thought OF contemplate
Ing.
Neither 90 7 think that my action in
lending out a circular to the stOckhold.
'rs of the company advising them OF the |
nance 10 sell q part OF their stock and |
n RENTING them the proceeds OF the |
sale, makes me broker That trans |
iction was carried out by order OF the |
board OF directors and not a dollar Of |
profit was made by me or any one else |
In performing IT,
"The amount at issue Is Of course in !
significant, but for one shall resist its |
payment as vigorously as | know how
Internal Revenue Collector T.. II, Cal |
lister, of this district, when spoken to |
Of the matter stated that Capt Wheel |
Dck was proceeding without any con-
nection with his Office. He was the |
agent Of the department at Washing |
ton, and his findings were reported TO |
the internal revenue commissioner |
there, John w. Yerkes. Mr.. Yerkes |
would then issue instructions TO Mr., |
as TO whether or not the H. |
cense fee should be collected, and the |
parties concerned would be given a |
hearing before him The whole ques
ton Is one that has often been before the |
department, but there has never yet |
been any clear definition as TO what |
a broker and how much |
buying and selling In stocks a private |
individual might do before he could be |
construed TO have come within the pro- |
visions OF the law.
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