The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-07-09
MAKES JUDGES WITHOUT PAY.
CORPORATIONS COMPLAIN or 4
NEW TRtNSFIR TAX n LING.
Commissioner mini Th-, should Decide
whether q ansf Ta> L. Due or Not
The, Judge Nronki, The, Pa, and
Are Liable TO q Penalty TOR the Mistake.

A ruling II the United States Commi--
sioner of Internal Revenue ~iaAring upon
the tax upon transfers Of stock has rats"d
a Isck Of trouble for the corporations The
~oficrr- of the computations complain that
II puts a lo' e uupald-for duty upon them
An orfccr u ou" of N" largest railroad
corporations having it, onicr ia this city
.aId Yesterday Of tho ruling
The Commissioned apparently requires
the Curporatiuns 90 e~Nercis" Judicial powers
without pay Moreover. II a corpora
ton, acting under such power. should
Judge tina a tax had been paid ~ that
no TAX war due. and the Government sui .
-euuently decided that ia" tax had not
l..n paid and sa- due, the corporation
would y. called upon Ia yay u. and also
would ~ hahle 20 paw a I~"nslty for ~
error - Judgment judge would hav" 10
H. paid high 70 mount the i-nch under
,hu-o conditions
n. Commissioner rulcs that II a stock
cer, <icat. L. presented fur transfer ON or
after July /. Iso? u must pay th" transfer
tax ( The power ~ attorney 20 transfer.
on the hack of or nttach"d ~ such certtl-
cate. b. dated subsequent to July l. lsss.
and prior to Julv !. 1872 OF proof must L.
INV NV ~ - 49, H
OF that the stuek hs- l-cn add Subsequent
to July /. 1909 This - u "NcCt u ruling
that tho power of attorney 20 transfer -
In it-rlf u transfer IhI~ J. not =" ia ia't
and further l. 4 r"N"-al 81 ~" uf'glnhl
ruluss II III" department mad" when IN"
VA t.Neuuc fAN vent INTO of'~f
The law provided fer a tax II p cents
on powcr- n ATTORNEY u al-o provided Tor
ajax on tTansfer~ 60 sfuck Ia" Department
ruled hat the power Il attorney 20 transfer
.4VH - AZ
was not tayahl" II dated PRIOR To- July /.
1905 A. the suc Tim" m" Department
rl.i 'hst tho C,rt iiirat". n presented Tor
transfer ON M" l-,ck- 81 ihe company sub
-..ouru tu july !. lSsN, war e'I.JeC' =" ih"
transfer tax on all such transfer tho TAX
la- l--.n paid M ncCurdHnD" With that
ruling
The original siling ~ N" Department
TINT tho fact II the power ui attorney ten q
dated prior t. Iuly !. lSps, dld not exempt
the stock certificate from ia" transfer tax
was IN effect that such power - attorney
Wa not 70 transfer fst -o"W- 'p H.. iru"
and 4 irI" ihcu must b" 'rtl" uus Bli "
the present ruling - held 'u - ught 'I"u
the original ruling wa> wrong ara every
dollar rand 'u th" Government under -"
original ruling Was illegally 'Na''"4 ana
the Government D. suUl'~'t - ~ payment
The law cannot work both vAV- u may
not catch q ominr and catch q guug
IL tho last paragraph ui nv letter 'h"
Commlssiuncr sta'c- certain Circums'a''"-
under which. upon m" presentation ~
proper evidence, stock may 10 regarded
a. exempt from transfer tax Who j. 4"
~ the Ildgs f. ~" facts IN ia" case u
would sem that .he corporation - "NTsC''t
- pa~s On ~" evidence on" hall - 'h"
G,overuncut. IN a matter from which n
can deriy" no i-u'flt. and without com
uen.atiou SURELY. Nh" corporation may
no, he arbitrarily constituted a Government
agent without pay 20 pass upon matters
Tint do not concern II