New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-04-14
THE COLLATERAL LOANS TAI.
YERKES TO RENDER HIS
DECISION MONDAY OR TUESDAY.
LaY rELrGRarH ro THE rRIRrNE.I

by TELEGRAPH 70 THE TRIBUNEI
Washington. April 13-John w. Yerkes. the Com
missioner Of Internal Revenue told a correspond
ent of The Tribune yesterday that he was in the act
of writing his decision in regard to the collateral
loans tax and that he had authorized no state
ment to be made in regard to the opinion. which
he does not propose to render before Monday af-
ternoon Tuesday At the time rumor
current in Washington last night what
is said be fair authority that the Commissioners
decision will sustain his former action imposing
tax of cents each 800 of stock placed as Sc
curity for the payment of loans. The ruling
requiring this tax was made by Commissioner
Yerkes February on case presented by
Colonel F. G. Thompson the revenue agent at
New York. At that time ii held that the men,
orandum of a loan transaction where stock
used security subject to d stamp tax The
action in accordance with previous ruhne
made on October l. in a where the Pennsyl-
| vania Railroad Company desired to deposit with
the Girard Trust Company certain certificates OF
stock to secure loan of S20o0000. BY the decision
in this case. which sustained by Attorney Cen
eral Knox the payment of a amounting to
500 900 was demanded the sum required under
the law using corporation stock shares ior Sc
curity for loans. In addition to these rulings
decision was handed down by the Circuit Court
for the Southern District OF NewYOrk, upholding
the constitutionaity of the law which was enforced
10 collect this tax.
Immediately after ii announced at the
Treasury ;hat agents throughout the
country would be instructed TO proceed with the
collection the collateral loan ldN, iNuuoiPii
Keppler president. and II. X. Pomroy, vfce-presi-
dent of the New York Stock Exchange, came TO
Washington to request Commissioner 1erkes 10
suspend collection Of this tax until they could
be fully heard with arguments designed TO sno"
why such tax should not be levied. Before TINS
II may be recalled a New-York broker refused to
pay this for the purpose Of making test case
In the courts. No further collections were then
made until tic fight decided in favor OF the
government seine afterward In compliance
with the requests of the Stock Exchange ofi1clals
Commissioner Yerkes agreed TO suspend collectlon
of the teral loan until attorneys Tor the
exchange could file brief protesting against us
imnositlon About ten days ago Mr.. Yerkes tele-
case in charge for the Stock Exchange people. ask
ing him TO in the brief 1t once. TWO or three
davs later II received at the Treasury Depart
ment In the regular course OF business MI
Yerkes took the under consideration.
AS far as be learned the chief new point IN
the forthcoming decision of Commissioner fcrkfsS
has TO do with the date when the collection OF
ing has been implied which seemed 10 indicate that
the collections would go back OF July !. 1901 when
the amended act went into efftct. tsut III
has leaked that there Is a possibility OF the
collateral loan being required OF brokers ana
individuals whose business records contain memo
randa Of falling within the class
ia red bv Schedule A Of the act OF March 2. 1901.
ca me operative July !. 1855. In view or the I'M
portance Of the legal questions involved ana the
effect which sustaining the imposition or TINS TAX
will have on the financial interests or the country
fl is almost the Will be carried 10
the courts for final action, provided commissioner
Yerkes's decision week Is not satisfactory 10
the Stock Exchange officers and their attorney