New-York tribune., 1905-04-20
STOCK TAX BILL SIGNED.
GOES IN EFFECT JUNE I.
The GOUernOr Issues Statement ET-
planning His ActiOn.
IBY TELEGRAPH TO THE TRIBUNE. !


Albany, April 19.-The Stock Transfer Tax bill
became a law this evening when Governor Hig-
gins signed it, barely six hours before the ex-
piration Of the ten days allowed for it's con-
sideration. His action fulfls the prophecy OF
The Tribune. which exclusively announced the
contemplation of such a measure on January D.
With the announcement of his approval the
Governor gave out the following statement OF
his reasons:
have given my approval to the above bill: 1t
imposes a tax of 50 hundred shares on transfers
of corporate shares. or , cents on each 800 par
value thereof The tax is moderate in amount,
and similar taxes are levied in other countries,
and were levied in the United States under the
War revenue tax. 1t has been argued with much
force. and great deal of truth, that the busi-
and useful. II has been asserted that even
small a tax as that imposed by this act must
either suppress the business almost entirely
drive il out of the State. Experience with taxes
of this sort the continent Of Europe does not
seem 10 indicate that the business Of stock
brokers has been suppressed or even seriously
checked by them
II may be said in favor of the tax that there
is perhaps other sort of capital which at
present escapes taxation as completely as that
employed in stock transactions 1t Is generally
conceded that the imposition of a like tax by
Congress during the Spanish did not drive
business out of the United States and did not
cause great hardship TO those engaged in the
business of dealing in stocks.
\ State tax of this kind is undoubtedly to
some degree experimental in it's character. II
its results are those which we have every reason
to expect it viii produce a substantial revenue
without seriously bUrdening the business inter-
ests and financial welfare Of the State. If on
the other hand, il should prove that the bill is
a disappointment in the way of producing rev.
enue, or inimical to the welfare Of the State
the deliberations and recommendations of the
commission to consider revenue and taxation
which trust will be provided for at the present
session of the legislature. will suggest a more
equitable and productive substitute.
FRANK W. HIGGINS.
The lew takes effect Immediately. but its
actual operation does not begin until June l.
and meanwhile the Controller Will arrange for
the preparation of stamps which are the medium
by which the tax is collected. This evening
Controller Kelsey said that his department had
waited for the bill to be signed before taking
any steps for its operation.
The law provides that these stamps shall be
affixed to the document showing evidence Of the
sale, to the companys books, the transfer GER
tifcate or the memorandum of sale. as the case
may be-
The Governor also signed the companion bin
penalizing forging tampering with the new
State revenue stamps. Stamps must be can
celled by perforation and the initials Of the
user and the date.
The enactment of the Stock Tax Transfer bill
which has just become law. has been vigorously
opposed by the New-YOrk Stock Exchange and the
a
a hearing held by the Senate Committee on Tax
alton in Albany March >. arguments against
the proposed measure We're made by leading mem
bers of the two exchanges and by counsel for the
institutions
1t has been urged in opposition to the bin that
the tax would be inequitable, directed against a
special class of business men; that il would be a
new form of taxation, levied on trade and not on
property; that its effect would be to destroy the
financial supremacy of New-York. diverting a great
part its business rival cities in other States
that stocks the speciaties of cities like Phila
delphia and Boston would again find their princ-
pal market in those cities: that with the diminu
stock trading here real estate values in the
financial district would shrink; that the imposition
OF the same transfer of 100 shares of a
high priced stock and 100 shares of low priced
stock would be unjust and that the would
operate to wine out the floor traders and the I
''two-dOllar brokers'
a movement is under discussion by members Of
the Consolidated Exchange for the organization OF
an exchange in Jersey City OF HOboken, TO which |
orders for the purchase sale Of stocks, received
in this city from customers OF Consolidated EN-
such operations being subject to no tax.
The principal provisions Of the law fol- |
lows:
There is hereby imposed and there shall imme-
vided on all sales. agreements TO sell. or memo /
randa OF sales deliveries or transfers or shares
certificates Of stock In any domestic or foreign I
association. company or or. corporation made after
the first day OF & JHne e., % S mace TpTn of
corporation or by any assignment in blank, or by !
nny gevf9g or other Evidence Of transfer or
sale whether emitting the holder I'm any manner .
ure payment Of money or the future transfer Of T
any stock, on each hundred dollars OF face value /
Il is not intended by this act TO impose tax
Continued On SOeOnd page.
Af.eF an. UsHE1Re'S; !ns syS.eA snas made tAs