Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-20
HOLDS ANOTHER VIEW
Interpreting the District In
corporation Act.
CAPITAL STOCK TAX
ONE FEE AMPLE UP TO $50. 500
IN AMOUNT.
Decision of the Controller of the Treas
ury as to Increases Subs4s-
-~quent to Incorporation.

In reply to an inquiry OF the recorder of
deeds the controller of the treasury holds
In a decision rendered the 10th instant, that
under the act of Congress approved Feb
ruary T. 1905. rthe recorder cannot collect
40 cents a thousand dollars on an Increase
OF the capital stock of a company incor-
porated here. unless such increase, exceeds
the amount s6.,500) allowed by the bin
imum fee of $25.
The question arose in the case OF the
Richmond Compressed Air Cleaning Corpo-
| ration. Incorporated here April T. 1905, with
capital stock OF sf,C0O the incorporators
paying the recorder of deeds at the time of
the presentation to him of the certificate
of incorporation the minimum fee of So
Recently the company presented for rec
ord certificate of increase of it's capital
stock from $1,000 to $500. and the Depart
ment Of Justice having advised Recorder
: Dancy that the fee of forty cents a thou
sand dollars should be collected by him
from companies Incorporated here SUISSE
quent to February T. 1909, filing certih-
Gates of increase of capital stock Deputy
Recorder Dutton required the attorneys of
the company, Messrs. Ralston & Slddons.
to deposit the sum or SO in addition to the
recording Fee
1t was contended by the company's at
torress. that the company having at the
eiAi'V .Ioi -iCSpidiiiS lis ilCCT-
poration. paid the. recorder the minimum
fee of So which minimum fee allows a
company paying it to fix its capital stock
In the nrst instance at 800. no further
tax fee could lawfully be collected by the
recorder until the company had increased
its capital stock over S62.J0O.
The deputy recorder admitted that he con-
CURED in that construction of the act of
February 4. 1905, but insisted on the de-
posit of $23 being made, promising how
ever, that the matter would be referred to
the controller for his decision.
The Controllers Views.
"The plain intent of this enactment" says
Acting Controller L. p. Mitchell In dis
posing of the case. is that the capitalized
corporation in the District of Columbia
shall not pay less than s25 on It's certified
capital stock. and 1t seems to me that 1t is
also its intenet that such corporation.
whose capital stock Is $4,000 less. shall
pay more than that amount; and, in my
opinion. 1t Is immaterial whether such capt.
tai stock Is certified in the first, original.
certificate of incorporation in a certfi-
cate, or a number of certificates, of Increase
OF capital stock.
so long as the aggregate capital stock
certified by single corporation does not
exceed $4,000, the fee of SD paid on the
filing of the first original certificate is all
that can be required. but when IT aggre-
gates more than $4,000 fee of 40 cents
| for each thousand dollars in excess of that
aggregate should be collected.
"1n the case pres 'nted. If either of the adj
ditional fees suggested be collected on the
81, 600 increase, the result would be that
this corporation. with its capital stock of
5000. will have paid either SO. 40 or $50,
willie like corporation filing its original
certificate for $82 800 would pay but ST..
cannot think that Congress intended SO in
equitable a result.
Tax on Increases.
Referring to the opinion of the Attorney
General that the recorder would be just
fed in collecting the fee of 40 cents on
each thousand dollars of increase of cap
| ital stock of an Incorporation organized al
| ter the passage of the act Of February 4,
| 1905, Acting Controller Mitchell states that
| it seems to him that the Attorney General
| must have had in mind the 10 cents per
| thousand above the amount or Init OF
| $62 500.
For" says Mr.. Mitchell. under the
plain terms of the statute the 40 cents
| tax on fee per 81 900 does not and cannot
apply to any certificate setting forth less
| than $62 800 Therefore, IL each certificate
| of increase is to be considered and treated
as an Independent certificate, the fee in no
case, on the filing of certificate OF in
crease, could be less than SO. regardless of
the fee or tax therefore paid by the cor
porat ton certifying the increase"
In closing the acting controller holds
that there is no conflict between the Attor-
ney Generals opinion and his views. and
| that In the matter of the certificate of in
authorized only to collect the usual record
| ing Or fling