The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-20
STOCK TRANSFER BILL SIGNED
THE NEW LAW GOES INTO EFFECT
on JUNE
In Memorandum TO Go With the Bnl the
Governor says lie Doesn't believe a
small Tax Like That Imposed VIII
Drive the Business out OF the state.

Governor says lie Doesn't Believe a
small Tax Like That Imposed VIII
Drive the Business out OF the state.
ALBANY, April I0.-Gov. Higgins signed
the stock transfer tax bill just before he
left the Capitol for the Executive Mansion
after Q O'Clock tonight and it takes enect
june /, The Governor conferred with the
financial CORE ,pondent Of New York city
| newspaper about some features Of the bill
this afternoon. He said he sent for the
man because he thought he could give him
the information ne desired The new law
Is Chapter 2li, and accompanying It a. a
companion msa sure is Clapter az, also
signed by the Governor, amending the
Penal Code TO prohibit the forging OF the
stamps 10 be employed under the stock
transfer bill The Governor prepared the
following memorandum 10 60 with the bul;
Il have given my approval to the above
bill It imposes a tax Of 81 per 100 shares
on transfer, Of corporate shares, or two
cents on each 500 par value thereof. The
tax Is moderate in amount. Similar taxes
are levied in other countries and were
levied in the United States under the war
revenue tax law.
1T has been argued with much force and
a great deal Of truth that the business OF
dealing in corporate shares Il neoes ary
and useful. II has been asserted that
even as small a tax as that imposed by this
act must ither suppress the business
almost entirely or drive it out Of the State.
Experience with taxes Of this sort on the
Continent Of Europe does not seem to in
dictate that the business Of stock brokers
has been suppressed or even seriously
checked by them.
1t may be said in favor Of the tax that
there is perhaps no other sort of capital
viii h at present escapes taxation as com
pletely as that employed in stock trans
actions It is generally conceded that the
impcsition Of a like tax by Congress during
the SPANISH war did not drive business
out Of the United States and did not Gauss
great hardship TO these engaged In the
business Of dealing in stocks.
A State tax Of this kind is undoubtedly
70 some degree experimental in its char
acter II lis results are those which we
have every reason TO expect it will produce
a substantial revenue without seriously
burdening tho business interests and finan-
oial welfare Of the State. II on the other
hand it should prove that the bill is dis
appointment in the way Of producing reve-
nue., or inimiral to the welfare Of the State
the deliberations and reoomme ndations OF
the commission to consider revenue ard
taxation which ! trust will be provided
for at the present session Of the Legislature
will suggest a more equitable and pro-
ductive substitute.
While the bill takes effect Immediately,
il provides that no transfer Of stock made
after June | shall be legal unless the stamp
through which the tax ia 10 be paid Is at
tnched to the stock book or certificate OF
transfer The stamps are to be prepared
and sold by the State Comptroller ana
placed on sale in such places as he may deem
neces sary. In order to see that the stamp
tax is paid, the Comptroller is authorized TO
examine the books Of any person, firm,
company, association or corporation.
Aside from the fact that no transfer Of
stock shall be legal unless the stamp ia at
tached. a civil penalty is provided Of 500
for each violation. State Comptroller KEEL
sey said tonight that he had not ma any
arrangements TO print the stamps provided
for 10y the law, but will start in tomorrow
TO get ready the machinery to put the law
into effect. He will be in ample readiness