New-York tribune., 1906-08-03
STOCK TRANSFER CASE
.4rgues .fgainast Yalidity of
Recently Enacted Lac.

,anf was had before Justice Giegerich in
s-.-srae Court yesterday as to the con-
.,-,.fi,v Of the law passed by the I.egis-
u NAY II last amending the act OF 1905.
.oeing stamp duty of two cents on every
81 stock transferred by. sale or delivery.
,he act Of 1908 transfer tax Of two cents
.,nosed on each 500 in value of stock sold.
=. later statute calls for the tax upon each
~ stock. no matter what the value may be
- case came up on an application to sus-
swrit Of habeas corpus obtained by Horace
o.,rer. counsel for Irving K. Harrington. a
3. br5ker. who was arrested yesterday on the
-. of violating the law by transferring a
- Of shares of stock to Donald c. Catlin.
80 broker. without making a memorandum
j sale Of af7xing the stamps as required
= act harrington was held by Magistrate
o-an b the Centre street pelice court, the action
-. test case brought TO ascertain the
'-n5iy Of the law. and was committed to the
-s,sy Of the patrolnnan who arrested him.
q parker said that the unit of value of taxa
- m6er the law Of 1905 was 800 par value
9. .be later act called for a stamp duty Of two
..sn each share Of stock. no matter what it's
= value might be. 4 maintain" said Mr.
,tsr that stock of the par value of 81, ,0OO
Z $500. OF S500 q share, is either only liable
: he same stamp duty as stock Of the par
lne Of 500 q share, or is not liable to pay any
~ at all for the law says that each share Of
4. par value Of 800 or fraction thereof shall
v this two cents. and 1t cannot be held that
rvs is fraction OF 800. By the same process
srsasoning stock Of the par value of one cent, 10
sris s. SO or $50, is inversely taxed. the tax
sng altogether dispropovtionate to that on
rsck of the higher value"
" Parker then recited the transactions be-
rssn Harrington and Catlin. one of the stocks
snr in being that of the Old Gold Mines Com
M Wyoming corporation, the shares being
he value Of one cent. Harrington sold
rHn the complainant in the case. one thou
rni shares Of this stock for $50. or three cents
Stare. ana the tax or these shares. which he
ssiaed TO pay, would have been $50.
We say this law is unconstitutional. as TAX
= awsy our property without due process Of
.rr said Mr. Parker. and also ex post facto."
H. Parker agreed that the Legislature hardly
s6nded IL impose as high tax on stock Of
b gaiue. # one cent share. or 81
rare as upon stock of the par value Of 500
share If this law is upheld Mr.. Parker
|nH "the brokers in these stocks VIII have to
aTe New York and go to some other state, or
Canada, ana make the transfers there in
asr n avoid the payment of this unjust, and
81 hold, Illegal tax"
assistant District Attorney Johnstone. in op-
ang The motion. said the tax was not upon
sonal property at all. but upon the privilege
rTtlsed by the brokers of dealing in stocks.
Esalso contended that the law OF 1905 had been
ID 70 be constitutional by the Court Of Ap-
rk and that the amendments TO that law by
+ recent act We're not Of such a nature as TO
r5er il unconstitutional
hdge Giegerich accepted a proposal agreed
rn By sIr. Parker and the District Attorneys
Es 10 dismiss the application for the writ Of
tbas corpus. thereby permitting an immediate
raj 10 the Appellate Division. and paroled Mr..
Tgington until the final determination Of the
-1aons involved IN the custody of his counsel.