The Washington herald., 1908-03-03
STOCK GAMBLING Hit
Stringent Measure Is Intro
duced in the House.
PRESIDENT SAID TO APPROVE
Bill Introduced by Representative
Hepburn Proposes Tax OF 80 Cents,
for Each Fraction of 500 Share,
on All (StOck Transfers-Stnmps
Must BE Affixed 40 Certificates.

Stock gambling on margins is prac-
tically prohibited in a bill introduced in
the House yesterday that is understood
TO be approved by President Roosevelt.
The measure was offered By Represent
atiye William P. Hepburn. Of Iowa, and
in the course OF its preparation Mr.. Hep
burn held frequent conferences with the
President. Mr. Hepburn is the author OF
the new railroad-rate act
The bill offered yesterday Is designed
to tax stock gambling out of existence.
a prohibitory tax OF y OF l per cent on
he face value Of all stock transferred by
sale is provided. If this bill is enacted
into law said Mr.. Hepburn. trading in
the market viii be limited to actual.
bona tide sales. The speculative. or gam
bling, feature VIII be entirely eliminated.
Il gave this subject considerable
thought, and came to the conclusion that
the evil of gambling on margins might be
reached by a measure based upon the
interstate commerce clause Of the Con-
stltuuOn, or il might be corrected by in
voking the taxing power OF the govern
ment There appeared 20 be some doubt
whether the former agency could be sue
cessfully utilized, but there IS no doubt
as 10 the eonsututionaIity or effectiveness
OF meeting this problem through the use
of the taxing power"
How Bin Reads.
Section 1 Of the Hepburn bill reads. IN
part. as follows:
THAT there IS hereby imposed and there
I'D
a tax as herein provided. on all sales. or
agreements 10 sell. or memoranda Of sales
or deliveries or transfers Of shares or
certificates OF stock in any association.
company, or corporation. made after the
3oth day of June. 1908, whether made
upon or shown by the books OF the assO-
citation company. or corporation. or by
any assignment I'm blank. or by any de-
livery. or by any paper or agreement or
memorandum or other evidence of trans
fer OF sale. whether emitting the holder
M any manner 10 the benefit Of such
stock. or TO secure the future payment OF
money or the future transfer Of any
stock. on each share OF 500 OF face value
or fraction thereof, OF 80 cents"
The bin does Eot seek 10 impose a tax
upon any agreement evidencing the de-
poslt OF stock certificates as collateral Sc
curity for money loaned. which stock GER
tiflcates are not actually sold. nor upon
such stock certificates so deposited.
As TO the Stamp.
It is provided that the payment Of the
tax proposed shall be denoted by an adj
hesive stamp or stamps affixed as fol-
lows: I'm a ease where the evidence
all Ill Ia
OF the company. the stamp shall be placed
upon such books. and where the change
OF ownership IS by transfer Of a certifi-
cate. tie stamp shall be placed upon the
certificate; and in cases OF an agreement
to sell. or where the transfer is by de-
livery Of the certificates assigned in blank
there shall be made and delivered by the
seller TO the buyer bill or memorandum
OF such sale, 10 which the stamp pro-
vided for by this act shall be affixed:
and every bill or memorandum OF sale or
agreement TO sell before mentioned shall
show the date thereof. the name Of the
seller, the amount OF the sale. and the
matter or thing 20 which it refers and
no further tax Is hereby imposed upon
the delivery Of the certificate OF stock or
upon the actual issue of new certificates
when the original certificate Of stock is
accompanied BY the duly stamped memo
randum of sale
Any person violating The law is 20 be
deemed guilty Of misdemeanor, and
subject 10 a fine OF not less than 500 nor
more than S.00o. or be imprisoned not
more than six months. or both, at the
discretion Of the court.