New-York tribune., 1908-02-10
SHORTAGE. SAYS GLYNN
Receipts from Stock Transfer
Stamps Declared Too Small.


Albany, Fer. "A shortage Of serious propor-
tons IN the receipts from the sale of stock trans
fer tax stamps Is reported by State Controller Mar
Tin H Giynn in statement given out from his
Office tonight. In the of the statement he
refers to the episode of the destruction Of several
million dollars worth OF detective and rejected
stamps by clerk in the employ Of ex-Controllers
Kelsey and Wilson. with what were asserted 10 be
insufficient precautions secure the certain de-
struction Of al the stamps supposed to have been
burned
The Controller reports that the receipts from the
sale of the stamps during the year covered by his
figures were less than enough to represent the
stock dealings in the New York Stock Exchange
alone, without showing single cent Of revenue
from curb brokers, bucketshops and the @.oAo or
Sefto corporations Of the state.
The CONTROLLERS STATEMENT.
Following is the Controllers statement:
The state is not getting all the tax TO which it
and October L 1877. the New York Stock Exchange
shares of stock OF which IS ds5 Shares consisted
Of Reading and PENNSYLVANIA stock, of the par
value of so. and the par value of all the rest Of
the stock was 500. The state was entitled TO re-
81 g. a5d .es th recep foF e sane ahg S period
from the entire state, including corporations. curb
2sisl s. which IS s457S S less than the total tax
On the sales made by the TWO exchanges @ alone
is convinced that these figures represent but a
of balancing and paying on differences in
vogue among brokers deprives the state OF a
revenue due 1t under strict interpretation of the
The present fine OF not less than 500 more
enough TO have deterrent effect. and any Illegal
use OF stamps might be made felony
That the present loss 10 the state is very great
Is APPARENT when II IS borne in mind that the
bi,,at sons and , 81 6 or ~ da lions
OF this state. A prominent writer in a recent
magazine article and a noted metropolitan editor
who have made careful study OF this matter both
least 10000 year from the non-obedience OF
this law. and this department. is inclined to think
that the loss is nearer these figures than is gen
Il is interesting TO note that the excise depart
rlent whose revenues to the state are less than
partment. is allowed sixty special agents and
number Of special detectives to help in the en-
parisou is all that is needed emphasize the
total absurdit Of enforcing the stock transfer tax
at least six years to examine the so,oco or 5000
corporations in this state which should use stamps
in the transfer of stock. say nothing OF the
brokers' Offices An inspector was put TO work on
covered a single company which had transferred
g % ,i 81 stoo % +6 On ornartfo ~Il- no q 1ea@d RAJ
they supposed the transfer tax affected only bro,
aftx $40 worth OF stamps il their certificate book
be done with sufficient corps Of inspectors
SWORN STATEMENT PROVED
Controller GIynn recommends that the law be
amended so as require every person or
poration making sale or transfer Of stock to
file monthly a sworn statement with the Con-
troIler showing the number of stamps purchased.
used or sold. and. If sold, whom and the
amount remaining unused He also urges the
enactment of another amendment making il un-
lawful for any corporation or any of its agents
o accept any stock for transfer unless the GER
tihcate bears the required stamps, and requiring
the corporation TO file the certificate in its Office
SO the same may be inspected by the Controllers
inspectors. A severe penalty for violation OF
either proposed provision is recommended. The
report continues:
The manufacture and care Of stock Iran tTsnsfeg fer
assumed the duties of his Office Stamps of the
value Of more than $1,000 600 had been in The
sole custody OF clerk. and the process OF print
ing had been attended ny careless and loose
methods and the absence OF safeguards Necessary
proper precaution in handling this valuaoe prop3 p
e-ty and stamps of face value Of S2.i0V,UON
We were of | ares+ins ineeses or according
10 the ordinary rules tnat govern the method OF
raIion Of The stock transfer tax bureau. II was
Claimed that on December %. 1905. two days be
fore the term Of the present Controller com
issue aegregating ss2s3.6o7 40 in value, were
destroyed by burning A single entry in book
the exception of the clerk In charge, were present
and there is nothing TO show that the number and
face vaue Of The stasPS ~ede ttsneS
Paper used in the manqfaeture Of stamps had
been received N @ 9E ana 14 nafjne n about his IS
establishment in open cases. surrounded by the the
tho Stamps printed were also in the posses,
sion Of the printer While the aGtlai process process og
printing was in progress one CLERK had casI e %
the plates. paper and other materials lised' Win
no siIpervision whatever on the part Of any other
person. The possibilities under these cohdltohS
The pTotection Of competed ard salable stamps
u-as wholly inadequate. While they were placed
in safe deposit vauit f9eE WerG @ zfs IN IIe So'~ ,
bureau He had access tn them at all times
- slafeg1ard the millions OF dollars Of property
almost as nesotia6e rs G +S b,dne 81 tbe
safe deposit company and the computation or @ tIla
va3lJ IN falc6 - tn - he Stamps Al anv hour Of
the da- night And the trTest tIssJ.on , s4oErj go
night
ervFRAr SHEETS OF STAMPS FOUND
.,-,ouvh the books of the stock transfer tax
bureau ba snced ana all the stamps printed Derf ere
sZo-sI sheets of STAMPS of face value Of S3s
7-ere found during the Tn3nth ~ t in in
Which ali the stamps had been printed .-..,,tst
s+{-efJi rev svgTenl which II is believed ~ilI
rrorect the state in the printing or stainps rom rom
@ .r 4fsred for sale 10 the public. Under t1is system
an entirely new issue Of stamps OF -e One man
ou5er has been eliminated and responsibility is So
pif51 IN the care and printing Of the stamps
The paper IS made by SPECIAL process l rom
sPe3ias! d.sS svere e 70 the state under guaranteed
T2T oouar counters and sealed and placed in sealed
poPPee containing ten packages Of 800 sheets each
-, sheet of paper nutiisted spoiled in the
rroc,ss of manufacture is destroyed at the MN
under the guaranty of the company poh, tne a.
,to- NJ the paper The Controller X is placed IN
safe deposit vault. under a triple lock which re-
o.iras the nresence Of three persons TO open. Ihe
99e-sr uhen taken from the vault for manufacture
80 stamps is placed in charge of clerk, who IS
rssnonsibe for every sheet The plates are III
rhsrge of another clerk under bond, and are kept
a. q safa deposit vault other than the one IN vhlch
r. hank paper is stored. access to which can be
had oniv bv the use of three keys each held by
5tsearar4 n.rson. During the process OF manu-
SactIre an Inspector is present and delivers 70 the