The Birmingham age-herald., 1914-11-29
Points Are in Doubt-Is Manufacturers Agent a
 Commercial Broker?
MEASURE GOES INTO
 EFFECT ON TUESDAY
Banks of Birmingham Will Pay at Least $1O,00O' Year-Insurance Policy Is Not Invalidated if
 Stamp Is Not Affixed

which will go into effect Tuesday next has attracted much attention locally. practically every jobber In the city he'ng more or less affected by the pro- visions of the law. Insurance men. tel egraph companies. common carriers real estate men, brokers bankers and others are affected. The penalty for failure to observe the law may not ex ceed a fine of 5000 and five years at hard labor
 Man manufacturing agents in Bir- mingham have wondered if under the provisions of the law, they are regard ed as brokers and, therefore. subject to the special tax required. There is no passage in the act which refers to man uracturers' agents as being liable to taxation, but commercial brokers and commission merchants are subject to a special tax of $20 annually.
 Policies Not Invalidated
 Insurance men in Birmingham enter tain some doubt as to whether or not an Insurance policy is valid when the required tax has not been paid or in- oicated on the policy by the applica- ton thereto of the internal revenue stamp. The law does not specifically state that policy would be invalidated " ldiidit lO pldCe the stamp upon if. bu. in the provisions for penalties the act reads as follows:
 That if any person or persons shall make, sign or issue, or cause to be made, signed of issued any instrument. document, or paper of any kind or de- scription whatsoever, without the same being duly stamped for denot.ng the tax hereby imposed thereon or without having thereupon an adhesive stamp to GenOta said tax sons shall be deemed guilty of mis- cemeanor, and upon conviction thereof snail pay fine of not more than $100, at the discretion of the court"
 The passage relating to the taxing of insurance policies reads as fol- lows:
 Each policy of insurance or other instrument. by whatever name the same shall be called by which insur- ance shall be made or renewed upon D. operty of any description Gncluding rents or profits), whether against rerii by sea or on inland waters, or by fire or lightning, or other peril, made by any person, association, or CO., poration upon the amount of pre- n1ium charged, one-half or one cent on each dollar or fractional part there- of: Provided, that purely cooperative or mutual fire insurance companies or associations carried on by the members thereof solely for the protection of their own property and not for profit prayided: And provided further, tha. policies of reinsurance shall be exempt from the tax herein imposed by this paragraph.
 Each policy of insurance, or bond or obligation of the nature of indem- nity for loss, damage, or liability issued, or executed, or renewed by any | aSSncia fipn n poration, transacting the business of fidelity. employers liability, plate glass, steam boiler burglary, evelator, auto matic sprinkler, or other branch of in surance (except life, personal accident and health insurance, and insurance de- scribed and taxed or exempted in the preceding paragraph an dexcepting also workmen's compensation insurance car ried on by the members thereof solely for their own protection and not for profit), and each bond undertaking or recognizance, conditioned for the per- formance of the duties of any office or position, or for the doing or not doing of anything therein specified, or other obligation of the nature of indemnity, and each contract or obligation guar anteeing the validity or legality of bonds or other obligations issued by any state. county, municipal, or other public body or organization, or guaran- teeing titles to real estate or mercan- tile credits executed or guaranteed by surety company upon the amount or premium charged, one-half of l cent on each dollar or fractional part there of: Provided. that policies of rein surance shall be exempted from the tax herein imposed by this paragraph"
 Liquor Bears Heaviest Burden
 Liquor will bear the heaviest burden xt. Ix,, ,rHo ~,,, banks will be considerable The tax provided for banks is $1 for each 5000 of capital used or employed, and in es- timating capital the surplus and undi- yided profits are included. This tax is to be paid annually. Figuring the com bined banking capital of Birmingham at mean estimate of $10.000,000 this city will give the government $10.o00 a year from this course alone.
 Brokers, not commercial. must pay ssO annually under the law; the tax to commercial brokers is $20. Pawnbrokers must pay $50 annually. Proprietors Of theatres must pay for the privilege Of operating. Tobacco dealers of every na- ture must pay tax, the amount of which depneds upon the amount or goods sold. articles used for so-called beautifying purposes are to be taxed, the amount depending upon the sale price or the article. The manufacturers of such ar ticles are not liable under the law ano the affixing of the stamps, denotins that the tax has been paid, must be done by the retailer before he sells such ar ticle to the public.
 Among the many things especaiily provided for in the act are telegraph and telephone messages. bonds, certih- cate of profits, certificate of damage contracts, conveyance of deeds to prop cray. entry of goods at custom houses passage ticket by steamer. power or at torney for voting, power of attorney for conveying real estate or collect ing rents, protest of notes, or seats in Pullman cars.
 The provisions of the act, except as otherwise expressly provided, took ef- feet the day next succeeding the date of its passage. which was October 22. 1914. The taxes levied under the act except on fermented liquors, will be uncollectible after December S1, 1915. but all taxes arising or accruing be- fore that date are collectible The ad- ditional tax on liquors will continue to be in force beginning January l, 1916, after which date the other articles taxed are exempt