Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-12-11
NO STAMP TAX ON
PROXIES FOR TRANSFER
Internal Revenue Department Makes
Ruling Very Important to
Bankers and Brokers.
Expect Rate Decision to Be Favor
able and Down by Tuesday.
Financial Notes.
BY T. A. FLEMING,

BY T. A. FLEMING.
An important ruling has just been
| handed down by the commissioner of
| internal revenue. in line with the sug-
gestion made in this column some days
ago, to the effect that powers of attor-
ney to transfer stock. whether in blank
or with name filled in. do not require
the twenty -f1ve-cent revenue stamp re-
| ouired on powers of attorney as gen.
| orally understood.
| The matter was first brought up by
| New York brokerages, and w. w. Spaid
of W. B. Hibbs & Co was asked to Sc
cure ruling. The query was put to
| the department as follows:
| Does the tax of 25 cents imposed in
schedule A on powers of attorney to
transfer any stock apply to the power
of attorney to transfer stock on the
books of the corporation embodied in
the form of assignment of stock which
is in common use and printed on the
| back of the stock certificate.
| The ruling follows:
| In Treasury decision 2056 it was heid
! that where such a blank form OF power
was filled in with the name OF the sec
| rotary it was mere formal power d
| thorizing the secretary TO 40 ia
| would be his duty in any event II no
mower of attorney appeared upon the
| certificate.
Where the owner of a certificate Of
stock executes the assignment prlnteo
on the reverse thereof and the stock Is
delivered the registry of the transfer
on the books of the corporation is IN
substance purely corporate act IN
which neither the former owner nor
the new is required, or ordinarily
does. participate, and that the power
| of attorney included in the ordinary
| form of assignment of stock does not
authorize or empower any person TO
| do anything which could not be done
or compelled to be done on pure as
signment unaccompanied by power
of attorney.
| respect to the combined assignment
and power of attorney printed on the
reverse of bonds.
1t is held. therefore. that the pro
forma power of attorney to transfer
| bonds or stock on the books of the
corporation embodied in the assign
ment printed on the back of the bond
or stock certificate is not subject to
the tax.
Rate Decision.
! The New York Times Washington
cision will be handed down by next
per cent granted to the railroads This
from IAN authoritative source" 1t is
| further stated that the advance to be
given will add s5000O.O00 aided reve-
| nue. to the income of the railroads.
Last Friday on unquestioned authori-
ty this column contained the same
prediction, with the statement that it
would be handed down in a compare
| lively few days. The opinion has been
prepared. read and is probably being
held back for the preparation of mi
nority opinion, or opinions. if any.
The impending decision is the out
come of a long contest. waged in the
face of strong opposition, and with So
called economists pointing out the way
for railroads to increase revenue. Ger
tainly recent statements prove that
economies enforced have been to the
danger point to maintenance of equip
ment and way.
1t has been contended that no real
Improvement was possible In business
with the arteries of. trade clogged by
inability to meet expenses and yield
some returns to investors.
Denied in the first appeal to the COM
mission; rehearing asked for, support
ed by many lawmakers, commercial
bodies. even by the head of the nation
and by the most substantial showing
| in actual dollars and cents-the grant
ing of the increases suggested will be
the very best news that the United
States has received in some time; it
will put values under railroad Sc
curties" and lessen danger of foreign
| liquidation.
Steel Tonnage.
The decrease in untitled orders on
| the books of the steel corporation, No
vember 80 as compared with the Or
ders October 81. was 1866 tons. I'm
| filled orders totaled 3.324.592 tons.
| While this is a serious decrease as
compared with the tonnage of Deem
Der 1 year ago, when there were
| 4,396.3A7 tons on the books the chances
are that the tonnage for December will
be larger than for November and that
there will be some betterment right
along, the more if the rate decision
comes and predicted. Railroads but
wait for this tor their rail orders, and
they Will be generous when they come
Money for building operations is be-
coming a little easier and construction
orders will be better from now on.
Dividends.
| Real Estate Title directors declared
| the regular distribution of per cent,
semi annual dividend, payable Deem
| Der 81.
! Home Savings Bank directors declar-
| ed regular semi-annual dividend of
per cent payable January l. Books
close December 20.
Railway IS Higher.
Washington Railway As were sold to
| the extent of $4,000, face value, on the
| noon call of the local exchange, the
| odd lot al 50 and the 5000 at S0Ic to
i sos, the closing bid on call being SO1a.
| This is an advance of practically asa1a
| over the opening prices on the re-
| opening of the exchange, and a of a
| point on recent sales. The issue fur
| nished about all the business other
| than sale Of Potomac consolidate
| IS at par, the highest price since re-
opening.
Financial Gossip.
at