The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-11
RAIL CERTIFICATES
IMPROPERLY FILLED
Complaint That Banks Accept
Ownership Papers Poorly
Executed.
HINTS TO THE HOLDERS
Urged to Comply With Rules
Laid Down by United States
Treasury.

Railroads throughout the country ara
difficulty over Improperly
executed ownership certificates. according
to a statement Issued here yesterday.
The Southern Pacific Company in a cir.
cular sent to financial institutions calls
attention to the practice OF banks and
bankers in accepting these certificates
when not filled out according to the rule,
of the Commissioner of Internal Reve.
nue., and says that hereafter 1t will re.
fuse to accept such certificates.
THE debtor companies are obliged to
comply with the United States Treasury
regulations" reads the statement. "and
therefore must refuse to accept, such
certificates 1t Is therefore necessary
that the collecting first bank or banker
should comply strictly with the ruling
Of the Commissioner OF Internal Revenue
that no ownership certificates should be
accepted unless all information called
for thereon Is shown. and also 10 re-
member:
THAT income represented by interest
on bonds not containing the tax free
covenant and owned by citizens or rest
dents Of the United States Is not any
more subject to Withholding az he
source. and that therefore ownership
certificates Form 1901 Cline - must be
used. 1.-THE company might have added
that Form 1901 should also be used for
tax free bonds when the owner Claims
exemption)
That all copartnerships composed OF
citizens or residents OF the United States.
as we'll as those composed OF non-res!-
dent aliens, are exempt from the with.
holding provisions and that also In this
case Form 1901 Cline or ~ must 30
used
That the questions whether married
or head Of family have to he answered
BY individuals, citizens or residents OF
the United States. The questions do not
affect the status of nonresident alien
| individuals with respect to the income
tax laws
THAT It would be OF great assistance
| to this company II the titles OF the bond
issues were inserted in the upper let'
hand corner of the certificate. The regu-
lations permit omission OF the address
OF the debtor In the case OF well known
| corporations.
That the space in the upper RICH:
hand corner is reserved for the special
purpose of having the name of the
| owner inserted in a clear. legible man
! ner, preferably in typewriting while
the blank space in the lower left hand
corner Is reserved for the usual bus-
ness signature.
| That certificates covering interest
from full registered bonds should be
| sent TO the debtor companies at least
FIVE days before such interest becomes
| due.
| THAT certificates filled in with pencil
| cannot be accepted.
| That In case Of joint account or
undivided interest only one ownership
| certificate Is required. which can ia
, signed by one of the owners, indors!ns
the other interested parties on the back
of the certificate.
That in all other cases a separate
! certificate must be executed for ca III
separate estate or owner.
THAT the so-catled satisfaction staT,r
Satisfied as to identity and responslo'''
ity OF agent is not any more required
That hduCiaries must enter under
| Owner of Bonds the name Of the estate
trust or beneficiary on behalf OF whom
the certificate is made.
That where ownership certificates art
| used by or on account of the AieT
Property Custodian ne certificate vii
be considered sufficiently complete !
name OF the depository and trust mum
Der is given under the heading 'ONne.
of Bonds
That where ownership certificates az
executed on account OF non-res! 'e0
aliens. the foreign address Of the alter
must be given. or thai II unknoan Of
must be 80 stated on the certificate
That in all cases where owneFS7i
| certificates are issued by fluciares ''
zens or residents of the United states
lime IL TO be used on Form 1000 aHr
line l or 2 on Form 1901: that u'Nr'
the fiduciary Is nonresident d"ef
) Form 1000. line .. is to be used
That more careful eXaminat"9 q
ownership certificates will relieve ~
debtor company. the collecting ht@7'
and bankers and ultimatelT the Govern
ment Offices of considerable amour, -
, unnecessary work. especially In the .as
of badly written names and adiresse
and that therefore,
"All first banks and bankers 90 y
ing coupons for collection should r''tS
to accept ownership certificate, 4 DO
properly executed. espeCiaiN -
names are not printed or write