(19836.) Reinsurance. Reinsurance of insurance policy in other companies—Reinsurance not taxable if orig inal policy is properly stamped and the reinsurer receives but its proportionate part of premium and assumes but its proportionate liability. If, however, the risk becomes extra hazardous, and there is reinsurance effected, the extra premium paid is taxable. TREASURY DEPARTMENT, Washington, D. C., August 5, 1898. SIR: A letter from Mr. Thomas 8. Chard, manager of the Fireman's Fund Insurance Company, 153–155 La Salle street, Chicago, has come under notice. Mr. Chard submits to this office the question of the liability to stamp tax of contracts of reinsurance. He also sets forth at length the nature and method of reinsurance. From his statement reinsurance is understood to be an assumption by one insurance company of some portion of a risk which has been taken in full by another company and a policy duly issued therefor. This is not done by the issuance of another policy, but is effected, in accordance with a preceding contract between the companies, by an entry made by the insuring company in a register belonging to the reinsuring company, but kept for this purpose on the premises of the former. This entry is accepted by both companies as the yielding or cession by the insuring company to the reinsuring company of a certain portion of the risk taken, and for which a policy has been issued by the former; and as an acceptance by the reinsuring of such portion of the risk as has been yielded to it, and an assumption of responsibility therefor to the insuring company. The effect of this reinsurance, so far as the stamp tax is concerned, appears to be the same as if originally a policy has been issued by each company for the portions of the total risk which each respectively assumes. The total tax paid in such case on both policies would be the same as is paid under the plan actually followed by the insuring company on its single policy. As a new policy is not issued in this transaction, and as the full amount of tax due, in accordance with the amount of insurance upon property actually taken, is paid by the stamps affixed to the policy of the insuring company, and as the entry in the register referred to is not an undertaking of a new insurance upon property, but an agreement to share in the obligation and responsibility for an insurance already undertaken, such entry does not seem to come within the definition of a policy of insurance or other instrument by which insurance shall be made upon property of any description, and is not, therefore, subject to stamp tax under Schedule A. This conclusion, however, rests upon the supposition that the division of the risk is attended with a credit to the reinsuring company of only, or not exceeding, its proportionate part of the premium paid. But in case the risk should become extra hazardous, and for this, or for any reason, a reinsurance should be sought and should be obtained only upon payment by the insuring company of an extra premium beyond the customary proportionate share of the original premium, then the extra premium is evidence that the transaction is not merely a division of the primary risk, but is, to the extent of the extra premium, an actual insurance of the primary insuring company against an apprehended loss. The extra premium is, therefore, taxable, and if there be no other instrument or paper writing in evidence of this contract which can be stamped, then the proper stamp, duly canceled, may be affixed to the margin of the page in said register, opposite the entry therein made of such reinsurance. The amount of such extra premium should be set forth in said entry, and the register must be open to inspection by internal revenue officers. You will please advise Mr. Chard in accordance with these instructions. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. FREDERICK E. COYNE, Collector First District, Chicago, Ill. (19837.) Stamp tax under Schedule A. Letters of administration and other probate papers, certificates of sale for unpaid taxes, and certificates of redemption. TREASURY DEPARTMENT, Washington, D. C., August 5, 1898. SIR: This office is in receipt of a letter from Mr. Marcus A. Norton, county clerk, Rockford, Ill., asking if certain papers require revenue stamps. The receipt of his letter has been acknowledged and he has. been referred to you. Please inform him that letters of administration, letters testamentary, or of guardianship do not require stamps. Petitions for the appointment of administrators, executors, or guardians require no stamps. Bonds of administrators, executors, or guardians must be stamped. No stamp is required on certificate of tax sale for unpaid taxes, nor on the certificate of redemption from sale. Respectfully, yours, G. W. WILSON, Deputy Commissioner. Mr. F. E. COYNE, Collector First District, Chicago, Ill. (19838.) Deeds to burial sites. If a deed does not grant, assign, transfer, or convey to the purchaser any lands, tene ments, or other realty, but only the right to burial, to erect monuments, etc., it does not require a stamp. TREASURY DEPARTMENT, Washington, D. C., August 5, 1898. SIR: Yours of the 13th ultimo inclosed a copy of a deed given by the rector, wardens, and vestrymen of St. Paul's Church, conveying the right of the party to whom conveyed of burial for himself and family in a certain described lot in Forest Home Cemetery. You ask whether or not deeds of this character are subject to the stamp tax under the revenue law. In reply, you are informed that if the deed does not grant, assign, transfer, or convey to the purchaser any lands, tenements, or other realty, but only the right to burial therein, to erect monuments thereon, etc., it does not require a stamp. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. HENRY FINK, Collector First District, Milwaukee, Wis. (19839.) Deeds. Stamping of deeds of conveyance, deeds conveying undivided interest, deeds of gift, deeds of release, and quitclaim deeds. TREASURY DEPARTMENT, Washington, D. O., August 5, 1898. SIR : With yours of the 13th ultimo you inclosed two letters from Mr. A. F. Skinner, county register of Essex County, N. J., asking information as to how certain instruments should be stamped. Please inform him that on deeds of conveyance the tax should be computed upon the true value of the property conveyed. On deeds conveying only a specified interest in undivided property, that is one-third, one-fourth, one-eighth, etc., the tax should be computed upon the actual value of the interest conveyed. In the case cited by Mr. Skinner where an undivided one-eighth interest in property, the true value of the whole of which is $4,000, is sold for the nominal expressed consideration of $1, the value of the interest conveyed is $500, and the deed should be stamped accordingly. All deeds of conveyance where the value of the property conveyed exceeds $100 must be stamped. The fact that the deed is a deed of gift from husband to wife or wife to husband does not exempt it from tax. Such deeds must be stamped according to the true value of the property conveyed. In States where property can not be conveyed directly from husband to wife, but must be conveyed to a third party, who in turn conveys to the wife, both deeds must be stamped according to the true value of the property conveyed. A quitclaim deed, or a deed made to cure a defect in a previous deed, must be stamped in accordance with the true value of the property described in the deed. Deeds of release executed with the forms and solemnity of a conveyance of right, title, or interest in real estate are subject to the tax provided for under the head of conveyances, and such instruments require to be stamped according to the value of the interest released. A certificate on the back or margin of a mortgage that the mortgage has been satisfied requires a stamp as a certificate, where, however, the local laws authorize entry of satisfaction upon the record, and the mortgage is thus canceled, such entry does not require a stamp. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. W. D. RUTAN, Collector Fifth District, Newark, N. J. (19840.) Warehouse receipts-Insurance in same. Every separate consignment requires stamp tax-Such consignment may occupy sev eral days-Stamp to be affixed to the evidence of consignment–Local operators need not give bills of lading, nor are their receipts taxable--Storage company, charging and receiving pay for increased risk, should pay tax for insurance. TREASURY DEPARTMENT, Washington, D, O., August 5, 1898. SIR: This office is in receipt of a letter bearing date of July 11, 1898, from Mr. Walter C. Reid, secretary of the New York Furniture Warehouseman's Association, 32-42 East Forty-second street, New York City, to which careful consideration has been given. This association inquires through Mr. Reid (1) If a warehouse certificate showing different dates of entry of goods requires one 25 cent stamp, or would a 25-cent stamp be required for goods received on each date, and would one entry brought by the same carrier, though on different dates, require a 25-cent stamp for the entry of each separate date? Every separate consignment of goods delivered for storage requires a receipt, and the receipt must be stamped if the consignment requires or does occupy several days in delivery. It need not have but one tax of 25 cents on its receipt if it can be shown to be but one consignment. (2) If no warehouse receipt is issued, the book of the express company delivering the consignment being signed as a receipt, should the 25-cent stamp be affixed thereto? It should be affixed to the book, express company's receipt, or other instrument or paper evidencing the delivery by the sender and the receipt by the warehouseman. (3) Is the warehouseman who has vans and wagons of his own in order to carry on the furniture storage business considered a carrier under the revenue law requiring him to give a bill of lading which should be stamped ! Mere local operators for the delivery of packages, baggage, and such like within the same town or city are not required to give bills of lading, although they may give receipts for articles to be delivered; these receipts are not required to be stamped. (4) He incloses an instrument and inquires whether it comes under the clause relating to insurance, and asks how it shall be taxed. This instrument recites, that in consideration of the additional charge of dollars per month the storage company agrees toassume additional responsibility according to the terms and conditions of the warehouse receipt to which it is attached, and of which it forms a part, and enumerates the articles for which additional responsibility is assumed. This is a contract whereby, for an agreed premium, one party undertakes to compensate the other for loss on a specified subject by specified perils. It is in effect insurance, and should be taxed as a policy of insurance at the rate of one-half of 1 cent on each dollar or fraetional part. thereof of the premium charged. Mr. Reid has been referred to you. You will please advise him in. regard to the above questions. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. C. H. TREAT, Collector Second District, New York, N. Y. (19841.) Pledge of insurance policy to secure loan. Pledge of insurance policy to secure loan not taxable if the amount secured is less than $1,000. If loan exceeds $1,000 it is taxable as a pledge of personal propertyPledge of insurance policy not such an assignment as requires a stamp at the same rate as imposed on the original instrument. TREASURY DEPARTMENT, Washington, D. O., August 6, 1898. SIR: This office is in receipt of your letter of July 20, 1898, asking, 'When a policy of life assurance, say for $5,000, is assigned to secure a |