will be careful not to violate the law by any omission to stamp such receipts as they are made and issued. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. JULIAN H. BINGHAM, Collector Internal Revenue, Birmingham, Ala. (20195.) Stamp tax--Conveyances of real estate. The words of purchase in the paragraph of the law relating to stamps on conveyances include all changes of title except those occurring by descent or operation of law. TREASURY DEPARTMENT, Washington, D. C., October 13, 1898. SIR: This office is in receipt of a letter under date of July 29, 1898, from Johnson & Levy, lawyers, Chamber of Commerce Building, Cincinnati, Ohio, in which they state as follows: We write as to the construction you have made, if any, as to the stamp tax on conveyances of real property, as we learn from the collector here that he claims all deeds must be stamped regardless of the character of the grantee—that is, whether the grantee be a purchaser or not; whereas under the plain phraseology and terms of the act it is clear to us it is only where there is a purchaser, and the deed is to the purchaser of the property, that the instrument is to be taxed. So with the conveyance between tenants in common, who have amicably agreed upon the division of the property between them, each convey. ing to the other his separate interest. In this case, also, we do not see that the grantee is a purchaser within the meaning of the stamp act. If it were the intention of the law to stamp all deeds, then the words “to or vested in the purchaser or purchasers or any other person or persons by his, her or their direction” are worse than meaningless, because misleading and should have been omitted. We would be pleased to have your advice upon the point. They have been referred to you. Please advise them that by advice of the Attorney-General this office holds that the words of purchase in the paragraph relating to conveyances include all changes of title except those occurring by descent or operation of law. The instrument that vests the title is subject to taxation, and if it is where the consideration is "love and affection” it should be taxed according to the actual value of the property conveyed and vested. Respectfully, yours, G. W. WILSON, Deputy Commissioner. Mr. BERNHARD BETTMANN, Collector First District, Cincinnati, Ohio. (20196.) Stamp tax-Exemption of foreign diplomatic corps. Members of foreign diplomatic corps are not required to pay tax on passage tickets by vessel from a port in the United States to a foreign port. TREASURY DEPARTMENT, Washington, D. C., October 13, 1898. SIR: At the verbal request of Commandant Clement de Grandprey, military attaché of your embassy, I have the honor to advise you that this office holds, pursuant to former rulings respecting the exemption of the foreign diplomatic corps from taxation under the internal revenue laws, that members of said corps are not required to pay tax on passage tickets by any vessel from a port in the United States to a foreign port, and that such tickets, when purchased and used by any member foreign diplomatic corps, may be sold and used without any stamp being required on the same. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. JULES CAMBON, Ambassador Extraordinary and Minister Plenipotentiary of France, Washington, D. C. (20197.) Fifty per cent penalty. TREASURY DEPARTMENT, Washington, D. C., October 14, 1898. SIR : In your letter of the 11th instant, relating to cases reported by Revenue Agent Trowbridge, involving persons in your district in special-tax liability and penalty, you state your understandirg of Treasury decision 20120 (explaining the circular letter of September 3, 1898) to be that you are “to report for assessment, without the 50 per cent penalty, those cases in which liability began in July and August, in which the taxpayers had already failed to make return." This understanding of the decision is correct so far only as concerns such of these special tax payers as, upon receiving the notice of the necessity of a sworn return, conveyed by the circular letter and by the general publication of its tenor in the newspapers, at once thereafter made their return (having had no prior notice). It is not intended to extend to such of them as have allowed the entire month of September to pass by without making their returns. In all such cases the 50 per cent penalty must be exacted. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. B. F. PARLETT, Collector Internal Revenue, Baltimore, Md. (20198.) Special tax-Commercial brokers. Persons engaged in buying and selling merchandise on a board of trade for present and future delivery, for themselves exclusively, and not for others, are not commercial brokers within the meaning of the definition contained in paragraph 4 of section 2 of the act of June 13, 1898. TREASURY DEPARTMENT, Washington, D. C., October 14, 1898. SIR: A letter from Mr. William E. McHenry, a special employee in your division, dated the 23d ultimo, has been referred to this office, stating that he finds a large number of persons, members of the Chicago Board of Trade, who style themselves "scalpers or speculators," and who deny that they are liable for special tax as commercial brokers under the war-revenue act, “on the ground that they do business for themselves exclusively." Mr. McHenry expresses the opinion that they are liable for the special tax as commercial brokers under section 2, paragraph 4, of said law," and says: They buy and sell commodities on the Chicago Board of Trade for present and future delivery, for themselves exclusively, and not for others. If this describes fully their business, they do not come within the definition of commercial brokers in paragraph 4 of section 2 of this act. If they were engaged in the buying of “stocks, bonds, exchange, bullion, coined money, bank notes, promissory notes, or other securities, for themselves,” they would become “ brokers,'' under the second paragraph of section 2 of the act, but under the fourth paragraph, in order to become liable as “commercial brokers,” their negotiation of “sales or purchases of goods, wares, produce, or merchandise” must be for others, on commission. If they make such purchases for themselves only, they are clearly not within the terms of this paragraph of the act. Respectfully, yours, N. B. SCOTT, Commissioner, Mr. Jas. W. McGINNIS, Revenue Agent, Chicago, Ili. (20199.) Allowance for adhesive stamps. Allowance may be made for certain kinds and denominations of such stamps purchased for resale. TREASURY DEPARTMENT, Washington, D. C., October 17, 1898. SIR : Your letter of the 19th ultimo, stating that the First National Bank of your city, having ceased to act as agent for the sale of documentary and proprietary stamps, presents a claim for the redemption of all such stamps left on hand, and asking for further instructions relative to the redemption of the stamps thus returned, and others which may be returned by the banks and individuals that assumed, for the time being, the sale of said stamps as agents on behalf of the Government in the distribution of the same, has been received. In reply, you are advised that no provision has been made for the redemption of adhesive stamps, but the case presented by the First National Bank is one readily distinguishable from a claim for the redemption of adhesive stamps from a purchaser who purchased the same for his own use. Banks or other corporations or persons who procured adhesive stamps for resale to facilitate the distribution thereof on behalf of the Government, at the request of its duly constituted authorities, and at a time when other ample means of distribution for the accommodation of the Government and the convenience of the public could not be obtained, exercised for the time being quasi public duties, and should be protected from loss thereby as far as the same can be done consistent with law and sound public policy. It may be suggested, also, that such cases would present no difficulty in satisfactorily tracing the sale of stamps from their issue to their presentation for allowance, showing the discount, if any allowed, and eliminating one of the difficulties and dangers incident, generally, to the redemption of this class of stamps. In view of the foregoing considerations, it has been determined by this office, without relaxing the rule heretofore made as to the redemption of adhesive stamps, to make allowance for certain adhesive stamps issued and sold to persons exclusively for resale, upon presentation of the stamps through the collector from whom the same were purchased, accompanied by a claim for allowance, with an affidavit of the facts of purchase for resale and that the purchaser has no use for said stamps. This rule as to the allowance for stamps purchased for resale will not apply to stamps imprinted on checks, drafts, or other instruments, nor to any adhesive documentary stamps other than those of the denomination of 2 cents. Allowance, in any manner, for documentary stamps other than the 2-cent stamps is prohibited by statute; hence the only stamps for which allowance can be made under the conditions herein specified are the adhesive documentary stamps of the denomination of 2 cents and proprietary stamps other than private die stamps. Forms providing for the allowance for refund of money paid for certain stamps, purchased under the circumstances above indicated, will be prepared and furnished to collectors at an early date. Claims for allowance in such cases should not be forwarded to this office by collectors except when duly prepared and certified upon the proper forms. Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. JOHN G. WARD, Collector Fourteenth District, Albany, N. Y. (20200.) Stamp tax under old law. Date when the stamp tax on bank checks under the old law was repealed. TREASURY DEPARTMENT, Washington, D. O., October 17, 1898. Sir: In reply to your letter addressed to this office, inquiring “ at what date the provisions of the revenue law, passed on account of the civil war, requiring a stamp on checks, ceased to be operative,” you are hereby referred to the first section of the act approved March 3, 1883, which repeals the law imposing stanıp tax on bank checks, etc., the repeal taking effect “on and after the first day of July, eighteen hundred and eighty-tbree.” Respectfully, yours, G. W. WILSON, Acting Commissioner. Hon. THOMAS B. TURLEY, Memphis, Tenn. (20201.) Returns of gro88 receipts by sugar refining companies. Sugar refining companies, refining sugar in one collection district, and having their principal (home) offices in another collection district, to make returns of their gross receipts in each such districts, respectively. TREASURY DEPARTMENT, Washington, D. O., October 17, 1898. GENTLEMEN: I am in receipt of your letter of the 12th instant, requesting that you be advised as to the collection district in which returns should be filed by your company of its gross receipts. You state that your company is incorporated under the laws of New Jersey and has its principal office in that State, at Jersey City, while the entire refining plant of the company is in Yonkers, N. Y., where the principal office in that State is located. In reply, you are informed that in such cases a return should be made in each collection district in which the company, having a principal office, transacts its business; and that where the company's receipts derived from such business, and covered by the returns so made, are also included in the return made in the district in which the principal (home) office is located, the receipts so included should be so specified in order that the same may be verified and the proper allowance therefor made. Respectfully, yours, G. W. WILSON, Acting Commissioner. NATIONAL SUGAR REFINING COMPANY, Yonkers, New York, N. Y. |