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(20168.)

Special tax-Commercial brokers.

Persons who represent several firms aud give their entire services to them and sell only from their quotations are liable as commercial brokers, unless they can show that they are under agreement with such firms to act only for them, and are excluded from negotiating purchases or sales for other persons.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 11, 1898.

SIR: Perry & Co., whose letter heads show them to be "merchandise brokers," 215 Main street, Houston, Tex., in a letter to this office, dated the 15th ultimo, state that the special tax paid by them as commercial brokers has been remitted to them, but that the question is raised again whether they are not liable as commercial brokers under the fourth paragraph of section 2 of the act of June 13, 1898. They say that they "are representing several firms," and that they give their "entire services to them and sell only from their quotations."

You may inform them that notwithstanding this statement they must be held liable as commercial brokers, unless they are able to show that they are under agreement with the firms to which they refer which binds them to act only for them and excludes them from nogotiating purchases or sales of goods, etc., as brokers for other persons.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. WEBSTER FLANAGAN, Collector Third District, Austin, Tex.

(20189.)

Special tax-Commercial brokers.

Persons who are employed by a coal company as agents to negotiate sales of coal for such company, on commission, are not on this account liable as commercial brokers.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 12, 1898. SIR: In your letter of the 19th ultimo you state that you have found "a great many station agents employed by the Philadelphia and Read. ing Railroad Company who are selling coal for the Philadelphia and Reading Coal and Iron Company;" that "they sell this coal on commission and are allowed 5 cents on every ton sold, but they do not have this coal in their possession;" that "they simply as agents take orders and send the same to the home office of the coal and iron company;" 99 and that you accordingly "have notified them that they are liable as commercial brokers."

If, as appears from your statement to be the fact, these persons are employed only by the Philadelphia and Reading Coal and Iron Com

pany in this business, in the opinion of this office they must be regarded as merely the agents or employees of that company, and the facts that, as such agents, they receive a commission from their principals of 5 cents on every ton of coal sold, and that the coal whose sales they thus negotiate is not in their possession, do not constitute them commercial brokers within the meaning of the fourth paragraph of section 2 of the act of June 13, 1898.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. H. L. HERSHEY, Collector Ninth District, Lancaster, Pa.

(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,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

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. JAMES W. MCGINNIS, Revenue Agent, Chicago, Ill.

(20241.)

Special tax-Commercial broker.

A person whose business it is to take orders from stone contractors and place these orders with quarrymen, receiving a commission from the quarrymen on the sales thus negotiated, is required to pay special tax as a commercial broker.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 25, 1898.

SIB: Mr. Geo. W. Bollenbacher, of Bloomington, Ind., has addressed an inquiry to this office as to whether he is liable as a commercial broker upon the following statement of facts:

I receive orders from stone contractors and place these orders with the quarrymen, receiving a commission from the quarrymen.

*

You will please inform him that as his business is, as it appears from his statement, that of a broker negotiating "sales of goods

* or merchandise," he comes within the definition of a commercial broker in the fourth paragraph of section 2 of the act of June 13, 1898, and is required to pay the special tax provided for by that paragraph, and take out the requisite stamp.

Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. A. E. NOWLIN, Collector Sixth District, Lawrenceburg, Ind.

(20272.)

Special tax-Commercial broker.

A person engaged in the manufacture of proprietary medicines, which he places upon the market duly stamped, some of which goods are sold outright by the company, and some of which are left with the local agent for sale on commission, is not regarded as a commercial broker.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 31, 1898.

SIR: The manager of the Lanning Manufacturing Company, of Davis City, Iowa, Mr. George W. Lanning, in a letter addressed to this office, states that you have informed him that his company is liable for special tax as a commercial broker. He dissents from this view, and states that his company is engaged in the manufacture of proprietary medicines, which it places upon the market, duly stamped under the warrevenue act; that some of these goods the company sells outright and some it leaves with its local agent for sale on commission, on which sales the "company gets 663 per cent on the retail selling price," and that these "are all goods manufactured by the Lanning Manufacturing Company at its laboratory in Davis City, Iowa."

If these are all the material facts in this case, the Lanning Manufacturing Company is not a commercial broker within the definition con

tained in the fourth paragraph of section 2 of the act of June 13, 1898. Persons or firms can not under that definition be regarded as commercial brokers for selling their own property, or leaving the property with others for sale on commission. *

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. J. M. KEMBLE, Collector Fourth District, Burlington, Iowa.

(20295.)

Special tax-Commercial brokers.

A person who sells and delivers books on commission not regarded as a commercial broker if he receives them into his possession.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVEnue,

Washington, D. C., November 7, 1898.

SIR: Mr. John S. Hutson, of Hancock, Washington County, Md., in a letter to this office, dated the 1st instaut, inquires whether he is subject to special tax as a commercial broker for selling books on commission. He says:

I take the orders until I get 25. I send them in to the company, and they are shipped to me on thirty days' credit. I deliver the books and collect the money, and send their share in and keep the balance for myself.

You may inform him that upon the facts stated he is not required to pay special tax as a commercial broker under the fourth paragraph of section 2 of the act of June 13, 1898.

A person who receives goods into his possession and sells and delivers them on commission is, it appears, not to be regarded as a commercial broker. (Slack v. Tucker, 23 Wall., 321.)

Respectfully, yours,

Mr. B. F. PARLÉTT,

N. B. SCOTT, Commissioner.

Collector Internal Revenue, Baltimore, Md.

(20417.)

Special tax-Commercial brokers.

[Settled ruling modifying all previous rulings inconsistent therewith.]

Persons engaged in negotiating sales of flour for one company, sales of meats for another company, sales of coffee, sugar, etc., for another company, and so on, receiving a commission, are commercial brokers within the meaning of the fourth paragraph of section 2, act of June 13, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., December 12, 1898.

GENTLEMEN: This office has received your letter of the 7th instant, referring to a demand notice which has been served by a deputy col

lector upon your clients, Messrs. E. M. Hendrix, W. W. Ellington, and J. R. Donnell, to pay special tax as commercial brokers.

You state that these persons negotiate sales of flour for a milling company, sales of meats for another company, sales of coffee, sugar, and molasses for another company, and so on, receiving a commission on all the sales thus negotiated.

In the opinion of this office the business thus described is that of a commercial broker within the meaning of the fourth paragraph of section 2 of the act of June 13, 1898, and special tax must be paid accordingly.

The settled ruling of this office on this subject is the following, which modifies prior rulings in any manner inconsistent herewith: "Every person, firm, or company who negotiates sales or purchases of goods, wares, produce, or merchandise for another as a business, or material part of a business, without acquiring possession of, or any right or title in, the subject of the sale or purchase, and receives a commission for such service, except under contract to sell or purchase exclusively for certain persons or firms, or who negotiate freights and other business for the owners of vessels, or the shippers, consignors, or consignees of freight carried by vessels, for a commission, shall be regarded as a commercial broker."

Respectfully, yours,

N. B. SCOTT, Commissioner.

Messrs. KING & KIMBALL, Attorneys at Law, Greensboro, N. C.

CONVEYANCES.

(See also MORTGAGES; and DECISIONS 19692, p. 56; 19742, p. 228; 19800, p. 95; 19834, p. 230; 19932, p. 231; 20440, p. 235.)

(19838.)

Stamp tax-Deeds to burial sites.

If a deed does not grant, assign, transfer, or convey to the purchaser any lands, tenements, or other realty, but only the right to burial, to erect monuments, etc., it does not require a stamp.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

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

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