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While admitting that such assignments are subject to the stamp tax imposed, Mr. Harrison contends that the policies themselves when so issued and received are not subject to tax, and, even if subject to tax, that he is under no obligation to affix the required stamps, as he does not represent the companies or underwriters in any respect, but represents only the assured in such matters.

For reasons stated in decision 20034, page 175 (referred to in Mr. Towne's report) policies of insurance issued and delivered in the United States are liable to the same tax whether issued by foreign or domestic companies; and the reasons therein given apply with equal force to the policies issued in the present case, notwithstanding the fact that the companies issuing the same have no established agencies in this country. In the absence, therefore, of any established agency, the broker or agent through whom such foreign companies are enabled to issue insurance to residents of this country, will in all such cases be regarded as the agent of the companies, even where such agency is voluntarily assumed and without compensation; and the tax found to be due by reason of a failure to affix the required stamps to the policies so issued will in all such cases be assessed against such broker or agent.

*

Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. B. M. THOMAS, Revenue Agent, San Francisco, Cal.

INTERNAL REVENUE STAMPS.

(19608.)

Stamp duties.

Stamps issued under internal revenue laws now repealed can not be used in lieu of stamps required by the war-revenue law of 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 29, 1898.

SIR: Your letter of 25th instant is received, asking whether you can recognize and permit to be used old revenue stamps used (issued) under former internal revenue stamp acts.

In reply, you are advised that stamps issued under acts now repealed can not be used in lieu of stamps required by the war-revenue law of 1898. Ample opportunity was given for the redemption of the stamps issued under laws now repealed, and by section 17 of the act of March 1, 1879, a limitation was placed upon the presentation of claims for such redemption or allowance.

The stamps now required to be used are those which have been pre

scribed by the act, and they are required to be attached and canceled "as in this act provided."

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. R. YATES, Collector Eighth District, Springfield, Ill.

(19732.)

Stamps of old issue.

Stamps issued under former law will not protect articles taxable under Schedule B, act of June 13, 1898; such articles must be restamped.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 19, 1898. GENTLEMEN: Your letter of July 7 has been received. You state that your company has many thousand commission accounts throughout the United States, where possession of your goods is kept in your hands until sold, and that quite a number of these retail druggists holding these stocks have on hand still unsold medicines stamped with an old revenue stamp used under a former law.

In reply, you are advised that the stamp formerly applied has no longer any validity, and retail dealers having on hand July 1, 1898, medicines so stamped under a former law will be required to stamp the same under the act of June 13, 1898, when sold at retail.

Respectfully, yours,

J. C. AYER COMPANY, Lowell, Mass.

N. B. SCOTT, Commissioner.

(19874.)

Imprinted revenue stamps.

Stamps imprinted on checks, drafts, or other instruments will not be redeemed.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., August 10, 1898.

SIR: Replying to your letter of the 6th instant, asking if unused stamps which have been imprinted on checks, and which have been spoiled by local printer in making books, can be redeemed, you are advised that revenue stamps imprinted upon checks, drafts, or other instruments will not be redeemed by this office.

Respectfully, yours,

Mr. A. C. JACKSON,

N. B. SCOTT, Commissioner.

Vice-President First National Bank, Sistersville, W. Va.

(19973.)

Stamp tax-Redemption and refunding.

There is no provision of law for the redemption of documentary stamps-Money paid for stamps used in error or in excess may be refunded.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., August 29, 1898.

SIR: Under date of August 23 you forwarded to this office a letter from Mr. W. S. Campbell, secretary of the Fidelity Mutual Life Insurance Association, relative to the redemption of certain documentary stamps. Mr. Campbell says:

This association sometimes issues policies in amounts ranging from $1,000 to $50,000 on the lives of individuals, which policies, for various reasons, are never delivered to or accepted by such individuals, but are returned to the association's office.

He asks whether the Government redeems the canceled stamps. Please inform him that there is no provision of law for the redemption of documentary stamps. In cases where stamps have been used on instruments not requiring stamps, or where by error a stamp of a greater denomination than required by law has been used upon an instrument requiring a stamp, the amount paid for said stamps may be refunded upon application made therefor ou Form 46, accompanied by the stamps, and, where practicable, by the instruments or copies thereof to which the stamps have been erroneously attached.

This ruling is not extended to any case where the instrument would have required the stamp had it been delivered to or accepted by the party for whom made.

The company can avoid a repetition of the trouble by instructing the agents to attach and cancel the stamps upon delivery and-acceptance of the instruments.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. P. A. MOCLAIN, Collector First District, Philadelphia, Pa.

(20125.) Tax stamps.

A stamp affixed to an instrument and canceled can not lawfully be removed therefrom and affixed to another instrument requiring a stamp-Amounts paid for stamps used in error, or in excess, or on instruments defaced or found to be defective and for which a substitute is prepared and stamped, may be refunded.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 3, 1898.

SIR: Under date of September 17, Mr. J. G. Pepper, of the Liverpool, London, and Globe Insurance Company, of New Orleans, La., addressed

a letter to the Secretary of the Treasury relative to the removal of can, celed documentary stamps from "spoiled" or "not taken" insurance policies and placing them upon other policies requiring stamps. Mr. Pepper incloses a newspaper clipping which advises such a course and he asks the opinion of the Department on the subject.

The letter has been referred to this office. Its receipt has been acknowledged, and Mr. Pepper has been referred to you.

This office holds that a stamp once affixed to an instrument, paper, or document requiring such stamp, and canceled, can not lawfully be removed therefrom and affixed to another instrument, paper, or document requiring a stamp. In cases where stamps have been affixed to instruments not requiring them, or where by error a stamp of a higher denomination than that required by law has been used upon an instrument requiring a stamp, the amount paid in error for said stamps may be refunded upon claims made therefor on Form 46 accompanied by the stamps, and, where practicable, by the instruments or copies thereof to which stamps have been erroneously attached.

This ruling as to refunding will also apply to cases where an instrument requiring a stamp is duly stamped and is accidentally injured or found to be defective and a substitute is prepared and duly stamped. It is not, however, extended to cases where the instrument (not defective) would have required the stamp had it been delivered or accepted. Insurance companies should instruct their agents to attach and cancel the stamps upon delivery and acceptance of the policies, thus avoiding the loss in question. *

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. L. J. SOUER, Collector Internal Revenue, New Orleans, La.

(20199.)

Allowance for adhesive stamps.

Allowance inay be made for certain kinds and denominations of such stamps pur

chased for resale.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

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 diffi culties 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.

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