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(19700.)

Stamp tax-Powers of attorney, etc.

Proxies-Contracts-Receipts-Sales of certificates of stock-Powers of attorney, etc.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 15, 1898.

SIR: I reply as follows to the series of questions presented in your letter addressed to me on the 6th instant, viz:

(1) Proxies to vote at elections, if dated and fully executed prior to July 1, 1898, are not required to be stamped, even when the election is held subsequent to that date, if nothing is written in these proxies on and after that date.

(2) The paragraph on page 14 of the act of June 13, 1898, under the head of "Contract," imposing a stamp tax of 10 cents on brokers' notes or memorandums of sale of property of any description, does not apply to contracts of your company with consumers to supply them with gas. (3) The receipts given to your consumers, of whom you require a deposit of $5 or $10 for your protection, do not come under the third paragraph of Schedule A of this act as either bank checks, drafts, certificates of deposit not drawing interest, or orders for the payment of money; and, therefore, they do not require the 2-cent stamp under that paragraph.1

(4) Upon sales of certificates of stock of your company made by a broker, where the transfer is by delivery of the certificate assigned in blank, he is required to affix the requisite stamp to his memorandum of such sale; and upon his assurance that this has been done there is no responsibility upon your company in the issuance of certificates in new hames in lieu of old certificates canceled. If it is found thereafter that the brokers have failed to comply with the requirements of the law with reference to the stamping of their memorandums of sale the criminal liability is upon them. Where memorandums of sale of old certificates are duly stamped the new certificates issued in lieu of the canceled certificates thus sold do not require a stamp upon their issuance.

(5) Where the change of ownership is shown by the transfer of the certificate the stamp is required to be placed upon the certificate thus transferred, and not on the new certificates issued in lieu thereof.

(6) The power of attorney on the back of the certificate transferred requires a 25-cent stamp in addition to the stamp required on the transfer of the stock. Where there is a substitute attorney appointed, and this causes a second indorsement upon the certificate, it is held that this substitute power of attorney is required by the law to be stamped. Respectfully, yours, N. B. SCOTT, Commissioner.

Mr. JOSEPH W. CLARKE,

Treasurer Consolidated Gas Company, Baltimore, Md.

1 Certificates of deposit to secure payment of gas bills are now ruled to be taxable (see 20003, p. 86).

PROMISSORY NOTES.

(See CHECKS, DRAFTS, NOTES, ETC.)

PROPRIETARY ARTICLES.

(See also MEDICINAL PREPARATIONS.)

(19527.)

Stamp tax-Proprietary articles.

Such articles in the hands of wholesale or retail dealers July 1, 1898, must be stamped

when sold at retail.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 21, 1898.

SIR: Your letter of the 14th instant, inclosing letter which you have received from Messrs. Rheinstrom, Bettman, Johnson & Co., of Cincinnati, asking a construction of the clause in the new revenue law in regard to stamps on proprietary articles, has been received.

In reply I have the honor to state that on and after July 1, 1898, the maker or manufacturer of any of the articles named in Schedule B must affix the proper stamp thereto before the same are sold, sent out, removed, or delivered. As to stock in hands of dealers on the 1st day of July, 1898, the law provides as follows:

It shall be deemed a compliance with this act as to such articles on hand in the hands of wholesale or retail dealers as aforesaid who are not the manufacturers thereof to affix the proper adhesive tax stamp at the time the packet, box, bottle, pot, or phial, or other inclosure with its contents is sold at retail.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Hon. Wм. B. SHATTUC, House of Representatives, Washington, D. O.

(19557.)

Stamp tax-Insect powders.

Insect powders not taxable.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 22, 1898. SIR: In reply to your letter of the 20th instant, asking if such articles as insect powders, bugine, insectine, killerine, and similar preparations, put up for the killing of insects, come under the head of proprietary

12593-16

articles, and whether they are subject to tax under the new revenue law, I would state that articles of the character mentioned are not understood by this office as coming under any provision of law taxing proprietary articles.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. JAMES 8. FRUIT, Collector Twenty-third District, Pittsburg, Pa.

(19572.)

Stamp tax under Schedule B.

As to taxability of certain articles under Schedule B, act of June 13, 1898.
TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 25, 1898.

SIR: Your letter of the 21st instant, relative to the taxability of certain articles under Schedule B, act of June 13, 1898, has been received, and in reply I would advise you that the opinion of this office as to their taxability is as indicated on the following list:

1. Rough on Rats (poison).

2. Royal Baking Powder..

3. Shoe dressing..

4. Remedies for horses, cattle, birds, etc

5. Bird bitters for canary birds

6. Van Hagen's Junket Tablets for thickening milks to be used as a dessert....

7. Cuticura Soap

8. Packer's Tar Soap...

9. Soaps, plain, without wrappers or directions

10. Infant foods, proprietary. Food preparations are not taxable.

Respectfully, yours,

Not taxable.

Do.

Do.

Taxable.

Do.

Not taxable.
Taxable.

Do.1
Not taxable.

N. B. SCOTT, Commissioner.

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

(19603.)

Stamping of taxable articles by retail dealers.

Articles taxable under Schedule B in the hands of retail dealers July 1, 1898, must, when sold, be stamped according to the retail price as fixed by the manufacturer.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

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

SIB: A. B. Crooks, druggist, of Warren and Searing streets, Newark, has written to this office, under date of June 21, 1898, asking its opinion

'If any claim is made for it as a medicinal article or a cosmetic.

in reference to the stamping of patent medicines under the new law, especially as to such articles as are on hand on the 1st day of July, 1898. He asks if they must be stamped at the marked or selling price, and instances Fellow's Syrup, the printed retail price of which is $1.50, and which he sells at 95 cents.

* You will please inform him that these articles when sold must be stamped by him according to the regular retail price as fixed by the manufacturer, which in the case mentioned is $1.50, and would require a stamp of 32 cents.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. WM. D. RUTAN, Collector Fifth District, Newark, N. J.

(19614.)

Stamp tax-Chemical preparations, etc.

Stamping of chemical preparations and prepared drugs-Malt-extract préparations— Food preparations-Bulk packages-Retailer selling drugs at "cut prices," how he must stamp such articles.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 1, 1898. GENTLEMEN: Your letter of the 21st ultimo, asking for an early answer to certain questions relative to the stamping of articles under Schedule B of the act of June 13, 1898, came duly to hand.

You inquire

(1) "Does the law require the stamping of chemical preparations and prepared drugs (some of which are patented-e. g., phenacetin, sulphonal, antipirine, etc.) which have no fixed or retail price, and which are not sold in prepared packages by the retailers?"

In reply to this, I would say that your question is too general for a definite answer, but the articles mentioned by you have all been held to be taxable by this office.

(2) "Does the law require the stamping of malt-extract preparations?"

All malt-extract preparations, such as nutrine, anchortonique, etc., are held liable to this stamp tax. The fact that the manufacturer pays $2 tax on each barrel of lager beer from which these extracts are manufactured has no bearing on the question of taxation. It is known that articles which have once paid revenue tax enter largely into the composition of patent medicines--distilled spirits, for instance-but it has never been held for that reason that these articles should be exempted from stamp tax.

(3) "Does the law require the stamping of food preparations that have medicinal qualities, such as Mellin's, Nestle's, and Eskay's food, and other infants' foods?”

It has been ruled generally that pure food preparations are not liable to stamp tax, but if any one of these articles mentioned by you is advertised as having medicinal qualities there might be a question in regard to its taxability.

(4) "How is the stamp tax to be administered on bulk goods which have no fixed or advertised retail price; for example, on perfumery, which the manufacturer sells by the pound and the retailer sells at whatever price he can get?" '

The ruling of this office in regard to bulk packages is as follows:

All medicinal preparations subject to the stamp tax, and all perfumeries and cosmetic articles, are equally liable to the stamp tax when sold in what are termed bulk packages as when sold in retail packages, and the value of the stamp or stamps to be affixed must correspond with the price charged for a single package with its contents. This decision specially applies to imported bay rum, cologne waters, vaseline, and petroleum, which are held to be cosmetic articles, and to bitters claimed to be medicinal, when sold in kegs, half barrels, barrels, etc. Dealers may retail directly from such bulk packages which have been properly stamped by the manufacturer or importer, drawing from the same in quantities to suit their customers, without any additional stamping, but the stamps attached to such bulk packages will only protect the original articles contained therein, and only protect that so long as it is kept within such stamped package. If bulk packages are broken and their contents drawn off into smaller vessels, thereby ceasing to be identified with the stamped package in which they were put up by the manufacturer or sold by the importer, such contents become liable to seizure if stamps are not affixed to the articles thus sold or offered or exposed for sale.

(5) "When the law becomes operative, how must the retailer stamp his goods which are selling at cut prices! To an article the advertising price of which is $1, but which the druggist sells for 70 cents, what stamp must be affixed?

The retailer must stamp the articles according to the advertised retail price which is fixed by the manufacturer. An article the advertised price of which is $1, and which the druggist sells for 70 cents, must have affixed 2 cents in stamps.

Respectfully, yours,

N. B. SCOTT, Commissioner.

PHARMACEUTICAL ERA, New York, N. Y.

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