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They ask whether or not the law was made to cover such cases. In reply, you will please inform them that, in the opinion of this office, such transactions would not be sufficient to involve said company in special-tax liability as bankers within the meaning of the first paragraph of section 2 of the act of June 13, 1898.

Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. F. E. COYNE, Collector, Chicago, Ill.

(20343.)

Special tax-Bankers..

The receiving of employees' deposits on interest does not involve a company or firm in special-tax liability as bankers.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., November 18, 1898.

SIR: This office is in receipt of a letter from Williams & Edwards, attorneys, Jersey City, N. J., under date of August 12, * in which they state (in behalf of their clients) that "a large wholesale and retail dry goods firm has, for some years past, permitted its employees to deposit with the firm such sums from earnings and otherwise as they from time to time desire, on which it allows a uniform rate of interest. Its deposits are entered in pass books, and may be withdrawn by the depositors in whole or in part at any time. * No capital is employed in its deposit business, and no loans, discounts, or purchases or sales of securities are made in connection with it. * This custom of receiving employees' deposits on interest has been adopted by many firms as an encouragement to economy," and ask if the special tax as a banker is incurred.

*

In reply you will please inform them that, in the opinion of this office, such transaction would not be sufficient to involve said company in special-tax liability as bankers within the meaning of the first paragraph of section 2 of the act of June 13, 1898.

Respectfully, yours,

G. W. WILSON, Acting Commissioner.

Mr. WILLIAM D. RUTAN, Collector, Newark, N. J.

(20344.)

Special tax-Bankers.

The loaning of money on household goods or other chattel property is not the business of banking contemplated by the statute.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., November 18, 1898.

SIR: In reply to your letter of the 2d instant, regarding the liability of so-called chattel-mortgage men as bankers or brokers for loaning

money "upon household goods or other chattel property," you are advised that, in the opinion of this office, such transactions as mentioned in your letter are not sufficient to involve said chattel-mortgage men in special-tax liability as bankers or brokers within the meaning of the first and second paragraphs of section 2 of the act of June 13, 1898. Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. F. E. KELLOGG, Collector, Kansas City, Mo.

(20349.)

Special tax-Bankers.

Bankers within the meaning of the statute.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., November 21, 1898.

SIR: Your letter of the 14th instant is received, inclosing a letter addressed to you on the 4th by G. Ives & Sons, of New Boston, Ill., submitting a letter head as showing the character of their businessthat is, "Horses, cattle, grain, and general merchandise"-and stating that they receive no deposits, loan no money, but keep a deposit in Chicago, there being no bank in their town, and sometimes sell exchange on Chicago, and asking whether or not they are liable as bankers.

In reply, you are advised that, in the opinion of this office, the facts thus stated are not sufficient to involve Ives & Sons in special-tax liability as bankers within the meaning of the first paragraph of section 2 of the act of June 13, 1898.

The test question as to the liability of a company or firm as bankers, as laid down in the case of Selden v. The Equitable Trust Company (94 U. S. R., 419), is whether or not, having a place of business, a firm or person is embraced in any one of the three following classes:

First. Do they have a place of business "where credits are opened (to the general public) by the deposit or collection of money or currency, subject to be paid or remitted upon draft, check, or order”?

Second. Do they have a place of business where money is advanced or loaned on collaterals (stocks, bonds, etc.)?

Third. Do they have a place of business where stocks, bonds, bullion, bills of exchange, or promissory notes are received from another person, for sale, or bills of exchange or promissory notes are received for discount, belonging to that other person?

Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. A. J. DAUGHERTY, Collector, Peoria, Ill.

(20365.)

Special tax-Bankers.

Merchants do not bring themselves within the definition of bankers in the first paragraph of section 2 in the act of June 13, 1898, by reason of selling their own drafts to their customers; they are not, on this account, required to pay special tax as bankers.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., November 21, 1898.

SIR: This office is in receipt of your letter of the 15th instant regarding the liability as bankers of C. R. Blair & Co., merchants of Egota, stating that Deputy Collector Lobdill insists upon their paying the special tax. You, state that said firm has bank accounts at Winona and Rochester, Minn., "on which, for the accommodation of their cus tomers, they draw against exchange, which is sold by them to their customers. They receive no deposits, they make no loans, nor are they required, either by State or national law, to make any report of their business," and ask whether or not said firm is liable to special tax as a banker.

In reply, you will please inform them that such transactions as you state in your letter would not, in the opinion of this office, subject said firm to special-tax liability as bankers within the meaning of the first paragraph of section 2 of the act of June 13, 1898.

Respectfully, yours, G. W. WILSON, Acting Commissioner. Hon. JAMES A. TAWNEY, Winona, Minn.

(20397.)

Special tax-Bankers' branch banks.

Special tax must be paid for every branch established by a bank at which the business of banking is carried on.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., December 6, 1898.

SIR: Your inquiry of to-day regarding the liability of branch banks has had careful consideration. You state that the Lynchburg Trust and Savings Bank, doing a business at Lynchburg, Va., upon a capital of $175,000, paid a tax of $350 July 29, 1898; that this bank has a branch at Bedford City, doing business since July 1, 1898, upon the same capital; also a branch at Clifton Forge, doing business since September 1, 1898, upon the capital of the parent bank, and ask what tax is due from each of these branches.

In reply, you are advised that said branch at Bedford City must pay special tax of $50, and said bank of Clifton Forge, doing business since September 1, 1898, must pay special tax at the rate of $50 for the year from September 1 to July 1, following.

In this connection, I will say that where the parent bank and the branch banks were in operation during the fiscal year ending June 30, 1898, and the parent bank has paid the tax on its total capital and surplus, the branch bank must pay special tax on the average capital and surplus it employed during the year ending June 30, 1898, and said parent bank can make claim for proportionate refund where return was made of the entire amount of the capital and surplus as used for the principal bank, although, in fact, part of this was sent to and employed at the branch bank.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. PARK AGNEW, Collector, Alexandria, Va.

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BEER.

(See LIQUORS.)

BILLIARDS, ETC.

(See also DECISIONS 19610, p. 52; 19745, p. 205; 20313, p. 54.)

(19743.)

Special tax-Billiard tables.

Club not required to pay special tax on its billiard tables.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 21, 1898. SIR: In reply to your letter of the 28th ultimo, you are hereby advised that, while a social club, selling wines or other alcoholic liquors to its members under the long-settled ruling as laid down by Judge Lowell in the case of Wittig, 22 Internal Revenue Record, 98 (that any course of selling, though to a restricted class of persons and without a view to profit, is within the meaning of the statute imposing the special tax), is required to pay special tax as a retail liquor dealer, it is not required to pay a special tax as a proprietor of a billiard room under the ninth paragraph of section 2 of the act of June 13, 1898, by reason of the fact that it keeps billiard tables for the use of its members and their invited guests, as the special tax imposed upon proprietors of bowling alleys and billiard rooms by that section expressly relates only to a building or place "open to the public." A social club, admitting to

its privileges only its own members and their invited guests, can not properly be regarded as open to the public.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. A. J. DAUGHERTY, Collector Fifth District, Peoria, Ill.

(20122.)

Special tax-Bagatelle table.

As a bagatelle table is neither a billiard table nor a pool table within the meaning of the ninth paragraph of section 2 of the act of June 13, 1898, no special tax is required therefor.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., September 30, 1898.

SIR: This office is in receipt of a letter from Mr. S. T. Bridwell, Anchor Hotel, Westminster, Md., under date of August 30, * asking whether or not a bagatelle table is subject to special tax.

In reply, you will please advise him in the negative; that paragraph 9 of section 2, act of June 13, 1898, only refers to billiard and pool tables and bowling alleys.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. B. F. PARLETT, Collector Internal Revenue, Baltimore, Md.

(20126.)

Special tax-Tivoli table.

A tivoli table, which is materially different from a billiard or pool table, even though the ball used thereon is propelled by a cue, is not subject to special tax under the ninth paragraph of section 2 of the act of June 13, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 4, 1898.

SIR: Your letter of the 1st ultimo, referring to an answer given by this office to a former letter of yours, relating to the question of the special-tax liability of the proprietor of a tivoli table, has been received. You submit a cut of the table in question, and say:

MM' and NN' are grooves at the side, up which the ball is propelled. This may be done by a cue or thrown from the hand. B is a ball resting near the top of the inclined surface of the table, which, if struck, counts the player a certain number of points. The ball, propelled by the cue or hand, then rolls down the incline, bounding from nail to nail. On the way it may chance to fall into the trap X, thus counting 200; or into the trap Y or Z, thus counting 125; or into the trap R, counting 250. If the ball reaches the bottom, it passes into one or the other of the pockets numbered 55, 45, etc.

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