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A copy of the opinion of the Attorney-General is appended.

You will please suspend any further proceedings against the Baltimore and Ohio Railroad on account of failure to stamp such receipts, and make no more collections on this account. Taxes which have been paid erroneously, according to this decision, can be refunded upon proper application being made therefor.

Respectfully, yours,

N. B. SCOTT, Commissioner. Mr. B. F. PARLETT, Collector Internal Revenue, Baltimore, Md.

[Opinion of Attorney-General.]

DEPARTMENT OF JUSTICE, Washington, D. C., October 7, 1898.

The SECRETARY OF THE TREASURY.

SIR: I have the honor to acknowledge yours of the 3d instant, transmitting a copy of a letter from the Commissioner of Internal Revenue, and also inclosing a form of an excess-baggage receipt issued by railroad companies to passengers for excess weight of baggage, and you ask my opinion as to whether such receipt is subject to stamp tax under Schedule A of the war-revenue act.

I do not think that baggage received by a railroad company and carried upon the same train with the owner, who is a passenger, in the usual way in this country, can be included under the head of express and freight as contemplated in the war-revenue act, whether such bag. gage be the quantity allowed ordinarily by the rules of the railroad company or is in excess of such amount.

The consideration to the carrier for the transportation of baggage is the fact that the owner is a passenger, and it is a part of the consideration of the ticket which the passenger holds that his baggage shall be carried along with him. If, however, a passenger has more baggage than is allowed by the rules on account of an ordinary ticket, it does not change the character of the baggage nor the nature of the contract with the passenger for the carrier to require a greater amount of fare. If we were to hold that the receipt given for excessive weight of baggage is liable to the stamp upon the ground that goods are accepted for transportation, we should also have to hold that the check given for any baggage should have the stamp, for the law does not make any difference whether the goods accepted for transportation are in large or small quantities. The transportation of baggage is a privilege extended to a passenger aboard the train, in consideration of the fact that the pas senger himself is entitled to be carried. So, really, it is the fact that the passenger himself, and not his baggage, is accepted by the carrier for transportation that forms the basis of the contract.

I, therefore, advise you that a check such as you inclose, given to denote that the carrier is conveying for the passenger an amount of baggage in excess of that allowed by the rules, in consideration of an ordinary ticket, and for which the passenger pays an amount greater than the usual fare, is not a bill of lading or manifest for goods accepted for transportation as contemplated under the head of "Express and freight" in the war-revenue act.

Very respectfully,

Approved:

JAS. E. BOYD, Assistant Attorney-General.

JOHN W. GRIGGS, Attorney-General.

(20194.)

Stamp tax-Bills of lading or receipts.

Bills of lading or receipts from transportation companies may include more than one shipment therein, provided that a stamp or stamps amounting in value to 1 cent for each shipment shall be affixed thereto and canceled.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 13, 1898.

SIR: Messrs. Eichold Bros. & Weiss, wholesale liquor dealers, of Mobile, in your State, have addressed this office, under date of the 29th ultimo, in regard to their use of a receipt in shipping jugs of liquors by the various steamboats plying the rivers of the State.

The form of receipt which they inclose contains on a small sheet space for the address of eleven consignees, to whom as many shipments may be made, all to be receipted for on a single sheet. They state that previous to the passage and enforcement of the war-revenue law they could ship from one to ten jugs on each of these receipts, but that at present the steamboats compel them to make out a separate receipt for each jug. They ask if it would be contrary to the law if they should again ship any number of jugs on the receipt, provided they affix the requisite number of stamps to it-1 cent for each jug, the present method being a serious annoyance and involving unnecessary labor.

You will please inform these gentlemen that it is the duty of the steamboat company to issue to them a bill of lading or receipt for each shipment received for carriage and transportation, and to affix a stamp thereon to the value of 1 cent. If, for purposes of their convenience when shipping large numbers of packages at the same time, they desire to obtain receipts for several shipments upon the same sheet, the same to be stamped to cover in value the amount of 1 cent for each shipment made at the time, there is no objection to this method of issuing receipts for shipments received for carriage and transportation, and such a practice would be considered a compliance with the provisions of Schedule A, act of June 13, 1898, by the steamboat companies. By this method, when five shipments are made at one time, a 5-cent stamp can be used to cover the tax on the receipt for the five shipments, and when ten shipments are made, a 10-cent stamp can be used, etc., it being understood that each sheet of receipts shall bear internal-revenue stamps, duly canceled, equal in face value to 1 cent for each and every receipt entered thereon.

It is evident to this office that such a method of issuing and stamping receipts will be of material advantage to express and freight companies in the conduct of their business, and it is assumed that such companies will be careful not to violate the law by any omission to stamp such receipts as they are made and issued.

Respectfully, yours,

Mr. JULIAN H. BINGHAM,

N. B. SCOTT, Commissioner.

Collector Internal Revenue, Birmingham, Ala.

(20240.)

Stamp tax-Express matter.

Exemption from tax of express matter carried for railroad company free under contract with express company.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

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

SIR: Referring to office letter of the 18th instant, relative to the free carriage of the merchandise and money of the New York, New Haven and Hartford Railroad by the Adams Express Company under contract, I have to inform you that the Attorney-General has rendered an opinion on the subject, referring especially to the Pennsylvania Railway, copy of which I inclose for your information and guidance.

Respectfully, yours,

G. W. WILSON, Acting Commissioner. Mr. JAMES D. GILL, Collector Internal Revenue, Boston, Mass.

[Opinion of Attorney-General.]

DEPARTMENT OF JUSTICE, Washington, D. C., October 21, 1898.

The SECRETARY OF THE TREASURY.

SIR: I have the honor to acknowledge receipt of yours of the 18th instant, inclosing copy of letter of the Commissioner of Internal Revenue, and also a copy of a letter addressed to the Commissioner of Internal Revenue by the general solicitor of the Pennsylvania Railroad Company, in which you request my opinion as to whether goods, such as money and merchandise, which are carried by the Adams Express Company free for the Pennsylvania Railroad Company, under a contract between the two companies, are included under the head of "Express and freight" in the war-revenue act, and whether the manifest or other paper evidencing the transportation thereof is subject to the stamp provided for in said act.

The facts relating to this question, as submitted, are as follows: (1) By agreement, dated November 25, 1896, between the Pennsylvania Railroad Company and the Adams Express Company, by virtue whereof the latter conducts its business on and over the lines of railroad operated by the former and the lines of railroad or other companies affiliated with said railroad company, it is, inter alia, stipulated as follows: That the express company shall "carry for the railroad company all money and other valuable packages pertaining to the business of the railroad company over the lines of the latter free of charge, the railroad company assuming all risk of loss or injury thereto of property so carried except through theft or dishonesty, carelessness or inefficiency, of the employees of the express company; and it being understood that, for this purpose, the lines covered by this agreement, and those covered by the agreements of even date herewith with the other companies affiliated with the railroad company, shall be considered as forming one system, such money and valuable packages

shall be carried free of charge over such lines for any of the companies whose lines form part of that system."

(2) That the money packages and other valuable packages covered by the said agreement and by its terms to be carried free of charge are exclusively the property and appertain wholly to the business of the railroad companies, and the transportation thereof is incidental to and absolutely necessary for the efficient management and operation of the railroad companies and the proper administration of their business.

(3) That the carriage thereof is made in the cars of the railroad companies, which are hauled by their own motive power, and frequently in charge of one person who is the agent of both the express and railroad companies; and, but for the existence of the said contract, would be carried in like manner, save only that the exclusive employee of the railroad company would have custody thereof during such carriage.

Under the head of "Express and freight," which is a part of Schedule A of the war-revenue act, it is made the duty of every railroad or steamboat company, carrier, express company, or corporation or person whose occupation it is to act as such, to issue to the shipper or consignor, or his agent, or person from whom any goods are accepted for transportation, a bill of lading, manifest, or other evidence of receipt and forwarding for each shipment received for carriage and transportation, and upon such bill of lading, manifest, etc., is required a stamp of the value of 1 cent

The term "accepted for transportation," as used in the statute, evidently means goods received from a shipper or consignor other than the carrier itself, for one can not be said to accept goods from himself, and the term must have been intended to apply to goods received for transportation in the usual manner by common carriers.

The goods and moneys of the railroad company, by virtue of the contract above set forth, are carried in its own cars, on its own railway, in trains moved by its own locomotives operated by its own servants. The employees of the express company, it is true, handle the goods and moneys, but, under the contract, they do so in a sense as the agents of the railroad company. The relation of shipper and carrier, as usually applied, does not and can not, under the circumstances, be said to exist between the two companies.

In 21 Opin., 394, will be found an opinion of the Attorney-General in which the principle involved is somewhat analogous. The question there was as to the right of railroad companies to carry letters pertaining to their own business, and, while it is held (under sections 3985 and 2993, Rev. Stats., which are revenue laws) that the public interest requires that the Government should have a monopoly of the business of carrying letters, the law is construed to authorize letters and packets relating to the business of the railroad on which they are carried to be carried by such railroad outside of the mails and not in Government stamped envelopes.

I advise you, therefore, upon the facts presented in the case submitted by you, that no bill of lading or manifest is required under the provisions of the war-revenue act, and, if any such is given, it is not liable to the stamp provided in said act.

Respectfully, yours,

Approved:

JAMES E. BOYD, Assistant Attorney-General.

JOHN K. RICHARDS, Acting Attorney-General.

BONDS.

(See also DECISIONS 19605, p. 143; 19742, p. 228; 19800, p. 95; 20226, p. 233.)

(19609.)

Stamp tax-Warehousing bonds.

Warehousing bonds taxable under Schedule A, act of June 13, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 30, 1898.

SIR: In reply to your letter of the 25th instant, stating that the "C. Dodsworth Distilling Company insist that warehousing bonds given by them to the Internal-Revenue Department are not taxable under the war-revenue act," you are hereby advised, and you will please so inform them, that these bonds are subject to stamp tax under the tenth subdivision of Schedule A of the act of June 13, 1898, referring to "all other bonds of any description, except such as may be required in legal proceedings."

Respectfully, yours,

N. B. SCOTT, Commissioner,

Mr. B. BETTMANN, Collector First District, Cincinnati, Ohio.

(19686.)

Stamp tax-Bonds of municipal officers.

Bonds of municipal officers require to be stamped under act of June 13, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 13, 1898.

SIR: In reply to your letter of the 7th instant, inclosing letter addressed to you by Mr. C. V. Meredith, city attorney of Richmond, Va., you are informed that bonds of municipal officers are required to be stamped under the provisions of the act of June 13, 1898.

Respectfully yours,

N. B. SCOTT, Commissioner. Mr. JAMES B. BRADY, Collector Second District, Richmond, Va, 125934

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