deposits the same in a warehouse in the regular course of trade, for sale, and takes a warehouse receipt, which is a negotiable instrument under the statute law of Virginia, this receipt being exempt from the stamp tax when it is issued, does it become subject to the stamp tax any time thereafter, especially when presented by the holder, in order to obtain possession of the product stored in the warehouse? In the opinion of this office the receipt described by Mr. Crump comes within the exempting provision in the last paragraph of Schedule A of the act of June 13, 1898, and there is no provision of law which would require it to be stamped at any time after its issuance (if the tobacco which it represents remains in warehouse as it was originally deposited by the grower), although the same may be transferred as a negotiable instrument and presented to the warehouseman by other than the original holder. But where the tobacco, or the warehouse receipt therefor, is "sold at any exchange or board of trade, or other similar place," a memorandum of such sale must be made by the seller, and the stamp affixed thereto and canceled, representing payment of the tax of 1 cent on the sale if it amounts to $100, and 1 cent on each additional one hundred dollars or fraction thereof under the second paragraph of Schedule A of the act. Where a warehouse receipt is sold by a broker at his own office, or elsewhere than at a place of exchange or other place of public sale, the 10-cent stamp must be affixed to the memorandum of this transaction under that paragraph of the schedule relating to the broker's contract. N. B. SCOTT, Commissioner. Respectfully, yours, Mr. JAMES D. BRADY, Collector Internal Revenue, Richmond, Va. (19832.) Stamp tax-Warehouse receipts. A receipt or memorandum given by a warehouseman, or any signing by a warehouseman of an express company's book, or other receipt evidencing the fact that goods have been placed on storage, is a warehouseman's receipt, and requires a stamp tax of 25 cents. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 4, 1898. SIR: This office is in receipt of a letter dated July 16, 1898, from John H. Poston, corner Calhoun and Tennessee streets, Memphis, Tenn., in which he asks this office to interpret "warehouse receipt," and does it apply to memorandum receipts, a sample of which he inclosed, which are not negotiable. You will please advise him that the interpretation of this office of the words "warehouse receipt" is as follows: Any receipt or memorandum given by a warehouseman, or any signing by a ware houseman of any express company's book or other receipt evidencing the fact that goods have been placed on storage, is such a receipt, requiring a stamp tax of 25 cents, whether same is negotiable or nonnegotiable. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. DAVID A. NUNN, Collector Fifth District, Nashville, Tenn. (19833.) Stamp tax-Warehouse receipts. The Commissioner of Internal Revenue can not decide whether the warehouseman or the private individual storing the merchandise shall affix the stamp-If there is any controversy, the remedy is in the courts. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 5, 1898. SIR: This office is in receipt of a letter from Norton Brothers, 719 Mooney Brisbane Building, Buffalo, N. Y., in which they inquire who shall pay the 25-cent tax imposed on warehouse receipts, the warehouseman or the customer bringing the goods for storage. The act of June 13, 1898, is silent as to who shall pay the tax. It requires the receipt to be taxed and stamped. men Section 13 of this act provides that any person or persons who shall register, issue, sell, or transfer, or who shall cause to be issued, registered * * * any instrument, document, or paper tioned in Schedule A without the same being duly stamped and canceled, in the manner required by law, with intent to evade the provisions of this act, shall be guilty of a misdemeanor. * * * This office can not advise Messrs. Norton Brothers who shall pay the tax. Its duty is to see that the receipts are stamped, if required to be, and to enforce the law if they do not have a stamp affixed as provided. If the storage company refuses to receive goods unless the tax is paid by the party depositing them for storage, or having received them it charges 25 cents for stamp duty in addition to the storage charges, the remedy for the same does not lie within the province of this office. It must be sought elsewhere, if there is one. * Respectfully, yours, Mr. VALENTINE FLECKENSTEIN, N. B. Scott, Commissioner. Collector Twenty-eighth District, Rochester, N. Y. (19840.) Warehouse receipts-Insurance. Every separate consignment requires stamp tax-Such consignment may occupy several days Stamp to be affixed to the evidence of consignment-Local operators need not give bills of lading, nor are their receipts taxable--Storage company, charging and receiving pay for increased risk, should pay tax for insurance. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 5, 1898. SIR: This office is in receipt of a letter bearing date of July 11, 1898, from Mr. Walter C. Reid, secretary of the New York Furniture Warehouseman's Association, 32-42 East Forty-second street, New York City, to which careful consideration has been given. This association inquires through Mr. Reid (1) If a warehouse certificate showing different dates of entry of goods requires one 25-cent stamp, or would a 25-cent stamp be required for goods received on each date, and would one entry brought by the same carrier, though on different dates, require a 25-cent stamp for the entry of each separate date? Every separate consignment of goods delivered for storage requires a receipt, and the receipt must be stamped if the consignment requires or does occupy several days in delivery. It need not have but one tax of 25 cents on its receipt if it can be shown to be but one consignment. (2) If no warehouse receipt is issued, the book of the express company delivering the consignment being signed as a receipt, should the 25-cent stamp be affixed thereto? It should be affixed to the book, express company's receipt, or other instrument or paper evidencing the delivery by the sender and the receipt by the warehouseman. (3) Is the warehouseman who has vans and wagons of his own in order to carry on the furniture storage business considered a carrier under the revenue law requiring him to give a bill of lading which should be stamped? Mere local operators for the delivery of packages, baggage, and such like within the same town or city are not required to give bills of lading, although they may give receipts for articles to be delivered; these receipts are not required to be stamped. (4) He incloses an instrument and inquires whether it comes under the clause relating to insurance, and asks how it shall be taxed. This instrument recites that in consideration of the additional charge of dollars per month the storage company agrees to assume additional responsibility, according to the terms and conditions of the warehouse receipt to which it is attached and of which it forms a part, and enumerates the articles for which additional responsibility is assumed. This is a contract whereby, for an agreed premium, one party under takes to compensate the other for loss on a specified subject by specified perils. It is in effect insurance, and should be taxed as a policy of insurance at the rate of one-half of 1 cent on each dollar or fractional part thereof of the premium charged. * Respectfully, yours, N. B. Scott, Commissioner. Mr. CHAS. H. TREAT, Collector Second District, New York, N. Y. (19889.) Stamp tax-Cotton compress receipts. When cotton compress receipts can become warehouse receipts-When taxable and when not taxable-Exemption of actual producers-Who shall pay for stamp. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 12, 1898. SIR: This office is in receipt of a letter from Messrs. John J. and E. C. Horner, attorneys-at-law, Helena, Ark., bearing date of July 9, 1898. This letter deals with questions relating to the cotton business, and a brief résumé is hereby given. It states that all cotton brought to the city is delivered upon platforms of the compresses; that it is impossible to tell in any other way than by the party delivering the same whether it is an "agricultural product deposited by the actual grower thereof in the regular course of trade for sale" or not; that it is delivered to the platform of the compress. It is then weighed by a weigher appointed by the city, who gives a receipt showing the marks and weight of the bale of cotton, for which service a charge of 10 cents is made, which is paid into the city treasury for the purpose of defraying the cost of the weighing. This weigher's certificate is inclosed in the letter and marked "No. 1," and a copy of same is here given: The party who presents the cotton for weighing receives this receipt No. 1. When he desires a receipt from the compress company, he presents this weigher's certificate and a receipt is issued to him, a copy of which is inclosed and marked "No. 2." The following is a copy of said instrument: When the cotton is finally ready for compression and shipment, this weigher's certificate (No. 1) or the receipt issued in lieu thereof (No. 2) is presented to the compress company, and a receipt is issued for compress and shipment and the cotton goes to the carrier in the usual course of business. This receipt is inclosed and Marked "No. 3." The following is a copy of receipt No. 3: (3.) Helena, Ark., Ţ 189-. Received by the HELENA COMPRESS COMPANY, from bales cotton for compression only, and shipped as per instructions, marked as per margin. Marks, The inquiry is made, Are these receipts taxable? Receipt No. 2 is, without doubt, taxable at the rate of 25 cents. Receipts No. 1 and No. 3 are not taxable unless under them the relationship of warehousemen is assumed. Receipt No. 3 states that it is a receipt "for compression only." If, after compression, the bale of cotton is left on storage and a charge is made for storage, and the only evidence of this storage is receipt No. 3, then it becomes a warehouse receipt and is taxable. This office does not see how receipt No. 1 could become a receipt for storage; but if it is possible, and it does so become a receipt for storage, it is taxable as a warehouse receipt, the ruling of this office being that if the cotton is simply received for compression and shipment and no charge being made for storage, that the receipts evidencing this fact are not taxable. This letter further states that cotton is received from all personsactual producers, purchasers of cotton from actual producers, and others-and that it would be impossible for the warehouseman to know, except from the statement of the person presenting the cotton, whether it was actually produced by him or not, and Messrs. Horner inquire how is the warehouseman to know who is exempt under the clause "excepting actual producers ?" This office can not advise these gentlemen how to ascertain this fact. The law exempts agricultural products placed on storage by the actual grower thereof in the regular course of trade for sale. If these warehousemen accept cotton for storage from other than actual growers and 12593-19 |