States, for the purpose of having its shares dealt in by the public generally.

(b) All corporations whose stock is advertised in the press or offered to the public by the corporation itself for sale. In case of doubt as to whether any company falls within the classification above, the person desiring to see such return should make application, supported by advertisements, prospectus, or such other evidence as he may deem proper to establish the fact that the stock of such corporation is offered for general public sale.

Returns Seen Only in Office.-Returns can be seen only in the office of the Commissioner of Internal Revenue, in Washington, D. C. In no case shall any collector, or any other internal revenue officer outside of the Treasury Department in Washington, permit to be seen any return or furnish any information whatsoever relative to any return or any information secured by him in his official capacity relating to such return.

No Copy Furnished.-No provision is made in the law for furnishing a copy of any return to any person, and no copy of any return will be furnished except to the corporation making the return, or its duly constituted attorney.

The provisions herein contained shall be effective on and after the 25th day of November, 1910.

Approved:

WM. H. TAFT,

FRANKLIN MACVEAGH,
Secretary of the Treasury.

The White House, November 25, 1910.

EXECUTIVE ORDER.

Pursuant to the provisions of an act entitled "An act making appropriations for the legislative, executive, and judicial expenses of the Government for the fiscal year ending June thirtieth, nineteen hundred and eleven, and for other purposes," providing, among other things, an appropriation for classifying, indexing, exhibiting, and properly caring for the returns of all corporations required by section thirty-eight of an act entitled "An act to provide revenue, equalize duties, encourage the industries of the United States, and for other purposes," approved August 5, 1909, and further enacting that any and all such returns shall be open to inspection only upon the order of the President under rules and regulations to be prescribed by the Secretary of the Treasury and approved by the President (36 I Stat., 494).

It is hereby ordered: That all such returns shall be subject to inspection upon compliance with rules and regulations prescribed by the Secretary of the Treasury and approved by the President, bearing even date herewith. WM. H. TAFT.

The White House,
November 25, 1910.

ABATEMENT OR REFUNDING OF PENALTIES.

Abatement or Refunding of Penalty Taxes on Corporations Under Certain Conditions.-Any corporation, joint-stock company, association, or any insurance company subject to the special excise tax provided by section 38 of the act of August 5th, 1909, known as the special excise corporation tax law, which has been or may be compelled to pay or become liable for any additional tax within the provisions of subsection 5 of said section 38, which additional tax has been or may hereafter be imposed for a neglect to file a return as provided in said corporation tax law on or before the 1st of March of any year, may, within one year after the passage of this act, or within one year after the date of notice of assessment where such notice is given after the passage of this act, make application to the Commissioner of Internal Revenue for a refund of such additional tax. And the Commissioner of Internal Revenue, with the advice and consent of the Solicitor of Internal Revenue, is hereby directed to remit, abate, or pay back all such additional taxes in excess of $100 for any single year whenever in any case it appears to his satisfaction that the additional tax was assessed or imposed solely because of a neglect to make a return at the time or times specified in said act, and without any intention or design on the part of any officer of such corporation, joint stock company, association, or insurance company to hinder or delay the United States in the collection of the tax originally assessed. Regulation. Claims for abatement or refunding under the provisions of the foregoing act shall be made on Forms 47 or 46, respectively, executed in the usual manner and filed with the collector of the district in which the claimant was assessed or paid its tax, to be by him entered on his record and certified to the Commissioner of Internal Revenue. Such claims should be accompanied by an affidavit of its president, vice-president, or other principal officer, and its treasurer or assistant treasurer, stating specifically that the neglect to make the annual return of the claimant at the time required by law was without any intention or design on the part of any officer of such claimant to hinder or delay the United States in the collection of the tax originally assessed, and setting forth in detail the cause or causes which produced the delay in filing the said annual return in the time and manner prescribed by law.

ABATEMENT OF ASSESSMENTS OR THE REFUNDING OF TAXES CLAIMED UNDER THE DECISION OF THE UNITED STATES SUPREME COURT IN THE CASE OF McCOACH, COLLECTOR, v. MINEHILL ETC. RAILROAD CO.

Evidence Required.-In computing claims for the refunding of special excise taxes paid for the years 1911 and 1912, based upon the principle affirmed by the Supreme Court in the case of McCoach, Collector. vs. Minehill and Schuylkill Haven Railroad Co., all similar claims it will be necessary for the claimant to file therewith

1. A copy of or citation to the laws of the State and all amendments thereto under which it was organized and executed its lease showing definite authority to lease.

2. A duly authenticated copy of its charter or articles of association, with all amendments thereto.

3. Certified copies of all its leases, agreements, or deeds of conveyance whereby it transferred its property and rights to another, with all amendments and contracts of every kind relative thereto.

4. An affidavit, duly executed by its president or other chief officer and secretary or treasurer, showing, if such be the facts: (a) That the lease of its property covers and conveys all of its franchises, rights, powers, and privileges, other than the right of being a corporation, and all of its property both real and personal essential to its corporate business; (b) specifying in detail what other source of income it has, how such income is received, and what disposition is made of the same; (c) whether either the lessor or lessee company owned or owns any stock of the other, and if so the amount of such stock and of the dividends accrued or paid thereon for the years the taxes were assessed; (d) where it maintains an office and what dividends and other receipts it distributes, the exact character of business it transacts, and what officers act for it and the functions they perform; (e) that during the taxing year or years in question the corporation did not exercise its power of eminent domain or put in force any other general or special corporate power vested in it in aid of the business of its lessee, or in the transaction of any other character of business whatever for the doing of which it was primarily incorporated, organized, or authorized.

Respectfully,

W. H. OSBORN, Commissioner.

TAXATION FOR STATE PURPOSES.

(Constitutional Provisions.)

Subjects Taxed Exclusively for State Purposes.-Taxes levied, assessed and collected as hereinafter provided upon railroads, including street railways, whether operated in one or more counties; sleepingcar, dining-car, drawing-room car, and palace-car companies, refrigerator, oil, stock, fruit, and other car-loaning and other car companies operating upon railroads in this State; companies doing express business on any railroad, steamboat,. vessel or stage line in this State; telegraph companies; telephone companies; companies engaged in the transmission or sale of gas or electricity; insurance companies; banks, banking associations, savings and loan societies, and trust companies; and taxes upon all franchises of every kind and nature, shall be entirely and exclusively for State purposes, and shall be levied, assessed and collected in the manner hereinafter provided.

"Company" Defined. The word "companies" as used in this seetion shall include persons, partnerships, joint-stock associations, companies, and corporations.

(a) Public Service Corporations, How Taxed. All railroad companies, including street railways, whether operated in one or more counties; all sleeping-car, dining-car, drawing-room car, and palacecar companies, all refrigerator, oil, stock, fruit and other car-loaning and other car companies, operating upon the railroads of this state; all companies doing express business on any railroad, steamboat, vessel or stage line in this State; all telegraph and telephone companies; and all companies engaged in the transmission or sale of gas or electricity shall annually pay to the State a tax upon their franchises, roadways, roadbeds, rails, rolling stock, poles, wires, pipes, canals, conduits, rights of way, and other property, or any part thereof used exclusively in the operation of their business in this State, computed as follows: Said tax shall be equal to the percentages hereinafter fixed upon the gross receipts from operation of such companies and each thereof within this State.

Gross Receipts from Interstate Business. When such companies are operating partly within and partly without this State, the gross receipts within this State shall be deemed to be all receipts on business beginning and ending within this State, and a proportion, based upon the proportion of the mileage within this State to the entire mileage over which such business is done, of receipts on all business passing through, into, or out of this State.

Percentages on Gross Receipts. The percentages above mentioned shall be as follows: On all railroad companies, including street railways, four per cent; on all sleeping-car, dining-car, drawing-room car, palace-car companies, refrigerator, oil, stock, fruit, and other car-loaning and other car companies, three per cent; on all companies doing express business on any railroad, steamboat, vessel or stage line, two per cent; on all telegraph and telephone companies, three and one-half per cent; on all companies engaged in the transmission or sale of gas or electricity, four per cent.

In Lieu of Other Taxes and Licenses. Such taxes shall be in lieu of all other taxes and licenses, state, county and municipal, upon the property above enumerated of such companies except as otherwise in this section provided.

Exception. Provided, that nothing herein shall be construed to release any such company from the payment of any amount agreed to be paid or required by law to be paid for any special privilege or franchise granted by any of the municipal authorities of this State.

(b) Tax on Insurance Companies.-Every insurance company or association doing business in this State shall annually pay to the State a tax of one and one-half per cent upon the amount of the gross premiums received upon its business done in this State, less return premiums and reinsurance in companies or associations authorized to do business in this state;

Specific Deductions. Provided, that there shall be deducted from said one and one-half per cent upon the gross premiums the amount

of any county and municipal taxes paid by such companies on real estate owned by them in this State. This tax shall be in lieu of all other taxes and licenses, State, county and municipal, upon the property of such companies, except county and municipal taxes on real estate, and except as otherwise in this section provided.

Retaliatory Laws.-Provided, that when by the laws of any other state or country, any taxes, fines, penalties, licenses, fees, deposits of money, or of securities, or other obligations or prohibitions, are imposed on insurance companies of this State doing business in such other State or country, or upon their agents therein, in excess of such taxes, fines, penalties, licenses, fees, deposits of money, or of securities, or other obligations or prohibitions, imposed upon insurance companies of such other State or country, so long as such laws continue in force, the same obligations and prohibitions of whatsoever kind may be imposed by the legislature upon insurance companies of such other State or country doing business in this State.

(c) Tax on State and National Banks.-The shares of capital stock of all banks, organized under the laws of this State, or of the United States, or of any other State and located in this State, shall be assessed and taxed to the owners or holders thereof by the State board of equalization, in the manner to be prescribed by law, in the city or town where the bank is located and not elsewhere. There shall be levied and assessed upon such shares of capital stock an annual tax, payable to the State, of one per centum upon the value thereof. The value of each share of stock in each bank, except such as are in liquidation, shall be taken to be the amount paid in thereon, together with its pro rata of the accumulated surplus and undivided profits. The value of each share of stock in each bank which is in liquidation shall be taken to be its pro rata of the actual assets of such bank. This tax shall be in lieu of all other taxes and licenses, State, county and municipal, upon such shares of stock and upon the property of such banks, except county and municipal taxes on real estate and except as otherwise in this section provided.

Deduction of Real Estate. In determining the value of the capital stock of any bank there shall be deducted from the value, as defined above, the value, as assessed for county taxes, of any real estate, other than mortgage interests therein, owned by such bank and taxed for county purposes.

Liability for Tax.-The banks shall be liable to the State for this tax and the same shall be paid to the State by them on behalf of the stockholders in the manner and at the time prescribed by law, and they shall have a lien upon the shares of stock and upon any dividends declared thereon to secure the amount so paid.

Tax on Unincorporated Banks and on Branches and Agencies of Foreign Banks. The moneyed capital, reserve, surplus, undivided profits and all other property belonging to unincorporated banks or bankers of this State, or held by any bank located in this State which has no shares of capital stock, or employed in this State by any branches, agencies, or other representatives of any banks doing business outside of the State of California, shall be likewise assessed and taxed to such