INTERNAL REVENUE. (21394.) List of contractors authorized to imprint stamps, also list of stamp agents, together with instructions as to procurement of said stamps. [Int. Rev. Circular No. 541.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors and stamp agents: Washington, D. C., July 12, 1899. The following list contains the names and addresses of all contractors authorized to imprint revenue stamps on checks, drafts, and other instruments for the fiscal year beginning July 1, 1899, together with the name of the stamp agent in charge of imprinting stamps at each establishment: Persons desiring to have stamps imprinted upon checks, drafts, or other instruments will make application therefor themselves, or through their agent, who must not be a contractor for the imprinting of stamps, to a collector of internal revenue, transmitting or presenting with such application payment for the stamps. The application must state the name and address of the contractor who will imprint the stamps, and should authorize the delivery of the instruments when stamped to the said contractor. Collectors will not accept money from contractors for stamps to be imprinted for other persons, under any circumstances, and stamp agents will refuse to imprint stamps except upon orders fully complying with these instructions. When orders are issued for stationers or other agents, for stamps to be imprinted for other persons, the stamp agent to whom such order is directed must enter upon the back thereof the name and address of each person, firm, or corporation for whom stamps are imprinted on such order, together with the date and number of stamps imprinted for each. Upon receipt of application and payment for imprinted stamps the collector will forward to the stamp agent at the establishment of the contractor designated an order for the imprinting of the stamps and the delivery of the stamped paper to the contractor. Collectors should in all cases attach their seals to such orders, and agents must take the contractor's receipt for all stamped paper delivered. Blank checks, drafts, or other instruments to be imprinted with revenue stamps should be forwarded by the person desiring the same, at his expense, directly to the contractor who will imprint the stamps. The Government will not pay any expense or assume any risk on paper forwarded to contractors, or on stamped paper returned by contractors to owners. The contractor's charge for imprinting stamps is limited by the terms of his contract with the Government to 80 cents per thousand stamps imprinted, when imprinted upon sheets containing five or more stamps, and $1 per thousand stamps when imprinted upon sheets containing less than five stamps to the sheet, and payment for imprinting stamps should be made directly to the contractor. All stamps shall be imprinted at the price herein named without discount or rebate, and only upon checks, drafts, or other instruments delivered entirely at the expense of the person, firm, or corporation presenting the same. When the stamps are imprinted and delivered to the contractor, he shall, under the direction and supervision of the stamp agent, at the contractor's expense, pack in the proper manner for shipment, all checks, drafts, or instruments upon which said stamps were imprinted by him, and ship the same wholly at the expense and according to the direction of the person, firm, or corporation that presented them. Contractors are prohibited from paying any transportation charges whatever on instruments forwarded them to be imprinted, or on stamped instruments returned by them to the owners. They are also prohibited from giving, offering, or advertising any discount, rebate, or reduction in the printing of taxable instruments, or claim ing better facilities for such work, by reason of their contract with the Government for the imprinting of stamps. Any violation of the foregoing instructions by a contractor will be deemed sufficient cause for the cancellation of his contract, and any failure on the part of the stamp agent to immediately report to this office the violation of any of the terms or conditions of said contract will be considered cause for his removal from office. IMPRINTING STAMPS IN LIEU OF OTHERS RENDERED USELESS BY ACCIDENT OR ERROR IN PRINTING OR BINDING. Where instruments imprinted with stamps are rendered worthless by accident or error in printing or binding, they may be returned to the stamp agent under whose supervision stamps were imprinted thereon with the application to imprint other stamps in lieu thereof on instruments presented for that purpose. Such application should be accompanied by an affidavit setting forth the facts that such stamped instruments were rendered worthless by error or accident, the number thereof, the date when and the collector from whom the stamps were purchased. Upon receipt of the application the stamp agent will indorse his recommendation thereon and forward the same to the office of the Commissioner of Internal Revenue for action and approval. The spoiled stamped instruments thus returned to the stamp agents will be retained by them until an order is issued for the destruction of the same under the supervision of a revenue officer. When destroyed, a joint certificate must be made by said officer and the stamp agent, stating the number and denomination of stamps destroyed, for whom and upon what order the same were imprinted, and the number of such stamps imprinted for each person, firm, or corporation, which certificate shall be forwarded to this office. Stamp agents will enter upon their records and reports the names of all persons for whom stamps are reimprinted, together with number of stamps and the original order upon which such stamps were imprinted. G. W. WILSON, Commissioner. (21395.) Stamp tax-Checks. Banks must not affix stamps to unstamped checks presented, and must return to drawer any unstamped check presented for payment. Contrary instruction contained in Treasury decision 19606 revoked. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 14, 1899. SIR: This office is in receipt of your letter of July 6, 1899, stating that it has come to your knowledge that certain banks are encouraging a practice of allowing their customers to give checks without stamping same, and when the checks are brought to the bank the bank stamps them. As the check is delivered to the payee before it reaches the bank, in your opinion, such a practice is illegal and a violation of the revenue law; also, you state that many of the checks never reach the bank upon which they are drawn, being taken up before being presented for payment, and the Government would, therefore, lose entirely the amount of the stamp in that particular case. You also state that the bank has adopted this practice as an advertisement to secure patronage as against a rival bank which requires the customers to stamp their checks at the time they are executed. You ask to be advised in the matter. You are advised that banks must not affix stamps to unstamped checks presented, and must return to the drawer any unstamped check presented for payment. You are directed to notify the banks that are guilty of the 'practice herein described that if it is not immediately discontinued they will be reported to the United States district attorney for prosecution. The instruction contained in Treasury decision 19606, under date of June 29, 1898, to the effect that there was no objection to the affixing by the bank of the requisite stamps to an unstamped check presented for payment, is hereby revoked. This instruction was given to meet an emergency immediately preceding the taking effect of the stamp act on July 1, 1898, in order to obviate the necessity of returning by the banks thousands of unstamped checks issued by drawers in ignorance of the law. The law being now generally understood, there is no further need of such permission. Respectfully, yours, Mr. JOHN C. ENTREKIN, G. W. WILSON, Commissioner. Collector Eleventh District, Chillicothe, Ohio. (21396.) Stamp tax-Sales of grain. Sales of grain made at an exchange, and sales of grain made by brokers in their own offices. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 15, 1899. SIR: I have to acknowledge the receipt of your letter of the 10th instant, in relation to the sales of grain made at the Buffalo Merchants' Exchange and the liability of said sales to the stamp tax. You state that sales made by members of the exchange are of three kinds 1, sales made on the floor of the exchange; 2, sales made in the offices of members of the exchange, but made to fellow-members of the exchange (these sales are subject to the rules of the exchange, although not made on the floor); 3, sales made by correspondence or telegrams, made in the offices of members to persons in no way connected with the exchange. You ask which of these three classes are subject to the rate of 1 cent on each $100 of value imposed by Schedule A of the act of June 13, 1898. In reply, you are advised that in the opinion of this office sales of the first and second classes are liable to the tax imposed by the second clause of Schedule A of the war-revenue act. The third class, which are sales made by correspondence or telegrams, made in the offices of members and not on the floor of the exchange, not subject to any rules or regulations of the exchange, would be subject to a tax of 10 cents on the note or memorandum of sale issued by brokers or persons acting as such under that clause of Schedule A headed "Contract." Respectfully, yours, Mr. CHARLES H. KEEP, G. W. WILSON, Commissioner. Secretary Buffalo Merchants' Exchange, Buffalo, N. Y. (21397.) Relative to revision of the civil service rules promulgated May 29, 1899. [Int. Rev. Circular No. 538, revised.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To all collectors: Washington, D. C., July 17, 1899. In view of the frequent inquiries received at this office in regard to civil service rules as modified by the President's order of May 29, 1899, collectors are advised as follows: I. The office of deputy collector of internal revenue is exempt from competitive examination, and collectors are at liberty to make such changes by removal and appointment as in their judgment the welfare of the public service may dictate. Persons selected for appointment to the position of deputy collector will be required to pass the noncompetitive examination prescribed by the Secretary of the Treasury before taking the oath of office and being assigned to duty. (Rule VI, clause 22, and proviso.) II. The offices of gauger, storekeeper, and storekeeper-gauger, where the compensation does not exceed $3 per day, or shall not exceed in the aggregate $500 per annum, are not subject to competitive examination or registration, but persons appointed to said offices are subject to an examination to be prescribed by the Secretary of the Treasury, and to be taken before appointment, when possible. (Rule VI, clause 23, and proviso.) |