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INTERNAL REVENUE-Continued.

as the basis of credit without a mortgage or other instrument being executed, no tax thereon, collectible by the affixing and cancellation of an adhesive documentary stamp, can be imposed. The provision named does not impose a tax upon anything which is not written or printed. Ib.

6. Same-Taxable if Accompanied by any Paper or Memorandum.-Stock pledged as security for loans would be taxable under the first paragraph of Schedule A if accompanied by any paper or or agreement or memorandum or other evidence of transfer such as is contemplated by the statutes. Ib.

7. Export Bills of Lading-Stamp Tax.-The war-revenue act of June 13, 1898 (30 Stats., 459), requires the payment of a stamp tax of 1 cent, under the clause headed "Express and freight," upon bills of lading, receipts, manifests, and other similar documents issued by railroad companies for the receipt of goods to be transported by rail from any place within the United States to Canada or Mexico; but no tax is payable thereon under the clause relating to goods exported from a port or place in the United States to any foreign port or place. 3.

8. Express Companies-Money Orders, Travelers' Checks-Brokers' Tax.— Express companies issuing money orders and travelers' checks are not taxable as brokers under the war-revenue act of June 13, 1898 (30 Stat., 448). 139.

9. Same. Money orders and travelers' checks as at present issued by certain express companies do not come within the legal definition of bills of exchange or checks, but possess more of the characteristics of promissory notes. Ib.

10. Same. The issuing of these orders by express companies upon themselves is not a sale of promissory notes. It is merely an incident to their business as carriers, and does not constitute them brokers. Ib.

11. Fermented Liquors Stamp Tax.-Under section 1 of the act of June 13, 1898 (30 Stat., 448), the whole tax upon a barrel of not more than 31 gallons of beer, lager beer, ale, porter, and other similar fermented liquors is $1.85, to be paid by stamps attached to the barrel, though the stamps attached to such barrel indicate a tax of $2. 170.

12. Same.

In all cases where more than 85 cents per barrel has been collected in addition to the $1 tax which had theretofore been paid, such collection was erroneous.

13. Same

Ib.

Stored in Warehouses.-Under the war-revenue act of June 13, 1898 (30 Stat., 448), beer, which before that date had been transferred by a brewing company to itself as a wholesale and retail dealer, said company having theretofore paid the tax of $1 per barrel as brewer, and also the special tax as wholesale and retail dealers, is not subject to the additional tax imposed by that act on beer, etc., stored in warehouses, or removed for consumption. 227.

INTERNAL REVENUE-Continued.

14. Same. This tax is on beer stored or removed by the brewer and not by the wholesale or retail dealer. Ib.

15. Same. The Warehouse is that of the brewer and not the place where the dealer has it stored. Ib.

16. Insurance Policies Stamp Tax.-The act of June 13, 1898 (30 Stat., 448), requires the stamp to be affixed to the policy of insurance and not to the preliminary application, although such application is expressly made a part of the contract of insurance. 210. 17. Same-Separate Contracts Covering Consecutive Periods.-Where the application for insurance expressly stipulates that the policy shall embrace four separate contracts, covering four consecutive periods aggregating one year, and shall remain in force after the first insurance period only as continued by further payments of premium, such policy is held to be a policy issued for one year, and the amount of tax to be affixed when the policy is delivered is to be determined by the aggregate of the premiums for the entire year. Ib.

18. Pledge of Stock-Stamp Tax.--The depositing with the Girard Trust Company by the Pennsylvania Company, under a written agreement, of certificates of stock of other corporations as a pledge for the performance of its covenant to pay, when due, the interest and principal of certain certificates of indebtedness issued and sold by the former company for the benefit of the latter, constitutes such a pledging of stocks for the future payment of money as to render the transaction taxable under Schedule A of the act of March 2, 1901 (31 Stat., 942), although the power of attorney accompanying the agreement only authorized the transfer of the stock so deposited in case of default by the pledgor, and until such default the pledgor was to retain and exercise all the rights, powers, and privileges belonging or incident to such ownership. 615.

INTERPRETATION OF STATUTES. See STATUTORY CONSTRUC

TION.

INTERPRETER TO LEGATION TO CHINA. See CHINESE SEC

RETARY.

INTERSTATE TRAFFIC. See CONSTITUTIONAL LAW, 3, 4.
ISTHMIAN CANAL COMMISSION.

Sale of Materials, Supplies, and Equipments.-The president of the
Isthmian Canal Commission has authority, upon the completion
of investigations by that body, under the direction or with the
approval of the President, to sell, in such manner as will pro-
duce the best results, various materials, supplies, and equipments
purchased and used by the commission, which can not profita-
bly be brought to the United States. 163.

JUDGMENTS.

Compromise. The Secretary of the Treasury has no power, under section 3469, Revised Statutes, to compromise a final judgment

JUDGMENTS-Continued.

in favor of the United States which is clearly collectible. That section only authorizes a compromise of a claim which is in some way doubtful.

JURISDICTION.

18.

1. Land Acquired by United States-Exclusive Jurisdiction.-Where the United States has acquired title to lands by purchase by consent of the legislature of a State, and there was no reservation on the part of the State of concurrent jurisdiction over the lands so disposed of, the Federal jurisdiction is exclusive of all State authority. 254.

2. Same-Service of State Process.-An act of the State of Georgia, passed December 22, 1808, provided that from and after the passage of that act the Congress of the United States shall have and maintain jurisdiction in and over all the lands they have acquired, or may hereafter acquire, for the purpose of erecting forts and fortifications in that State. In 1875 the United States acquired by purchase fro.. a citizen the lands upon which is now located the military reservation on Tybee Island, in that State. Held: That under the provisions of the act of 1808, the United States acquired and retains exclusive jurisdiction over that reservation, and the sheriff of the county within which it is situated has no power to go and serve thereon any process whatsoever issued by a court of that State.

Ib.

3. Same. The act of Georgia of March 2, 1874, can have no application to this reservation, for at the time of its purchase that act was not in existence, and no right on the part of the State to serve civil or criminal process thereon having been reserved, the grant of power to the United States was and is exclusive of all State authority. Ib.

4. Military Roads, though within a State, are not subject to State, municipal, or private control or interference in any way. 283. LEAD ORES. See CUSTOMS LAWS, 8, 22.

LEAVES OF ABSENCE.

1. Employees of the Powder and Ordnance Depots, the National Armory, and Civilian Employees of the Ordance Department.-The act of February 1, 1901 (31 Stat., 746), which grants fifteen working days' leave of absence each year, without forfeiture of pay during such leave, to every employee of the navy-yards, gun factories, naval stations, and arsenals of the United States, includes all employees of the powder and ordnance depots, the national armory, and civilian employees in the service of the Ordnance Department at works of private establishments having Govern443.

ment contracts.

2. Test of their Inclusion.-It is the nature of the duties performed by the employee, and not the place where performed, that constitutes the test as to their inclusion. Ib.

LEGACY TAX.

Estates of Persons not Domiciled in the United States at time of Death. The question as to whether section 29, act of June 13, 1898 (30 Stat., 448, 464), imposes a legacy tax upon the estates of persons who were not domiciled in the United States at the time of death, is not free from doubt. 221.

LETTER ROGATORY.

Porto Rico. There is no law, Federal or State, which requires or authorizes any court of New York to comply with an exhorto or letter rogatory issued by the tribunal of the district of San Juan, Porto Rico, to the judge, tribunal, or court of justice in New York, requesting the latter to order certain persons in that State to appear as defendants in an action instituted in said tribunal. 112.

LICENSES.

1. Secretary of War-Construction of a Wharf at San Juan, P. R.—Prior to the passage of the Porto Rican act of April 12, 1900 (31 Stat., 77), the Secretary of War had authority, under section 10 of the river and harbor act of March 3, 1899 (30 Stat., 1151), to issue a license for the building and maintenance of a wharf in the harbor of San Juan, P. R., and the rules imposed by section 3 of the resolution of May 1, 1900 (31 Stat., 715), upon the grant of franchises by the executive council of that island do not extend to an antecedent license granted by him. 552.

2. Same-Operative until Revoked. The power to revoke the license so granted is vested in the Secretary of War, and so long as it is unrevoked, the rebuilding of the wharf, under such license, is subject to his control and supervision, and not to that of the executive council. Ib.

LICENSE TAX FOR HUNTING. See HUNTING, 1.

LIFE-SAVING MEDALS.

LIQUIDATED DAMAGES.

LOTTERY.

See MEDALS.

See CONTRACTs, 3–7.

1. Bond Investment Schemes. Where a scheme proposes, on account of certain investments by many persons, to return to each something which, as to its certainty, amount, or value, is dependent, not upon the earning or producing power of the investment, nor upon business probabilities or expectations, but upon contingencies over which the parties to the transaction have no control and which they can not forecast, such a scheme has in it and is dependent upon the elements of chance within the meaning of sections 3929 and 4041, Revised Statutes, as amended by the act of September 19, 1890 (26 Stat., 466). 512.

2. Same. Where the operators of a scheme or plan induce others to invest therein upon the promise that upon their doing so and making certain stipulated payments they shall receive a specified return, and it is known by such promisors, or it is so appa

LOTTERY-Continued.

rent that it ought to be known by them, that if such investors comply on their part and continue to make the stipulated payments all can not receive the promised return; or where such promise of return is absolute, but its performance and the ability of the company to perform is known by it to depend upon a continually increasing accession of new investors or upon the lapses and consequent forfeitures of former ones or both; or where payments to previous investors are promised at a profit far beyond what their investments can or are expected to earn, and are made, mainly, from moneys paid in by later investors upon the same terms, with no other provision for the ultimate payment of subsequent investors; or where such promise is absolute but its performance and the ability of the company to perform are known to depend to a considerable extent upon the broken promises and consequent forfeitures of other investors, such schemes are fraudulent within the meaning of these statutes. Ib.

3. Same. Nor is it material in this respect that in any of said sup. posed schemes the business is so successful that the time when the fraud in the scheme will find its victims is delayed indefinitely, so long as it is certain that the time will come sooner or later. Ib.

Ib.

4. Same. These cases distinguished from guessing contests. 5. Same. The principles which govern the Southern Mutual Investment Company and "Claude Buckley's Perfect System," their workings and results, differing essentially from those of the companies passed upon in the opinion of September 7, 1901 (ante, p.512), their contracts, taken in connection with the additional terms and requirements imposed upon the companies by the Post-Office Department, do not so depend upon chance as to bring them within the operation of the anti-lottery stat531.

utes.

6. The Endless-Chain Enterprise whereby A agrees with B that upon the return to him by B of a card accompanied by a certain sum of money and the distribution by him of ten similar cards accompanied by like requests to ten other persons, and upon the receipt by A of all of the ten cards accompanied in each instance by like sums of money, he will send to B a magazine for one year free, and will present him with books or other articles equal in value to fifty times the amount of money originally sent by B, comes within the prohibition of section 3894, Revised Statutes, as amended by the act of September 19, 1890 (26 Stat., 465), which provides that “No letter, postal card, or circular concerning any lottery, so-called gift concert, or other similar enterprise offering prizes dependent upon lot or chance, or concerning schemes devised for the purpose of obtaining property under false pretenses, shall be received,

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transmitted, or delivered through the mails. 200.

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