deemed guilty of a misdemeanor, and upon conviction thereof shall pay a fine of not less than fifty nor more than five hundred dollars, or be imprisoned not more than six months, or both, at the discretion of the court. [31 Stat. L. 940.]

The above provisions are given as amended by the Act of March 2, 1901, ch. 806, sec. 6, 31 Stat. L. 940, which amendment consisted only in striking out the proviso of the original section which related to proprietary stamps.

The duty appears to be upon the grantor to place stamps on a conveyance. Farmers' L. & T. Co. v. Council Bluffs Gas, etc., Co., (1898) 90 Fed. Rep. 806.

SEC. 10. [Making or accepting bill of exchange, etc., unless stamped, forbidden.] [Obsolete.]

This provision was as follows:

"SEC. 10. That if any person or persons shall make, sign, or issue, or cause to be made, signed, or issued, or shall accept or pay, or cause to be accepted or paid, with design to evade the payment of any stamp tax, any bill of exchange, draft, or order, or promissory note for the payment of money, liable to any of the taxes imposed by this Act, without the same being duly stamped,

or having thereupon an adhesive stamp for denoting the tax hereby charged thereon, he, she, or they shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding two hundred dollars, at the discretion of the court." The taxes having been repealed, it is doubtful, to say the least, if this provision is now of any force.

SEC. 11. [Foreign bills of exchange payable in the United States.] solete.]

This section was as follows:

"SEC. 11. That the acceptor or acceptors of any bill of exchange or order for the payment of any sum of money drawn, or purporting to be drawn, in any foreign country, but payable in the United States, shall, before paying or accepting the same, place thereupon a stamp, indicating the tax upon the same, as the law requires for inland bills of exchange or promissory notes; and no bill

[Ob

of exchange shall be paid or negotiated without such stamp; and if any person shall pay or negotiate, or offer in payment, or receive or take in payment, any such draft or order, the person or persons so offending shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding one hundred dollars, in the discretion of the court."

·

SEC. 12. [Sale of stamps by postmasters - stamps, how furnished.] [Repealed.]

This section was directly repealed by Act of April 12, 1902, ch. 500, sec. 7, 32 Stat. L. 97.

SEC. 13. [Register, sale, transfer, etc., of unstamped instrument, forbidden.] That any person or persons who shall register, issue, sell, or transfer, or who shall cause to be issued, registered, sold, or transferred, any instrument, document, or paper of any kind or description whatsoever mentioned in this Act, without the same being duly stamped, or having thereupon an adhesive stamp for denoting the tax chargeable thereon, and canceled in the manner required by law, with intent to evade the provisions of this Act, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding fifty dollars, or by imprisonment not exceeding six months, or both, in the discretion of the court; and such instrument, document, or paper, not being stamped according to law, shall be deemed invalid and of no effect:

Provided, That hereafter, in all cases where the party has not affixed to any instrument the stamp required by law thereon at the time of issuing, selling, or transferring the said bonds, debentures, or certificates of stock or of indebtedness, or any instrument, document, or paper of any kind or description whatsoever mentioned in Schedule A of this Act, and he or they, or any party having an interest therein, shall be subsequently desirous of affixing such stamp to said instrument, or, if said instrument be lost, to a copy thereof, he or they shall appear before the collector of internal revenue of the proper district, who shall,

upon the payment of the price of the proper stamp required by law, and of a penalty of ten dollars, and, where the whole amount of the tax denoted by the stamp required shall exceed the sum of fifty dollars, on payment also of interest, at the rate of six per centum, on said tax from the day on which such stamp ought to have been affixed, affix the proper stamp to such bond, debenture, certificate of stock or of indebtedness or copy, or instrument, document or paper of any kind or description whatsoever mentioned in Schedule A of this Act, and note upon the margin thereof the date of his so doing and the fact that such penalty has been paid; and the same shall thereupon be deemed and held to be as valid to all intents and purposes as if stamped when made or issued:

And provided further, That where it shall appear to said collector, upon oath or otherwise, to his satisfaction, that any such instrument has not been duly stamped, at the time of making or issuing the same, by reason of accident, mistake, inadvertence, or urgent necessity, and without any willful design to defraud the United States of the stamp, or to evade or delay the payment thereof, then and in such case, if such instrument, or, if the original be lost, a copy thereof, duly certified by the officer having charge of any records in which such original is required to be recorded, or otherwise duly proven to the satisfaction of the collector, shall, within twelve calendar months after the making or issuing thereof, be brought to the said collector of internal revenue to be stamped, and the stamp tax chargeable thereon shall be paid, it shall be lawful for the said collector to remit the penalty aforesaid and to cause such instrument to be duly stamped.

And when the original instrument, or a certified or duly proven copy thereof, as aforesaid, duly stamped so as to entitle the same to be recorded, shall be presented to the clerk, register, recorder, or other officer having charge of the original record, it shall be lawful for such officer, upon the payment of the fee legally chargeable for the recording thereof, to make a new record thereof, or to note upon the original record the fact that the error or omission in the stamping of said original instrument has been corrected pursuant to law; and the original instrument or such certified copy, or the record thereof, may be used in all courts and places in the same manner and with like effect as if the instrument had been originally stamped:

And provided further, That in all cases where the party has not affixed the stamp required by law upon any such instrument issued, registered, sold, or transferred at a time when and at a place where no collection district was established, it shall be lawful for him or them, or any party having an interest therein, to affix the proper stamp thereto, or, if the orig aal be lost, to a copy thereof. But no right acquired in good faith before the stamping of such instrument, or copy thereof, as herein provided, if such record be required by law, shall in any manner be affected by such stamping as aforesaid. [31 Stat. L. 940.]

This section was amended so as to read as above given by Act of March 2, 1901, ch. 806, sec. 7, 31 Stat. L. 940. The amendment consisted in striking out the words Schedule A" in the first paragraph where it read " mentioned in Schedule A of this Act," and adding in the first proviso the words or any instrument, document, or paper of any

66

kind or description whatsoever mentioned in Schedule A of this Act."

The invalidity of an unstamped instrument can only be declared under this statute when it was left unstamped with intent to evade the provisions of the statute. Wingert v. Zeigler, (1900) 91 Md. 318. See also Cassidy v. St. Germain, (1900) 22 R. I. 53; Hooper v. Whitaker, (1900) 130 Ala. 324.

SEC. 14. [Instrument not to be recorded or admitted in evidence until stamped stamping of foreign bonds, etc.] That hereafter no instrument, paper, or document required by law to be stamped, which has been signed or

issued without being duly stamped, or with a deficient stamp, nor any copy thereof, shall be recorded or admitted, or used as evidence in any court until a legal stamp or stamps, denoting the amount of tax, shall have been affixed thereto, as prescribed by law:

Provided, That any bond, debenture, certificate of stock, or certificate of indebtedness issued in any foreign country shall pay the same tax as is required by law on similar instruments when issued, sold, or transferred in the United States; and the party to whom the same is issued, or by whom it is sold or transferred, shall, before selling or transferring the same, affix thereon the stamp or stamps indicating the tax required. [30 Stat. L. 455.]

Not applicable to state courts. The provision rendering the unstamped or insufficiently stamped instrument not competent evidence in any court is applicable not to state courts, but to federal courts only, when the case does not present the question of the effect, if any, upon the instrument as to its competency as evidence which would result from the omission of the use of sufficient stamps with intent to evade the provision of the statute. Dillingham . Parks, (1902) 65 N. E. Rep. 300. See also Kennedy v. Roundtree, (1901) 59 S. Car. 324; Garland v. Gaines, (1901) 73 Conn. 662; Cassidy v. St. Germain, (1900) 22 R. I. 53; Insurance Cos. v. Estes, (1901) 106 Tenn. 472; Watson v. Mirike, (1901) 61 S. W. Rep. 538; Dawson v. McCarty, (1899) 21 Wash. 314; Knox v. Rossi, (1899) 25 Nev. 96; Small . Slocumb, (1900) 112 Ga. 279; Wade v. Foss, (1902) 96 Me. 230; Wade v. Curtis, (1902) 96 Me. 309. See Ebert r. Gitt, (1902) 95 Md. 186.

The original contract is unaffected by this statute, and, if otherwise valid, it remains

valid, notwithstanding the absence of a stamp, from the written evidence of its terms. When the question put in issue by the pleadings was as to the authority of the agent to execute the instrument, the validity of the contract was only in issue with respect to the agency, and that was a question to be determined by facts outside the document, and its admission in evidence was without prejudice to any right involved in the question submitted to the court for determination. Waterhouse v. Rock Island Alaska Min. Co., (C. C. A. 1899) 97 Fed. Rep. 466. See Armstrong v. Mayer, (1901) 95 Ñ. W. Rep. 483.

At any time before the paper is offered in evidence the stamp may be affixed. Harvey v. Wieland, (1902) 115 Iowa 564.

Depositions taken in another state will not be suppressed for the reason that no revenue stamp was placed on the certificates of the notary public before whom the depositions were taken. Magic Packing Co. v. Stone Ordean-Wells Co., (1902) 158 Ind. 538.

SEC. 15. [Recording, etc., unstamped instruments forbidden.] That it shall not be lawful to record or register any instrument, paper, or document required by law to be stamped unless a stamp or stamps of the proper amount shall have been affixed and canceled in the manner prescribed by law; and the record, registry, or transfer of any such instruments upon which the proper stamp or stamps aforesaid shall not have been affixed and canceled as aforesaid shall not be used in evidence. [30 Stat. L. 455.]

Act of June 13, 1898, ch. 448.

SEC. 16. [Instrument not invalid for want of particular kind of stamp.] That no instrument, paper, or document required by law to be stamped shall be deemed or held invalid and of no effect for the want of a particular kind or description of stamp designated for and denoting the tax charged on any such instrument, paper, or document, provided a legal documentary stamp or stamps denoting a tax of equal amount shall have been duly affixed and used thereon. [30 Stat. L. 455.]

Act of June 13, 1898, ch. 448.

SEC. 17. Exemption of United States, state, county, town, or municipal, etc., bonds, debentures, or certificates of indebtedness.] [Obsolete.]

This section was as follows:

"SEC. 17. That all bonds, debentures, or certificates of indebtedness issued by the officers of the United States Government, or by the officers of any State, county, town, municipal corporation, or other corporation

exercising the taxing power, shall be, and hereby are, exempt from the stamp taxes required by this Act: Provided, That it is the intent hereby to exempt from the stamp taxes imposed by this Act such State, county, town, or other municipal corporations in the

exercise only of functions strictly belonging to them in their ordinary governmental, taxing, or municipal capacity: Provided further, That stock and bonds issued by cooperative building and loan associations whose capital stock does not exceed ten thousand dollars, and building and loan associations or companies that make loans only to their share

holders, shall be exempt from the tax herein provided." [30 Stat. L. 455.]

See Ambrosini v. U. S., (1902) 187 U. S. 1; U. S. v. Ambrosini, (1899) 105 Fed. Rep. 239; Warwick v. Bettman, (1900) 102 Fed. Rep. 127; Noble v. Citizens' Bank, (1902) 63 Neb. 847.

SEC. 18. [Stamp tax on telegraph messages.] [Repealed.]

This section was directly repealed by Act of March 2, 1901, ch. 806, sec. 13, 31 Stat. L. 949, and also by Act of April 12, 1902, ch. 500, sec. 7, 32 Stat. L. 97.

See Kirk . Western Union Tel. Co., (1899) 90 Fed. Rep. 809; Western Union Tel. Co. v. Henley, (1901) 157 Ind. 90.

SEC. 19. [Provisions as to stamps, etc., to include drugs, etc.] That all the provisions of this Act relating to dies, stamps, adhesive stamps, and stamp taxes shall extend to and include (except where manifestly inapplicable) all the articles or objects enumerated in Schedule B, subject to stamp taxes, and apply to the provisions in relation thereto. [30 Stat. L. 456.]

SEC. 20. [Stamp tax on drugs and patent medicines.]

[Repealed.]

SEC. 21. [Re-use of stamps and stamped wrappers.] [Repealed.]

SEC. 22. [Sale by manufacturers of unstamped articles forbidden - articles for export exempted.]

[Repealed.]

SEC. 23. [Monthly statement of manufacturers of compliance with stamp tax.] [Repealed.]

SEC. 24. [Tax on drugs, when to commence

articles.] [Repealed.]

·liability· imported

SEC. 25. [Preparation of stamps -- canceling-sale-discount.] [Repealed.]

SCHEDULE B. [Medicinal proprietary articles and preparations.] pealed.]

Schedule A was amended by Joint Resolution No. 23 of Feb. 28, 1899, 30 Stat. L. 1390, and by Act of March 2, 1901, ch. 806, sec. 8, 31 Stat. L. 942.

Schedule B was amended by Act of March 2, 1901, ch. 806, sec. 9, 31 Stat. L. 946.

Sections 20-25 and Schedules A and B, above noted, were expressly repealed by Act of April 12, 1902, ch. 500, sec. 7, 32 Stat. L. 97.

For cases on section 20, see Johnson v. Rutan, (1903) 122 Fed. Rep. 992; U. S. v. J. E. Iler Brewing Co., (C. C. A. 1903) 121 Fed. Rep. 41; J. Ellwood Lee Co. v. McClain, (1901) 106 Fed. Rep. 164; U. S. v. Stubbs, (1898) 91 Fed. Rep. 608; (1898) 22 Op. Atty.Gen. 272.

For a case on section 22, see U. S. v. Stubbs, (1898) 91 Fed. Rep. 608.

For cases on section 25, see McClain v. Fleshman, (C. C. A. 1901) 106 Fed. Rep. 880; Fleshman . McClain, (1900) 105 Fed. Rep. 610; White v. Treat, (1900) 100 Fed. Rep. 290; Kirk t. Western Union Tel. Co., (1899) 90 Fed. Rep. 809; (1899) 22 Op. Atty.-Gen. 568.

[Re

For cases on Schedule A, see Fairbank v. U. S., (1901) 181 U. S. 283; Treat v. White, (1901) 181 U. S. 264; American Express Co. v. Michigan, (1900) 177 U. S. 404; Nicol v. Ames, (1899) 173 U. S. 509; M'Nally v. Field, (1902) 119 Fed. Rep. 445; U. S. v. Thomas, (1902) 115 Fed. Rep. 207; Treat v. Tolman, (C. C. A. 1902) 113 Fed. Rep. 892; Merchants' Warehouse Co. r. McClain, (1902) 112 Fed. Rep. 787; Bettman v. Warwick, (C. C. A. 1901) 108 Fed. Rep. 46; Tolman v. Treat, (1901) 106 Fed. Rep. 679; McClain v. Freshman, (C. C. A. 1901) 106 Fed. Rep. 880; U. S. . Ambrosini, (1899) 105 Fed. Rep. 239; Trammell . Dinsmore, (1900) 102 Fed. Rep. 794; Warwick r. Bettman, (1900) 102 Fed. Rep. 127; White . Treat, (1900) 100 Fed. Rep. 290; Stirneman v. Smith, (C. C. A. 1900) 100 Fed. Rep. 600; Mastin v. Mastin, (1900) 99 Fed. Rep. 435; Johnson v. Wells, Fargo & Co., (1899) 98 Fed. Rep. 3; Waterhouse v. Rock Island Alaska Min. Co., (C. C. A. 1899) 97 Fed. Rep. 466; U. S. v. Wells, Fargo & Co., (1898) 96 Fed. Rep. 835; Central Trust Co. of New York r. Columbus, etc., R. Co., (1899) 92 Fed. Rep. 919; Kirk v.

Western Union Tel. Co., (1899) 90 Fed. Rep. S09; Farmers' L. & T. Co. r. Council Bluffs Gas, etc., Co., (1898) 90 Fed. Rep. 806; Nicol r. Ames, (1898) 89 Fed. Rep. 144; Crawford r. Hubbell, (1898) 89 Fed. Rep. 961; (1902) 24 Op. Atty. Gen. 44; (1902) 23 Op. Atty.-Gen. 615; (1900) 23 Op. Atty.-Gen. 211; (1900) 23 Op. Atty.-Gen. 139; (1900) 23 Op. Atty.-Gen. 54; (1900) 23 Op. Atty.-Gen. 4; (1899) 22 Op. Atty. Gen. 531; (1899) 22 Op. Atty.-Gen. 447; (1899) 22 Op. Atty.-Gen. 376; (1899) 22 Op. Atty. Gen. 318; (1898) 22 Op. Atty.-Gen. 270; (1898) 22 Op. Atty.-Gen. 192; (1898) 22 Op. Atty. Gen. 178; (1898) 22 Op. Atty.-Gen. 168; (1898) 22 Op. Atty.-Gen. 134; People v. Wells, Fargo & Co., (1902) 135 Cal. 503; U. S. Express Co. t. People, (1902) 195 Ill. 155;

Harvey v. Wieland, (1902) 115 Iowa 564; Wade . Curtis, (1902) 96 Me. 309; Ebert r. Gitt, (1902) 95 Md. 186; Atty.-Gen. v. American Express Co., (1898) 118 Mich. 682; Kennedy v. Roundtree, (1901) 59 S. Car. 324; Dawson . McCarty, (1899) 21 Wash. 314; Moultham v. Apking, (1902) 89 N. W. Rep. 1051; Oliver v. Dougherty, (1902) 68 Pac. Rep. 553; Steeley's Creditors v. Steeley, (1901) 64 S. W. Rep. 642.

For cases on Schedule B, see Johnson v. Rutan, (1903) 122 Fed. Rep. 992; U. S. v. J. E. Iler Brewing Co., (C. C. A. 1903) 121 Fed. Rep. 41; J. Ellwood Lee Co. v. McClain, (1901) 106 Fed. Rep. 164; U. S. v. Stubbs, (1898) 91 Fed. Rep. 608.

SEC. 26. [Drawback on exported tax-paid goods.] [Executed.]

This section is as follows:

"SEC. 26. There shall be an allowance of drawback on articles mentioned in Schedule B of this Act on which any internal-revenue tax shall have been paid, equal in amount to the stamp tax paid thereon, and no more, when exported, to be paid by the warrant of the Secretary of the Treasury on the Treasurer of the United States, out of any money arising from internal taxes not otherwise appropriated: Prorided, That no allowance of drawback shall be made for any such articles exported prior to July first, eighteen hun

SEC. 27. [Tax on persons, firms, companies, and corporations engaged in refining petroleum and sugar.] [Repealed.]

SEC. 28. [Tax on parlor and sleeping car berth or seat.] [Repealed.]

Section 27 and 28 were directly repealed

by the Act of April 12, 1902, ch. 500, sec. 7, 32 Stat. L. 97.

For cases on section 27, see American Sugar Refining Co. v. Rutan, (1903) 123 Fed. Rep.

979; Spreckles Sugar Refining Co. v. M'Clain, (C. C. A. 1902) 113 Fed. Rep. 244; Spreckles Sugar Refining Co. r. McClain, (1901) 109 Fed. Rep. 76; (1900) 23 Op. Atty.-Gen. 178.

SEC. 29. [Taxes on legacies and distributive shares of personal property.] [Repealed.]

This section was amended by Act of March 2, ch. 806, sec. 10, 31 Stat. L. 946. Both the original and amended section were directly

repealed by Act of April 12, 1902, ch. 500, sec. 7, 32 Stat. L. 97.

SEC. 30. [Taxes on legacies, etc. - lien and collection.]

This section is treated under the subject of Legacies and Successions, infra, p. 781.

SEC. 31. [Laws heretofore in force made applicable.] That all administrative, special, or stamp provisions of law, including the laws in relation to the assessment of taxes, not heretofore specifically repealed are hereby made applicable to this Act. [30 Stat. L. 466.]

The provisions of section 3447, R. S., are made applicable by this section to the method of assessment and collection of tax imposed by section 27 of this Act. Spreckles SugarRefining Co. r. M'Clain, (1901) 109 Fed. Rep.

76. See also (1899) 22 Op. Atty.-Gen. 568, in which the attorney-general said that if the part of section 3426. R. S., quoted was still the law, it became part of this statute by virtue of this section.

SECS. 32, 33. [Loans. See PUBLIC DEBT.]