United States v. Chamberlin

156 F. 881, 84 C.C.A. 461, 1907 U.S. App. LEXIS 4744
Court of Appeals for the Eighth Circuit·Decided October 17, 1907·No. No. 2,422·Published·Cited by 5 cases

Opinions

PHILIPS-, District Judge.

In 3 905 the plaintiff in error, the United States of America, instituted this suit in the United States District Court for the District of Colorado, to recover of the defendants in error, as executors of the will of Winfield Scott Stratton, the sum of $4,883, the amount of revenue stamps alleged to be owing by said estate on a deed of conveyance made by said Stratton on the 23d day of May, 1899, conveying to Stratton’s Independence Limited, a corporation, certain mining property located in the Cripple Creek mining district of Colorado. The petition alleged that the consideration expressed in the deed was $4,850,000, on which revenue stamps were placed amounting to $4,850; whereas, the true and actual consideration for the conveyance was $9,733,000, leaving the amount of stamps due $1,883. The court below sustained a demurrer to this petition. To reverse this judgment the United States prosecutes this writ of error.

The question for decision is, can the government maintain the action of indebitatus assumpsit for the recovery of such tax? The tax claimed arose under what is popularly known as the “Spanish War tax,” provided for by Act Cong. June 13, 1898, c. 448, 30 Stat. 448 JU. S. Comp. St. 1901, p. 2284 (2 Supp. Rev. St. No. 8, 1897-1899)]. Under Schedule A it is provided that on a deed conveying lands, ten[882]*882■ements, or other realty, "the purchaser or purchasers, or any other person or persons, by his, her, or their direction, when the consideration or value exceeds one hundred dollars and does not exceed five hundred dollars,” shall place a stamp of 50 cents, and for each additional $500 or fractional part thereof in excess of $500, 50 cents. Section 25 of the act provides:

“That the Commissioner of Internal Revenue shall cause to be prepared for the payment of the taxes' prescribed in this act suitable stamps denoting the ■tax on the document, article or thing to which the same may be affixed.”

The act specifies what the penalty and consequences shall be for a failure to attach to the instrument the required stamps. Section 7 declares:

“That if any person or persons shall make, sign, or issue, or cause to be •made, signed, or issued, any instrument, document, or paper of any kind or ■description whatsoever, without the same being duly stamped for denoting the tax hereby imposed thereon, or without having thereon an adhesive stamp to denote said tax, such person or persons shall be deemed guilty of a misdemeanor, and upon conviction thereof shall pay a fine of not more than one hundred dollars, at the discretion of the court, and such instrument, document, ■or paper, as aforesaid, shall not be competent evidence in any cohrt.”

Section 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.”

Section 13:

“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 Schedule A of 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. [The proviso of this section authorizes the subsequent validation of the instrument by placing the stamps thereon.] 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.”

Section 14:

“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 iamount of tax, shall have been affixed thereto, as provided by law. * * * ”

[883]*883Section 15:

“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 tlie proper stamp or stamps aforesaid shall not have been aiiixed and canceled as aforesaid shall not be used in evidence.”

These are the only provisions of the statute respecting the manner of obtaining the revenue from such conveyances, and they contain the only remedial provisions for the enforcement of payment. The language of section 25 clearly enough indicates that “the payment of the taxes prescribed' in this act” shall be by “suitable stamps denoting the tax oil the document,” etc. These were to be prepared by the Commissioner of Internal Revenue, and when bought from the local collector they were to be affixed to the instrument by the vendor or the vendee. No antecedent assessment was provided for or contemplated in respect of this character of tax.

Reliance for the enforcement of the payment of the tax claimed in this case as a debt owing to the government is placed principally upon the decision in Savings Bank v. United States, 19 Wall. 227, 22 L. Ed. 80. The tax in that case was based upon Internal Revenue Act July 13, 1866, e. 184 (14 Stat. 98), which levied a tax of 5 per cent, on bank dividends. The tax was to be paid in money by the bank on the stock of the shareholder. The list or return was required to be made and rendered to the assessor by the bank on or before a given date, in which any dividends or sums of money became due or payable, and the president, cashier, or treasurer of the bank was required to annex thereto a declaration, under oath, in form and manner as prescribed by the Commissioner of Internal Revenue, that the same contained a true and faithful account of the taxes aforesaid; and for any default in making or rendering such list or return, with such declaration annexed, the defaulting bank should forfeit as a penalty the sum of $1,000, and for failure to make or render the list or return, or for any default in the payment of the tax as required, the assessment and collection of the tax and penalty shall be in accordance with the general provisions of law in other cases of neglect and refusal.

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United States v. Chamberlin, 156 F. 881, 84 C.C.A. 461, 1907 U.S. App. LEXIS 4744 (8th Cir. 1907).

156 F. 881 (United States v. Chamberlin) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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