methods of designating the employment of such property. (Anderson v. Farmers' Loan & Trust Co., 241 Fed. 322, 1917.)

Deposits are not the property of the depositors, but of the bank receiving them; the relation of a bank and its depositor being that of a debtor and creditor, so that deposits and investments are equally assets of the bank. (Id.)

The collector of internal revenue, having been informed by the officers of a trust company that it was engaged in a banking business, may, without requiring a further return, when the one made by officers. failed to disclose the amount of the company's capital and surplus used in the banking business, proceed in accordance with Revised Statutes, section 3176, to assess the tax imposed on such property by this act. (Id.)

Though a return did not furnish a basis for the assessment, the collector's assessment against a trust company engaged in the banking business under this act is prima facie valid.

For a trust company doing a banking business, assessed under this act to recover the amount of an asessment on the ground that it was imposed on funds not used in the banking business, the trust company has the burden of showing that the tax was not in fact due. Proof of irregularity in the method of assessment is not sufficient. (Anderson v. Farmers' Loan & Trust Co., 241 Fed. 322, 1917.)

A bank which, in addition to its banking business, acts as trustee, receiver, executor, or administrator, or engages in underwriting or promoting new enterprises, or refinancing old enterprises, or buys and sells securities on its own account for profit, is subject to the tax imposed by the first paragraph of section 3 of the act of October 22, 1914, upon the total amount of its capital, including surplus and undivided profits, unless it be shown that a specific portion of its capital is used in such other business and that such use does not constitute banking. (Fidelity Tr. Co., of Baltimore, Md., v. Miles, Collector; and Baltimore Tr. Co. v. Miles. Decided in U. S. D. C.

Dist. of Maryland, 258 Fed. 770, 1919.)

That a bank deals on its own account in stocks and bonds or other securities does not exempt the capital employed therein from the special tax imposed by section 3 (1). (Id.)

That a corporation engaged mainly in the business of examining and insuring real estate titles also carried on a savings bank business, which it keeps separate from its other business, such other business not affecting it, except as giving it credit and facilitating the getting of customers for its bank, does not make the total amount of capital, surplus, and undivided profits used in the insurance business subject to the special tax imposed by act of Congress October 22, 1914, section. 3, paragraph 1; the amount used in the banking business as such only being subject thereto. (Title Guarantee & Trust Co. v. Miles, 258 Fed. 771.)

Section 3 (8)-Proprietors or agents of all other public exhibitions or shows for money not enumerated in this section.

A corporation using the term "Lyceum Bureau" in its title, engaged in the business of supplying Chautauqua and lyceum courses throughout the country with lecturers and entertainers, is subject to tax on professional show features, for they do not fall within the exception in the act. (Redpath Lyceum Bureau v. Pickering, 251 Fed. 49, 1918.) Petition for writ of certiorari denied in United States Supreme Court, 246 U. S. 677.

The expression "lecture lyceum" as used in the provision of this section excepting the same from tax liability does not include independent show units engaged for certain occasions by lecture bureaus. (Id.)

SECTIONS 5 AND 6-ADHESIVE STAMPS.

TAX ON INSTRUMENTS.

SEC. 5. That on and after the first day of December, nineteen hundred and fourteen, there shall be levied, collected, and paid, for and in respect of the several bonds, debentures, or certificates of stock and of indebtedness, and other documents, instruments, matters, and things mentioned and described in Schedule A of this act, or for or in respect of the vellum, parchment, or paper upon which such instruments, matters, or things, or any of them, shall be written or printed by any person or persons, or party who shall make, sign, or issue the same, or for whose use or benefit the same shall be made, signed, or issued, the several taxes or sums of money set down in figures against the same, respectively, or otherwise specified or set forth in the said schedule.

TAXES UNDER SCHEDULE B.

And there shall also be levied, collected, and paid, for and in respect to the preparations, matters, and things mentioned and described in Schedule B of this act, manufactured, sold, or removed for sale, the several taxes or sums of money set down in words or figures against the same, respectively, or otherwise specified or set forth in Schedule B of this act.

PENALTY.

SEC. 6. 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 thereupon 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 $100, at the discretion of the court.

SECTION 5 STAMP TAXES.

(See cases under section 22, Schedule A, for tax on specific instruments; Schedule B for proprietary stamp tax.)

Under section 5, imposing a stamp tax, and section 6, imposing a penalty, and section 11, in regard to registering, issuing, or transferring any instrument without the tax, the stamp need not be attached to the paper before the paper is signed or partially executed if it is subsequently affixed before the paper is issued, as the

word "or" is disjunctive as to persons but conjunctive as to a complete act of making, signing, and using. (Home Title Ins. Co. of New York v. Keith, 230 Fed. 905, 1916.)

The grantee of land named in a referee's deed executed as part of an action for the foreclosure of a mortgage is a person causing the deed to be issued, and for whose use and benefit it is issued within sections 5 and 6 of the act so as to impose on it the duty of seeing that the stamps thereby required to be affixed are affixed. (Home Title Ins. Co. of New York v. Keith, 230 Fed. 905, 1916.)

(U. S. C. C. A. Mass.) Within war tax law (Oct. 22, 1914, sec. 5, Schedule A), imposing a stamp tax of 5 cents on each $100 of face value, or fraction thereof, of certificates of stock issued by any association, company, or corporation, such tax must be paid on certificates of shares issued by a manufacturing company organized in the form of a trust under the common law, and deriving none of its rights, benefits, or qualifications from any statute, and which was not an ordinary common-law real estate trust; for, if the word "association" be not broad enough to include the concern, it is included in the expression "company," while the phrase "certificates of stock" discloses no intent to exclude common-law associations or companies, but evidences a legislative purpose to impose a stamp tax on certificates of stock as muniments of title. (Malley v. Bowditch, 259 Fed. 809, 1919.)

War tax law (Oct. 22, 1914, sec. 5, Schedule A), imposing a stamp tax of 5 cents on each $100 of face value, or fraction thereof, of certificates of stock, issued by any company, association, or corporation, is not invalid in its application to a manufacturing company organized as a trust at common law, on the theory that it was inapplicable to other associations, for the taxes were merely on the muniments of title, and if other associations do not issue such muniments of title they are therefore not taxable. (Malley v. Bowditch, 259 Fed. 809, 1919.)

State agencies.

Section 5 as applied to a deed executed by a referee appointed in an action to foreclose a mortgage is not invalid as imposing a tax upon the State's exercise of its governmental functions, as the tax imposed is an excise tax on the business transaction involved in the purchase of the land and its transfer to the purchaser, and the transfer is in its nature the same as any transfer from one individual to another. (Home Title Ins. Co. of New York v. Keith, 230 Fed. 905, 1916.)

While this section does not apply to a warrant of attorney authorizing an attorney at law to appear in an action on behalf of the maker, it does apply to powers of attorney generally, distin

guished from warrants of attorney, in that they authorize laymen to act as attorneys in fact; and hence a general letter of attorney, authorizing the appointee to act for the signer in bankruptcy proceedings must be stamped.

The imposition of a stamp tax on certificates of any description required by law, not otherwise specified in the act does not render a certificate which is required to enable some officer of the court to exercise his functions, or to do some act connected with the administration of the Government liable to tax, but certificates required of such officers by private persons are liable to such tax; and hence a referee in bankruptcy properly refused to certify an order approving the bond of the trustee, unless an internal-revenue stamp was attached thereto. (In re Hawley, 220 Fed. 372, 1915.)

The tax under section 5 on a deed executed by a referee appointed in an action to foreclose a mortgage is not a tax on the State's exercise of its governmental functions, as the tax is on the business transaction involved in the purchase of the land and its transfer to the purchaser, and the transfer is in its nature the same as any transfer from one individual to another. (Home Title Ins. Co. of New York v. Keith, 230 Fed. 905, 1916.)

Revenue stamps of the proper amount must be attached to a deed executed by a master in chancery or other court officer empowered by a Federal court to make a sale of land and execute a conveyance, as a master appointed for such purpose performs no judicial function, and the tax is not imposed on a proceeding by the court but on the litigants. (Crawford v. New South Farm & Home Co., 231 Fed. 999, 1915.)

Cost of stamps.

The cost of internal-revenue stamps attached to a deed executed by a master in chancery empowered to make a sale of land and execute a conveyance will be taxed as a part of the costs of the case. (Crawford v. New South Farm & Home Co., 231 Fed. 999, 1915.)

SECTION 6-PENALTIES.

See cases 1 and 2 under section 5, and cases 1 to 4 under section 23.

SECTION 11-REGISTERING, ISSUING, ETC.

PERSONS REGISTERING, ISSUING, ETC., ANY INSTRUMENTS, DOCUMENTS, ETC., WITHOUT STAMP-PENALTY-VALIDATING INSTRUMENTS.

SEC. 11. 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 $50, or by imprisonment not exceeding six months, or both, in the discretion of the court: 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, 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 $10, and, where the whole amount of the tax denoted by the stamp required shall exceed the sum of $50, 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, 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 original 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. Documents, etc., without stamp.

(See case 1 under section 5 of this act.)

SECTION 22-SCHEDULE A.-STAMP TAXES.

Bonds, debentures, or certificates of indebtedness issued on and after the first day of December, nineteen hundred and fourteen, by any association, company, or corporation, on each $100 of face value or fraction thereof, 5 cents, and on each original issue, whether on organization or reorganization, of certificates of stock by any such association, company, or corporation, on each $100 of face value or fraction thereof, 5 cents, and on all sales, or agreements to sell, or memoranda of sales or deliveries or