United States v. Cutting

The act of 30th June, 1864, is entitled 'An act to provide ways and means for the support of government and for other purposes.' It imposes specific taxes upon a large list of articles manufactured or sold, and prescribes the mode of assessing and collecting them. In addition to these, it imposes certain taxes on all persons carrying on certain 'trades or professions' enumerated. The persons on whom this tax is assessed receive what is called a 'license,' which is the evidence of permission to exercise such trade or calling in consequence of payment of this tax or duty. Among these is the trade or employment of broker, mentioned in the ninth paragraph of the 79th section of the act. Brokers are required to pay fifty dollars for a license. The act also defines the term broker to 'be one whose business it is to negotiate purchases or sales of stocks, exchange, coined money, bank notes, promissory notes, or other securities.' Other species of the genus broker are indicated by the affix to the general term, as well as by special definition, such as 'pawn brokers,' 'cattle brokers,' &c., &c. Besides, the tax paid by auctioneers and the different species of brokers under form of a license or permission 'to prosecute their trade, business, or profession,' they were required to pay certain duties on the sales made by them respectively. Being by means of these licenses brought within the cognizance of the revenue officers, and into a quasi-official relation with them, they were required to make 'returns, assessment, and collection of these duties,' under certain penalties. By the 99th section 'all brokers, and bankers doing business as brokers, shall be subject to pay the following duties and rates of duty upon this sales of merchandise, produce, gold and silver bullion, foreign exchange, promissory notes, stocks, bonds, or other securities, &c., and shall also be subject to all the provisions of the act for making returns, assessments, and collection of the duties.' Now, the 9th paragraph of the 79th section, after defining a broker to be one 'whose business it is, as a broker, to negotiate purchases or sales,' &c., required him also to make oath 'that all his transactions are made for a commission.' This clause might have been construed to forbid a licensed broker to purchase or sell stocks, &c., on his own account, so that his sales being made through the interposition of another broker, might be made liable to tax. But it has been construed to release him from the necessity of making any return of sales made for himself, or from paying any tax on such sales.