(" I hereby declare that I am the actual owner of the above-described stock or that the record owner of said stock holds it for my own account and the actual owner is ; that I am or the actual owner is non-residentalien as to the United States; that the record owner of said stock is correctly listed above and that said record owner is the representative in the United States of the under signed with respect to said stock; and that all the informa tion given herein is true and correct.") II. Substitute certificates A. Interest on bonds and other similar obligations of domestic and resident corporations.
i. Tax to be paid at source (white, Form 1059).
(" I certify that the owner of the bonds from which were detached the accompanying interest coupons has filed a certificate of ownership, Form r 000, duly executed . . . and I hereby promise to forward said certificates to the Commissioner of Internal Revenue at Washington, D. C.") 2. Tax not to be paid at source (yellow, Form 1058).
(" I certify that the owner of the bonds from which were detached the accompanying interest coupons has filed a certificate of ownership, Form iooi . . . and that under the provisions of the Income Tax Law said interest is exempt from the withholding of the tax at the source, or that exemption was claimed as stated herein; and I hereby promise to forward said certificate to the Com missioner of Internal Revenue at Washington, D. C.") In the above scheme the declaration in each case is copied from the respective certificate. The Treasury provides that responsible banks may act as collecting agents and substitute their own certificate of ownership for the original. This sub stitution of certificates is to prevent unnecessary publicity of the ownership of securities; it restricts the information to the bank and the Collector of Internal Revenue.
The separation of employments within the department varies much with the bank, but four jobs, at least, can be allocated to specialized clerks. One of these is the marking of places of pay ment; a second is the writing of credit advices; a third is the care of the route sheet and checking the routes; and a fourth is the care of the out-of-town items and the incorrect certificates. The work of this department becomes especially heavy semiannually or quarterly, at the times of interest payments; the busiest times are about January i and July I.
Sorting and Recording the Coupons The first step after the receipt of the coupons and bonds is to sort them into, say, three sections. In the first section arc placed the coupons and bonds which are not due; in the second section, the bonds which are due and those which have been called for payment; and in the third section, all others. Each section is totaled and proved against the grand total. Coupons and bonds not due are filed according to maturity dates. As due bonds and called bonds usually aggregate a large amount, they are handled separately in order to insure special attention. The third section is sorted alphabetically according to the ledgers of the check desk bookkeepers, and an identification number is stamped on each envelope.
The next step is to write the credit advices. These are in duplicate and give the correspondents the following information : date of letter or collection number, face value of coupons, amount of tax deducted, title of the bonds from which the coupons were detached, and the total amount credited. If the coupons are detached from bonds held in the customers' securities depart ment, this information is also stated on the advice. The ad vice slips have spaces to be filled in advising non-payment of coupons and the reason therefor. The carbon copies of these advices are used as credit tickets and have an extended column where the identification number is noted for future reference.
The coupons are then counted and the identification numbers originally stamped on the envelopes are placed on each coupon and also on the attached certificates of ownership. After they have all been numbered and counted, the place of payment is marked on each envelope.
Next the coupons are sorted according to their place of pay ment into, say, four routes, known as "bank," "bankers," "trust companies," and "railroad companies." Each route is then subdivided into as many lots, commonly called "stops," as there are paying agents in the route, and the coupon envelopes are enclosed in route envelopes on which the amount of each coupon envelope is listed and the total stated. The coupons are entered on route sheets, which give the names of the paying agents, the identification numbers, and the total amounts of coupons enclosed in each envelope. The totals are proved against the route envelopes.