gonorab1.e Gee.

coag3t2olltir of m&R, Taxan pIIsr sir: **OFFICE OF**  **THE ATTORNEY**  **GENERAL**

**_ OF**  **TEXAS**

ELshepperd Publio looounts

at&of’ B des%h. 

### The trullt

, amaw Ln Tami, rttaoktian6 atocico 8ria bond8 kr eorpor#iiona E than Tmum, Unitad tstatqr Umvmrxaenf ‘bonds, nrunioQal bwiA# OS olti.8 ouQountr) bonda, an&a debt 6&e the s~tak **utsida OS**  **I ’** **(IZ(LIJ.** Thi rwt:r2cster or xoept acme of the Twarr reouritier) wwa ofmseloa of Rbmk in wt Pork ror oonuetlwh.3~th8 bhet0nOe tax rOp0rt **rap** the chde8 a. Jonss estate was **filed** recently, ths stockawad bon&?of eorporatlons organl%e& in mteter other thm To%&4 United t3tatss Uovermwnt BoMs, Fw3em1~Land Bmlc bonda, a&oipal bon& of cities outside of Texas, forsign oountry bar&a, on6 thhedebt due the estate by 6.dubtar reaidfui; outetao of Texmi wafo OrPitted fran the ~rpert.gomrable Qco. K. Sheppsrd - 

### Pa&o2

Your dqmrtunt haa 

### taken the riolr that Chsrlm Hf. 

### Jonas* rntlrb 

### 5 par cent 

## intcirat ia the Korgsn Jone~ satats is subj4ot to in.&wrItanoe tax, rqywdless of tha QomIoIle OS tbtl corporation whlah Issued tba bonds and stooks, and cogsr6lers **or** tko physIoa1 Aoobtion of tha certllIoatsa or other svidanous of ownership, UUQyou roqueet our 0&85on whsther t&l8 poeition 1~ sorrtli9t.

The rd.mhg la witiportlmnl portion or Art1010 

### 7117,v. a* c. 3.8

*all projmrty within th* jurIs6Iutioa or thin st8to. real or personal. oocpornts of incorporats, and any intsrrat thuxoln,
. . . . whetbar balonIckrg ?a lRhRbltRnts Of thi8 

## f.itat* or Eo rsonrwho axe not inbsbitanto is l0o*ted ni do ra&ardlasL Of whetr @rsuch proper

or without thIr state, whIoh ash 3 ~88 abrolutsly or in tru&t by will or by the lam of do8oant or dlotributlon
. . . l &m&l, upfmpa+ ofnc; to or ror the wo of any por80u, corpoxatlon, or ar8ooIattoa, ba mbjeot to I tax. . . . u The question of Jur5sbiotioR to tax pa%&rty, both tangible anil intnn&blo, h8r been tha aubJa@t of #uoh &tmous8iw by tho oouxts, md irm t5aa to tba tic prdros 00 wh%ohauoh Jurladlotiim mya baa.8 hate been ohmgod. WmUy, la ourxy 1. MoCanlos8 

### (1939) 307 Lr.s* 

### 357,63 L. Bd. 

### 1339, 593. Ot. 

### 900,123 A. L. il. i62, jurisdlotlon to tax lanfl, tenglbla parumlty and lntaneibls r rsonalty was pleoed rpuerely on ths prataation or banaf t throry of taxation es oorrelated with the oontrol of the laws of the psrtioular statu ovur th0 thine ox prr8on taxed.

In Curry T. &ooCrnlom, dooedunt, a rosidant of Tonnwmm,. tranrrerred oartain stoek8 anCbonde to ‘anAlabama trust oorporation by truet Sndeatun, rssclrving the inoarrul for Use, tnu powrrrto rimovo the tru#Eae and substltuts snOther, the powerto dirooc sale and investment of tha trwt P ropwty, crndthe powsr to dispose Of the truet Bststs by hmr ast will. anC tcrstamant. tint51 d%%%dmt’% death the srldencnr Orthe intmeiblwa wwre losetafi 51iiU.sbsnui sod thti **trust** oarporatfw edmb5aterud tkio trust tn that stat%. nt her death, dsoctdent urrrrclaisd the reevrved power **or** +smt&wntorg dispo~+ **tiOA,** kad bequenthed the LnrPt &TQ&W?tY to thu Sami trustsct, 

### 555 i.J

but ohangQ(L

W&i original trust indmtura a8 to awunte end eatutaa. Deodsnt S'urther aypolntcra T~a~888Qa and Alabaa@ trust c~mpanioa &cutorU 

### as to thepropaftioa whioh ahe might own anb havetbe right to Cuapoao of by will k ths rtrrpwatlva atate&. The exQwtore brou&t suit i&the ohanaery eowt of Tenneaau agalnati the to%oftiolal8 

## orRlabama tadTe.mes8ee

Draglng for a Qaalaretorg ju~nt to 4eteiaUs the portl(3ae of the artate taxabl+ by the napaotfvo 

### atat88.

m0 8th WU.Xk th88RUa thatthedU8p~008~ 0~8U88, au

### t40wbruttabypcerloua 0aseain theaupw* Court (rarmr8

tazlng thu trumfer and that ON or t&e ethw ha&to be aaloatd sr tha l

ltua of.th8 

### intan&blra. Tha &%pruaeCourt, tn u1 oplnlon by 36#u held Ohat botkA1abppI and Tonnaasor had ~urlaaioblQn, utlL5wl bg PUBpxQcrrr, to l8pQre a cloa6h 68x ORtraRarar or 6h4 tnt4la&1b198. airtrbi001Qn 60 68x W&8 *@aa 

### M the 

### p;poteotiM

or budit theory. Hawmrar, tan(blblo

an4intanglbla porsaralty uery 4iotlngulahad 0.0 the gxound that in the oeae or the forrscrr oontrol oopld b8 8xwtad 0181: am3 proto otiQn

l isorQra to the 

### pbpaleal alJag, 

### uhm.8* theoaae 

### 0r thelatter the 

### aourtaaid 

### (307U. 6. at 369)~:

“Vw?gU!ferbnL couddoratlona, both th~oretloal 

### .a& praotlomi,

app4 **to**tblv tautlon 

### orlntas&blerr, that &a, rights whloh are not rrlabo4 to phyalraf thinji. Swh rlghtr UF* but relatlctaaU~a **batwean** pa~~ona, na6ural or 

### uo+arat%, u&&ohthe 1mu,raooqnine8 by 

### attaohix~g

**to** t&a,nr

oortala maotiono canfoteal b&in owrta. Tha gowar of ~ovammant Qvlr thea and rho proteotfon whioh lt slvaa thoa ouaad~~, bo rxartml throw oQxitro1 of a phyalwl thing. They ma ba made effrotivc only thxoggh oontrol QVW and pxot@otlon affor4od to thoaa pereoaa whoa% relationf&i&t@ are tha origin of t&m ri@ha

. . . . * . l . .

*&ire, for resaona of her awn althou@ &mleLleB ia **Tonnsaaer** a the teatstrir, en 

### l ~joy&g bhe benerita Qt it8 **1~8~8,** found it 84vantegcow to orsat a **trust** of lutanglblua Lnldd+ama 

### by veaLlag legal01th to the $ra$a&dblea **end limiteb**  pOwern Ot oontrol over them In ~lsbsnra. But she alw 

### provi&trd 

### t&it by resort to her powar ‘to dl~rpoau @f proprilrty by nlll, conferred ;?DOUhur by the li:wof tha &ml.- atle, tii~ truss%cou.l.8 br;bem.inatedmih the proptrrty 

### pit88uafir tka will. she thus oreated Lwo cuts of lag81 rolatloP&hlpa reaultiry; tii dlatlnat. lnteqlble .i&hto, the QDB oabodiad in tha lee1 ornwrrhip by the Alabama trustee of the intangfblrs, the other 

### omboalbdiA the opuitabla right Of tha 

### abObd8ntta oontrol the notion 

### or the truatee alth 

### rriepeotto the trust 

### property and to oompd it to pay over to her the irlooes aura her 

### iirc, and in her power to Qlspoao of the property at Qoath. "
. . . . 

### “&henaoss*erlLy invoked the crld or the law Or' both atates, ani¶hor logateoe, before thay 0~1 aoIour8 **Ona @55Qy**  

### thb benefit8 Of **8UOOb88iQR~** 0Wt bVOk6 ths law Of bat&." It 

### la evldant that the L.cgalownership of t&e AI.80 bai!katruakt, we0 baffiolant to Jurtlry th8 impQrition of,a train that atata.~ ~bvenunder the old ,idra Qf loealielng of ixsta~&bl#lr, it met be oonosd~Q, an 

### did Butlar in hi8 din&ant, that Alabaa ha& thr $irisdiotlon to tar on the bsaia of *buaineaa aitua.w

A si.mlharrituatlok *au prsafmta~ in Qravbs vc 

### islllott, 307 u. 6. 383, 83 L. &CL 1356, $9 ii. ct. 913, and the JiirlsdiotiM Of the St6k *rhiQh**W&8** talc **slitUe Of**  thtt tl%Qt, tO,taZ wan beyond **gwatl~n.** 50 ala0 la rrdam of prfaprty taxi 3928 Dttpoalc an& Tru8t Co. VI Ylrc;.icls, 280 LT.S. 83, 74 

### L+ &I. 76, $6.Y. ct. 59, 67 X. 3.. it. 386, &a al8.0: 18 

### Taxen LawAcavkw

The QsOtWtion, btnofit alidOORtTOl theory Of taXatlou of htwglblea was reafrirawd by tiha Lupraew Court in &t&o TQXColiwisaion of Utah v. ~xldrlch, 316 U. j. 174, $6 l.. id. 1358, 62 3. dt. 1008.

$0 here, Chrrrlae 11. Jowe* lntc;rest in thy Wrgan Jwirro truet **is** taxab1s under aithar theory. Thhetruut 0~s its **exiatanocr to**  **th-i law3**  **of** t&r:**stat6 0P**  **T~omm. T6x6a**  law

t