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.. ‘~OFFICE OF THE AfTORNEY GENERAL OF TEXAS 

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AUSTIN 

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,QgwwCMUm~ 

A?mmQ- .:, '.; 

Roaorabia J;, 0. Looney. 

county +Iitor “. 

: Boatbq., Texas : ” :’ 

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shown. in’the 

sdds +mr 6 paid 

$1~ ~‘in other 

WounseL for.‘the ~~~dlninistratrlx’oontends . 

thst th8s.e liquidating &ivid&ids .ar? a part of’ 

the oorpus of the eatata, and. as suoh not subjsot. ‘I’ 

to ‘the oonunlssion of onzehalf of one per cent 

due the County Judge un3ar &!t. 3926, ..RCS, ‘althpugh 

the full amount roproscxta ‘pn inorrask over the 

actual inventory values. 
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’ Eonorable S. D.’ .kooney pace $2 

*Iii taxlny, the coats in this case, should one- 

.heflf of on6 per. cent~oommlsalon bo taxed by the County 

Judge on thla itern~.~of. ,~l~uldati.ng’dlolden0a,?~ 

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In reply ‘to our litqulry ,am ‘to how this ‘iioulda- 

~~0~ ~was~‘hanQ.ad,. your’ &et.tar. of Ootobar 20, 1943, i+ter: 

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., -’ “The .&bsF .oornpai& wound ui b&i&~“& .’ 

’ .. $ald’ oi? the. 3nterest of share holders partly In 

. ‘cash‘ and partly by lssu~oc of:. stock .ln ,a.:new . ’ 

aorporotlon.N . . 

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. ,. hrtldlc .3326g R?ilied Civiiz &tu&&d~ zin 

.j&‘& f,o~lgwe: _’ .‘:yf;:;‘.: .: ..;, . r. : : : .: .: ‘. 

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. . -: “The co&y: Judg’e ahe.ll’:ai$o raoelk the .I 

~.,rf+lowlag:reesr ~, 

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.“1.. .A oommfea’ii.-+; of cne-lialf bi oki peroeht 

up03 the aotual oosh reoelpta’ of: eaoh bxecutor, 

(Idmlnlstrator or~guar~lan, upon.ths approval of 

the exhlblta,and tea fini set$lemen$ oi the” :-<. 

qoa+nt -of :.auoh xksogtor; administrator, or ~ 

euardian,~ .bnt .no’ mojc,ti ‘Ithan ‘on.6 such ,ao&slselon : 

shell ?@ .oh~&ed; ‘On w. k.wiunt received :by ‘any 

suoh ereou~~r;“‘cr~~l?trator’ or, &uardlan.W 

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The an&war to ,your .qvoe,tl?q~: d6pend.a. upon ~a ,. 

Iroper construotiun. of: the term’ “aotual~. ce.sh~~~eailipt?33’~~ail 

csed ln tho sb~ove:statuttir :-Under the iacts asxe?under- ’ 

atsnd them, deaeased ~“bwned .‘stoc$. .!n.. a. ‘qofporatlon at the 

time of. hle death;. Since thtrt time,.’ this asset of .the 

estate hns be.?n ohcu;ged’G fqrm.. In exchange tor thk 

stoc4, the ndminlstratrlx has rrosived. fra?l the ‘corporatlon casi cnd:~aome .stoo& ~&n a ~IFIR oorporatlon. ,: Thi, 

sdninlstr.atrlx-hFie. raported this: tranqaction .in hsr ’ a 

snnusl occocnt recently filed in the ocunty coprt. Do ;‘ 

thess new essets;. abquire$ In ,lieu of: the ,old, ‘constitute 

*sotual ~qash reoelpts.* ‘witbin.. the aeenini; or..-the ‘dbove 

atatute~, ‘, i’, .: ~’ ‘T. .: 

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The contention of oounkel.~ for. ihe admlhlstiatrix. 

as reterred, to.,ln ~yohr .letter i”’ eitparontly based Upon their 

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Honorable 3: D.. Looney pare $3 

interpreta$lon OS the longuace OS the Court OS Cloll Appeala 

ia the case of :Ylllla vs. Harvey, 26 S. X. (2) 288, In whloh 

Cese writ OS error was reiused. In that ease the court 

reviewed a decision oS the trial jud e allowing the oounty 

judge a oommlsslon under Article 392 t , eupr.a, of one-heir 

.Or one .peroent on,oash OS the teatatrl% on, deposit in the 

bank’ at tha. time of her death. The executors appealed from 

the rulln~.mak~ng this allowance. 1Ya quota the Sollowln~ 

excerpt Srom the deolalon OS the, Courts.. 

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“The aOt vary Olsarly has in.vIew the providI& OS. oompensatlon to the probate judge for hIa 

oSSlcIal’oontro1 OS eststqe, based on @the aotual 

oaah reoslpt~’ shown by the exhibits and the SInal 

settlement OS the .aaaoouqt oS the *executor*. But. 

properly cdnstrufng the Aot;,lt Is believed that 

the speOISIo case presented here on appeal may.. 

not be reg’lrded as wl thin. its soope and rr1thl.n 

Its purpose. There Is nothing in: then words or the 

diti.616 to atteoh’ a~ dlff orent mianing Oapabls OS 

eipresalg embracing It. An Independent exeoutor 

Is not .lncluded wIthin the term ‘exeoutor,’ as 

employed In the article, snd the:~term*reoeIpta* 

therein .used~,, does not embraoa Oash on deposit ‘, ,‘ 

ti the bank bats the death OF the teatator. The .~ : 

word .*ifxeoutor* as’ used Is mall6 clear and apa~ltld 

by considering the assoclsted words @administrator 

or guardian. * Judged Sror Its associated words, 

the term ‘exdoutor * wee meant .to refer to the 

exec?utor admInisterIng the estates OS the testator 

under the oontrol OS the probatd oourt. suoh 

olass of exeo’utors are required, ‘as admlnfetrators and guardians are, to present to the probate court In ah exhibit OS ecoountlng; under 

oath,- all sums in oash terlved from sales, 001- 

lectlons, and like sources in due oourse OS admlnIstratlon. The probote &d&e Is required to 

examine and approve all suoh exhibits oS aocountlnc whsn ,dtip presented to him by such exeOUtOr 

or a&lnIstrator or guardian.- The oSflolal situation 

cS an independent exeoutor is dliiarent, and it- 

‘is OtherwIse provided es to his leeal duties and 

euthorlty. The statute of this atote authoriaes 

admlnlstration independent OS the control OS .~ 

prob,e$s jurisdiction wh#:.xo the tes%atOr has 80 

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Ronorable J. D. Lqoney page #4. 

‘. lndlosted by the terms of the tvlli thnt such 16 

.;-. ~h18 a06ire. The independent exeoutor so named 

:. In .ths will.16 qualliled to a ot, and Independently 

of the, probate oourt, fro61 the time the wIll*ap 

poIntlnC him is’ adsltted to Probate.. Colemauv. 

boduoa Co. (Tex.CIt. App.) 204 3. K. 382; Pepper : . 

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II: ‘Galling (Tel. Clv. A.p.) 195 S. V. 892; Roy 

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v.. Ghltaker, 92 Tar. 34 , 4.8 s. x. .ct92, 49 s. 2.367. 

Be need .not neoessarily return sn inventory In 

order to mske hI6 execUtOr6hIp valid. Cooper Y. 

Homer, 62 Tex. 356; i~lllls V. Ferguson,. 46 Tex 

496, .lt ‘Is thou&it. the term l actual oash reoelpts~’ 

should.be held to Sp6OIriOally de6cribe money ,Y. 

” reo.elvad.by the exeoutor other than the 066h or 

oorpus oft ,the estats which was on hand when the 

te8tatOk died, btiosuse th6 Words US& point t0 

:.. end Imply:that meaning.. .tid ,too, -another seotion 

of the: statute,. bearing. upon the same .subjeot- 

:*. f&tar .of Oompea66tfoa,~ make6’I.t evident ,th6t 

suoh was’ the meaning that the Legislature intended 

stiou1d .be put. upon the tern ‘Used In, the’ presently 

. oonsldsred artIol6: The one 6eotIoa of the 

statute. St&d6 '66 the context or the other, and 

‘they-msy’be’comp6red-and read t~cgethar as a 

means of. &vlng.‘ta. the lsuguage~, used ~the maiming: 

.Intended:by~ the LegIsl.ature~ Ry :suoh S~eotIons 

(s.rticle 3689 and. 3690) exeoutoks an& admidietrators 

~.8- allow8a~~commI6sion on “911 s.ums they iaay aotually 

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raoolver Ia:cash* .~but..vhich. shall not InolUde c.ang .’ 

cash which was 0~1 hand at’ the time, or the death ot 

the teststor .or Intestaterg “Also by artiole .4310 

., R.S., ,oo.ihiss’Iona -ore expressli denleq to .the guirdlan 

on *f.Gtate.~*I*- * first delIvered,( .The ‘express shuttltig 

out of a oo~mmlsslon ‘to exeoutors,:snd admInl6trators 

oh ‘Cash’* * *. on hand at the * * *.death OC the 

testator .or Intestate’ ahd to guardlana * on the 

estate first delivered’ Is to. be. taken .a? ‘an .eXprc8sIon 

0: leglslatlve Intent oi tho scope land purpose of . 

cticle 3926. There Is no dtffcrence In the msanIns of. the tcrm6 ‘aotually reo’eive. In oash’ as used 

in article 3689, and ‘aotual cash reoeipts-,* as 

._ used in artiale 3926, ttna testate when .flrst delivered!, 

63 used In art1016 4310. The vary .purpose of the 

etatuta In authorI6icC akexeautor to not Independently 

of control of the probate oourt Is, as statod In 

Ullhelm’ 6 .8State V. Datthews ,(Tex. CIv. App. ) 274 S. Z., 

* 251, 752: ‘To avoid the ulsual 0.08t6 aad b&her. Of 

rsgular admIn16tratIon.W 

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:ocomble. J. 3. Loonsy as’-c ii 

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Claarly, under the nbovo hslain& the omaty 

j&e-‘$9 COt Cdft!tldd t3 il OCtd88iCLi ml OSeh Ofi haad OT 

in tho bmk at the tiae of’.. t,h:a aasth of the 4~0~0nad. ;za 

1 mitw ci fact, t?cle wos the snly ~osua In the oasa. 

;;e at .not 0.3v3m.m the I3*m~e of fhn 4rolaica 80 lzld- . 

1~: by way si diOt4 tblt Uaeh ~lr_oocxUu fra7 disposition 

of tbff’ OO?:US Cf the CStoC0 y&?ht--&i'&~1ai881cia to the 

.cxnty~ 5u.dr.e. In inot, a0 daainioa of our appellate 

. ~tl%l baa t3f~~rtee my oxoer -'ioa ” OS the tqrsa-actual 

~1~1: raoslQt.aw 6s used I& aa:C iMiLo2~ 3924 dCh%t thw 

C-XI&I c;t; &m&. 02 la tha b.snk aa tha dota.,izsi tha daetb .of 

cbe owaar. 

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The f8Ot thct &nCy~ju&.E43 9m antlt:sd t3 a. " : .:. 

fee akufl .lOnOtQ df% a.7:?VCrte& hit0 OtaStl in ths QOW88 Gf . 

p6zfcfsteri~~~nn uct*to 13 sLw !:: Cw dceiolm of tho 

3E~%Ld ~hil‘t +I &ybS Vit. L- ‘:CiS, 134 3. 2. (2) 131, 

fa thit oaoc at th0 time of CYB dontb of the teotatorr.be6' -:. ; 

cimod s 13,WO eora~xanoh; os.zsiderable lluastock PR& ewe. '::: 

ranch a: r1p%xit. Ah of oaid osaetb wuru sold and the -. - . . 

adticl3trritor p&f'thS.then axutty judge bm-hsU ol on9 : 

;zrcent oti the ~roaaoda bf thrr ffalc. 

&a apprzmod the fi~nl dotmat ‘FOF 

A later osxkty ju42g.a’~ 

the eetstc clcrf;o.od the, 

’ 0milff8lh 6bOUUl hhva be= yild w .hl.& and. brou ?d.t. 

xx 0-t 15 rta o~lalcm by ‘fuqtloe’ Sharp, as wsl tha ‘: !‘, . 

Cwst Of .ciV%l +oblS ia its O@ian,. in’daIfyin&’ reli6f >. .+ 

to t!f3 flaw oouaty .JUd~:e, SW.726’.GD Eks It rcw ~rsfito4:. ~’ .et&t cof:vnrslan of tho p.~oper;y of tba oatnta into conh 

armt~~ *actual osah rsoelpta * 3i or!iioh tha jud~,e asrltcd .. 

4 ~az3im310aa, tn4.ia'b.o~o2uslos, the cupr9zis Cowt baldi . . 

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Yaoh oouskfy judge~wss Quid the aQouat Cue hln 

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qnomble J. 0. &n%y pcG:c :6 

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WC are ratbor inclined to tz~mr. tne 

C-kit? JI;dF,e ah~ul.d ba. F;3Lr! a aokiaaion: : . 

. . on nil aot~tl cash rna%ivad by the iida&nlstrator 

x.tlls act⁢ aa wch fro: ttia. ssla of proparty 

owed by deoodent at ths Cfoc of Ido 468th. or r froz tha .oallootl.jn~ of duhts bolqQg t:, the . . 

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. aststa et tho tlsa of his hsnth, OF 0~. . . . ‘. 

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: rentals, ata., ze . .or on sotunl oqah raasfnln6 

. . . . SPOZI the p~onaoztian of tho doaeQeat!r 

buaiae89.m . 

tGcisi63, 

.The .Caaalaslah oi kygxals ln‘revarolny. the 

wotb4 tb.6 .sbovs oxaorpt, apporantly iindl3C 

fault onLo vittr tho lmt 1t.a~ tceaouas it ps not llbaral 

srlaw& It qs th%re held thgt. the $x4@ YI%II mtltlad to ’ 

. s’c~lsal~a on"811 xawl ta of tht? buabvms ro&srdLeao . 

of tha faat- they wer% in f rr~,e masyra pild right out 

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9x1s ~&fcsla 53 zot c;rnSfafsC .to reoslpta 

aPie irm twlas of bzoperty oolleotlon of 

: cobto,- rent- OS prop%?sy, $to; tt sag ba oolleotod 

an. rmdpta’ arlelttg fpoci tha canduet of R btrsinssa 

.e. 

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._ ‘Ii ~dfaacoslkig ona g?~rr af t&t% i&s, tbd Con&asidt: oi hppsals fc the oplniact bet alta+’ anid: 

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%i oxhib,ft tlaua by .a.i arcdutor or aac&aiat:itor. . .abtirq the c.xaCU.i:x3 OS oald sstste 

an4 na sacount oi ell rsonsy roacload anC psid oug ' -~ 

0% scoo-Jnt or talc astste, . . .ab~~ii bs riled 

kltb *,ho oler!c,. 5 . .oftzr r::io!a tbo oourt thall 

imnlna snI4 axS?bit, sac if oorrect, render 

jabigaat of 3~provsl Sbe~e~ md order It to 

b6-.rsoordoU.-i 

A oelreful exas?mtloli oi'tha Lore&a6 outborltise 

- isadi to the 00naluaS05 thst.whcta, in the ao:~mm of ~11 odtlin- 

.. iotratlm, part of.+ aor;un o? the ant‘m3 in csnrbrtac If&o 

exit, the county jti~:e ia sntItl.o\l tn a wr.zaiseio5 on tha 

a:saG h,i ruuh emh. tie aaa no rw&eon why the ama p&xi&8. 

aswld aot apply to the ooah racaIwQ in the atoak Crenaetltm 

1OYOlVCll hcta, as apply la the COD0 OC u-%eh raoo1veu rpoc R. 

snla of.the oorpus o,C tha eatssz or cs& rec!tva! Frm tho 

coll*otlw. of 3 debt ~t'ioh.rmsr prt of the corjm ot the estate. 

lo thIrr cmc, the ~dtinlstrntr::x hsua rllsd har annucrl 6xhlbIt 

.or %ocwt~cho?iln~ the .wcdy txken in in th6 stock liq!&htioa. 

Mar Artlola‘.3321, ~usra, It 2,s ths ?as~onzlbIllty 02 the 

cxrt to appow the st~0oc5t If corrsot. 'iho oxhlbit rmcr;la 

Ust 'can aswt ot %he 6stzta, ~tonic ln. B corporstlon, baa 

m;: cmvartad iato 5 4:frfmnt :03x3. The op~rovsl by the 

JUCEO ot $5~ ncoout ia cfrect @oerr thB court’s starip of 

3rproYtsl on tJl0 tT3ns?otIon by shluk .oalsh and stocr; In a 

aax cor~orotio& WCTB acoapted L;i'Llau oi stock la the old 

'. ~orporstlcn. 

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qonorable J. P. Lboney 

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page .‘:‘8 

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Aooordlhgly we are o? the opiaion that the 

oouut+judee is ‘qntltled to a conmission of one-half, 

of an6 peroent on the aotusl c~h reoeived in the 

l~quidotion tranaaotion, but hs would not be entitled. 

to’s c01nIdSS~On on. the stook rsoeloed in the new 

~rporatlon. 

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Youri vary truly 

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f’8. Arthur Sandlln 

(1’ ‘. Assistant 

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