New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-16
JAY GOULUS HEIRS OBJECT.
TO RESIST PAYMENT OF TIE FULL INFER,
ITANCE TAX.

SENATOR HILL TO REPRESENT THE STATE IN
THE IITIGATIoN-THE sum IN DISPUTE
$50, Ooo-INrEHFSrINt3 POINTS INvOLED.
FROM TIE REGULAR CORRESPONDENT OF THE rRInUSrI
Albany June 15.-The heirs OF Jay Gould are going
into court make a contest with the state as TO
the amount Of state they ought to pay under the
Inheritance Tax law. They have paid 100000
conditional to the state, but they object to handing
over S.50,OOO additional. which the state Controller
and Controller Myers OF New-iork. think is due
from them: consequently there will be argument
upon the matter before Surrogate RANSOM Of New
York. and afterward probably before the Court OF
Appeals. TIE state claims S15O.o0O; the Gould
heirs apparently will pay 100000.
II cannot be- said that Controller Campbell Is much
surprised that the heirs OF Mr.. Gould should en-
deGvor 10 secure reduction. BEING descended from
such an asiule hnanclcr. they would belle their
ancestry II they not to make stout resist
ancr To the state getting more than they think IS
due from them. Controller Campbell. therefore. at
the request Of Controller Myers has appointed Senator
David Il. I'LL and Benjamin r. Dos Passos to repre-
sent the stnte and to defend its interests before
Surrogate Ransom and later, II necessary. before the
Court OF Appeals.
Mr.. IiIl IL NAV not BE- generally known has
opened n law office In this city, In the Merchants
Bank Binding. in Broadway, near safest. One
In biz gold letters upon trans0m over the street
entrance TO the building. Law Once. David b.
Hill'. and also below npOn level with the street.
attached to IN. door, a wooden sign bearing upon
It's curved front In golden letters the words: Law
Onircs, David b. Hin. John A. stephens" Mr..
Hll and Mr.. Stopaons. young lawyer, are not In
partnership but they hire three rooms Jointly.
Mr. I'M has the largest OF the rooms which are
on the second floor and which all face ipOn Broad
way and he has already moved into It his splendid
law library His working desk Ia Of the roler-top
variety and here Tie Tribune correspondent found
him at work to-day.
ayes Mr. I'LL said, when asked II he had been
engaged rs the states counsel In the Gould case.
"Controcr Campbell has employed me 10 represent
the State In that case, and hnve alrendy done con-
siderable work upon IT,. BENJAMIN F. Dos Pass0s, OF
York. Is my associate. and he also has done some
work In the prefer not 10 say anything about
our work. however, at this time. Controller Camp
bell or Deputy Controller Hyson is at liberty. how
ever. TO relate the states and II were you
would 60 to one Of them
1 Mr. I'M was doubtless engaged by Contrdler
Campbell 10 manage the states case against the
Gould estate not only because he is an excellent
lawyer. but also because he signed the Nedder In
hertance law Governor. in 1896 and also signed
many amendments to that law. Moreover. three or
four months ago Mr.. IIill successful as the
counsel OF the State before the Court OF Appeals
I'm the Prime case. This WIS case where colleges
and a missionary society, which had money willsd
TO them by +. ID. g. Prime. strove to escape paying
the tax under the Inheritance law. Mr.. Hill was
then opposed BY Austin Abbott and william H..
Arnoux who argued that the foreign colleges and
societies which they represented were exempt from
taxation since domestic colleges ana charitable
societies were exempt from such taxation under the
Inheritance law. Mr.. Iiill argued that domestic
colleges and societies exempt, but that foreign
colleges and societies were not he won his case,
thereby saving the State Treasury several hundred
Thousand dollars.
Deputy Controller lIuson said there Were several
points Of much interest In the Gould The could
heirs" h. continued, "claim that Jay GOuld's be-
guests OF S5,0OO0O0 to George COULD is not taxable
under The Inheritance law, asserting that II pay
m,nt OF service, rendered hy George Gould to his
father and that 1t is declared In the Will. Being
debt they argue that II is no part Of the estate and
must be disrcgarded. all debts are dsresarded.
That H. IL be deducted from the total assets OF
JAY Could other debts are deducted. In order to
dl .cov-r the net value of his property. The state
will dispute this caim In our opinion, 1t would
BE- "A dangerous innovation TO permit the deduction
such Nh enormous amount 100000 from an
estate under Il plea that 1t was pay for services.
suoh u gigantic payment for services was never be-
fore known. We shall therefore resist the DEDUCTION
Of this So,OOO.O0o. or ratntr, Mr. iil ana Sir. Dos
fasaOs, iOi the state, Will resist It.
Are there any other point, Of dispute :"
u
Gonlds stocks Is disputed. David Met lure. lead
Ing lawyer New DIRK. Is the appraiser, ana his
appraisal is disputed Judge Lillon, John T.. Davies
and Others viii appear Tor the Gould estate IN
this matter Of v,hang the stocks. II Is, indeed a
difficult matter to value railway and telegraph stocks
Take Western Union, for instsnce III my memory
serves me right, when Jay Gould died, on December
L. loD2, Western Union was selling Vt about OIL
IL fell In value for week after his death. nn'ii
IL reached 50 -, and then began to rise
until II reached 1Oi. Then there came crash
I'm Wall street aud II sank to 90
Missouri Pacific also has hnd u Hg tumble In Its
market price. At what time should the State vaiuc
these stocks ! remember that certain people Il
month alter Mr.. Gould's death showed that by the
nuure, OF the stock market his estate had increased
I'm value from $780, 900 to 49, OoOOO F:w
pcrsoli, would dispute row that II cou.d be sold for
les, than when Mr. Gould died Judging simply by
IN, prices OF his stocks In the stock market
What has boon your method OF computing the
value OF railway telegraph stocks. any Kind OF
stocks which held by the heirs OF dead man, and
which srcud pay tax ~
=" We followed the method" answered Mr.. liison.
:. I'm The case of II man named Tl0mp,on. who died
i'm saratcga County leaving about $-,OoO,cOo In
stocfs of taxing their average value for three
months before his death and three months aternard
/ think that method just one. ana that II should
he followed in the case OF the Gould estate"
The Gould case thus promises TO be csecbated
preat on Of the Inheritance law This law was
roner Campbell informed the legislature that In his