New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-05-15
THE GOULD CASE AGAIN.
ARGUMENT TO FIX THE INHERITANCE
TAX UPON THE ESTATE.
ALLEGATIONS THAT THE ESTIMATES UPON THE
PROPERTY WEIRD TOO HIGH-THE 100000


PROPERTY WEIRD TOO HIGH-THE 100000
LEGACY TO GEORGE j. GOULD.
Tho action brought to fix the inheritance TAX y"
the estate Of Jay Gould was argued OH "ppo,
fore the Appellate Division OF the snprelie 80
Yesterday The action was brought U! "eo'eN "
Could and the other heirs in order to nave .',e nv
,or so,,,ad The heirs had paid tax OF so"Vco
hu, the pavment was made subject to subsequent
adjudication. c,,uo ,ho
The estate was appraised by David Mcclure WIN
was appointed the appraiser by Surrogate @ o,
AID Mr. Mcclure appraised the estate al seiV'",V'V
gross and S73OooOoo net value. ana ne hHeu 80"
amount OF the tax at s57S00o. From tNls ueoisio'
both the State and the heirs appeared ino IN
ground for the States appeal was th"' MI ~
Clure allowed a claim for S50oo.oO Tor services ie"
dered by George Gould TO his father TO count DIS
debt against the estate reducing the net Ndiuo oS
that amount Had this claim not been allowed as d
valid deb, the tax would have been Soo'ooo more,
The chief point on which the heirs based their
appeal as brought out. was that the securl'eS'
which constituted the bulk OF tho estate "ero
wrongly appraised They alege that 1t Is the resu-
lar practice in such cases appraise any kind OF
property at what It would be likely TO bring II Of
fered for sale. Now, they allege II all the Eoulo
securities had been thrown on the market at once
there would have been great fall in values lniine-
diatey. Many of the stocks might have gone down
twenty or thirty points more. 1t Is contend
Cd To appraise them at the actual figure quoted on
the Stock Exchange at the time of Mr. Gouds DEAN
was therefore they argue. manifcstly UNFAIR. Ihey
consequently ask for a reduction in the appraised
value.
Ex-senator Hill Is OF the counsel retained by
the State but he did not appear at the argument
yesterday John r. Dos Passes made the argument
for the State. With him were d. f. Dos Passos
and Z. F. Harding Ex-Judge John f. Dillon ap-
peared for the estate. With him were David D.
Duncan and Harry Hubbard. The was heard
Vn,, nj nv
Rumsey, Williams, Paterson and Ingraham.
John r. Dos Passos vas the first speaker. In pro-
ceedings such as thu, OF the Gould estate only If
teen minutes to each side are allowed by the rules
Of the Appellate Division Mr.. Dos Passes asked for
more time, and the Court allowed each side ten
minutes additional Mr. Dos Passos appea'ed for
matter In his brief opening Mr.. Dos Passos mere
to George j. Gould was rot In payment OF any
legal debt, but Uas simply gift and; second,
that the expenses 2f administration should not Dc
Ex-Judge Dillon In mis- argument SAID mat TOT
some years prior TO the death OF NJ G0uid ne nad
cally all the work of attending to his father
business. Considering the magnitude OF the IN,
.erests involved, the amount paid was proper, and
the testimony showed that had been regularly
agreed on between father and son .
garding the Value of the securities, He quoted
from various cases ana said mat the oy way 10
1t will sell for. On this basis he added, the ap-
praised value was excessive . ,,,. .r,o ,.s,,rorv
shows that this young man was taken INTO nls
fathers business In order to keep him from nnwse
The idea that his services worth the enor-
sum claimed s sb Sa
Tax law might as we'll be wiped out at once, Tor
any father could get around it BY similar ar
Mr.. Dos Passos also said it would be unreason-
able to create a panic in the stock market 10 ap-
The decision, Of course. was reserved.