The sun., 1897-05-15
GOULD INHERITANCE TAX DISPUTE.
The state, the City, and the Executors All hp-
peal from the a1s, 900. 900 Apprnisement.

The state, the City, and the Executors All hp-
peal from the s1s. 900. 900 Apprnisement.
Argument was heard by the Appellate Division
of the Supreme Court yesterday on appeals
from tho appraisement of the estate of tho lato
Jay Gould for the imposition of tho inheritance
tax. Tho appraisement had been made at about
$73 900, 900 on the report of David Mcclure as
appraiser, his report being confirmed by the
Surrogate's Court.
Tho appraisement did not suit the State Comp
trollcr or tho City Comptroller, who appealed
mainly on the ground that in the appraisement
$5,O0O,OOO which was left to George ]. Gould
was declared not subject to the tax because
It was debt of the estate and was paid to him
by his father for services rendered, and on the
further ground that In the appraisement $780,
900 had been improperly deducted for the ad-
ministration of the trust, tho Comptrollers con-
tending that no such deduction from tho taxable
property should be made.
The executors Of Gould also appealed, their
main ground being that the securities Of the
late Jay Gould had been assessed far beyond
their value. The law is that tho securities
shall be assessed Mt their fair market value at
the time Of the death OF the testator. The APP
praisement took about tho mean market value
of the securities as sold on tho Stock Exchange
about the time of Goulds death. For instance,
Missouri Pacific, which sold at the time Of
SOuld = death At from bJ 10 %, was appraised at
54. Manhattan Elevated was appraised at 1913,
although 1t then ran somewhat higher.
Western Union was appraised at s5, although It
had been running up to 81 about this time.
The executors contend that the Stock Ex-
change quotations are sort of retail price as
rule, and that they were entitled TO have the
securities appraised at a sort Of wholesale price
at the figure which, by expert evidence, It
would be shown the stock would bring IL sold in
a lump at that timc. John +. Dillon, counsel
for the executors, said that a pound Of sugar
has its price, and 10000 pounds sold In lump
would have different price pound. The lat
ter would be the wholesale price. and the secur-
ties were here held in Wholesale.
John X. Dos Passos, appearing for the Comp
trollers. said that the law could not expect a
panic to be used to fix the values. and panic
would result from dumping all the securities on
the Street at once. He thought the Stock Ex-
change quotations gave a fair value Of the
securities. As to allowing $5 .000, 900 to George
j. Gould as payment for services and not con-
sidering 1t gift and taxable, he said:
Tho testimony shows that this young man
was taken into his fathers business In order to
keep him from unwise speculation and to in
struct him in the business. The idea that his
services were worth the enormous sum claimed
is simply preposterous. II this provision Of the
will should be SO construed, tho Inheritance Tax
law might as we'll be wiped out at once for any
father could get around 1t by a similar arrange
ment-"
The name of Senator David b. Hill was on tho
brief Of the State Comptroller along with that of
Mr.. Dos Passos but Senator Hill did not appear
on the argument Decision was reserved.