Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1898-01-12

of which is 81, ATS 81. And let me ask right here,
b as the city of Watertown In this gift from the
d deceased Mr.. Cole which it rightly prizes
highly, received anything more in ANY OF THE
than an estate in remainder? Ger
tainly not; because all the property given to
the city is subject TO the life estates therein of
the widow and son of the deceased Ii the IN.
terest of the city in the other property is OF
concededly great value, why should not the
estate In remainder in these two parcels be or
value IN proportion? Certainly L cannot as,
sumo that 100 acres of land near the populated
part of the city of Watertown, whose present
appraised value is $1050O and which is only
subject to the life estate therein of person
now 40 years of age, will not bring more than
$780, On the contrary, [ am convinced that it
will bring amply sufficient to pay all debts and
expenses of administration and other charges
properly chargeable against the estate of said
deceased. 1t is only after it appears that it is
insufficient for that purpose that the city could
consent or the Court have power to authorize
the executors to use a part of the general, that
is, trust estate to make up the deficiency. If
the city in return for the use of part of this
trust estate for the payment OF debts, funeral
expenses and repairs under the agreement were
to receive these two estates in remainder
should be still more reluctant to disturb the
agreement, but would be inclined to consider
it in the nature of a wise investment OF the
trust fund; but as it now stands [ am COM
PEELED to hold that the proceeds of the sale of
the homestead can only be used so far as they
were used in paying for permanent improve
ments which increased the value of the build
ings improved in proportion to the money ex-
pended so as to amount to proper re-invest-
ment of trust funds.
1t therefore becomes material for me to de-
termine whether or not the items charged in
the account Of the executors or trustees as per-
manent improvements were in fact such, and II
not wholly, then to what extent. The will directs
that the executors shall keep all buildings in
sured and in PROPER STATE OF REPAIR" and
out of the rents, issues and profits thereof to
pay the costs of said repairs and insurance and
the annual taxes and assessments that may be
levied and assessed upon my estate and ex-
pense of administering said trust" 1t further
provides for such compensation for the services
of the trustees as the county judge may from
time to time fix and allow. The executors
have submitted two accounts, one purpOrtlng
to be their account as such executors and the
other their account as trustees. Both are based
upon the agreement with the city, permitting
the use of the 81, U0O received from the sale OF
the homestead to be used in payment of per-
manent improvements and the other charges
above referred to and the undertaking on part
of Eliza G. Cole and Oscar A. Cole to pay out
of the income all the remaining charges Of
kind and nature There is no at
tempt made by the executors to charge them
selves in either of these accounts with the in
come from the trust estate nor to render the
Court any account thereof or detailed state
ment of its condition. The account made by
them as trustees credits them for
Permanent improvements on Coles
block and just debts 81 1872 81
Taxes 1898 homestead and permanent
improvements Harvey block: ,1S4 SO
Permanent improvements Second
street barn S16 w
Permanent improvemt Marshall farm zoo 80
Expense of sale of homestead .......... 80 90
Total ................... ............. 81 ia OF
And it charges them with the proceeds
of the sale of homestead. 600 90
Leaving a balance due the trustees Of. STA VI
Which they apparently assume will be paid out
of the income IN accordance with Eliza G. and
Oscar A. Coles agreement. 1t Is exceedingly
difficult to ascertain from these accounts and
the account filed on the 10th of June, 1897, and
the evidence taken upon this hearing, the exact
liability of the executors at this time, but
will endeavor to state the account as it should
stand under my construction of the law. TAX
ing first the account entitled Report and Ac-
count of Trustees and relating to the charges
against the 81, 900 trust money, will eliminate
therefrom those items which do not form part
of permanent improvement in the nature of
a proper investment of trust estate. On the
first page the item Taxes for 1898, $313.86 is
a debt of the deceased and should be paid out
of the general estate; Insurance $50 and S138''
are proper charge against the income, like
wise the Item for attorneys ices for eJectlng
tenant S14.Sl, and Gas bill Sl.40.' The item
Labor on farm $40" and Blacksmith bill
the charge for sidewalk on homestead pro-
perry S146.5S' is also chargeable against the in
come. On the next page the item OF Taxes on
homestead for 1893 sol. IT. is debt of the es-
tate. This removes from the account as i'm
proper charges against the S4, 600 trust fund
the sum of Sl36.51; the remainder it is claimed
is all for permanent Improvements for the pay
ment of which the 81 900 might lawfully be ap-
piled. The evidence does not sustain this
contention: On the contrary, 1T appears
that the buildings known. as Coles block
and Harvey block were in poor state of
repair; that it was necessary in order to
keep them In proper state and make the
property productive that material repairs
should be made thereon. 1t Is the duty of the
executors acting as trustees to put and keep
all the buildings In a proper state of repair
as to make them productive in rents and pro-
fits, and it appears that nearly all these al
legged improvements were necessary in order to
accomplish this end. The changes made. it
further appears, were however of such nature
as to exceed what might be properly taken as
repairs, and added to the value of the property
to some extent. The executors might have
proceeded to replace all worn out or decayed
portions of the fronts, the floors and other
parts of these buildings in substantially the
same condition in which they originally were
and it probably would have been a sufficient
keeping In repair, but instead while making
the repairs they In measure modernized the
buildings by putting in fronts more suitable
to the changed conditions of the city, thus add
ing to their value and productive qualities.
AS already stated, it is the duty of the exc
cutors to keep these buildings in proper re-
pair, and if to do so it is necessary to tear
down a whole wall and rebuild it Or to re-
place or repaint the woodwork, to put on a
new roof or put in new floors, it is their duty
to do So and the income from the estate is
chargeable with the payment thereof; and it
is not that nature of Improvement or that
perty for which the trust fund may be used,
but only where improvements are made over
and above this, such, for instance, as put
ting in large, expensive and attractive show
tearing out wooden columns and
replacing them with more expensive and
more permanent iron columns, or adding
matters of ornament to the front, which,
though unnecessary TO maintain the proper
ty in proper condition, are still such add
to it's intrinsic and selling value. 1t is al
most impossible from this account and the
evidence to state accurately how much of
this large sum charged as permanent i'm
provements can properly be allowed as such.
and how much must be charged as repairs
against the income, but am impressed with
the conviction that at least tWO-thirds Of
this sum must be considered as expended for
necessary and proper repairs and only the
manent improvements. So far as relates to
the Second street barn, I inclined to the
opinion that the money used for such i'm
prOvements was fairly good investment
and should he allowed in full. The expenses
of the sale of the homestead as a matter of
course should be allowed out of the sum
realized. The alleged improvements on the
farms do not think can be cOnsid-
cred as such, but are in the nature Of repairs
and as important to be made as the replac-
ing of a decayed sill in a stOre-building. L
therefore hold that there is chargeable
against the proceeds of the homestead the
Expenses of sale..... 35 90
on Second street barn 3l6 OF
Value of permanent improvements
over and above repairs on Coles
n hlr,olZ