The San Francisco call., 1899-09-16

in the matter of the estate of Leland
Stanford. deceased, the Supreme
Court has held as constitutional the
act Of March q. 1893, as amended four
wears after, in the matter OF taxing COL
lateral inheritances. This opinion. Whlcn
was written by Justice Van Dyke and
concurred in by Chief Justice Beatty
oyd Justices Temple and Garoutte, re-
verses the decision in the same case
written about a year ago by Justice HaT-
rison.
In Yesterdays decision Justice Harri-
SON dissented The law as laid down
Yesterday applies to every estate IN Can-
fornia over $500 in value and puts lmIneul-
ately into the school fund nearly %oOuVV.
When Senator Stanford died ne let d
Will in which, among other bequests, ne
$40 60 600 900 10 trustees for the benefit
Of the university he had established, ana
s.. POO 900 to certain of his nepheWs ana
nieces residing in this State and IN the
East.
The District Attorney Of this county,
on behalf Of the Treasurer, brought an
action against Mrs. Stanford, as admin
istratrix. for S235, $50 taxes on the coilat-
eral inheritances mentioned. In the lower
court Judgment went in favor of the law
and an appeal was taken to the Supreme
Court by Mrs. Stanford. Justice Harrl-
sons decision reversed the judgment or
the lower court. His position was that
the legislative amendment of 1887, exempt
ing local heirs and taxing foreign heirs
inheritances was a discrimination ana
hence the act and amendment were un-
constitutional This decision was regard,
ed as a great victory, as II was haTu
blow to the inheritance tax act.
W. +. Fitzgerald, then Attorney Gen
eral, made application TO the supreme
Court for a rehearing of the case, pas
ing his petition on the ground that the
State was a party in the case, and as It's
legal representative he had never been
stT7I-sd U-tfb a notice OF appeal. The
States interest lay in the loss or gain TO
its school fund. The motion was granted
and Mr. Fitzgerald, retiring from ONCE,
his successor, TREY l.. Ford, pursued the
case 10 Yesterdays victory for the State
IN the decision the conSutuuohalty OF
the act under consideration IS upheIu on
the ground that the tax IN question Is
not upon the property but upon the right
of succession, and the right OF the LeBls-
lature to impose an excise TAX lhcluueS
the right TO select the SUBJECTS upon
which it shall be imposed. The reason
for the amount now due, about SoVu,VJJ'
being greater than the amount sued Ior'
$235. 10, is on account of the penalties at
taChed for nOn-payment OF the ldA' dS
shown III the following decision:
IN BANK.
IN the matter of the estate OF Le-
land Stanford, deceased-S. r. NO OIL.
Leland Stanford died June q, 1888,
which he gave the sum OF S20UO,UJO TO
certain trustees for the benent or the
Leland Stanford IT. University, ana
also legaCieS amounting 10 -, 2,ZU,VUU 10
certain of his nepheWs and nleceS.
April Il, 1896, the Superior Court OF
san Francisco, in which the settlement
OF said estate was pending, on the ap-
pication OF the Treasurer OF the city
and county of San Francisco made an
order requiring Jane l.. stanford, as
eXecutriX of the last Will and testa-
Of stanford.
ceased, to pay into the treasury of
said city and county S235750 as and for
q tax on collateral inherltances FROM
this order an appeal was taken May
IS 1895. The act under which the or
der directing the inheritance tax to be
paid over was approved March %, 1885,
and took effect sixty days thereafter.
Statutes 1893, page 193.) 1t is entitled
An act to establish tax on col
lateral inheritances, bequests and de-
NiSeS, to provide for its collection and
to direct the disposition of the pro-
ceeds." The first section reads as
follows
act all property. which shall pass by
will or by the intestate laws of this
State from any person who may die
seized or possessed Of the same while
a resident Of this State, or if such de-
cedent was not a resident Of this State
at the time Of death, which property,
or any part thereof shall be within
this State, or any interest therein or
income therefrOm which shall be
transferred by deed grant, sale or
gift, made in contemplation of the
death Of the grantOr or bargainer, or
intended to take effect in possession or
enjoyment after such death to any
person or persons, or TO any body poll
tic or corporate, in trust or otherwise,
or by reason whereof any person or
body polite or corporate shall become
benehclally entitled, in possession or
expectancy, to any property, or to the
income thereof, other than to or for
the use Of his or her father, mother,
husband, wife, lawful issue, brother,
sister, the wife or widow Of a son. or
the husband Of a daughter, or any
child or children adopted as such in
conformity with the laws of the State
Of California and any lineal descen-
dant Of such deCedent born in lawful
wedlock, or the societies, corporations
and insttutions now exempted by law
from taxation by reason whereof anv
such person or corporation shall he
come benefcially entitled, in posses
sion or expectancy to any such prop
erty, or to the income thereof shall be
and is subject TO tax Of five dollars
on every hundred dollars Of the mar
ket value OF such property and at a
proportionate rate for any less
or the proper county, as hereinafter
defined. for the use Of the State; and
trustees shall be liable for any and ali
such taxes until the same shall have
been paid, as hereinafter directed;
pr9y1d5ed, pn5 that an an estate which may be
dred dollars shall not be subject to
such duty or tax"
Section 4 reads: "All taxes irnnosed
by this act, unless otherwise provided
for, shall be due and payable al tbe
death Of the decedent. and If the same
are paid within eighteen months. no
interest shall be charged and collected
thereon, but If not so paid, Interest
at the rate Of 10 per centum per an
mum shall be charged and collected
from the time said tax accrued; pro-
vided, that If said tax is paid within
six months after the accruing thereof
q discount of per centum shall be
allowed and deducted from said tax
And in all cases where the executors
administrators or trustees do not
nav such tax within eighteen months
from the death of the decedent they
shall be required to give a bond In
the form and to the effect prescribed
in section Of this act. for the pay
rnent Of said tax. together with in
terest" In another section ii is pro-
yided that If litigation becomes neces-
sary. or If for other unavoidable cause
for delay the estate cannot be settled
a+ the end of eighteen months. then
only Z per cent should he charged. The
fax paid over to or collected by the
County Treasurer Is by him required
fo he paid into the treasury Of the
State for the use of the State school
fund
After the appeal herein was perfect
ed this court in re Wilmerding. had
occasion to consider the nature and
character Of this collateral inheritance
faX and therein, also held the act