New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-10
MR.. FALLOWS,S STATEMENT.
HE EXPLAINS HIS FEES IN CONNECTION
WITH THE INHERITANCE TAX
LAW-ONLY S4977 90 IN
TWO YEARS

Assemblyman Edward H. Fauows yesterday
made reply to recent criticism regarding the fees
which he had received attorney for the State
in the collection Of inheritance tax. In regard to
his designation by the State Controller
torney for the collection of the in certain
he said:
1t wants to be understood that designations by
the State Controller TO represent him in inheritance
tax cases are not patronage bestowed by him, but
mary labor and expense: the results Of which he
angs to 5 the has state Conro l With
which, will warrant the beginning of a proceeding
lose I wish to emphasize the fact that the desig-
oW has reeeved haze been the result Of
my own expense and involving the employment Of
c the @ IN outyng 1efy
considerable eXpense-work which any other at
for which they would be compensated in just the
tisn.
The cases in which have represented the State
those of nonresident. estates, being one OF many
eoVered as dd in 6ese that
being made to evade the payment Of the tax and and
this State My practice and work in the surro-
suited in the Surrogates investigaton. also dis
closed that the State in the manner above stat
receive, and 1 began make investigation. person.
ally and o others Th9 Ga WHERE he
believed the payment was being eyade ed there
tons in these and upon suppyng he d dsan
mated and conducted the proceedings in them
Mr. Fallows said that in one case he collected a
tax of $4,000 for the State from estate after the
representatives Of the estate had declared that It
had taxable securities in NewYork-
AMOUNT OF COMPENSATION.
The entire amount of his compensation received
from the State IN tax in the last two years.
Mr.. Fallows said. *4.977 90, and he added:
The total amount of tax that have collected for
the State in return for that compensation is 81 o2
e0eesee n t ies eTe state b lot es year
any one year 1t Will be seen that my net COM m
amount of tax collected by me.
AS the estate of George Smith. from which the
State collected a large tax. Mr.. Falows said:
The George Smith estate was one Of the cases IN
which resulted in the payment of the largest single
transfer tax ever received by this or. any other
tended and claimed by the executors that the death
the transfr e here a9 AM ~ S 10
$1,000 as well as the tax to be paid 10 our Gov
ing TO much more should be allowed and de-
ton as debts Of admfnistTation It was further
eontended on their part that the securities belong
fun market value. since the throwing OF large
BLOCKS OF bonds Of the same kind upon the market
much Investigation and negotiation, covering
ties satisfactory, to both the executors and the
S1aie was agreed upon nut only upon the express
allowed on account of the English duty or tho
United States Government tax. The entire pro-
ceeding was commenced, carried and consum-
mated by me, and the check representing the full
amount OF the tax collected paid 10 me in my
Office. and went from there to the City Controllers
office.
LETTER FROM MR.. COLER
Mr.. Fallows gave out a copy of a letter sent to
him by Controller Coler. reading as follows:
] desire to express my appreciation OF your SER
wees IN the collection OF the transfer tax in the
estate Of George Smith Your courtesy and atten-
uon 10 the executors of the estate. in addition
your professional services. had much 10 do with
the conclusion they arrived at to pay the
Revenue tax and deduction of the English In
heritance tax.
In explanation of the transfer tax law provisions
which have been puzzling to many persons, Mr.
Fallows said:
into two classes, resident and resident In
resident cases. where Of necessity the estates are
o. the state. and where in consequence the
able securities disclosed the State officials
the collection or the tax is comparatively simple,
and ordinarily be effected without the aid If
an attorney. But the is quite different where
the decedent Is a nonresident Of the State leaving
taxable securities within the State. The State can
that 1t is not administered in Surrogates'
courts. The tax. therefore s lost State un-
less either the representatives of estate voIn-
tarly declare taxable securities take ancillary
letters and pay the tax, such information IS
lodged with the Controller as will permit him TO
take compulsory proceedings for the collection OF
rare where the tax upon the securities of & non
resident estate is paid voluntarily. No tax there
fore, ordinarily can be collected from such non
resident estates unless some goes the ex-
pellse ana trouble OF making Investigation
obtaining the Information necessary for the com
mencement or compulsory proceeding.