The hatchet. [volume] (Washington, D.C.) 1883-19??, 1900-05-27
DEATH TAX Of MILLIONS.
How George Smiths Money
Goes to the People,
STILL HAS PLENTY LEFT.
First, Great Britain Took a FlVe.M ILL
ion Slice-Then $42,oooooo Are
Found in New York-State Takes
Two Millions: at

TWO Millions: at -
It will take a large share Of the
estate in this country left by George
Smith, the hermit Millionaire who died
in London last fall, to pay the inherit
ance taxes levied by Great Britain,
New York State and the U. S. Govern.
ment. New York State Government
has collected nearly two millions Of
tax on the estate from James II. Smith,
who was the chief heir to the fortune
of nearly a hundred millions that was
left by the recluse.
George Smith was a native Of Scot
land. He came here when he was
young man and went to Chicago where
he made a fortune in the real estate
business. He went back to Scotland
and lived there for a while and then
got tired of doing nothing and came
back to this country with his fellow
countryman, Alexander Mitchell To-
gether they established an insurance
company in Chicago which also had
banking privileges. 1t was almost the
pioneer enterprise of the Northwest.
The partners issued notes which were
known all over the West as George
Smiths money" aud it passed any
where in that part of the country.
From the banking business the part
ners went into the railroad business
and they organized the Chicago, Mil
waukee and St Paul Railroad, which
Is now one of the great railroad sys-
TENS of the country. Smith finally
returned to London and there he led
the life of a recluse in tho London
clubs. He dropped almost out of the
sight of the people Of this country
though the greater part of the vast
fortune that he had accumulated was
here and was of the sort that he could
not carry away.
James II. Smith, who is the junior
member of the firm Of Geddes and
Smith, Wall Street brokers, was his
nephew. When George Smith died
and the fact that he had left a fortune
of nearly if not quite a hundred mill.
ions was printed in the newspapers,
so completely had he dropped out Of
sight in this country that everybody
asked who is George Smith," and
when they learned that his principal
heir was James Fl. Smith most people
asked "Who is he?"
James II. Smith is a good deal like
his uncle in that he does not like no.
toriety and he was little known out
side the circle of his personal ac-
uuaintances. There is an Inheritance
tax law in Great Britain and the
British Government got right after
the Smith fortune, which was willed
to James H. Smith. Under the Brit
ish law the estate was appraised and
taxes were assessed to the amount of
e950,OOO or about $4,70O,OOO. Our
Federal Government has a law i'm.
posing a tax of inheritance, and under
this law all that part Of the estate
that is in this country has been APP
praised and the tax will be collected
in due time. The constitutionality of
the law is in question however 1t is
now in the Supreme Court, not in the
Smith case, but in another case, and
the Smith tax will not be collected
and the amount of it will not be de-
finitely known until the court decides
the case that is before it.
The New York State authorities
were the last to get after their share
of the estate. AS stated before they
found the value tob e something more
than forty.two millions and when the
amount of the tax was made known
to Mr.. Smith he drew a check for the
amount without question.
AS Mr.. Smith was no nearer kin
to George Smith than a nephew, the
tax levied under the law was per
cent. of the gross amount of the prop
erty that was left, with reduction Of
per cent. of that for prompt pay
ment, and the State got nearly two
millions.