The evening times., 1900-04-07

NEW YORK. April 7.-Since James Hen
~ Smith. the "Silent Man of Wall Street.
inherited the fortune of his uncle, George
Smith, VINO died in London last October
he has been kept busy paying out millions
Of dollars levied by inheritance-tax laws
The Governments Of Great Britain and The
United States and the State of New Yorl
have each had a whack at it,
Comptroller Coler. as agent for The
State of New York. has just collected s.
0o0.Q coo from the estate and has put the
money in bank awaiting the order Of State
Comptroller Morgan. Mr.. Coler himself
viii get the snug sum of $50 600 as commits
sion the fee being al the rate Of 1 per cent
OF the amount collected.
The collection of this tax from the Smith
millions has had much to do with bringing
down the tax rate in New York State,
which was fixed at Albany yesterday ac-
cording to the comptroller's report at l.96,
a reduction of fifty-three points from the
tax rate last year
Il collected this tax from Mr.. Smith sew
eral days ago. said Comptroller Coler last
night. but l thought it best to keep per
fectly quiet about il until the Legislature
finished with its appropriations, for if it
had been known to the Assembly the
money MOULD certainly have been spent and
the tax rate would have been no lower.
AS il is, this money has been saved to
the State. which means that 20 per cent of
il is saved to New York city. since we pay
20 per cent OF the taxes of the entire State.
I had no other motive in keeping the mat
ter a secret than to prevent the Assembly
from spending the money. OF course / was
in communication with State Comptroller
Morgan. but ! asked him TO qeep quiet
about il.
According to the way ! figure it out
The s.. .006.00U from the Smith estate just
about accounts for the reduction of the
State tax rate"
Mr.. Coler says the way he came 10 get
this tax was in ascertaining that James
Henry Smith. the principal heir. who re-
sides in New York. had considerable prop
erty coming 10 him from the estate OF the
self-eNIatriated American. George smith
When he made further enquiry he learned
that $4,000. coo in securities was held in
this city. These securities consisted for
the most part of railroad holdings and in
dustrials. George Smith having a. one time
been one Of the most extensive railroad
builders in the West
The Comptroller found that where the
estate amounts TO millions and there are
no children Of the deceased. the rate TO be
levied is . per cent OF the total amount
Of the estate lying in New York. Five
per cent of the $40 600 600 amounted to So
100000 and Comptroller Coler made no
bones about calling on the silent Nan OF
Wall Street and asking him for the
money Mr.. Smith promptly paid it, and
Mr.. Coler deposited the money with the
City Trust Company. where ii will draw
interest for a few days before il is sent to
Albany.
Bulk of the Estate iu the WeNt
Ii has been believed all along that the
Smith estate amounted only to $50 0o0 600
but from present indications it is far above
that figure. Comptroller Coler found s40.-
eco GOO of ii in New York and it is known
that the great bulk Of the estate is in be
West or at least. that il has been IN The
West heretofore. When asked how the
estate had come to have so much in New
York city, Mr.. Coler said:
Don't ask me. ] don't believe anybody
under the sun knows the extent Of that
estate but the men who are managing it.
! only know that these men have been very
willing about paying Out millions Of il in
taxes.
This 81 .O00 OO0 is the biggest inherit
ance tax ever paid into the Treasury OF
New York and it was paid without the
slightest hesitation. The tax collected
out Of the estate of Cornelius Vanderbilt
was nothing as large as this being only
about 100000 This was because there
were children as heirs. The inheritance
tax is higher in cases where there are no
children"
When a reporter called to see James
Henry Smith yesterday in the Office Of
Geddes & Smith No. 10 Wall Street. the
heir to the refuses millions had gone
for the day Mr. Geddes. who was asso-
ciated with George Smith. was sitting in
the hallway reading a newspaper. When
asked about the tax transaction Mr.
Geddes slowly raised his head from the
newspaper and said: There's nothing 10 .
say here. and went on reading.
Have YOU heard MIR. Smith say any
thing TO how much of the estate has /
gone for inheritance taxes?"
Il make IL rule in life never to tell
what Overhear." said Mr.. Geddes
1t is known that the British Govern |
ment collected s.. .0O0. 600 from the estate 1
Of the eccentric millionaire who lived 4
on Is shillings a day in a West End. /
a@'aAoNAA-
the Chancellor Of the Excheuuer. speak 1
ing Of the affair in the House of Com /
mons on March 5 said:
This person. however unwillngly. has /
contributed to the exchequer more than
the cost of an iron-clad.''
IL is stated that the United States
Government has been made S. coo 600
richer by the estate. There is q special 4
war tax. framed in 1898 after the out /
break of the war with Spain. that ap- |
plies TO the tranfer Of estates Under |
its provisions where there are no chill |
dren of a brother or sister who come |
into possession. and the total value OF |
the estate is more than 81. 600 600. the |
Government has the right TO collect s45O 1
for each 500 of the clear value of such /
interest.
AS there were several other heirs in
his country besides James Henry Smith /
he Government will derive profit from
heir share Of the estate also. The more /
remote the kinship of the heir the
greater is the taX-rate under the War
Revenue law.