Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-02-08
Opinion Written by Justice Ladd
of the Supreme Court.
A RESUME OF THE CASE AT HAND
The Opinion I'm FulI-DecIdes the CUES.
ton Upon Which the Payment OF
Inheritance Tax In Alvin
Lewis Estate Hinges.
From Tuesdays Daily.

The purpose and the application OF
the so-called exemption of $1,000 al
lowed in the assessment of the collat-
eral inheritance tax imposed by the
provisions of the inheritance tax law
has been determined by a ruling of the
supreme court in the case of Herriott
vs.. Bacon, filed January 20, 1900. This
case will determine the question upon
which the payment of the amount of
tax in the Alvin Lewis aud other es-
tates hinges.
The court holds in this case that
where an estate liable in whole or in
part for the inheritance tax exceeds
$1,000 in value, after the payment Of
debts, the entire amount going to the
collateral heirs is subject to the tax
without any deduction or exemption.
Where an estate does not amount to
$1,000 no tax is to be assessed. For
example, an estate netting only 5000
would not be liable for the tax, where
as an estate amounting to ST., 400 would
be assessed for per cent of the entire
amount, or $40. In other words, the
so-called exemption is simply descrip-
tive of the estates subject to the tax,
not Limitation of the amount of the
succession on which the tax may be
exacted. This ruling of the supreme
court henceforth governs the treasury
department in the collection of the in
heritance tax. A resume of the case
deciding the question and also the
opinion written by Justice Ladd, fol-
lows:
A Resume of the Case.
Sarah 4. Ransom died intestate, Jan
uary 8, 1897, leaving will bequeathing
the sum of $5,s74 to collateral heirs
and $4,000 to her grandsons. The de-
fendant, as executor under the will,
paid the plaintiff as treasurer of state,
$243.70, being percentum of The
amount passing to collateral heirs, less
$1,000. The treasurer of state claimed
the tax on the $1,000 deducted. The
district court of johnson county sus-
tanned the demurrer of the executor of
the estate. The title of the case is
John Herriott, Treasurer of State Of
Iowa VS.. Sheldon Bacon, Executor es-
tate of Sarah f. Ransom"
The Opinion.
Laid, j. The different sections of
chapter Nv. of title VII, of the code,
relating to an inheritance tax, were
originally enacted at the same time
and should be treated as parts of
connected whole. They must be taken.
together and construed as one system.
1T is to be inferred that code Of
statutes relating to one subject was
governed by one spirit and policy and
was intended to be consistent and har-
monious in its several parts and pro-
visions" Sutherland on statutory
construction section 2Ss.)
As said by Justice Field, in Reicke
vs.. Emythe, 10, WAL, 1862,
4 Instances without number ex-
list where the meaning Of The
words in statute has been enlarged
or restricted and qualified to carry
out the intention of the legislature.
The inquiry, where any uncertainty ex-
lists, always is as to what the legisla-
ture intended, and when that is ascer-
tanned, it controls Only when the
meaning is involved ins doubt will re-
sort be had to the context. These rules
are suggested in view of the question
presented for our determination, to-
wit: Whether $1,000 in value of the
property passing to collateral heirs is
exempt from the inheritance tax, or in
all estates, "above the sum of $1,000"
all the property SO passing is subject
to the payment thereof. In other words
does the clause quoted limit the amount
of the succession on which the excise
may be exacted or describe the estates
subject to the tax?
Section 1857 reads: "All property
within the jurisdiction of this state,
and any interest therein, whether be-
longing to the inhabitants of this state
or not, and whether tangible or in
tangible, which shall pass by will or
by the statutes of inheritance of this
or any other state, or by deed, grant,
sale or gift made or intended to take
effect in possession or in enjoyment af-
ter the death of the grantor or donor,
to any person in trust or otherwise,
other than to or for the use OF the
father, mother, husband, wife, lineal
descendant, adopted child, the lineal
descendant of an adopted child OF a
decedent, or to or for charitable, edu-
rational or religious societies or insti-
buttons within this state, shall be SUBJ
iect to a tax of per centum of it's
-