New-York tribune., 1902-01-11
VANDERBILT TAX DECIDED
COURT DECIDES IT FALLS ON CHAR
TABLE REQUESTS, BUT NOT ON
REMAINDER INTERESTS.

| The Appellate Division of the Supreme Court
| yesterday handed down decision in the trans
| fer tax on the estate of Cornelius Vanderbilt.
| The case had been heard cross appeals from
| the order of Surrogate Fitzgerald affirming an
order fixing the amount of the transfer tax on
the estate. BY the decision of the Appellate Di-
vision, the order of the Surrogate is modified
and, modified affirmed.
Justice Patterson writes the opinion of the
court. The State Controller appealed because
no tax was levied on certain interests in re-
mainder, and also because certain legaoies to
charitable institutions not taxed. The ex-
ecutors of the will appealed because no allow
ance was made for sum paid to the united
States Government taxes on legacies or for
the commission to which the executors and trus-
tees would be entitled by law. The transfer tax
as fixed was considerably over $3OOOOo
Justice Patterson first points out that under
the decision of the Court Of Appeals IN the
Huntington estate, decided since the present
case was argued. bequests to charitable corr
poratons must be taxed. The order Will be
modified accordingly.
Justice Patterson also states that the legacy
tax due the federal government under the war
Revenue law of June 13, 1898, should have been
deducted from the total assessed value OF the
estate. He says that the court finds nothing In
the will that would authorize the deduction from
the total assessed NalOe OF la&dDle IiitcAcSCo VI
the fees and commissions of executors and trus-
tees. Mr.. Vanderbilt in his will provided that
no compensation or commission as such should
be paid to any executor trustee then living
for services in such capacity.
The remainder interests include S2O,OOO,OtO,
which was to be divided into four shares Tor
each of four children, the trust to continue dur
ing the life of that child; also S1OOOOoo for one
son; also sufficient to provide an income OF
$25O0O0 a year for his wife; also sufficient to
pay various minor annuities. In discussing this
phase of the will, Justice Patterson says:
The transfer referred to here is that which is
made by the teStator to the recipients OF tAe IN
terest beQueathed by him. 1t Is sun the rlsnt ot
a transferee to succeed TO such portion of the
testator's estate, and only to such portion as IS
given him by the will. 1t certalnIy coulo I nos
any portion of the property of one legatee 70 pay
the tax upon the transfer OF another portion 10 10
inaindeTs is TO be presently payable BY executors
tne p1e 10 be paid viii be diminished by
just much as the amount OF the s TAX ,Isie on .t
will be compelled to pay upon their own
interests and portion or the taxes lnpVs1o GPoi p
in this particular that effect would not Gri pe
Of Mr. vanderbiit Which requires that all inheri
tance and transfer taxes on oequeSts slall 20
Re the effect under wills containing such a
direction. The difficulty In the present case is th
sne6 cbaFacter that they cannot be assessed at
present without imposing tax on properly ina
property could in no event be assessed at otHet
than the market value of the interests IN IL that
are transferred, and that market value Is not as
certainable by a resort TO mortuary tables What-
ever may have been the intention OF the Ie8ls-
lature in enactng this amendment OF 1888, the pro-
visions of that amendment are effectual 10 change
the value OF the transfer tax, and more denhlte
and particular legislation Is required before such
future interests, as those enacted by MI Hanuer1
bilt's will and now under consideration, may De
made the subject OF taxation before they vest
possession We think the Surrogate was right IN
refusing impose tax on tne ItIndIhuer ~
terests as they have been called for the purpose OF
general description.
The beouests to charities include $4,000 for
the New-York Christian Home for Incorporate
Men $4,000 for the Manhattan Working GIRLS
Society and SO 600 and an annual payment or
$4,000 for certain period to the Society or 81
Johnland.