New-York tribune., 1905-02-21
W. K. VANDERBILT WINS.
May Recover Inheritance Tar Paid
as Executor for Alfred O..

Washington. Feb 20.-In an opinion by Jus
tice White the Supreme Court OF The United
States to-day decided that William K. Wander
bilt may recover money paid into the Treasury
OF the United States as an inheritance tax under
the war revenue act OF 1905 by William K Van
derbilt, as executor for Alfred G. Vanderbilt.
The property in question was devised to Alfred
G. Vanderbilt by Cornelius Vanderbilt on con-
dition that he should not come into possession
until thirty years old The money paid amount
ed to s541 600 and was delivered under protest.
The court held that payment could not be ex-
acted until the beneficiary came into possession
Of his property Discussing the effect Of the
repeating act of 1902, Justice White said
In view Of the provision for refunding we see
escape from the conclusion that this statute
was In a sense declaratory OF what we hold was
the true construction of the act OF 1876. wnlcn
had prevailed prior TO the amendment OF Marcn
2, 1901, and which was only departed roIn cy
the administrative officers under miscon-
ception OF the import OF the administrative act
The winning of the suit brought against the
United States will save Alfred G. Vanderbilt
S311 900. for while the decision would only post
pone the payment OF this money the law under
which its payment would be required has been
repealed. This case. involving a large sum, was
made kind of test case, similar actions 70 re-
cover money being held back until TINS case
could be decided. that now 1t is likely the
government will be compelled TO refund various
sums to other claimants. The case was put
on the calendar last October. and was the last
case of the November term to be decided. show
ing, said lawyer interested In the case, that u
hsd been debated in the court at great length
Under the war tax measure Ferdinand Ed
man held that he could collect the tax on Alfred
G. vanderbilt's share of his fathers estate The
internal revenue collector took the Insurance
mortality tables, which. as Vanderbilt was then
twenty years old. showed that he had reason
able expectation of thirty-three years more OF
life, SO the collector argued that he could con-
slider his possession of the inheritance certaln-
ty therefore he should pay taxes on IT, This
reasoning the Vanderbilts disputed. in the mean
time paying the tax demanded (about So4lOoo)'
Then the suit was begun Judge Wheeler helo
that the tax was justified because the trans
fer Of property had been made to the trustees
thus warranting federal tax.
The LAWYERS for the Vanderbilt family at once
appealed to the United States Circuit Court OF
Appeals. which, recognizing the Importance OF
the contentious and knowing that otner casGS ease
OF the same kind were awaiting declsloh go. CeIe.
fed the case to the United States supreme OOuI
'"The court holds that the tax Is on a oenehclai
interest" said one of the lawyers lnleresIeu
Yesterday, "and that it is not aSsessap-e VI 80
Iectibe until such beneficial interest vests dOSO-
Iutaly In possession or enjoyment In IAlS CaS7
Mr. VanderbiIts interest which was taxed, was
dependent on his reaching the age or thirty as 70
one-half and thirty-five as TO the oIher H9iA
fore IL came actually into his possssslOll. ~ -
inc held meanwhile by trustees. The eHecI U
the decision is to postpone the assessment OF Ce
+ax on the interest which, in effect exeInpts IT,
as that law has already been repealed