New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-07-30
MILLIONS FOR HEIRS.
Large 4mount of hegacy Tares Al
ready Refunded Many More Gases.
[FRoM THE TRIBUNE BUREAU


Treasury officials. we'll as of the Department
of Justice. The large amounts of refunds al
ready made and the decision of the courts al
ready rendered, with future decisions on cases
still pending, have an important bearing on
the question of the Treasury deficit. Although
in itself small item ii is a matter of serious
comment on the part of Treasury officials that
the total refund of legacy taxes collected under
the act of June 13, 1898 already amounts to
$2.4J0OOO and it is altogether probable that
should the courts continue 10 decide that the
legacy refunds must be made IN the cases still
pending it will add TO the Treasury deficit at
least 100000 more.
The officials of the Treasury Department, real
izing that the question of legacy refunds is in
teresting TO a large number of people, particu-
larly in New-York State, have in view of for
mer decisions. seriously contemplated reopening
the whole subject. and have directed the atter-
ton OF the Department of Justice TO the matter.
particularly as affected by the of Wander
bilt against Eidman. which decided by the
Supreme Court February 90 1905
The Auditor for the Treasury Department has
had before him for final adjudication Nun
Der Of cases involving the construction of the
act OF June - 1898. and has so framed up his
decision that a reargument will probably be
necessary should the Controller hold that the
two-year limitation to the filing of applica-
ton for refund should run from the date of the
act of June -, 1902. and not from the date of
the payment of the tax. That question has not
been judicially passed upon on direct argument.
Auditor Andrews has recently held. in a dis
allowance case. that the Supreme Court and the
Controller of the Currency have implied in their
rulings that the application must be filed with
in two years from the date of the payment Of
the tax as required by Section 1920 OF the Re
vlsed Statutes
On this disaowance of the Auditor for the
Treasury Department it is practically certain
that the claimant will take appeal to the
Controller of the Treasury Should the Audi
tors ruling be reversed by the Controller or the
courts, at least hundred claims now IN view
will be urged for refund of taxes paid and the
amount will into the millions.
VANDERBILT CASE OF MUCH INTEREST.
OF the number of refunds recently made. that
of Cornelius Vanderbilt is probably the most in
teresting. it made upon ground that
the United States Supreme Court held that the
rate of taxes should be determined by the value
of the legacy and not by the value Of the whole
amount of personal property. Cornelius Van
derbflt died September H. 1899 leaving a per-
sonal estate valued at 81 425.O0O. OF which under
partial distribution $2.OO0.OO0 passed to the
widow. and the rest divided into number
| religious. literary. charitable and educational
character. The legacies were all returned for
taxation, and a tax Of 5000, 900 was assessed
thereon and paid December ii. 1899. OF this
amount $102 I'D IS has been refunded. OF the
| unrefunded balance $50, 727 II was paid on leg
| acies to the institutions above referred TO.
The residue OF Cornelius Vanderbilts estate
was placed in trust under the seventeenth clause
of the will. under which clause Alfred G. Van
| income from the residue until he attained the
age of thirty. at which time he was to receive
one-half of the principal and the remainder when
he attained the age of thirty-five. the residue
estate amounting to S1S.972,117 46.
A tax of S115.191 IS paid upon the present
worth of the estate for years. All additional tax
| Of 1911 .6S1 36 was paid September 3. 1901
| upon the present worth of the future beneficial
interests of the legatee. claim for the refund
| ing Of the tax paid upon the future interests
| was rejected by the Collector OF Internal
Revenue Suit instituted December 10.
| 1901, against Collector Eidman. in the United
States Circuit Court for the Southern District of
| New-York On February O. 1909. judgment
rendered in favor of the government The case
was taken to the United States Circuit Court Of
Appeals upon writ Of error, which court certified
the questions involved directly to the Supreme
Court for instructions. and on February 20, this
year, the Supreme Court rendered its decision in
favor Of Mr.. Vanderbilt final judgment being
entered in the Circuit Court for 1919 Ill 81.
Should the decision of the Supreme Court be
| final all the questions involved in these
heirship cases Congress will be called upon at
its next session appropriate for this and other
claims decided by the courts, and which is not
included in the general appropriation for the
payment of judgments against internal
nue. officers the refund Of certain legacies under
| Section l OF the act of June -. 1902. and the
refund of taxes on contingent beneficial in
terests under Section Of the same act
REFUND SOUGHT FOR HOAGLAND
ESTATE.
Another OF the large estates which have been
the subject of serious consideration by Treasury
officials is that of Joseph c. Hoagand. of New
York City, who died December s. 1899 leaving a
personal estate of value of $11. 657,317 -.
OF this amount 400 distributed in lega-
cies not exceeding $4,000. Two legacies of
$4,000 each passed to charitable institutions
and two Iegacies of $4,000 each and one of
So. 900 passed as absolute interests. Raymond
HOagand, son. received absolute legacy
| Of nearly S2.6OO.000. while the widow received
absolute interests amounting to 1921 $50 and a
life interest in 81. 766 .633 AZ.
The remainder of the estate was divided into
various estates for years and life estates between
a daughter. Fannie NJ. Hoagland. and son. John
A. Hoagland These estates were returned for
taxation and a tax assessed thereon amounting
TO 1927, 600 Under the decision in the Wander
bilt it decided that only those interests
which had vested in absolute possession and n
joyment prior to July. 1902, taxable. The
attorneys for the HOagand estate have now
filed claims in the Treasury Department for