New Ulm review., 1906-01-03
TAX STANDS
Somerville's Law Held Good by
Supreme Court.
Measure Will Bring Millions of
Revenue to State.
Brown County Attorney Receives
Many Congratulations.

When the supreme court OF the state
of Minnesota passed on the Inherit
ance tax law as engrossed by the leg
islature at its last session, it set it's
seal of approval on the work of Geo.
W. Somerville of Sleepy Eye, who
drew up the bill and worked for it un-
til is became part of the laws of this
state.
The result of the attempt to prove
the law bad is very gratifying to Mr..
Somerville from the fact that three dis
trict courts have held to the contrary
of the opinion of the supreme court,
and now that this high tribunal has
turned the laugh on those who have
been disposed to criticise the father of
the law, the senator feels that he is
/ justified in being somewhat elated over
the result.
This law together with the law tax
ing foreign corporations doing bust
ness in this state will bring into the
Golfers of the state revenue of mill
mons OF money.
The inheritance tax alone, depend
| ing of course on the number of estates
probated, will bring over a million of
dollars yearly. These two laws, repre-
senting the work of Mr.. Somerville,
are Of more value to the people of the
state than two-thirds of all the other
laws on the statute books, and should
give him recognition from the people
that should take some definite and
substantial form.
When it is known that prior to the
passing of the supreme court on this
Somerville law, four other similar laws
had been held unconstitutional by that
same body, the value Of the measure
and the careful legal construction it
required will be recognized.
/ The supreme court gave its decision
Friday, one of the most notable eyer
rendered in the state. 1t is written by
Justice Brown, and reverses the courts
Of Hennepin, Ramsey and Winona,
which had declared the law unconsti-
tutional.
The cases before the court and di-
rectly passed on are those of the John
Martin estate, Minneapolis; the V.
Simpson estate, Winona, and the Paul
D. Ferguson estate, ST. Paul. There
are nearly a score of estates probated
since the law passed, however, and
their totalvalue is over eight millions.
| Within a few days close to half a
million dollars in taxes will be paid
into the state treasury as a result OF
the decision.
This iss estimate of State Auditor
Iverson. Senator r. q. Thompson Of
Preston, who is in the twin cities Fri.
day, predicts that the decision will
bring not less than $4,000, 900 into the
state treasury in the next ten years.
T 81 have preached inheritance tax fo1
years, 3 said Senator Thompson, land
I have voted for four inheritance tax
bills. Irejoice that we finally have a
$ ldWf Glldb SUbtluS CIlS CSSV. anu olltU VII
great source of revenue is at last tap.
81 ped for the state.''
, The law declared valid was passed
! Elast winter, and the legislature profit.
$ ed by the errors of 1897, 1901 and 1902
The act contains some blunders, or
) which the attorneys for the estates laid
!, great stress. but these are literally
= construed by the court, and are held
: not to obscure the real meaning of the
legislature. The tax is not on estates
asa whole, but on each bequest. and
$4,000 of each bequest is exempt. The
amount III excess OF the $4,000 is tax
ed progressively. If the bequest is un-
| der $50, 600 the rate is Il per cent. If ii
is over $4,000 and under 800, 600 it is
taxed 5 per cent, and if over 500, 600 it
is assessed 5 per cent. This rate, in the
!, case of the John Martin estate will
sring in something near 500, 200.
The court declares in its opinion
that the tax is not assessed on proper.
It may therefore be progressive, as the
n constitution authorizes, and not abso-
equal.
State Auditor Iverson was elated
81 over the decision, which will put the
state revenue IN very comfortable
!. shape. He estimates that with the 4
per cent railroad tax and the inherit
ance tax, it will soon be possible to
practically abolish the direct levy for
state purposes.
The decision IS considered great
i personal victory for Attorney General
] Young, who prepared the brief for The
state and argued the case alone,
against able counyel representing four
large estates 8 8