New-York tribune., 1907-04-16
TRANSFER TAX VALID
Supreme Court Upholds Impost IN
DeLGnO-AstOr Case.
From The Tribune Bu-eau.l


Washington. April 1.-THE New York transfer
TAX law was held to be constitutional to-day by
the Supreme Court in deciding the Delano-Astor
VIII case in which the court held that the state
Is 'htited TO transfer tax property, estima ted
roughly az 100000, left by Mrs Laura Astor Del
ano on her DEATH in 1902 IN Switzerland. A third
portion or the property in dispute was a marriage
settlement made to Mrs. Delano on her wedding
"ay' IN 1874 by her father William B. Astor. This
glIt mad been added to from time to time, princi-
paliy IN ls49 and 1885, Among the benehciaries who
opposed the collection OF the tax were John Arm
strong Chanler, represented by q committee and
Arthur Astor Carey. OF New York.
The collection OF the tax opposed on the
ground that the transfer consummated at the
time Of the gifts, in 1874 lS49 and 1866 before he
passage Of the transfer tax law New York State.
and not by any power exercised by Mrs. Delano
in her will. 1t argued that the transfer or
succession" tax unconstitutional IN SO far as
It provided for the taxing of property under the cir
cumstances arising in this case. The facts In the
case complicated.
In the statement Of facts as found by the Su-
preme Court It is said that the occasion Of the
marriage Of Mrs. Delano In 1874 William E. Astor,
her father. executed deed in the nature Of a
marriage settlement, conveying certain real and
personal property TO trustees the income to go TO
Mrs. Delano for life with remanders TO her issue
In fee. in default of ISSUE to her heirs in fee;
and giving her power in her discretion TO appoint
the remainder amongst her said issue or heirs IN
suCn manner ana proportions as She may dpPOi'1
by instrument in fits nature testanentary and to De
acknowledged by her deed and in the presence
Of two witnesses or published by her as Will.
These deeds were absolutely irrevocable and took
effect upon delivery BY will she exercised the ap-
pointment conferred upon her in favor Of John
Armstrong Chanler ct al. Among these is Arthur
Astor Carey. a grandson Of William 3. Astor, who
with the Chanler committee. has carried the fight
against collection of the tax TO the court of last
resort
1t is sufficiently evident" said Justice Day. in
announcing the opinion of the court, that it was
only upon the exercise of the power of appointment
that the estate in the plaintiffs in (Arm-
strong ct all became complete. Without the ex-
erelse Of the power OF appointment, the estate in
named in the deed by William b. Astor- By the
exercise of this power We're Invested of their
80, .h Iilu Ihe same were vested IN others II
may be that the donee had interest in the estate
finally transfer the estate to some of the class and
lake II from others So cannot say that prop
within the. protection of the Fourteenth Amend
Appeais tf b ey me manner in which the Court Of
NoI 90 NE perceive that the effect has been to
violate any right of the parties II Is said
that this is because OF disposlng OF the
SHuIe estate y per cent of the property included
taken by the state but as there was a valid exer-
else OF the taxing power of the state think the
cause Il resulted in the reduction OF the estate.
Certainly. the remaindermen had no contract
with the donor or with the state. For whether the
remaindermen received aiiquot parts OF the estate
OF lne same was dlVeSted In whole or IN part for
the benefit Of others in the class. depended upon
the exercise Of the power of the donee. The state
not deprived OF It's sovereign right to exercise
the taxing power upon the making OF the will In
the future by which the estate given to the ap
pOntees.
For these reasons the decision OF the Court OF
Appeals was affirmed and the tax must be paid.
Justice Holmes and Justice Moody dsseuted-
Justice Holmes announced the dissenting opinion
he said that the ground upon which the tax was
imposed the right OF the state 10 regulate or,
II II At 10 destroy inheritances, II II might
not appropriate the whole it could not appropriate
any part he said. and he understood that Il was
not clamed that the state could have appropriated
the whole Of the remainder after Mrs Delano'
death without compensation.