The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-03-11
MILLIONS FROM
INHERITANCE TAX
Farley l.. Williams Says State
Will Reap Benefit of
Liberal Laws.
HARTMAN ESTATE CASE
REGARDED AS F0RERUNNER
Brief Review of Negotiations by
Which Utah Got Its
Big Check.

an increase OF millions or dollar5 10
the treasury OF the state in the future,
is the statement of Farley l.. Williams.
chief counsel for the Oregon Short Line
and other Hartman interests. Mr.
Williams declares that the victory of
the state in procuring more than three
quarters of million dollars from the
Hartman estate under the inheritance
law is only the starter of money to be
derived by the state in the same way.
In the earlier days, said Mr. Will
Iiams Friday. "the legislature passed
corporation laws which were decidedly
liberal IN their terms. There was some
complaint about the matter at the tune,
but now people are beginning TO realize
that it was to their interest. The cor
poration laws of this state were made
very liberal. more so than those OF
other states. and naturally the corpora
tions have turned this way TO file their
articles.
Working back in the interest of
the people and the state is the IN
heritance tax The obtaining of the
amount of the tax on the estate of Mr.,
Hartman after the law had been re,
garded by some of the greatest legal
talent in the United States as doubt
full, means that the law is enforceable
and the tax can be collected IN all
cases.
Corporation Laws Liberal.
'EThe liberal corporation laws of the
state have resulted directly IN the
bringing 10 this state of the Oregon
Short Line company. the Union Pacific
company, the Central Pacific, the Salt
Lake Route, the National Railway COM
~-ay of Mexico. the Pacific Fruit EX-
press company. the Union Pacific Equip
ment association and others, all OF
which will pay 10 the state money un-
der the inheritance tax, III all prob
ability.
''The state of Utah cannot collect
any money on the inheritance tax from
nonresident stockholders who die un-
less the companv in which the stock IS
held is incorporated under the laws of
this state. By inducing the corpora
tions to incorporate here by giving
them liberal terms. the way is opened
for the collection Of large sums under
the inheritance tax law.
it is very plain what this will amount
to in the future The Hartman case
is only one of those which in all prob
ability Will come in the future, it is
said.
Not Fully Understood
Mr., Williams says that at the time
of the ea-ly legislation there was
good deal of opposition because II was
urged that the law granted the rail
WAYS too many concessions and be
cause railroad men were supporting the
law. 1t is now very evident that the
criticism was not well founded. Per.
haps the opposition is excusable be-
cause the opposition leaders could not
see into the future. The corporation
laws of this state, as they were made,
invited corporations to Utah, it is
pointed out. and did not hurt the busi-
ness interests III any way.
Mr.. Williams says that some mis-
understanding has been given out re-
garding the settlement of the Hartman
inheritance tax and that some of the
statements left wrong impression. He
says that he took the matter up with
Attorney General Barnes and Mr..
Barnes said that the mistake was in his
being misquoted i'll the paper which
published the inaccuracy.
According 10 Mr. Williams, he worked
in the interest OF the state as well as in
the interest of his employer and just
as soon as he was convinced Of the fact
that tbs Utah inheritance tax WAS just,
he did what he could to have it col
lected. Mr.. Williams said:
Negotiations With East.
~ began giving the matter atten-
tlon when il was brought up by G.. 4.
Peabody Of New York, very able law
yer and a broad business man, who is
the business and legal representative
of Mrs Hartman In December I went
to New York City and saw Mr.. Pea
body and he informed me that his al.
tention had been called to the in
heritance tax matter by Mrs. Hartman,
who had received letter from Mr..
Barnes dated November 8. Mr.. Pea
body IS lawyer of wide experience and
was familiar with the inheritance tax
law and with the features of the laws
in other states.
"The Utah law being substantially
the same as that of New York, Mr..
Peabody understood it we'll He took
broad business view Of the question,
and discussed il as well-informed law
yer as we'll. He stated that it was his
wish and that of Mrs. Hartman also
merely TO have the matter looked into
and if the law imposed the tax he want
ed it paid as promptly as practicable.
He also said that when his attention
was first called to the matter the legal
time of fifteen months after the death
Of Mr.. Hartman had almost elapsed
He wanted time 10 investigate and
wanted an extension of time for two
months without interest, as the law
provides that extension in eases where
there is n reasonable ground for such
action. ] expressed to him the belief
that I could arrange that, as it was inn
possible to examine the merits of the
case and make payment within the
specified fifteen months.
Confers With Attorney General.
"On my return to Utah conferred
with Attorney General Barnes and in
a friendly manner he and l discussed
ing what the law was. 1t was all per
fcctly friendly and no attempt was
made TO evade any part of the require
ments of the law. He very generously
stipulated for an extension of time to
March o
1.-THE question was new to me.
found the attorney general had locked
into it very assiduonsly, and / condud
ed. after investigating. that his views
were correct and | concurred in them.
] prepared an affidavit for the; cx-
ecutriA Of the estate, setting out the