The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1914-09-05
is LEASE INCOME
Per. PROPERTY
THAT QUESTION HAS BEEN RAISED
IN F0GARTY INHERITANCE CASE
WANTS TO GET A RULING
Judge Brackett, Sitting For Judge
Ritze, Thinks that it is and Holds
it is Taxable

What lookd like an innocent little
tax package proved TO hold bomb
that is liable to explode and blow 10
smithereens lot of sources of revenue
from which the state is now drawing
n pretty penny Of tax.
The suspicious parcel is the Fogarty
estate, among the assets of which is a
mining lease on piece of Iron county
real state from which the estate is
drawing a nice bunch Of royalty. Mr.
Fogarty, in his lifetime, leased his land
near Palatka Stambaugh township,
10 Geo Mas and others who explored
il and found that body of iron ore
existed thereon. The original lesses
subleased the property TO the Pickands
Mather people and the Fogarty mine,
from which a substantial output of
iron ore is shipped each wear, is the
principal asset of the property,
Mr.. Fogarty died and his estate has
been in probate for several months.
IL is about ready TO be settled and the
state agent, Mr. j. X Bowers, represen-
ting the auditor general, came to
Crystal Falls last Tuesday to be pre-
sent at the final hearing and present
the claim Of the state.
Judge Rite, who under ordi nary
circumstances would have jurisdiction
in the case, is disqualified from sit
ting becau SO of profe ssional connection
with the estate and Judge Bracket,
of Dickinson county was called in TO
take charge Of the matter. Judge
Bracket came here Tuesday and after
listening to the position taken by both
sides in the case, came to the conolu-
sion that the lease from which the
estate draws the revenue upon which
the tax must be based /, personal
property and Is subject to tax.
The attorneys for the estate contend
ed that the lease is real estate ana not
subject TO the tax under the inheritance
law. Mr.. Bower, for the state, said
that that contention was new one TO
him that In his many years eIper-
fence in collecting taxes under the law
the Fogarty estate lawyers were the
first 70 make such contention.
In speaking Of the case after the hear
ing Judge Bracket said that while he
is very much decided in the matter,
he believes that il is Of sufficient
importance 20 have decision on the
question from higher authority and TO
that end he held that portion of the
estate subject TO tax and allowed
the estate all the time necessary to 90
mp and get decision on the question
Mr.. Bracket further stated that no
deci sion has ever been made upon this
question either by the supreme court
or by the attorney general and he
thinks it time that probate judges
should be ,et right and fortified in
any decision they may make on that
point.
Should the contention OF the attor
neys tor the estate be upheld It will
create quite class of property upon
which inheritance tax cannot be levied
Mr.. Bracket agreed that should min
ing leases be exempt there is no
reason why leases on all other classes
Of real estate shoulct be considered
even building leases from which much
Of the revenue OF the big estates is
derived.
The question is of such importance
to all parts of the state that its dispo-
,ition in the higher courts will be
inxiously watched for.