Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-03-05
$4,000 IN TAXES FOR STATE
Coup of State Officials Is Re-
vealed in Receipt of Check.
VIII of John Rutherford. New York
Millionaire with summer Home
In Vermont, Probated and Esq
tate Divided in New York.
(From the Montpelier Journal)

Details of an unexpected windfall 70
the State of Vermont and II a clever
coup h state officials car to light
recently with the receipt Of check
by the state treasurer for $1,000 covering
the collateral Inheritance tax from the
estate of the late millionaire New Yorker
and globetrottcr. John Rutherford who
died at Cannes, France. February %, 1911
Mr. Rutherford up to the time of his
death passed his summers exclusively on
his beautiful country estate located at
Grand Isle on Lake Champlain and It
was his love for this charming village
that led him to set forth in his will
that he was resident there and not
Of New York It was this declaration
discovered almost by chance that paved
the way for the collection of the second
largest sum ever received by the state
as an inheritance tax.
A curious fact in connection with the
case and one that would have mini
mixed the chances of the states re-
covery of the tax in litigation was that
the will Of Mr. Rutherford had been
probated In New York, the estate divided
among the heirs and the inheritance tax
paid into the Golfers of the Empire
State.
That the state OF Vermont was able
! to collect even a small portion of the
amount due under the law Is the resul,
of Tax Commissioner Charles s Plum
/ ley and Attorney General Rufus F.
Brown who conducted the negotiations
/ for the state with the executor of the
Rutherford estate and succeeded in adj
justing the claim for the sum Of $4,000
The story Of the discovery of the pos
sibe claim of Vermont to the tax and
the facts surrounding the affair are con-
tanned in a copy of the stipulation sign
ed by all parties concerned and approved
| by State Auditor Horace Graham and
State Treasurer Edward II. Deavit.
The testator known to have been
worth considerably mohe than $1,000
/ geo, died in the French city OF Cannes
early in 1911. He had no children and
his estate was divided in the will amons
several relatives AS has been stated
Mr. Rutherford set forth in the docu-
ment that his residence was Grand Isle,
Vermont.
! Notwithstanding this fact the will was
admitted to probate in the Surrogates
| Court in New York on April g. 1911 The
estate was divided according to the
terms Of the testament and a large in
hertance tax paid to the state of New
York.
| Ostensbly for the purpose OF legaliz.
| ing the sale OF the niionaire's summer
estate there was filed in in the office
of Probate Court of Grand Isle county
a copy of the will on June 8, 1912 and
| proceedings were commenced to pro.
bate the document as a foreign tesla
ment.
The question arose as to whether the
estate was liable to the state of Yer
mont for an inheritance tax. The sole
executor OF the estate Edward Cogges
hall of New York, maintained that the
states claim was invalid inasrnuch as
the estate had been divided.
Rather than force a large and expen.
sive lawsuit the attempt was made at
adjustment. Mr.. Plumley and Attorney
General Brown We're in conference with
MARVEL c. Wehber of Rutland, coun-
sci for Mr.. Coggeshan and as a result
the court authorized the assessment Of
the $1,000.
The stipulation was drawn and sign
ed by the executor his attorney Messrs
Plumley and Brown and send here fol
approval by the state auditor and trea.
surer. The later saw the apparent fu.
tiity of contesting the case and they
approved and signed the document
The check was received by the tax
commissioner last week from the ex.
ecutor.
Yesterdays payment was the second
largest in this state made under the
/ inheritance tax law the highest pre-
| vious payment being that made by the
heirs of John B. Beeman, the former
wealthy lawyer of Poultney.