New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-30
Surrogate Upholds Ex-
emption of Mrs. John
DIS Requests.
100000 NOW GOES TO
FOUR ORGANIZATIONS
Court Rejects Contention
That Gifts to Big lnstitu-
ton Are Taxable.

Surrogate Cohalan yesterday denied
the appeal of the State Controller from
the transfer tax appraisal of the estate
of Mrs. Laura S. Rockefeller, wife Of
John d. Rockefeller. He held that the
funds turned over to several institu-
tons from her resduary estate, which
included a gift of $425,51S to the
Rockefeller Foundation, were exempt
from taxation.
Mrs. Rockefeller left s1,490,371, Of
which about 100000 was devised to
her executors and trustees for distribu-
ton, in their discretion, to certain in
stitutions. The transfer tax appraiser
exempted these gifts. His decision is
upheld by the Surrogate.
The State Controller contended that
the purposes of the Rockefeller Foun-
dation were vague, that it used some of
its funds for purposes not entitled TO
exemption and which were not for the
good or promotion of humanity, the
stated object of the Foundation. II
was also the contention of the Con-
troler that the great institution found
ed by Mr.. Rockefeller was illegally eX-
ercising the functions of trust COM
pany.
Ii was the purpose of the state OFF,
cial to test the standing of the Rookie
Teller Foundation, because some day 1t
is probable it will inherit large part
of the fortune of its founder, which
would be exempt from taxation.
Surrogate Limits Action.
Surrogate Cohalan did not pass on
this phase of the appeal, saying:
4" or if it is asked that this
court criticise the action of the Rookie
Teller Foundation in taking and holding
the money as a trust company, and
hence implicitly acting beyond its pow
.ers. l can only say that this is mat
ter that must be submitted TO a tri-
bunal other than this. do not think !
have the power to consider the evidence
offered by the appellant State Con-
troller) and referred to in an affidavit
and stipulation submitted on the argu-
ment on the appeal. This evidence Is
not part of the record before the ap-
praiser, and. moreover, its reception is
objected to by the respondents"
Mrs. Rockefeller provided in her Will
that her executors and trustees were
TO distribute her Iesiduary estate IN
whole or in part among certain insti-
buttons. The trustees decided on these
beouests: Rockefeller Foundation,
S425.51S; Women's Baptist Foreign
Mission Society, 100000; Womens
Baptist Home Missionary Society, 500,
600. and the Bureau Of Social Hygiene,
$4,000 The trustees in their discre-
ton excluded from a share in the re-
siduary estate these institutions men,
toned by Mrs. Rockefeller:
Euclid Avenue Baptist Church, Of
Cleveland; Baptist Home Of Northern
Ohio. Baptist Home Society of New
York and Spelman Seminary, Atlanta.
Loses on Bond Fight.
Another point made by the Control
Ter was that the Rockefeller Founda-
ton held illegally $4,000 in bonds, the
property of Mrs. Rockefeller which
we're taxable. Surrogate Cohalan also
denied this appeal on the ground thar
the transfer took place while Mrs
Rockefeller was alive.
Surrogate Cohalan said that the prin-
cipal point involved in the appeal was
the right TO exemption, under the
statute. of the Rockefeller Foundation
and the Bureau Of Social Hygiene. The
court decided that these two institu-
tions. as well as the Women's Baptist
+ Home Missionary Society and the
Women's Baptist Foreign Mission So
ciety. answer the description of cor
porations exempt from the imposition
OF a transfer tax.