The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-04-05
Inheritance Tax Suit
Goes to u. S. Court

The inheritance case of Howard
Moody VS.. Otto A. Hagen, eft al, and
the state tax commission, which was
yesterday decided by the state su-
preme court and the decision of the
lower court reversed, will be ap-
pealed to the supreme court Of the
United States, according to Fowler &
Green Of this city, attorneys for the
alien heir, Mrs. Elmo A. Skardenrud,
and for the defendant executor.
The appeal to the United States SUI
preme court will be taken on the
ground that the case involves an in
ternational treaty between the United
States and Norway.
The decision of the state supreme
court follows:
From cass County.
Howard Moody, as executor, petit
toner, VS.. Otto A. Hagen, Elina A.
Skarderud, Emelia Madison and all
other persons interested in the estate
Of Martin A. Hagen, deceased, re-
spondents, and the tax commission Of
the State of North Dakota, intervenor.
Syllabus: y
/. Section ss77 of the Compiled
Laws Of 1913, which imposes a tax of
rs per cent on the inheritance Of non
resident aliens as opposed to a tax of
one and one-half per cent on the in
heritances of citizens and resident
aliens residing In the United States,
is not in violation of Section 20 OF
Article 1 Of the constitution of North
Dakota which provides that mo citiz5
en- or class Of citizens shall be granted
privileges or immunities which upon
the same terms shall not be granted
to all citizens" Non is it in violation
of Section IL Of Article 1 which pro-
vides that Laws Of a general nature
shall have a uniform operation" Nor,
where the decedent was a citizen of
the United States and residing there
in, is IL in violation Of Article of the
Treaty Of Amity and Commerce be-
tween Norway and the United States
and which provides that THE sub
respective states, may fully dispose
Of their goods and effects either by
testament, donation or otherwise, in
favor Of such persons as they think
proper; and their heirs in whatever
place they shall reside, shall receive
the succession alb intestato, either in
person or by their attorney, without
having occasion to take out letters of
naturalization. These inheritances. as
well as the capitals and effects, which
the subjects of the two parties, in
changing their dwelling shall be desir-
Gus of removing from the place OF
their abode, shall be exempt from all
duty, called "droit de detraction," on
the part of the governments Of the
two states respectively.
2. The right to inherit or to take
by will and the right to devise and to
bequeath are not natural and inalien-
able rights nor are they guaranteed
by the state or federal constitutions.
8. The alien, in the absence Of
permissive legislation, has never been
allowed, as against the sovereign
state, to take by descent or even by
will. -.-a--
4. Statutes which change the COM
mon law and which allow aliens to
take by will or to inherit are not to
be looked upon in the light Of recog-
milton or extension of any previously
existing right belonging to such
aliens, but rather as a fresh grant or
a right or statute OF grace which the
state chooses to confer.
8. There is a wide distinction be-,
tween a tax on the right I'd export or
to carry out Of a state property after
1t has passed to an heir or legatee and
has become his and a tax on the prop
erty before 1t passes to him, or tax
upon his right to receive or OF the
to devise and beQueath.
6. A citizen Of a foreign country
Of express treaty right, no reason to
complain that his inheritance is taxed
more than that of fellow alien who re-
sides in the United States, but not
In the state where the deceased re-
sided or of the probate Of the will.
Z. The wealth and prosperity OF
California or of any other state in the
Union is Of vital Importance to the
people of North. Dakota. A statute,