The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-02-03
INHERITANCE ACT
PUTS BURDEN ON
BUSINESS THRIFT
Storm Of Protest Over PrOvi-
SionS of Proposed Law Is
RaiSed-BankS Threatened
by Act.

The Tennessee legislature, at the be-
nest OF Coy Roberts, is about to place
tax on thrift.
Senate bill No. 143, known as the in
herltance tax law. has made its ap.
pearance and precipitated a storm of
protest from insurance companies and
banking institutions all over the state.
The very existence of many small
banking houses is threatened with sus-
pension under the acts provisions, and
big business sees in the measure, II
passed In its present form, the forcing
out of the state Of large balances now
on hand in local institutions subject to
the order, Of numerous corporations and
There is no doubt passage OF the act
as It now stands would revolutionize
banking methods in the state and place
a burden on life insurance companies
that would react unfairly on policy
benefieiaries, Under prescribed penal
ties it virtually makes insurance COM
palies and banking institutions tax coll
lectors for the state, and puts burden
on their business sagacity in order that
the state may be provided with suf-
the state out Of debt.
No estate of any kind, no premium
on life Insurance, no money or securt-
ties on hand or in banks can be turned
over to heirs or benefciaries under the
act, until an accounting is first held
with the state comptroller, and the
states lien against the estate is salts
fled with the payment of tax that
runs all the way from to 10 per cent.
Bankers Protest.
Seeking to have its drastic provisions
considerably modified John D. Martin,
attorney; r. o. Vinton, D. M. Arm
strong, G. j. Haase, John D. Mcdowell.
Sa Noland dEo Eontaine al and a l. &, C. Humes
ference with Gov. Roberts, as rep
resentatives Of the Memphis Clear
ing House association. Their pur-
pose is to prevail upon the governor
to change certain provisions of the in
heritance tax law that will ease the
burden of proof and payment and re-
move the threat against banking busl-
ness in general, Similar protests from
the insurance companies are in state OF
preparation
The act provides for taxation on every
transfer OF. or interest In any real or
personal prpperty--bank deposits, life
insuance, real estate and all--in trust
4 Or otherwise. subject only 70 the fcllow--
SF iIefer BY will Or otherwise where
the clear market value Of the entire
estate Is less than $500;
Transfer to wife and direct descend
sns Or asesdsnts asas of % Rop9fFnty fnsp ytS o
provided the estate is treated as whole
without reference to the number Of in
dividual transfers, and t...
All property transferred to municipal
corporations for strictly municipal pur-
poses.
These shall be the exceptions the act
specifies. There is no other.
Now note the following taxation pro-
visions of the measure:
Transfer by Will or by lntestat0
or other laws Of this state from a
person dying possessed Of property
while a resident Of Tennessee, or on
property within the state held by
nonresident at the time Of death.
Proceeds Of any life Insurance
policy which pass to the husband,
wife, executor, heirs, administrator
or trustee of the Insured or to any
specific Beneficiary.
ALI Property Liable.
Property, real or personal, held
Jointly, or Deposited In banks or
similar institutions, payable to
either upon the death Of the other,
excepting such part a. can DO
and which never did belong to the
The power q appointment derived
from any disposition Of property
made either before Or atter passage
Ter taxable under the acts pro-
visions. Failure to exercise such
power Of appointment sha! Pc
deemed insufficient to defeat llabll-
Ity to the tax.
Bequests Of property TO executors
or trustees In lieu Of commissions or
allowances for services, whore the
bequest exceeds In value what would
be considered reasonable compen-
satlon, the excess to be liable to tax.
The tax on all taxable transfers to
be on the following basis:
Where the person or persons entitled
thereto are the wife or direct descend
ants or ascendants, l per cent on any
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