The sun., 1919-10-20
STATE FACES LOSS
OF INHERITANCE TAX
Aston Had Transferred Last
of Vast City Holdings.

The State OF New York may not be
able to collect cent of inheritance tax
on the enormous real estate holdings ,of
William Waldorf Astor in New York
city. estimated variously at from $780,
100000 to $500, 100000. Charles A. Pea
body, attorney for Astor interests in this
country, said over the telephone last
night from his home in Cold Spring
Harbor, L. l., that at the time of his
death in England Viscount Astor did
not have title to foot OF real estate
in New York city.
"All of his holding were transferred
several months ago to the Farmers Loan
and Trust Company as trustee" said
Mr.. Peabody.
What was the purpose of the trans
fer?" the attorney was asked
ITO provide for his children"
The inheritance tax law of this State
provides for tax OF 5 per cent on all
bequest to blood relatives and from 6
to 20 per cent on requests TO collateral
heirs. The British estates law provides
for a tax OF 20 per cent. on estates OF
more than 100000 wherever the
property is situated, and the majority
OF British millionaires usually provide
by insurance for the death duties The
statement by Mr.. Peabody that Viscount
tate in New York is not expected to
effect the collection of the British tax.
as the law Of England provides that such
transfer OF property must be made three
years before death In order to escape
estate duties
Had Viscount Astor not disposed of
his property In such manner that the tax
law probably cannot touch It the State
would have been enriched from So. 900
900 to Sl5,000.000. as few real estate
experts place the value OF the Aston
holdings In this city as less than $780,
900 600. although there never has been
any exact information available as to
the extent of the property holdings and
the value OF the innumerable pieces OF
real estate. tenement and apartment
houses, hotels and other buildings which
comprise tho estate. So far as Is known
practically all of his property is In this
city and state.
The only authentic information that
ever has been obtained comes from the
records OF the Department OF Taxes and
Assessments. which in 1915 placed an as
sessed valuation OF $50, 000, 900 on the
New York city property, principally in
7Iahhattanr and The Bronx. But this
lluation was made after he had for
some years pursued the policy OF giving
outright to his sons Waldorf and John
Jacob Aston. or transferring to the
Farmers Loan and Trust Company, in
trust for them, various parcels of real
estate valued at many millions. and thus
exempting these parcels from the op-
Grafton OF the inheritance tax. So It Is
likely that during the time when the
Astor holdings were all under one owner
ship their total value was consIdera bly,
In excess of their assessed valuation.
Tax DodEinE Not Denied.
At the time when Viscount Aston gave
to his sons some of the most valuable
parcels OF real estate in the entire list
Of holdings It was stated that the trans.
fers were made for the express purpose
of dodsing the inheritance tax and pre-
venting the State from collecting on the
requests made by will. This statement
has never been denied either by Wis.,
count Aston or by his agents In this
country. II was also said often that II
was the intention OF Viscount Astor to
do exactly as Mr.. Peabody said last
night had been done. transfer all of his
property to his sons or to trustee.
These gifts were distributed through a
long period OF yeNrS and none of them
attracted any consi ierable attention in
the light OF its effect on the inheritance
tax eventually to be levied until Il was
announced that v.scount Aston in 1911
had given TO his SIN Waldorf one-half
| of the Waldorf-Astoria Hotel the other
| half of which was owned by the late
/ Col. John Jacob Aston. father OF Vim
! cent Astor. BY this transfer Viscount
Aston saved IN inheritance tax of about
, SECS. 900. which would have been col
A