New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-01
Carnegie Estate
Is Appraised at
s22,l5l,911 Net
George b. Compton, State
Transfer Tax Official,
comments ON Unusual
Procedure TO Fix Values

OaAC tO LIN afuGS
Inc estate of Andrew Carnegie, who
IN mis- lifetime gave away $3.50, 900 900
IN public benefactons. was appraised
Yesterday by George Brokaw Compton,
State Transfer Tax Appraiser, at $685.
98o'ol4 gross and s22, 151, oil net.
The appraisal filed in the Surrocates'
Court follows closely the figures made
public several months ago from Pitts
ourgh, where an inventory of the estate
was made. 1t shows shat Mr.. Carnegie
owned securities which at the time of
ms death had value of s17,543.538
me net valuation is arrived at by the
DEDUCTION of $3,02S,738 for debts and
100000 for administration expenses.
Residence Transfer Tax Asked
Several questions arose during the
proceeding before Appraiser Compton
which contributed to the difficulty.
one OF these was raised by Lafayette
b. Gleason, attorney for the State
comptroller, who contended that one
nan OF the value of the Carne gle
homestead at East Ninety frst
Street, which property is valued at
505,200, should bear transfer tax.
Mr.. Gleason contended that this tax
should be fixed because the title was
held by MIR. and Mrs. Carnegie as
| tenants by the cntirety--thats is, that
the survivor Husband or Wife, should
! become the owner.
Mr.. Compton oyerruled the Comp
troller's attorney on this point, ex-
pressing the view that the Appellate
Division of the Second Department.
which held in a similar case that the
tax should be paid, would be reversed
by the Court of Appeals. Therefore
lhe carnegie home was not taxed.
Another question raised by Root
Clark, Buckner G. Rowland, ATTORNEYS
Tor the executor, was whether the Fed
erai estate tax of $3,075,037 on the es-
late should not be allowed as deduction
from the taxable assets and should OF
be subject to taxation by the State of
New York. This contention was over
ruled by Appraiser Compton.
Ruling on Private Pension Fund
Mr., Compton ruled that the interests
| OF the 400 benefciaries of private
! pension fund created by Mr.. Carnegie
IN his lifetime, are not subject to a
New York inheritance tax. This fund
amounts to little more than $4,000.
oOo, and it was determined by actuarial
reckoning that not more than $685..
043 of the fund will be paid out and
then the balance of S2,901,957 revert.
ing to the estate will become taxable
In the course of the hearings be-
lore Appraiser Compton, he took oc-
caslon to comment on certain circum-
stances with regard to the employment
of Harry A. Jaffe, of Smith & Jaffe, to
appralse the real estate, and Samuel
Marx, Tammany leader, and Eugene M
Homer, of the Actual Appraisal Com
pany, to appraise the personal effects
of the ironmaster in his residence All
these appraisers were suggested for the
work, twas said by William Boardman
who was Deputy Comptroller undel
Comptroller Eugene Travis and who re
signed his office. Instead of the state
and the estate having separate ap
pralsers as has been the general Gus
tom, Jaffe was paid by both the State
Comptroller's office and the estate Hi
received his fees from the Carnegie
estate and Marx was paid by the State
| Comptroller.
At the conclusion of the examination
Appraiser Compton had placed on the
record of the proceeding his, opinion
that in the future all affidavits sub
mitted to transfer tax appraisers by
to state, as has assumed to be the fact
IN the past, that each expert is en-
p!oyed exclusively by one of the par
ties to the proceeding and that the
values fixed in his appraisal reflect
only his own independent judgment.
Compromise in Appraisals
In the case of the Carnegie Appraisal
1t was shown that Homer for the es
tate and Marx for the state got to-
gether. compared their respective fig
ures, and where they did not match
there was a compromise, although
Homer said he deferred to the figures
stated by Marx.
Eugene M. Homer is president of tht
Actual Appraisal Company. He was q
first employed by the attorneys to ap
praise the personal property. He wa
asked, Did you arrange with the firm {?
Mr.. Homer replied mot directly.
was originally employed by the Comp
troller, but the bill was paid by tn,
firm"
Mr.. Homer said that Mr. Boardman
the former Deputy Comptroller, sen
for him and told him he wanted to ap
praise the Carnegie personal propert,
for the state.
AS the appraisal now stands, only on,
set of figures will be submitted to tn,
Surrogate, instead of two sets of fig
ures, by which the Surrogate nigh
make comparisons before accepting tn,
appraisal
Appraiser Compton had included il
the record of the proceeding this state
ment.
"The independent opinion of a dull,
qualified expert representing only on
OF the adverse parties to & proceeding
furnishes, in my opinion, the best evi
dence as to the value of each of thu
different items of assets. Such opinion
evidence has greater probative fore
than testimony and affidavits of tn
sort offered by the experts in this case
Since no attempt by either party t.
obtain an unreasonable or unfair ex
pert opinion regarding the value of an.
of the assets is apparent, | accept AM
shall report to the Surrogate the aft
davits of expert appraisal which hav
been submitted herein, but which fsi
to conform to the usual procedure"
Owed L. S. Income Tax
In the appraisal of the estate of MI
Carnegie, there was included in tn
schedule of debts Federal income la
: which he owed at his death for tn
years 1917, 1918 and from January
to August IL, 1919, which amounted t
1851, Sl06,523 and s45s,00i respec
lively. M a.as.s
Mr.. Carnegies real estate was ap
praised at Sl,200,933. He had S5s3,44
IN cash and the value of his mortgag
bonds, mortgages, personal propert
and house hold furnishings was place.
at So, 706,941.
The effects in the residence at Eas