The Birmingham age-herald., 1921-10-23
HUMAN SYMPATHY
 NEED OF TAX JAW, BANKERS ARE TOLD
New Law Placing Revenue Source on Gifts Is QueS- toned By Detroit
 Speaker

Los Angeles. October sf.-Tne in- lection of a little human sympathy into tho revenue act will do no
 harm, Henry M. Campbell of De-
 eroit, chairman of the legislative
 sommittee, told the members of the rAmerican Bankers association m session here today.
 Section 203 of the new act am ends Section 202 of the act of 1918, so as to provide that in the case of gifts made after December sl, 1920, the value, as a basis for taxation in case of sale, shall be the cost to the donor or, the last preceding owner by whom 1t was not
 acquired by gift" said Mir. Camp bell, while in the case of beauests, i-devises and inheritances. the basis Is the value at the time the bequests take effect. This distinction is il- logical and unfair. Some academic aheorists must have devised this scheme.
 "Sentimental reasons alone are sufficient to justify fixing the value of property at the time the gift Is received as the basis for ascertatn- sng the gain or loss. tn caas of sale. The significance of tho gift is lost if tt must be accepted subject to the requirement that the donee must as- certain the cost and in case of sale must pay tax upon the basis of what the gift cost the donor or the last preceding owner by whom 1t was not acquired by gift.
 Gift Cost Difficult
 'sThe difficulty of determining the cost of tho gift to the donor or the
 last preceding owner by whom if was not acquired b$ gift Is also likely in many cases to be insurmountabls. Included in the gifts, subject to the act, are heirlooms, books and manu- scripts, works of art, cherished house. hold belongings, Christmas gifts wedding presents and many other things whose value lies chiefly in the sentiment attached to them. Imagine the recipients of a wedding present replying to the donor: We gratefully acknowledge acceptance of your gift provided you furnish us with a certi- fled statement of its cost
 Another interesting illustration of
 how the law might operate--a sword
 once owned by Lafayette was given
 by him to a distinguished member of
 prominent vlrginian family. The sword has been handed down from
 Sather to son for more than 100 years.
 The present owner has been offered
 fabulous price for 1t, but he has fe-
 fused to part with it. But suppose
 that poverty or misfortune compelled
 the owners to sell the sword,, what
 value would be taken as the basis
 for the tax? Would 1t be the cost to
 Lafayette, provided that 1t could be
 shown what he paid for it2
 QuextfOu Validity
 There Is also grave doubt as to
 the validity of the provision author
 tzing the commissioner to fix the
 value in the absence of all inforna-
 ton available for the purpose.
 There has been sotne appNeh ension on the part of the trust companies and there Is ground for the apprehan-
 sion--that the word 'gix' was used
 in the revenue act might be con
 strued to include what are generally
 known as voluntary or living trusts.
 The voluntary trust Is not a gift, but
 Is more of the nature of a transfer
 under q general appointment, or in
 contemplat tion of ueath."