New-York tribune., 1922-11-04
Carnegie Fund
OF $4,50O,O0O
Goes Tax Free
Pension Trust Held To Be
No Inheritance; 5th Ave.
House, J Owned Jointly
With Wife, Escapes Levy
Gave Away$35O, A 900, 900
[Ielen Kellar and Leishman
We're Among Those Pro-
vided For by Steel Man

Some heretofore unpublished data
bearing on the methods Of Andrew
Carnegie In providing pensions for
friends. former employees and other
persons he considered worthy figured in
case before the Appellate Division
involving efforts of the state to col
lect transfer tax on the ironmaster's
pension fund and upon tho Carnegie
homestead at Fifth Avenue and Ninety
first Street.
In both instances the Appellate Divi-
sion decided yesterday that the estate
should not be compelled to pay an in
heritance tax. The pension fund,
amounting to $4.5o0.o0o, was estab-
lished by Mr.. Carnegie in his lifetime,
whiie.the Fifth Avenue property, valued
at s3,o75.o0o. 1t was shown, was The
Joint property Of Mr.. and Mrs. Car
negie. so that the wife became the
owner upon the death of her husband
and did not inherit it.
Gave Away sa5o. 100000
The records showed that Mr.. Car
negie, in his lifetime, gave away $780,
100000. His estate at his death was
valued at s23,000,0G0. The benesciaries
under his pension fund are mostly men
and women of old age Altogether
there were approximately 500 on .he
pension list, and the pensions ranged
from SO month to $1,000 = year.
Some OF the benefciaries Of the pen
sion fund and the amount received by
them were John G. A. Leisnman, for
mer American Ambassador to Ger
many and one time connected with
the Pittsburgh steel interests, $4,000
a year; Miss Helen Keller. blind prod
10y, $1,000 year. and Viscount Nor
ley, English statesman, $1,000 a year.
Robert A. Franks, president of the
Home Trust Company, executor of the
Carnegie estate, for many years car
ried out the wishes of Err Carnegie
IS to the pensions. On April 90, 1919
the Laird of Skibo wrote to Mr.. Franks
directing him to place certain woman
on the pension list for $700 q year.
Please say her father loaned me
$2l7.50 in order to make my first pay
rnent on sleeping car Stock wrote Mr.
Carnegie. "Say that he took my note
without security, saying 4 will lend
IT to you, Andy. You're all right So
mis- daughter may have no hesitation in
""oS< my wing aoWs rs IL
were"
Hoped for Comfort
In another letter about an aged man
and his wife Mr.. Carnegie wrose:
They are old and no longer able to
work and on the verge of losing their
minds. This arrangement, i hofe. VII
make them comfortable until the end
Justice Page wrote the decision of
the Appellate Division, holding that the
pension. fund established by Mr.. Car
negie for the payment Of pensions
after his death was in no sense be-
quest and should be free from tax.
alton.
when Mr.. Carnegie retired from
business said Justice Page, "he fre-
quently expressed the desire to make
provision for certain persons whom he
deemed worthy and in need of financial
assistance. These persons were largely
friends, former employees and Others
OF advanced age, no longer able te
work. He sought means whereby he
could secure for these persons the pay.
rnent of small sums regularly for their
lives. AS the list of these persons in.
creased in number he realized that il
he personally made these disburse
rnents his death would terminate such
payments and leave these persons un.
provided for during the remainder o!
their lives; consequently he estab
{ished the pension trust fund I"