The Waterbury Democrat., 1932-07-08
Reynolds Money
 Being Discussed
(Continued from Page D

children living at the time sof his death."
 Smiths two-year-old daughter by his marriage to Ann Cannon, daughter of a millionaire towel manufacturer, will inherit, it was definitely announced.
 Winston Salem, N. C., July g. (UP)-Smith Reynolds, who killed himself seven years before a $21,- OOO,O0 fortune would have been his, will be buried today-his at- tractive bride so i'll she may not be present, and disposition of his fortune so uncertain it is a legal puzzle.
 Funeral services will be at the magnificent estate, Reynolda, where Smith killed himself a few moments after a party attended by his Broadway bride, Libby Hoi- man, and her friends; where five funerals for the tobacco kings household have been held since 1918.
 Mrs Reynolds, found prostrate beside her fallen husband few moments after the shooting. was still in such serious condition last night that she was physically un- able to undergo questioning by relatives of her own family and her husbands family.
 Whether Libby Holman receives one-third Of the trust fund as pro- vided by North Carolina law; whether the fund reverts to the other three heirs of R. J. Reynolds if Smith died before he became 28: whether, under interstate law, the wife gets one half, and a child if born of the union, gets the other half.
 Smith was not quite 21. He could not make a will that would be recognized legally. There was a pos- sibility, however, that Libby Hol- man might legally inherit the in- come from the trust fund that had been established for her young husband. 4N
 The Baltimore Safe Deposit and Trust company is trustee for 8 great part of the Reynolds estate, acting for heirs. Lawyers debated whether it could legally dispose of the estate without g court or- der, in view of the circumstances of the young heirs death.
 Regardless of who finally gets the fortune intended for Smith Reynolds, the state and federal governments will claim millions in inheritance taxes.
 They will claim that whoever gets the trust fund inherits it from Smith, and not his father. which will mean that the governments will share on a graduated scale starting at per cent and reach ing 20 per cent on all over ten
 Libby Holman, 1t was known, has accumulated a small furtune of her own, the result of her stage earnings-earnings that have piled up as a result of a peculiar sing ing voice given her by the slip of a surgeons knife during a tonsil operation.
 She and Smith were devoted. friends said. She has been under a physician's, care since Smiths death when she collapsed in the arms of her chum, Alb Walker. Walker collapsed a few moments
 walker 1t was who rushed up the stairs at Renyolda when he heard tho fatal shot. Smith and Libby had been resting on the bed after . swim during the party that preceded the shooting, according to Coroner Dalton.
 After long study of the will of R. !. Reynolds. sr. father of Smith Reynolds, which established the trust fund maturing when Smith was 2s, lawyers were convinced the trustees could not dispose oi the e2f, ,0O0, 900 without . court do- cislon. North Carolina law gives one third of an estate to the widow when there is no will, but the fact that Smith. still . minor. was 10. gaily unable Co make . will and that he was not in possession of the fund, might revert to the ether threc heirs of the elder Reynolds.
 istnts Senator w. W. Hendrem an attorney. who aided in drawing 20 the TleynolGn will, said oven no