Evening star., 1947-09-28
50 Million Tax Claim
On EdseI Ford Estate
Settled for 8MiIIion
BY the Assccioted Press

Inc remaining TAX claim OF S5O,-
446, ,284. SO against the estate of Ed
sci B. Ford, son of Henry Ford and
former head of the Ford Motor Co.,
has been settled for $8,810,724.27. it
was learned yesterday.
Mathematically, this figures out
at settling for II cents on the dol
lar. Actually. the Government re-
duced the amount it claimed was
still due. 1t conceded that origin
ally it over-valued Ford Motor Co.
stocks owned by Edsel Ford.
Mrs. Eleanor Clay Ford, Edsel's
widow and executrix of his will, OBJ
tanned the settlement from the In
ternal Revenue Bureau last month
and the agreement now has been re-
corded in the United States Tax
Court.
Taxes Total 28 Million.
The $8,810,72427 payment is III
addition to a $15,824 ,36907 payment
by Mrs. Ford in August, 1914, and
brings estate tax collections in the
case to $24 ,635, ,093.34, the court rec
ords show.
Another $3,6o0,OOO was paid by
the estate in taxes on gifts made
by Edsel Ford before his death on
May 26, 1943, and brings his total
estate and gift tax payments to
more than $28,200,00O.
The Government originally claim
ed $66. .270, ,65365 was due it in estate
taxes alone, while Mrs. Ford con-
tended that her $15,824, ,369O7 pay
ment in 1914 covered the entire tax
owed.
The principal issue in the case
was the value to be put on 1,153, ,809
shares of class A common and 59,411
shares of class B common stock of
the Ford Motor Co. in the estate
at the time of Edsel's death.
Stock Value Revised.
Mrs. Ford originally returned the
shares for taxes at a value of $58
each, or 70,366, ,760 in all, but when
the Government counterclaimed
they were worth $3.50 each or $780,
5l1,800 altogether, she changed her
valuation to $40 a share or $48, ,528.-
300.
Tax Court records did not disclose
the settlement valuation of the
stock, nor would Revenue Bureau
officials tell it.
The fact that the Government
agreed to some in-betWeen value
will &C far toward clearing out like
obstacle to settling taxes on the
estate of Henry Ford, who died
April 7, 1947, leaving large holdings
OF Ford Motor Co. stock himself.
Ford Foundation Benefited.
Both of the Fords left their class
"A' (nonvoting) stock to the Ford
Foundation, charitable institu-
ton they set up, but left their class
"B' voting rights stock to family
members.
The stock bequeathed to the
foundation is nontaxable and it's
value was deducted from the total
value of the estate before taxes
were applied.
The Revenue Bureau early in its
collection moves set value of
1854 1851 ,503.86 on Edsels gross estate
and put the net value at $198,313,-
550.61, allowing reduction of $104,-
35s,024;65 for charitable bequests.r
Personal Property Appraised.
Its net estate listing showed $780,
Isl 1920 in stocks and bonds, and
only $500 in real estate.
The Revenue Bureau claimed orig
inally that Edsel had 100000 worth
of personal property at his residence
in Crosse sPointe, Mich, while Mrs.
Ford's valuation was $325,00O.
Further property was situated at
other Ford residences in Haven Hill,
Mich, Seal Harbor. Maine, and
Hobe Sound, Fla.
Among the personal property
items were antique rugs and paint
irlgs by old masters, the most valu-
able of the latter being Holbein's S
Portrait of a Woman"
The $4,000 valuation put on that
by Mrs. Ford was raised to $4,000
by the Revenue Bureau, but in a
few cases the bureau allowed a
lower valuation than Mrs. Ford re-