Legal Document

331 U.S. 486 67 Supreme Court Reporter 1400 91 L.Ed. 1621 GREENOUGH et al.v.TAX ASSESSORS OF CITY NEWPORT al. Number 461. Argued March 7, 1947. Decided June 9, Rehearing Denied Oct. 13, See 68 28. Appeal from the Superior of County Newport, State Rhode Island. Messrs. William Greenough, New York City, and R. Harvey, R.I., for appellants. Mr. John C. Burke, appellees. [Argument Counsel page 487 intentionally omitted] Justice REED delivered opinion Court. 1 Appellants are testamentary trustees George or Haw. Hawai‘i Reports KFH45 A2 Wrren, who died a resident York. His will was duly probated in that state letters issued to appellants as executors. A authenticated copy said filed recorded Island there were also issued. Letters trusteeship granted by surrogate's court None needed asked At all times pertinent this appeal, appellants, under will, held intangible personalty benefit Constance W. Warren her life then certain yet undetermined future beneficiaries. 2 The evidences property estate trust question at beneficiary one residents other trustee resides During period question, he did not, however, exercise his powers, trustee, 3 personal tax $50 assessed City Island, against upon one-half value corpus trust. applicable assessment statute ad valorem taxes appears margin.1 time assessment, consisted 500 shares capital stock Standard Oil Company Jersey. paid suit instituted, appropriate procedure, Newport recover city. decision denied petition. bill exceptions prosecuted these petitioners which overruled remitted case superior court.2 Thereupon judgment entered appellees an appeal allowed All questions procedure applicability circumstances foreclosed us rulings Island.3 4 appellants' contention throughout has been statute, made, if unconstitutional due process clause Fourteenth Amendment Constitution United States. Their objection courts here is cannot trustee's proportionate part intangibles merely because Such tax, they urge, it exacts payment measured wholly beyond reach Island's power does not give protection benefit. specifically disclaim reliance argument exposes them danger another state.4 same concession made Island.5 We therefore restrict our discussion determination issue presented insistence constitutionally collect rendered no equivalent its exaction fund. 5 For purpose taxation those within borders, sovereign unembarrassed any restriction except emerge Constitution. Whether exercised wisely unwisely problem each state. It may well be sound fiscal policy would promoted levied only seat trust.6 Or, actual domicile should preferred single tax. Utilization states modern reciprocal statutory provisions more fairly distribute benefits burdens, although competitive inducements obtaining settlor's favor obvious.7 But whether provision forbids Neither expediency levy nor economic effect on economy taxing consideration.8 dealing with totality state's authority revenue raising powers. 6 place limit lay residents.9 Previous decisions have mere over permit exact him tangible permanently located outside jurisdiction state.10 exaction, cases teach, violate Amendment, protection, adequate support furnished residence.11 domiciliary owner tangibles state, require contribute government lives income out-of-state item taxpayer's gross income. immaterial, such case, producting People ex rel. Cohn versus Graves, 300 308, 57 466, 81 666, 108 American Law 721. And, where corporation taxable situs exists law domicile. Southern Pacific company Commonwealth Kentucky, 222 63, 32 56 96.12 7 precedents, holding boundaries, applied documents interest confines choses action promises nonresident without documents.13 One reason justified when wealth represented intangibles, gatherer difficulty locating uncertainty district affords represent. There 'papers.' If residence owner, overlooked easily assessors taxes. dependent citizens revenue. Wealth long accepted fair measure assessment. As practical mode collecting reenue, unrestricted federal accustomed assess 'wherever deposited,' belonging their regardless location debtor.14 So chooses wealth, ownership immaterial. controlling, transfer defeat matter fact, than intangibles. Since themselves real situs, nearest approximation, jurisdictions intangibles.15 Normally subject immediate control owner. This close relationship between furnishes basis attack violation Amendment. owner's supplies inherent existence organized government. He choose expand activities borders but base operations. exercises privileges citizenship enjoys Does similar exist trust? 8 today moves freely live still constantly change residence.16 official is, course, different personal. trust, said, 'an abstraction.' In purposes sometimes dealt though had separate existence. Anderson Wilson, 289 20, 27, 53 417, 420, 77 1004. Congress seen fit so deal entity, point view consists interests, equitable res beneficiary17 legal trustee. distinct right. enables settlor protect beneficiaries burdens ownership, while retained right, through equity, compel act accordance obligations. incur obligatins administration enforceable him, personally.18 Nothing else appearing, personally liable contracts trust.19 rule Island.20 Specific performance decreed him.21 Of acting powers entitled exoneration reimbursement22 pursued equity creditor payment.23 9 considered laws afforded Although nothing appeared specific actually received, concluded 'ready, willing capable' furnishing either 'if requested.' foreign advantages natural person resident. Greenough Tax Assessors supra, 71 R.I. 488, 47 Atlantic Reporter, 2nd Series 631. matters can litigated example, appointment trustees, settlement, termination distribution carried out, normally, decedent's Harrison Commissioner Corporations Taxation, 272 Mass. 422, 427, 172 Northeastern KF135 N59 605, 677. reside third parties need proceed directly individual arising out relation Or enforce claims citizen open causes depended diversity. controlling factor.24 suable like obligor. Constituton f orbids suits created sister Consequently, we must conclude offer onwer logically urged offered land chattels, reasons, hereinbefore stated, 1403, apply denying similarly resident's realty. 10 No precedent called attention indicates contains forbid hands Brooke Norfolk, 277 48 72 767, invalidated, evidently violative beneficiary, res, composed both testator administered. Safe Deposit Trust Baltimore, Md., Virginia, 280 83, 50 59, 74 180, 386, invalid trust's attempt conflict thing state.25 Graves Schmidlapp, 315 657, 663, 62 870, 874, 86 1097, 141 948, extend disposed disposition leads conclusion trust.26 11 construe statutes according understanding situations interpretation language requires. adjudging, final judicial meaning law. judgments collide rights secured rights. adjudging taxability various conclusions reached regard They illustrations viewpoints law.27 12 Nor do think significant sole required, interest, res. Whatever character title intangibles28 limitations administrative trust,29 possessor sufficient, explained, proportional Island.30 13 Affirmed. 14 FRANKFURTER, concurring. 15 dissents elicited Court's opinion, & N Dec. Immigration Nationality Decisions why join it. 16 permanent proportion property. imposes own outright it, legally speaking, fiduciary capacity. questioned assets controversy could included owned outright. doctrine chattels situated Union Refrigerator Transit 199 194, 26 36, 150, Ann.Cas. 493; Frick Pennsylvania, 268 473, 45 603, 69 1058, 42 316, inapplicable. challenged, wanting 'due process,' pieces paper evidence kept State. 17 system residents—subjecting ascertaining ability pay hold others—long antedated imposed 'it presumed, general living jurisdiction.' Fidelity Columbia Louisville, 245 54, 58, 38 40, 145, L.R.A.1918C, 124. hardly deemed irrational say, apparently hundred years, roughly measured, purposes, controls, whatever ultimate beneficial 'The Fourteent , itself historical product, destroy history States substitute mechanical compartments exactly alike.' Jackman Rosenbaum Co., 260 22, 31, 43 107. 18 event, terms determine amount has, effect, done treating alike holdings, interests. That operation statute. controls constitutionality, form cast Lawrence Commission, 286 276, 280, 52 556, 557, 76 1102, 87 374; Wisconsin Judge Penney 311 435, 443 seq., 61 246, 249, 85 267, 130 1229. go concern contingent free undertaking. 19 JACKSON, dissenting. 20 laid individually, unassailable even trusteeship, perhaps estate. citizen. pretty much mercy events him. wants make taxable, know grounds objection. what being done, authorizes. 21 taxed individual, might sought reimbursement chargeable left supervising consider nature charge, doubtless be. find expense administration, properly borne fund—the such—the taxpayer. 22 solely derive authority, account. 23 supposed fund became every reside. instance proposed two seems grace right all. over, to, fraction conductor reaches estate, see stop part, indeed several states, Cf. Texas Florida, 306 398, 59 563, 830, 83 817, 121 1179, moving about. 24 hard blow practice naming trustees. me funds, despite unquestionable citizen-trustee individually. 25 MURPHY joins opinion. RUTLEDGE whom THE CHIEF JUSTICE concurs, 27 am agreement views expressed intimte opin ion concerning privilege connection arises fact residence. case. 28 acts, transactions, essentially degree, depending sufficient factual connections, having effects, number more, sufficiently substantial justify corpus, fractional entirety 29 become necessary claimants, others sue suing persons about matters. To extent conferred needs arise sort business activity, other, conducted largely affairs. keeping furnish bringing grasp affected claims' assertion. seem factor, presented, wide arm. 30 Mobilia sequuntur personam uses sustaining states' affecting extrastate split among bring taxation, virtue fiction too far. Something affording service process, coupled qualified representative required sustain value. 31 Finally, true residing doubt thesis receives greater And beneficiary's alone insufficient cf. 767,1 supply firmer foundation. General Laws 1938, chapter 30, § 9: 'Fifth. Intangible executor, administrator, express implied person, shall town resides; execuor, equal proportions executors, administrators, towns respectively reside.' 14; 545, 6, amended 941, Public 1940; 477, 625. Chase Securities Corporation Donaldson, 325 304, 311, 65 1137, 1141, 89 1628; Huddleston Dwyer, 322 232, 237, 64 1015, 1018, 88 1246; Federation Labor Watson, 327 582, 595, 66 761, 90 873. McKinney's Consolidated York, 60, Law, §§ 3, 350(7), 365, 369, 377. Compare Blackstone Miller, 188 189, 277, 439; Curry McCanless, 307 357, 363, 900, 903, 1339, 123 162; Elliott, 383, 913, 1356; 948; Commission Utah Aldrich, 316 174, 177, 1008, 1010, 1358, 139 1436, Farmers Loan Minnesota, 204, 98, 371, 1000; First National Bank Boston, Me., Maine, 284 312, 313, 1401. Assessors, Holmes' dissent, Baldwin Missouri, 281 U.. 586, 436, 1056, 1303. 181, 1011, 1436. 279, 374. Article I, 10, cl. contain import export tonnage duties. 202, 37, 604, 316; Cream Wheat Grand Forks County, N.D., 253 325, 328, 329, 40 558, 559, 931; 363—365, note 904, 444, 1229; 178, Even spoken justification jurisdiction, used instances bases Foreign-Held Bonds, Wall. 300, 319, 179; 76, 18, 96; Pearson McGraw, 308 318, 60 211, 213, 84 293. Northwest Airlines 292, 950, 1283, 153 245. Kirtland Hotchkiss, 100 491, 558; 124; compare Blodgett Silberman, 1, 8—12, 410, 749; Maguire Trefry, 12, 739; 365—368, 904—906, 558. Wheeling Steel Fox, 298 193, 773, 80 1143. Certain indebtedness imposition succession Wheeler Comptroller 233 434, 34 607, 58 1030. Hutchison Ross, 262 N.Y. 381, 393, 187 65, 1007. Brown Fletcher, 235 589, 598—600, 35 154, 157, Blair Internal Revenue, 5, 330, 333, 465. Scott, Trusts (1939) 487, 1469 seq.; Williston, Contracts (1936) 312; Bogert, Trustees (1935), 146. Duvall Craig, Wheat. 45, 56, 180; Taylor Davis, 110 335, 147, 163: 'A defined generally some vested another. When agent name principal, principal contracts, bound, not. such, unless principal. promise; contract undertaking holds managing bound makes designating himself such.' Lazenby Codman, D.C., F.Supp. 949; Prudential insurance America Land Estates, 845; Peyser Security 70 App.D.C. 349, 107 Federal Roger Williams Nat. Groton Manufacturing 504, 170. Goodloe's Ex'r, 230 Ky. 514, 520, South Western 278. Trusts, 244 seq. 268. 267 Ballentine Eaton, 297 389, North Eastern 808; O'Brien Jackson, 167 238. Bullard Cisco, 290 179, 190, 54 78 254, 93 141. Memphis Street Moore, 243 299, 37 273, 733. presented. Id., pages 92 95, 61, Goodsite Lane, Cir., KF105 F3 593, 849, invalid. decided gives proper recognition validly applies trustee: Welch 221 155, 109 Ann.Cas.1917D, 946; Harvard 225, N.E . 596; Mackay San Francisco, 128 Rptr. California (West’s) 678, P2 382; Millsaps Miss. 537, S69 756; McLellan Concord, N.H. 89, 97 552; Florida Beardsley, Fla. 803, 82 794. inapplicable re Dorrance's Estate, 333 Pa. 162, 682, 127 366; Peebles, 134 121, 135, 119 Southwestern S79 774, L.R.A.,N.S., 1130, 724; Darrow Coleman, 137, L.R.A. 407; Rnad Town Pittsfield, 530, 49 88. Newsomb Paige, 224 516, 113 458, Commissioner, 428, 429, 677, declined ground comity thus distinguished supra. 88.1, 103; Trustees, 145. 194; Brennan Willson, 502; Fritz App.Div. 532, N.Y.S 625, affirmed 173 622, 1109; Campbell's 171 Misc. 750, N.Y.S.2d 773. varying statutes: Beaman Feitner, 168 360, 280; Newcomb 458; 430, 431, Holmes, J., dissenting 96, 62, 386.

Classification Label: 7