Court Opinion

ID: 9863104
Source: CourtListenerOpinion
Date Created: 2023-09-25 03:05:49.836464+00
Date Added: 2024-06-11T11:47:00.815092
License: Public Domain

George Rose Smith, J., concurring. I join in the opinion of Special Justice Perkins, but there is another matter that seems to me to confirm the conclusion reached. Under § 315-46 of the Treasury Regulation these bonds, during the lifetime of John A. Smith, could have been cashed by him alone, but they could not have been reissued in his name alone without the consent of his former wife. At the time of the divorce décree the bonds had matured and were bearing 3 per cent interest. Had Smith cashed the bonds and reinvested the proceeds in Series E bonds he would not for several years have received interest at the 3 per cent rate, as bonds of this series bear a lesser rate of interest when first purchased. Hence it was to Smith’s advantage to continue to receive the higher rate of return by not cashing the bonds. Two disinterested witnesses testified that Smith actually stated that this was his reason for not cashing these bonds. Doubtless that testimony was inadmissible, but even without that evidence he might have had that reason for leaving the bonds undisturbed, and, in view of his apparent care in money matters, I am inclined to think that ivas the reason for his inaction.