Court Opinion

ID: 9450331
Source: CourtListenerOpinion
Date Created: 2023-08-04 16:42:14.973593+00
Date Added: 2024-06-11T17:32:15.026670
License: Public Domain

KNOCH, Circuit Judge.
I concur in part. I agree that the record supports the finding that the payments to Luther College were not made to a general scholarship fund to be used as the college saw fit, but were clearly earmarked for use only in defraying the educational expenses of a particular student.
However, with respect to the gift of the jewelry to the Oriental Institute, I feel that the Tax Court was in error. If one disregards the opinions of the experts, (and it is difficult to see how one can produce any other type of evidence for such unique items as those here involved) then there was absolutely no evidence of the fair market value of the jewelry in Chicago at the time of the gift.
It seems unrealistic to me to conclude that the items did not appreciate in value to a considerable degree from the mere fact that they were in Chicago, had been displayed in a reputable museum, and were in effect authenticated by experts over a period of two years. It seems unnecessary for the experts to testify that the value of a portrait ring is increased by identification of its subject first as one fairly well known, and then, later, as one much better known, to students of history. The fact seems to me to speak for itself.
At the time of the purchase Dr. Kraeling thought that the portrait was that of Marcus Agrippa. When he wrote to the taxpayer on February 6, 1953, [Appendix p. 147] from Lebanon, during the negotiations to buy the collection from Mr. Alouf, Dr. Kraeling stated that Mr. Alouf did not know the head to be that of Marcus Agrippa. Even then he expressed the opinion that the very same collection, in the hands of a European dealer, who could judge the historic and artistic value of the gem with the portrait head, “would go way up in price just because of that one item.” Under those conditions, i. e. in Europe, rather than in Lebanon, even in 1953, he suggested a valuation of $35,000 as not excessive.
At the Tax Court hearing, Dr. Kraeling testified that the portrait was later found to be that of Marc Antony dating from about 39 B.C. Mr. Kouehakji testified that only about fifteen signed gems were known. Dr. Kraeling testified that the only comparable collection of which he was aware was an Achaemenian collection which the Oriental Institute purchased in 1948 for $54,000. [Appendix pp. 78, 94]
If the Tax Court disregarded Dr. Kraeling’s testimony because his identification of the portrait was not credited, *437then the newly discovered corroboratory evidence, sought to be presented to the Tax Court on remand, was indeed relevant.
In addition, I find nothing inconsistent with the original seller’s statement made in the course of bargaining, that he was selling the items below his own estimate of their worth in order to secure more sales in the future, and his later statement that he made the sale at that price because he was in need of money. I would reverse with respect to the deduction for the gift to the Oriental Institute.