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Show III . I ' i II : Minnesota Claims Right to In-I In-I ' horif ance Tax on Great North-I North-I crn Holdings of Kennedy. U f i I ! ' PECULIAR QUESTION IS RAISED BY THE STATE I i ! ; Once Settled in Court, Will i 1 Probably Have Bearing in L i Other States, i ' By Leased Wire to Tho Tribune. I NEW YORK, Jan. 22. trillions of -'J dollars included in thp estates of decedent dece-dent owners of stock in big corporations corpora-tions will be affected by the outcome ' of Minnesota's claim just made upon the $GO,000,000 estate of the late John Stewart Kennedy of this city for tho ' inheritanco tax on 10,000 shares of ' Great Northern rnilroad stock, par ( value $10,000,000, included in thnt estate. es-tate. Minnesota's contention that all IK Flock in corporations chartered by that stato is property located there, and that I, i stock certificates do not constitute- tho property, is likely to bo adopted by 1 other states if it "is successfully main- ' fainod. Estates like those of tho lato E- H. Harriman, D. O. Mills and II. IT. Roc- ors, constituting in larro moasuro of i stocks of corporations of other states than New York, would nrobably bo mulcted in largo sums for inheritance tax to tho benefit of the treasuries or 1 those states which havo an inheritanco tax law and which are Jho hpmo states of those . corporations in winch the os-fate os-fate is a holder of stocks, if this con-( con-( tontion of Minnesota is upheld by tho i courts of final resort. At.lorncv General George T. Simpson IH. of Minnesota, who with Assistant At- tomoy Genoral C. Louis. Weeks has ' been hero several days in conference ' with the executors of Mr." Kennedy 's will, said to Tho Tribune reprcscnta- HJ tivo today, just; provious to his dopar- H turo for homo: Simpson's Statement. H "Our intorviews with Mr. Robert M DoForcsl, ono of tho executors of Mr. i Kennedy's will, and ono of tho mem- bcrs in 'the law firm acting as legal ad- I viscrs. has not. been conclusive. The m executors aro fully disposed to meet us fairly. If it should become necessary ' to litigate the matter, the litigation will be friendly. As to tho outcome wo aro confident of winning ouL and collecting the tax, which will amount to $100,000 it lonst. Ml "Mr. DeForost was ovidontly sur- ' prised by the contention we set up that : Mr. Kennedy's Great Northern railway " , stock fcas its status as property m M;n , nesota. In some of the slates cortifi- ml cat os of stock are considered as being I property in themselves. Other states, M: of which Minnesota is one, hold that l property in a corporAlion has its situs , In the stale under which it holds its H charter, or in other words, the state I from which it derives its life. Taking H this view of tho matter, certificates of i slock do not constitute tho prdperty. but i servo nicroly as 'evidence of owner- I ship. L "The situation in tho present matter l is that the Great 'Northern Railway 1 1 company, in which Mr. Kennedy was a I very large stockholder, or, in other mi words, a very large owner, is a Min- I,,' nesota property subject to tho laws of P that state. While tho principle involved I i In this proposition has not boon ndjudi- I f cated unon iri tho Minnesota courts, we ! i arc willing that it b,o if Mr. Kennedy's II oxecutors choose to contest it. p Position of State. U "Meanwhile the state has conserved Its position by thp appointment of Mr. I" , Weeks as snecial "administrator of the I., ( Bslato of Mr. Kennedy, and in that I capacity Mr. Weeks has taken title to j' tho property. The official? of the Great ; Northern Railway company have Jbeon If duly notified of this action and no D' transfer of the Kennedy stock can le- D gallv bo made except with the consent It' of Mr. "Weeks. We hnvo no dosiro to h administer upon Mr. Kennedy's prop- I'V crty, however; M.r. Kennedy's own ox- ji editors aro more competent for that. I.t Our solo aim is to safeguard our own ij elato in what we hold Iq be( a rightful I I claim under the Minnesota inheritancp Li tax laws. y It "If Mr. Kennedy's executor's will I . como to Minnesota and probate the will ' thore, giving the customary -bonds for administration of tho property in accordance ac-cordance with the Minnesota laws, Mr. I, Weeks will promptly resign his posi- tion as special administrator "and the matter will thus be disposed of, the ' state assessing and collecting the tax , in duo course as tho administration of i tho state proceeds. State Ready for Suit, tj "Otherwise, the state itself will offer of-fer the will for probate and tho prop- , ' erty will be administered upon in tho I intorost of tho state so far as tho J fax claim is concerned. Tho only rc- ' course left to Mr. Kennedy's executors , in thaE case would bo to institute litigation litiga-tion to determine whether our -contention as to I he situs of the property is J correct. Wo would in a measure wel- ' como such litigation as a moans of ob- ' taining for thp first time tho decision i nf a Minnesota court upon that point. ' It would bo of inl crest in other states j as well, and would havo a vcrj' im- i portaut bearing upon tho settlement in ' , futuTo of the estates of dccedent own- ' Drs of stock in corporations.." Incidentally, it was learned today that j a large part of the Kennedy estate will escapo taxation in Now York City. Mr. j Lawson, president of tho tax board, has announced that Mrs. Kennedy's assess- I monls of $6,000,000 has been stricken y from tho list because Mrs. Kennedy ) has received only the special bequest of 1 $1,000,000, and it consisted almost cn- ' ' tiroly of city bonds and slocks. Under 1 the 1010 assessment Mrs. Kennedy was i tho largest taxpayer in the city. |
