The decision has been hailed with what could honestly be called “pleased surprise”—so many disappointments had led to the belief that corporate interests were obliged to triumph. Wide-spread approval has been accorded the ruling. In a few instances criticism has been proffered, to the effect that the points over which the case originally occurred are unsolved and that the question of railroad regulation is as misty as before. These are matters, however, which do not touch the principle of State’s redress first, which was universal before the misconstruction of the 14th Amendment made possible such usurpation of authority as the one for which Judge Pritchard has been called down.
Other interesting court decisions have taken place within a short period. The New Jersey Court of Appeals, for instance, has considered a knotty problem relative to its collateral inheritance law. Philo Miles, a British subject, died in London, leaving a considerable amount of stock in a New Jersey corporation and the lower courts held that the tax could be levied upon same. The Appellate Court negatived this conclusion on the ground that personal property which includes stocks and bonds must follow the situs of the owner and be taxed “there and there only.” They held that if every State could levy an inheritance tax upon the full estate of the deceased, his personal property being returned in the inventory of the executor or administrator, the estate of the deceased could be taxed as often as there were States in which he chanced to have personal property at the time of his death. This would, of course, be inconceivable.
It would be helpful to know just how England, which has a National and effective inheritance tax, will manage with the property held in New Jersey by the late Mr. Miles. Much of the wealth of her citizens is represented by stocks in American corporations, mortgages upon American property and like personal effects. Possibly the heirs are more scrupulous in returning such property for taxation than are our own rich men, who think no wrong of sending out of the State all personalty for long enough to swear tax statements that are true in the letter, but utterly false in fact. To evade municipal taxation, they do not hesitate to take their securities outside the corporate limits for a day or so. The owner of a home or farm may not escape bearing the burdens of government, but those who derive annual fortunes from dividends upon “personal property” go scatheless.
A national inheritance tax, with stringent provisions to enforce it, would go a long way toward evening things up.
A SOCIAL CALL
New York World
“Holland Making Faces.”
