INHERITANCE TAXE 
 
 INVESTORS 
 
 B221BI 
 
 1911
 
 THE LIBRARY 
 
 OF 
 
 THE UNIVERSITY 
 OF CALIFORNIA 
 
 LOS ANGELES 
 
 SCHOOL OF LAW 
 GIFT OF 
 
 Robert A. Waring
 
 INHERITANCE TAXES 
 
 FOR 
 
 INVESTORS 
 
 Some practical notes on the inheritance tax laws of 
 
 each of the states of the United States, with 
 
 particular reference to their application 
 
 to non-resident investors 
 
 A reproduction of a series of articles published in the Boston 
 News Bureau in February and March, 1911 
 
 Revised and Annotated by 
 
 HUGH BANCROFT 
 
 (Of the Massachusetts Bar) 
 
 Price - - One Dollar 
 
 BOSTON 
 BOSTON NEWS BUREAU COMPANY 
 
 1911
 
 COPYRIGHT. 191 1. by 
 BOSTON NEWS BUREAU COMPANY 
 
 C,itt 
 
 -
 
 PREFACE. 
 
 This is a collection of a series of articles published in the 
 Boston News Bureau in February and March, 1911. They 
 were prepared for the purpose of showing to investors how 
 seriously they may be affected by the inheritance tax laws of 
 every state in the country as well as the one in which they hap- 
 pen to live. It was also hoped that they might be of some 
 help to the movement for the adoption of a uniform law that will 
 do away with the double taxation which is such a frequent 
 result of the working of the present laws. 
 
 The articles are reproduced with almost no change in sub- 
 stance, and in the order in which they were first printed. The 
 fact that they were originally a series of newspaper articles 
 accounts for the prevalence of the editorial "we." 
 
 Though this is intended to be only a handbook for investors 
 and those called upon to advise about investments, it is hoped 
 that it may be found useful as well by attorneys who wish to 
 obtain some familiarity with the situation. For that reason, 
 citations have been made of some of the more important cases. 
 In preparing these articles the statutes were examined to 
 Jan. 1, 1911, and there have been no material changes since 
 then. 
 
 H. B. 
 March 15, 1911. 
 
 Advantage has been taken of a second imprint to note 
 changes effected or pending in Maine, New Hampshire, Massa- 
 chusetts, New York and Washington. 
 
 H. B. 
 July 1, 1911.
 
 TABLE OF CONTENTS. 
 
 Chapter 
 I 
 
 II 
 
 III 
 IV 
 
 VI 
 
 VII 
 
 THE RECENT DEVELOPMENT OF INHERITANCE 
 TAXATION ...... 
 
 INHERITANCE TAX LAWS Now ENACTED By 
 38 STATES DIRECT AND COLLATERAL IN- 
 HERITANCES DISTINGUISHED 
 
 RATES OF TAX AND EXEMPTIONS 
 
 THE STATES WHICH TAX SECURITIES OWNED 
 BY NON-RESIDENTS .... 
 
 SOME GENERAL RULES THE STATES WHERE 
 DOUBLE TAXATION Is MOST CONSPICU- 
 OUS 
 
 THE STATES WHICH HAVE No INHERITANCE 
 TAX LAWS 
 
 
 Page 
 
 Page 
 
 ALABAMA 
 
 26 
 
 INDIANA 
 
 29 
 
 DIST. OP COL. 
 
 27 
 
 MISSISSIPPI 
 
 29 
 
 RHODE ISLAND 
 
 27 
 
 NEVADA 
 
 29 
 
 ARIZONA 
 
 28 ' 
 
 NEW MEXICO 
 
 29 
 
 FLORIDA 
 
 28 
 
 SOUTH CAROLINA 
 
 29 
 
 GEORGIA 
 
 28 
 
 
 
 THE STATES WHICH HAVE INHERITANCE 
 
 TAX 
 
 LAWS 
 
 
 
 
 Page 
 
 Page 
 
 PENNSYLVANIA 
 
 30 
 
 NEBRASKA 
 
 76 
 
 VIRGINIA 
 
 33 
 
 WISCONSIN 
 
 78 
 
 MARYLAND 
 
 34 
 
 CALIFORNIA 
 
 81 
 
 DELAWARE 
 
 35 
 
 IDAHO 
 
 83 
 
 OHIO 
 
 36 
 
 MINNESOTA 
 
 84 
 
 MISSOURI 
 
 37 
 
 MONTANA 
 
 86 
 
 MASSACHUSETTS 
 
 38 
 
 NORTH DAKOTA 
 
 88 
 
 NEW YORK 
 
 44 
 
 SOUTH DAKOTA 
 
 89 
 
 OKLAHOMA 
 
 50 
 
 COLORADO 
 
 90 
 
 MAINE 
 
 53 
 
 UTAH 
 
 92 
 
 NEW HAMPSHIRE 
 
 56 
 
 OREGON 
 
 93 
 
 VERMONT 
 
 58 
 
 WYOMING 
 
 95 
 
 ILLINOIS 
 
 60 
 
 MICHIGAN 
 
 96 
 
 CONNECTICUT 
 
 63 
 
 WEST VIRGINIA 
 
 98 
 
 NORTH CAROLINA 
 
 67 
 
 KENTUCKY 
 
 101 
 
 TENNESSEE 
 
 69 
 
 NEW JERSEY 
 
 103 
 
 ARKANSAS 
 
 70 
 
 LOUISIANA 
 
 106 
 
 TEXAS 
 
 72 
 
 IOWA 
 
 109 
 
 KANSAS 
 
 74 
 
 WASHINGTON 
 
 111 
 
 Page 
 
 10 
 13 
 
 16 
 
 21 
 26 
 
 30
 
 TABLE OF CONTENTS. 
 
 Chapter 
 VIII 
 
 IX 
 
 A MOVEMENT FOR A UNIFORM INHERITANCE 
 TAX LAW 
 
 SOME MATTERS NOT TOUCHED UPON THE 
 POSITION OF* TRUST CERTIFICATES 
 EFFORTS To AVOID DOUBLE TAXATION 
 
 X CANADA 
 APPENDIX 
 
 LIST OF CORPORATIONS 
 INDEX 
 
 Page 
 113 
 
 116 
 120 
 125 
 127 
 139
 
 THE NEW YORK INHERITANCE TAX LAW OF 1911. 
 
 The new inheritance tax law of New York took effect July 21 , 1911 . It 
 substantially reduces the rates of tax but leaves them higher than they were 
 before 1910". 
 
 The law of 1911 provides for the following taxes: 
 
 Direct Inheritances 
 
 including inheritances to father, mother, hus- 
 band, wife, child, brother, sister, wife or widow of 
 son, husband of daughter, adopted, or mutually 
 acknowledged child, lineal descendant: 
 
 First $5,000 Exempt 
 
 Excess over $5, 000 up to $50,000 1% 
 
 Excess over 50,000 up to 250,000 2% 
 
 Excess over 250,000 up to 1,000,000 3% 
 
 Excess over 1 ,000,000 4% 
 
 Collateral Inheritances 
 
 including inheritances to persons other than 
 those enumerated above: 
 
 First $1,000 Exempt 
 
 Excess over $1,000 up to $50,000 5% 
 
 Excess over 50,000 up to 250,000 6% 
 
 Excess over 250,000 up to 1,000,000 7% 
 
 Excessover 1,000,000 8% 
 
 The exemptions apply to each inheritance rather than to the estate as 
 a whole. 
 
 The law of 1910 and the earlier laws as well, taxed non-residents on stocks 
 of New York corporations and on bank deposits and bonds kept in safe 
 deposit boxes within the state. 
 
 All this is done away with by the new law of 1911. It is expressly pro- 
 vided that the inheritance tax in the case of non-residents shall be collected 
 only on "tangible property" within the state. "Tangible property" 
 is denned as such property as real estate, and goods, wares, and merchan- 
 dise, and is not to be taken to mean money, deposits in banks, shares of 
 stocks or bonds. 
 
 Residents of New York are to pay an inheritance tax on all their intan- 
 gible property wherever situated and on their tangible property located within 
 the state. Intangible property is denned as such property as money, 
 bank deposits, shares of stocks, bonds and notes. 
 
 These provisions put to an end the double taxation of non-residents t>o 
 far as New York is concerned. They closely follow the model inheritance 
 tax law recommended by the International Tax Conference. (See page 
 115 infra.) 
 
 The example set by New York may lead other states which are trying 
 to tax non-residents to come into line. A resident of New York state still 
 may be liable for a double inheritance tax if he owns stock of a company in- 
 corporated in a state which is taxing the stock of its corporations when 
 owned by non-residents. If these states do not come in line, New York 
 may yet adopt retaliatory measures such as are already found in half a dozen 
 other states, for the protection of her own citizens.
 
 INHERITANCE TAXES. 
 
 CHAPTER I. 
 THE RECENT DEVELOPMENT OF INHERITANCE TAXATION. 
 
 There are few questions so important to far-sighted 
 investors as that of inheritance taxes, and there are few 
 subjects so little understood. This is not in the least surpris- 
 ing. A survey of the situation in the United States is like 
 a journey through a chaos, peopled by sovereign states, each, 
 wolf-life, seeking some pretext to take for itself a bite out of 
 every estate that comes along. 
 
 Most of the inheritance tax legislation is new the Acts in 
 19 states were passed in 1909 and 1910. Much of it is ill-con- 
 sidered a state enacts a law patterned after that of another 
 without having much idea what it means. Different officials 
 in the same state read the law differently and many of the most 
 important questions have not yet been passed upon by the courts. 
 
 Until a comparatively short time ago few states taxed in- 
 heritances. Those that did were modest in their demands, 
 and the payment of an inheritance tax to any except the de- 
 ceased's home state was almost unknown. 
 
 Now all but ten states have an Inheritance Tax Law of 
 some sort; 25% is regarded as an equitable figure for large 
 estates in some quarters; and tax attorneys are employed to 
 try to collect from estates of men who never lived in a state 
 and never owned a bit of property physically within the state.
 
 8 INHERITANCE TAXES. 
 
 Most of these laws have been passed within a dozen years, 
 and under them the claim has been quite generally asserted and 
 enforced that the state of incorporation is entitled to an inheri- 
 tance tax on stock owned by a non-resident, and in some cases 
 on bonds as well. 
 
 As the state of residence (with few exceptions) in no way re- 
 linquishes or modifies its tax on this account, it has become fairly 
 common for estates to pay inheritance taxes twice on the same 
 shares of stock. 
 
 Even this is not enough. A corporation is organized in 
 one state, does all its business in another, and the stockholder 
 lives in a third. We find the second state in several instances 
 seeking to tax the shares as well as the other two. If such a 
 corporation owns property in several states there are splendid 
 possibilities for the tax gatherers, though no state in the case of 
 a corporation organized elsewhere has gone further than to claim 
 a tax based on the proportion of the value of the property 
 within the state, to the entire property of the corporation. 
 
 On the other hand, some states allow credit for payments 
 made to other states; exempted amounts are often so liberal 
 that ordinary investment holdings escape; and taxes on property 
 going to near relatives are frequently not onerous. 
 
 Collateral relatives and strangers seem to be generally 
 considered fair game, and two states have singled out the non- 
 resident alien, one for a 20% tax, the other for 25%. It should 
 be said that the Supreme Court of the latter state (Washington) 
 has held this invalid. 
 
 In the preparation of these articles the statutes and de- 
 cisions of all the states have been examined down to January 1 , 
 1911. As the courts in most of the states have not passed upon 
 the questions that most affect non-residents, and the language 
 of the statutes themselves is seldom specific as to their applica-
 
 INHERITANCE TAXES. 9 
 
 tion to non-residents, information has been sought from the tax 
 commissioner, attorney-general or other appropriate officer to 
 find out how the tax authorities in each state are construing 
 their own law. In very few states is there any well-established 
 practice in inheritance tax matters, and many of the present 
 rulings may be changed at any time by the courts or by the tax 
 authorities themselves.
 
 CHAPTER II. 
 
 INHERITANCE TAX LAWS Now ENACTED By 38 STATES 
 DIRECT AND COLLATERAL INHERITANCES DISTINGUISHED. 
 
 Before entering the maze of inheritance tax legislation, the 
 investor can somewhat simplify his problem by a process of 
 elimination. 
 
 Inheritance tax laws, as a rule, tax all property, real or 
 personal, situated within the state whether owned by a resident 
 or non-resident, and also personal property of a resident which 
 is situated without the state. 
 
 Such laws have been enacted by all but ten states, and the 
 District of Columbia. The investor may then become fully 
 posted as to the future of his estate so far as the states of the 
 Union are concerned, by the study of 38 enactments, adding 
 Hawaii and Porto Rico if he chooses. There is yet a chance 
 that his labors may be further simplified, for 13 of the states 
 exempt direct inheritances and tax only collateral inheritances. 
 
 By a direct inheritance is meant, usually, property passing 
 to a father, mother, husband, wife, child (including adopted 
 child) and lineal descendant. Some states include brothers and 
 sisters and also the wife of a son and husband of a daughter. 
 By a collateral inheritance is meant property passing to other 
 more distant relatives or to strangers. 
 
 If the investor is satisfied to have his property "stay in the 
 family," he may reduce his labors to the study of 25 enactments. 
 
 The United States government itself at the present time 
 imposes no inheritance tax. Such laws were in force, however, 
 as war revenue measures from 1862 to 18-2 and again from 1898
 
 INHERITANCE TAXES. 11 
 
 to 1902. The federal government has full power at any time 
 
 to impose its own tax on inheritances in addition to the state 
 taxes. 1 
 
 The following table indicates what states have an inheritance 
 tax, what states tax direct inheritances and what states tax 
 
 collateral inheritances: 
 
 Inheritance Direct Collat. 
 
 State: tax law? inht. tax? inht. tax? 
 
 Alabama No No No 
 
 Arizona No No No 
 
 Arkansas Yes Yes Yes 
 
 California Yes Yes Yes 
 
 Colorado Yes Yes Yes 
 
 Connecticut Yes Yes Yes 
 
 Delaware Yes No Yes 
 
 District of Columbia .... No No No 
 
 Florida No No No 
 
 Georgia No No No 
 
 Hawaii Yes Yes Yes 
 
 Idaho Yes Yes Yes 
 
 Illinois Yes Yes Yes 
 
 Indiana No No No 
 
 Iowa Yes No Yes 
 
 Kansas Yes Yes Yes 
 
 Kentucky Yes No Yes 
 
 Louisiana Yes Yes Yes 
 
 Maine Yes Yes Yes 
 
 Maryland Yes No Yes 
 
 Massachusetts Yes Yes Yes 
 
 Michigan Yes Yes Yes 
 
 Minnesota Yes Yes Yes 
 
 Mississippi No No No 
 
 Missouri Yes No Yes 
 
 Montana Yes Yes Yes 
 
 Nebraska Yes Yes Yes 
 
 Nevada No No No 
 
 New Hamsphire Yes No Yes 
 
 New Jersey Yes No Yes 
 
 New Mexico No No No 
 
 New York Yes Yes Yes 
 
 North Carolina . Yes Yes Yes 
 
 1 Knowlton vs. Moore, 178 TJ. S. 41. 
 
 cf President Roosevelt's message of Dec. 4, 1906. "There is every 
 reason why, when our system of taxation is revised, the National Govern- 
 ment should impose a graduated inheritance tax."
 
 12 INHERITANCE TAXES. 
 
 Inheritance Direct Collat. 
 
 State: tax law? inht. tax? inht. tax? 
 
 North Dakota Yes No Yes 
 
 Ohio Yes No Yes 
 
 Oklahoma Yes Yes Yes 
 
 Oregon Yes Yes Yes 
 
 Pennsylvania. . .. Yes No Yes 
 
 Porto Rico Yes Yes Yes 
 
 Rhode Island No No No 
 
 South Carolina No No No 
 
 South Dakotaf Yesf Yesf Yesf 
 
 Tennessee Yes Yes Yes 
 
 Texas Yes No Yes 
 
 Utah Yes Yes Yes 
 
 Vermont Yes No Yes 
 
 Virginia Yes No Yes 
 
 Washington Yes Yes Yes 
 
 West Virginia Yes Yes Yes 
 
 Wisconsin Yes Yes Yes 
 
 Wyoming Yes Yes Yes 
 
 T Smith Dakota. The inheritance tax law has been held unconstitu- 
 tional in the State Supreme Court, but a re-hearing has been granted, and 
 the matter is still pending.
 
 CHAPTER III. 
 RATES OF TAX AND EXEMPTIONS. 
 
 The principle of exempting small inheritances from any 
 tax is very generally recognized, but there is, as might be expected 
 a wide diversity in the amount of the exemption and in the rates 
 of tax. 
 
 In nearly every state direct inheritances are treated much 
 more liberally than collateral inheritances, both as to rates and 
 as to exemptions. 
 
 Thirteen of the 38 states with inheritance tax laws exempt 
 direct inheritances altogether. All but Minnesota and Utah tax 
 direct inheritances at a lower rate, and all but Minnesota, North 
 Carolina and Utah grant larger exemptions to direct inheritances 
 than to collateral inheritances. 
 
 As many of the states have complicated schemes of grad- 
 uated rates and exemptions, there is some difficulty in presenting 
 a simple, comparative table. The appended table shows the 
 extreme range of rates and exemptions. 
 
 On direct inheritances 1% is the favorite rate, and $10,000 
 is the common exemption. The husband or wife and children 
 are most favored where there are graduated rates, and large in- 
 heritances are taxed more than small ones. 5% is the maximum 
 tax on any direct inheritance and this figure is levied in only 
 four states. 
 
 On collateral inheritances the common minimum rate is 
 5%, with maximum rates running up to 10, 15, and in New York 
 25%. Exemptions seldom exceed $500, though four states
 
 14 INHERITANCE TAXES. 
 
 exempt $10,000, and one state $25,000. When the rates and 
 exemptions are graduated, nearness of relationship is usually 
 considered, and the heavy rates are imposed on large inheritances. 
 New York's 25% rate, for instance, applies only to the excess on 
 collateral inheritance^ over $1,000,000. 
 
 It is almost invariably the size of the inheritance, not the size 
 of the estate, that determines the tax. Thus an estate of $30,000 
 passing in three equal shares to the widow and two children, 
 in a state with an exemption of $10,000, would pay no tax; 
 that is, unless property is specifically devised, it is usually taxed 
 as though a pro rata share were given to each beneficiary of the 
 estate. The table follows: 
 
 Direct inheritances Collateral inheritances 
 
 Alabama . . 
 Arizona . . . 
 Arkansas* . 
 California . 
 Colorado . . 
 Conn* a. ... 
 
 Rate 
 
 ' 1% 
 
 ' *2% 
 
 1% 
 
 Exemption 
 Not taxed 
 Not taxed 
 $5,000 
 4,000-10,000 
 10,000 
 10,000 
 Not taxed 
 Not taxed 
 Not taxed 
 Not taxed 
 1,000 
 4,000-10,000 
 20,000 
 Not taxed 
 Not taxed 
 5,000 
 Not taxed 
 10,000 
 500-10,000 
 Not taxed 
 1,000-10,000 
 2,000 
 10,000 
 Not taxed 
 Not taxed 
 7,500 
 10,000 
 
 Rate 
 
 3<gUO% 
 5% 
 1@5% 
 
 5% 
 
 5% 
 3@15% 
 
 5% 
 5% 
 4@7% 
 5% 
 3@5% 
 5% 
 
 5% 
 5% 
 
 Exemption 
 Not taxed 
 Not taxed 
 $1,000-2,000 
 500-2,000 
 500 
 Nothing 
 500 
 Not taxed 
 Not taxed 
 Not taxed 
 50C 
 500-2,000 
 500-2,000 
 Not taxed 
 1,000 
 0-1,000 
 500 
 Nothing 
 500 
 500 
 1,000 
 100 
 10,000 
 Not taxed 
 Nothing 
 500 
 500-2,000 
 
 Delaware . . 
 DistofCol 
 Florida .... 
 
 
 Georgia . . 
 Hawaii ... 
 
 2% 
 
 Idaho .... 
 
 1@3% 
 
 Illinois. . . . 
 
 
 Indiana . . 
 Iowa* b . . . 
 
 
 Kansas . . . 
 
 1@5*7 
 
 Kentucky 
 Louisiana c 
 Maine .... 
 
 " 2% 
 
 Maryland* . . 
 Massachusetts 1@2% 
 Michigan ... 1% 
 Minnesota . . 1$@5% 
 Mississippi 
 Missouri .... 
 Montana* . . 1% 
 Nebraska . . . 1%
 
 INHERITANCE TAXES. 
 
 15 
 
 Direct inheritances 
 
 Collateral inheritances 
 
 Nevada .... 
 New Hamp. . 
 New Jersey . 
 New Mexico 
 New York . . 
 N. Carolina d 
 N.Dakota . . 
 Ohio * 
 
 Rate 
 1@5% 
 
 Exemption 
 Not taxed 
 Not taxed 
 Not taxed 
 Not taxed 
 500-5,000 
 2,000 
 Not taxed 
 Not taxed 
 
 Rate 
 
 5% 
 
 5% 
 
 5@25% 
 
 oC7 
 A /o 
 
 5% 
 
 Exemption 
 Not taxed 
 Nothing 
 500 
 Not taxed 
 100 
 2,000 
 25,000 
 200 
 
 Oklahoma e.. 
 Oregon/ .... 
 Penn 
 
 1% 
 1% 
 
 5,000-10,000 
 5,000 
 Not taxed 
 
 2@6% 
 5% 
 
 100-500 
 500-2,000 
 250 
 
 Porto Rico . . 
 R. Island . . . 
 S. Carolina . 
 S. Dakota . . 
 Tennessee* . ] 
 Texas 
 
 1% 
 l@l|% 
 
 200 
 Not taxed 
 Not taxed 
 5,000-20,000 
 5,000 
 Not taxed 
 
 3@9% 
 
 2@10% 
 
 5% 
 2@12% 
 
 200 
 Not taxed 
 Not taxed 
 100-500 
 250 
 500-2,000 
 
 Utah* 
 
 5% 
 
 10,000 
 
 5% 
 
 10,000 
 
 Vermont . . . 
 Virginia 
 
 
 Not taxed 
 Not taxed 
 
 5% 
 5% 
 
 Nothing 
 Nothing 
 
 Washington* g 
 W. Virginia . 
 Wisconsin . . 
 Wyoming* . . 
 
 ! 1% 
 1@3% 
 
 10,000 
 10,000-15,000 
 2,000-10,000 
 10,000 
 
 3@12% 
 3@15% 
 
 5% 
 
 Nothing 
 Nothing 
 100-500 
 500 
 
 * The exemption in the states marked with an asterisk has been con- 
 strued to apply to the estate as a whole rather than to individual shares. 
 
 a. Connecticut For non-residents, exemption varies according to 
 portion of estate within the state. 
 
 b. Iowa taxes non-resident aliens 10-20%. 
 
 c. Louisiana exempts property that bore its just proportion of taxes 
 during owner's life. 
 
 d. North Carolina Exempts husband or wife. 
 
 e. Oklahoma The tax increases progressively so that a literal con- 
 struction would result in confiscation of all in excess of certain amounts 
 in large estates. 
 
 /. Oregon Exempts entire estate if less than $10,000, direct; $500 
 to $5000 collateral. 
 
 g. Washington 25% tax on non-resident aliens held invalid.
 
 CHAPTER IV. 
 
 THE STATES WHICH TAX SECURITIES OWNED BY NON- 
 RESIDENTS. 
 
 The states that have inheritance tax laws, as a rule, tax all 
 property that is situated in the state, whether the owner was 
 a resident or not. 
 
 Herein lies the importance to the investor of an acquaintance 
 with the inheritance tax laws of the states other than the one 
 in which he lives, especially because most states do not confine 
 themselves to property physically within the state. 
 
 These states treat shares in corporations organized under 
 their laws as subject to an inheritance tax though held without 
 the state by a non-resident. This is on the theory that as the 
 corporation itself is a creature of the state, its shares are sub- 
 ject to the jurisdiction of the state, wherever owned. 
 
 As the state of residence taxes such stock, the result is that 
 two states tax the same succession. The Supreme Court of 
 the United States though recognizing the hardship of the 
 practice has decided that the Constitution does not prohibit 
 such double taxation. 1 
 
 Collection of this tax is usually enforced by holding the 
 corporation itself responsible if it permits the transfer of stock 
 for a foreign executor or administrator before the tax is paid. 
 
 Because of a retaliative provision in the laws of Connecticut, 
 which will be discussed later, the tax commissioner of that state 
 considers it his duty to obtain official information from the differ- 
 
 1 Blackstone vs. Miller, 188 U. S. 189.
 
 INHERITANCE TAXES. 17 
 
 ent states as to whether they tax stock of corporations organized 
 under their laws if owned by non-residents. Under date of 
 Dec. 15, 1910, he enumerates the following states as taxing such 
 stock, though owned by a non-resident, if the certificates are 
 kept outside the state: 
 
 Colorado New Hampshire 
 
 Illinois New Jersey 
 
 Iowa New York 
 
 Kansas North Carolina 
 
 Maine Oklahoma 
 
 Massachusetts Vermont 
 
 Michigan Wisconsin 
 
 In addition to these states, information is at hand from 
 officials of the following states to the effect that they tax stock of 
 domestic corporations owned by a non-resident without any 
 intimation that it makes any difference whether the certificate 
 is kept within or without the state: 
 
 Arkansas Minnesota 
 
 California Missouri 
 
 Kentucky Washington 
 
 Louisiana West Virginia 
 
 The statutes of the following states would seem to authorize 
 the collection of such a tax, and it would not be surprising to find 
 these states enforcing it at any time: 
 
 Idaho Tennessee 
 
 Nebraska Wyoming 
 
 All bonds are taxed where the owner resides and if kept 
 in another state are likely to be taxed there as well. 
 
 A tax by the state of incorporation on bonds owned by non- 
 residents, if kept outside the state, would seem to be invalid 
 under the general principles of taxation, yet, except in 
 Maine and Massachusetts, in all the states which are taxing 
 stock in domestic corporations owned by non-residents, the lan- 
 guage of the law is broad enough to include bonds as well. 
 
 The tax commissioner of Connecticut is officially advised
 
 18 INHERITANCE TAXES. 
 
 that the following states tax registered bonds of corporations 
 organized under their laws, though the bonds are owned by a 
 non-resident and kept outside the state. 
 
 Colorado New Hamsphire 
 
 Kansas Oklahoma 
 
 Michigan ' Vermont 
 
 It would not be surprising to find almost any of the states 
 that are taxing stock of domestic corporations owned by non- 
 residents at any time added to the list of those taxing registered 
 bonds of non-residents, especially Louisiana, whose statute men- 
 tions registered bonds. There are even signs of an effort in some 
 states to reach coupon bonds as well. 
 
 Only six states have laws tending to reduce or eliminate 
 this double taxation on stocks and bonds. Maine and Vermont give 
 credit for taxes paid to any other state. Massachusetts and 
 Kansas give credit for taxes paid to states which reciprocate. 
 West Virginia and Connecticut have a retaliative provision 
 taxing the shares in domestic corporations of only such non- 
 residents as reside in states that claim such a tax for themselves. 
 
 Several states have recently been claiming an inheritance 
 tax on stock of non-residents in corporations which are not 
 even organized under their laws, but own property within the 
 state. The legality of such a tax is disputed, but we have not 
 heard of any decisions as yet. The states marked "Yes" in 
 the second column of the appended table claim the right to col- 
 lect such a tax; the states marked "No" say positively that 
 they do not claim it, and in the states marked with a star the 
 question has not been raised.
 
 INHERITANCE TAXES. 19 
 
 Are shares Is tax claimed on 
 of non-residents stk. of foreign 
 in local corp. corp. owning 
 subject to tax? prop, in state? 
 
 Alabama No No 
 
 Arizona No No 
 
 Arkansas Yes 
 
 California! Yes 
 
 Colorado!** Yes 
 
 Connecticut! Yes No 
 
 Delaware No 
 
 Florida No No 
 
 Georgia No No 
 
 Idaho! No 
 
 Illinois! Yes Yes 
 
 Indiana No No 
 
 Iowa! Yes Yes 
 
 Kansas!** Yes No 
 
 Kentucky! Yes Yes 
 
 Louisiana Yes 
 
 Maine! Yes 
 
 Maryland No No 
 
 Massachusetts! Yes No 
 
 Michigan!** Yes No 
 
 Minnesota! Yes No 
 
 Missouri! Yes Yes 
 
 Mississippi No No 
 
 Montana! Nof Yes 
 
 Nebraska! No 
 
 Nevada . . No No 
 
 New Hampshire!** Yes Yes 
 
 New Mexico No No 
 
 New Jersey! Yes 
 
 New York! Yes No 
 
 North Carolina! Yes 
 
 North Dakota Nof 
 
 Ohio Nof No 
 
 Oklahoma!** Yes 
 
 Oregon! Nof No 
 
 Pennsylvania! No No 
 
 Rhode Island No No 
 
 South Carolina No No 
 
 South Dakota! Nof No 
 
 Tennessee! No 
 
 Texas Nof * 
 
 Utah! Yes 
 
 Vermont!** Yes Yes 
 
 Virginia No *
 
 20 INHERITANCES TAXES. 
 
 Are shares Is tax claimed on 
 
 of non-residents stk. of foreign 
 
 in local corp. corp. owning 
 
 subject to tax? prop, instate? 
 
 Washington! Yes Yes 
 
 West Virginia^ Yes No 
 
 Wisconsin! . Yes Yes 
 
 Wyoming! Nof * 
 
 This question does not seem to have been raised or passed upon in 
 the states marked with an asterisk. 
 
 tUnder substantially similar laws, other states are taxing such stock. 
 In the states so marked, however, no claim is made for such a tax, or else 
 there is no effective method provided for collecting it. 
 
 ? In the states so marked it was apparently the opinion of their tax 
 officials in 1910 that they were not entitled to collect such a tax, and we 
 do not know that the law is now being construed differently. Their laws, 
 however, are practically identical with the laws of states which claim this 
 tax and moreover contain a provision for enforcing its collection. 
 
 Jin states so marked a corporation transferring stock or delivering 
 securities is held responsible itself, if the inheritance tax has not been paid. 
 
 * These states also tax registered bonds of local corporations owned 
 by non-residents.
 
 CHAPTER V. 
 
 SOME GENERAL RULES THE STATES WHERE DOUBLE TAXA- 
 TION Is MOST CONSPICUOUS. 
 
 Before proceeding to examine the laws and practice of the 
 individual states, it may be useful to summarize the rules which 
 may be taken to be of general application, unless exceptions are 
 specially noted. The property subject to tax under the in- 
 heritance tax laws of any state can be classified as follows: 
 
 Residents, 
 
 Real estate within the state (but nor real estate 
 outside the state) 
 
 Personal property of every description, tan- 
 gible or intangible whether held within or with- 
 out the state. 
 
 Non-residents, 
 
 Real estate within the state. 
 Tangible personal property within the state. 
 Stocks in corporations organized under the 
 laws of the state. 
 
 As to other forms of intangible personal property of non- 
 residents (we include securities under intangible property) some 
 further discussion is desirable. 
 
 The states that tax stock in domestic corporations owned by 
 non-residents usually tax shares in national banks doing busi- 
 ness within the state as well. This tax can hardly be justified 
 on the ground that the bank is a creature of the state. Bank 
 deposits of non-residents are similarly treated. 
 
 The personal property of a resident which is held outside 
 of the state is taxed on the theory that personal property follows 
 the domicile of its owner. The intangible personal property
 
 22 INHERITANCE TAXES. 
 
 of a non-resident actually or theoretically within the state is 
 taxed because it can be; so why bother with theories? 
 
 Where a non-resident keeps securities in the state, as in a 
 safe deposit vault, there is a distinction made between stocks and 
 bonds. The more common practice is to tax all such bonds, 
 whether they are bonds of domestic or foreign corporations, but 
 the common rule is not to tax certificates of stock of a foreign 
 corporation so kept by a non-resident within the state. A con- 
 spicuous exception is found in the case of Pennsylvania, which 
 very properly does not tax the intangible personal property of 
 a non-resident kept within the state, whether in the form of stocks 
 or bonds. 
 
 In the case of non-residents the practice varies as to the 
 application of exemptions. The Massachusetts rule is to con- 
 sider the entire amount of the inheritance in deciding whether 
 it is exempt, and not merely the portion of the property taxable 
 in Massachusetts. Thus an inheritance to a child of a non- 
 resident of $100,000, of which $10,000 is in stock of a Massa- 
 chusetts corporation, is not exempt in Massachusetts, although 
 the Massachusetts exemption is $10,000 on an inheritance to a 
 child. The total amount of the inheritance is considered 
 for the purpose of determining whether the inheritance is taxable 
 at all; the tax, if imposed, is based only on the portion subject 
 to the jurisdiction of the state. This is the common rule, but 
 some states claim no tax if the portion of the inheritance subject 
 to their jurisdiction does not exceed their exemption. 
 
 The common practice of requiring non-resident executors 
 and administrators to file complete inventories, copies of probate 
 records and other similar documents before consent is given to the 
 transfer of stock may be a source of considerable expense as well 
 as annoyance. We hear of an English estate owning stock to 
 the value of $4180 in Illinois Central (Illinois corporation), Ch.,
 
 INHERITANCE TAXES. 23 
 
 St. P., Minn. & Omaha (Wisconsin corporation) and Long Island 
 Railroad (New York corporation). In getting these securities 
 transferred the expenses amounted to between $125 and $150, 
 irrespective of the inheritance taxes. 
 
 The claim of some states to a tax on shares of corporations 
 organized elsewhere but owning property within the state may 
 often be of only academic interest to a non-resident investor. A 
 Boston estate has stock of a New Jersey corporation owning 
 property in Iowa. Iowa claims an inheritance tax on such stock 
 as well as Massachusetts and New Jersey. Unless this estate 
 owns other property in Iowa or stock in some corporation organ- 
 ized under Iowa laws, Iowa would have some difficulty in enforc- 
 ing the claim. 
 
 This sort of tax is successfully enforced where the tax 
 authorities require a complete inventory of the estate when 
 a non-resident presents stock for transfer. Then the state 
 is in a position to collect almost any tax it chooses to claim 
 by holding up the transfer until it is paid. 
 
 The Inheritance Tax Law committee of the International 
 Tax Association names New York as a most flagrant offender in 
 the matter of double taxation under its inheritance tax law and 
 joins with it in this respect Colorado, Connecticut, Illinois, 
 Iowa, Kansas, Maine, Massachusetts, Michigan, New Hamp- 
 shire, New Jersey, New York, North Carolina, Oklahoma, 
 Vermont and Wisconsin. If this list were to be criticised it 
 would be only on the score of its brevity. 
 
 It is certainly true that some states are very much more 
 active than others in seeking to collect inheritance taxes from 
 non-residents. New York and Illinois can safely be awarded the 
 leadership in this respect. 
 
 In New York the consternation among investors caused by 
 its maximum rate of 25% has led many bodies, including the
 
 24 INHERITANCE TAXES. 
 
 New York Chamber of Commerce, to advocate the repeal of the 
 law.i Yet this particular rate is not likely to be collected very 
 often because it applies only to the excess over $1,000,000 of 
 an inheritance devolving on a person either only collaterally 
 related or else a stranger to the deceased. It is, however, the 
 most striking of the many objectionable features of the law in 
 this jurisdiction. 
 
 To balance Illinois's activity in the enforcement of its 
 claims, its exemption of $20,000 on direct inheritances is the most 
 liberal in the country, and allows many estates owning prop- 
 erty coming under the jurisdiction of Illinois to be settled with- 
 out paying any tax to that state. 
 
 It is not uncommon to find estates passing to direct heirs 
 little troubled by inheritance taxes of other states. As has 
 already been pointed out, the exemption frequently applies to 
 the interest of each heir, not merely to the estate as a whole. 
 An estate of a man with several children is thus often in a better 
 position than the estate of a man with a single child. This 
 result must unquestionably meet with the approval of a certain 
 eminent person who has been a conspicuous advocate of a heavy 
 tax on the estates of malefactors of great wealth. 
 
 The multiplication of inheritance taxes imposes a very real 
 burden on collateral inheritances. With the usual exemption 
 limited to $500, and 5%, the minimum rate, the collateral rela- 
 tive who receives a bequest of even ten shares of any ordinary 
 investment stock is likely to pay at least 10% in inheritance 
 taxes. 
 
 There is little question but that the states with stringent in- 
 heritance tax laws affecting non-residents will lose in the end. Such 
 laws will certainly tend to drive outside capital from the state. 
 The strong demand by local investors for stock in Massachusetts 
 corporations is not wholly due to their exemption from current 
 
 i Governor Dix in a special message to the legislature in March, 1911, 
 called for the repeal of this law.
 
 INHERITANCE TAXES. 25 
 
 taxation. The assurance that only one inheritance tax can be 
 collected on such stock is an element of attractiveness to the 
 careful investor. This holds true of the local securities in every 
 state.
 
 CHAPTER VI. 
 THE STATES WHICH HAVE No INHERITANCE TAX LAW. 
 
 There are no inheritance tax laws in the following jurisdic- 
 tions: 
 
 Alabama Mississippi 
 
 Arizona Nevada 
 
 Florida New Mexico 
 
 Georgia Rhode Island 
 
 Indiana South Carolina 
 
 District of Columbia 
 
 The estates of residents of these states pay no inheritance 
 taxes except such as other states may be able to extract. Estates 
 of non-residents are not called upon to pay a double tax on cor- 
 porations organized under their laws. 
 
 It will be noted that five of these states are in the South, 
 a portion of the country which has been very conservative in 
 inheritance tax legislation. 
 
 1. 
 ALABAMA. 
 
 Alabama had a collateral inheritance tax on personal prop- 
 erty only from 1848 to 1868. The constitution of 1901 forbids 
 a direct inheritance tax, and limits any collateral inheritance tax 
 that may be enacted to 2.$%. No inheritance tax law has been 
 enacted since the adoption of this constitution. 
 
 Among the better known corporations organized under the 
 laws of Alabama are: 
 
 Birmingham Ry., Lt. & Power. 
 Lanett Cotton Mills 
 Mobile Electric Co.
 
 INHERITANCE TAXES. 27 
 
 2. 
 DISTRICT OF COLUMBIA. 
 
 A bill for an inheritance tax in the District of Columbia 
 passed the House in December, 1910, but did not pass the 
 Senate. 1 
 
 It proposed to tax direct inheritances from $10,000 to 
 $100,000, 1%; $100,000 to $500,000, 1\ %; over $500,000, 
 5%; collateral inheritances, uniformly 5% on the excess over 
 $3000. 
 
 Among the more prominent companies organized under the 
 
 laws of the District of Columbia are: 
 Capital Traction Co. 
 Washington Ry. & Elec. 
 
 3. 
 RHODE ISLAND. 
 
 The desirability of Newport as a place of residence is cer- 
 tainly not diminished by the absence of an inheritance tax law 
 in Rhode Island. All is not serene in this quarter, for a joint 
 special committee on taxation recommended a draft of an in- 
 heritance tax law in 1910, but it was not enacted. The same 
 committee reported again in 1911, recommending a tax on col- 
 lateral inheritances. 
 
 Among the more prominent companies organized under the 
 
 laws of Rhode Island are: 
 
 American Screw Co. 
 Gorham Mfg. Co. 
 Lorraine Mfg. Co. 
 Nicholson File Co. 
 Providence Gas Co. 
 Providence Telephone Co. 
 
 New York, New Haven & Hartford, though primarily a 
 Connecticut corporation, is also incorporated in Rhode Island 
 as well as Massachusetts. 
 
 61st Congress, 3d Session, H. R. 22,842.
 
 28 INHERITANCE TAXES. 
 
 4. 
 ARIZONA. 
 
 Arizona has no inheritance tax and has never had an in- 
 heritance tax. 
 
 Among the more prominent companies organized under the 
 laws of Arizona are: 
 
 Butte-Ballaklava 
 Calumet & Arizona 
 East Butte 
 Helvetia 
 Superior & Boston 
 
 5. 
 FLORIDA. 
 
 Florida has no inheritance tax and has never had an in- 
 heritance tax. 
 
 Among the more prominent companies organized under the 
 laws of Florida are: 
 
 Jacksonville Elec. Co. 
 Tampa Elec. Co. 
 
 6. 
 GEORGIA. 
 
 Georgia has no inheritance tax and has never had an in- 
 heritance tax. 
 
 Among the more prominent companies organized under the 
 laws of Georgia are: 
 
 Central R. R. of Ga. 
 Georgia Ry. & Elec. 
 Savannah Elec. Co.
 
 INHERITANCE TAXES. 29 
 
 7. 
 INDIANA. 
 
 Indiana has no inheritance tax and has never had an 
 
 inheritance tax. An attempt to pass such a law in 1911 failed. 
 
 Among the more prominent companies organized under the 
 
 laws of Indiana are: 
 
 Indiana Lighting Co. 
 
 Lake Shore & Michigan Southern (also 111., Ohio, Mich., 
 Pa.,N. Y.) 
 
 New York, Chicago & St. Louis (also N. Y., Pa., Ohio.) 
 
 Pitts., Cincinnati, Chicago & St. Louis (also Pa., W. Va., 
 Ohio and 111.) 
 
 Pittsburg, Fort Wayne & Chicago (also Pa., Ohio, 111.) 
 
 Terre Haute, Indianapolis & Eastern Tr. Co. 
 
 Terre Haute Tr. & Lt. Co. 
 
 Toledo, St. Louis & Western. 
 
 8. 
 MISSISSIPPI. 
 
 9. 
 NEVADA. 
 
 10. 
 NEW MEXICO. 
 
 11. 
 SOUTH CAROLINA. 
 
 These four states have no inheritance tax law and have never 
 had any inheritance tax law. 
 
 There are no companies, whose securities are of general 
 investment importance to non-residents, organized under the 
 laws of any of them. The large companies doing business in 
 these states are usually incorporated under the laws of other 
 states.
 
 CHAPTER VII. 
 THE STATES WHICH HAVE INHERITANCE TAX LAWS. 
 
 1. 
 PENNSYLVANIA. 
 
 THE PIONEER WHOSE INTELLIGENT EXAMPLE HAS FOUND 
 SCANT FOLLOWING. 
 
 Pennsylvania, the first state to enact an inheritance tax 
 law, is one of the few states that has shown sanity in legislation 
 and interpretation. Direct inheritances and the personal property 
 of non-residents are very properly let alone, and the law has 
 been so construed as to avoid double taxation. 
 
 The original law was enacted in Pennsylvania in 1826 
 and, with very few changes, it is the law today. The law 
 was codified in 1887 l and slightly amended in 1905. 2 
 
 Collateral inheritances only are taxed. The rate is uni- 
 formly 5% and the exemption is $250. The inheritances not 
 taxed are those to father, mother, husband, wife, child, step- 
 child, 8 lineal descendant and daughter-in-law. It has been 
 held that inheritances to a grandparent, an adopted child and 
 a son's widow who has remarried, are taxable. 4 
 
 No attempt is made to tax stock in Pennsylvania corpo- 
 rations owned by a non-resident, and securities kept in the state 
 by a non-resident are not subject to the tax. 6 This has been 
 
 1 Act of May 6, 1887, P. L. 79. 
 
 2 Act of April 22. 1905, P. L. 258. 
 * Com. vs. Randall, 225 Pa. 197. 
 
 4 McDowell vs. Adams, 45 Pa. 430. Com. vs. Nancrede, 32 Pa. 389. 
 Com. vs. Powell, 51 Pa. 438. 
 
 6 Orcutt's appeal, 97 Pa. 179.
 
 INHERITANCE TAXES. 31 
 
 an important factor in the great growth of the safe deposit 
 business of the Philadelphia trust companies. 
 
 There was a case where a non-resident had an agent in 
 Pennsylvania with very broad powers to buy and sell securities, 
 in which it was held that the securities held by the agent 
 were taxable in Pennsylvania. 1 It was later pointed out that 
 this case must rest on its own peculiar facts and does not affect 
 the general Pennsylvania doctrine that securities of a non-resi- 
 dent, though physically within the state, are not subject to 
 the inheritance tax. 2 This does not apply to tangible personal 
 property within the state. 8 
 
 It is refreshing to find the courts in at least one state in- 
 sisting that, if personal property of residents held outside of the 
 state is to be taxed on the theory that personal property follows 
 the domicile of the owner, the logical consequence of the theory is 
 that personal property of non-residents within the state is not 
 taxable. 4 
 
 A direct inheritance tax law passed in 1897, and imposing a 
 uniform tax of 2% on personal property only, was held unconsti- 
 tutional. 5 
 
 It is somewhat interesting to find that the Pennsylvania 
 law which is moderate in its demands, exempts direct inherit- 
 ances altogether, and lets non-residents alone has produced 
 from $1,000,000 to SI, 500,000 annually for many years, a much 
 greater sum than the inheritance tax law of any of the other 
 states except New York has been realizing. 
 
 1 Lewis's Estate, 203 Pa. 211. 
 
 2 Shoenberger's Estate, 221 Pa. 112. 
 
 3 Small's appeal 151, Pa. 1. 
 
 4 cf. Coleman's Estate 159, Pa. 231. 
 
 5 Cope's Estate, 191 Pa. 1.
 
 32 INHERITANCE TAXES. 
 
 Some of the most prominent railroad and industrial 
 corporations in the country are organized under Pennsylvania 
 laws, including: 
 
 Pennsylvania 
 
 Reading 
 
 Lehigh Valley 
 
 Delaware, Lacka wanna & Western 
 
 Philadelphia Co. 
 
 Philadelphia Rapid Transit 
 
 Pittsburg Plate Glass 
 
 Union Switch & Signal 
 
 Westinghouse Electric 
 
 Westinghouse Air Brake 
 
 Westinghouse Machine
 
 INHERITANCE TAXES. 33 
 
 2. 
 VIRGINIA. 
 
 The conservative influence of Pennsylvania has extended to 
 the three neighboring states of Delaware, Maryland and Virginia. 
 These states do not tax direct inheritances and do not tax stock 
 in corporations organized under their laws that is owned by non- 
 residents. 
 
 Virginia adopted a collateral inheritance tax in 1844. Its 
 last legislation was in 1910. * The tax is on collateral in- 
 heritances only, the rate is uniformly 5%, and there is no 
 amount exempted. The tax is not levied on an inheritance to 
 grandparents, father, mother, husband, wife, brother, sister or 
 lineal descendant. Stock of Virginia corporations owned by 
 non-residents is not taxable. The law has been producing a 
 revenue of less than $30,000 per year. 
 
 Among the more prominent corporations organized under 
 Virginia laws are: 
 
 Baltimore & Ohio (also Md.) 
 Chesapeake & Ohio 
 Norfolk & Western 
 Seaboard Air Line 
 Southern Railway 
 
 Acts 1910, Chapter 148, amending Acts 1903, Chapter 148, Section 
 44. For constitutionality of state inheritance tax see Miller vs. Com., 27 
 Gratt. 109. Right of cities to levy such tax is denied; Peters vs. Lynch- 
 burg, 76 Va. 927, Wytheville vs. Johnson, 108 Va. 589.
 
 34 INHERITANCE TAXES. 
 
 3. 
 MARYLAND. 
 
 Maryland adopted a collateral inheritance tax in 1845. l The 
 present tax is on collateral inheritances only, the rate is uniformly 
 5%, with an exemption of $500, which applies to the estate as a 
 whole, not to individual shares. No tax is levied on an inheritance 
 to father, mother, husband, wife, child or lineal descendant. 2 
 
 It would seem that Maryland formerly attempted to tax 
 shares of Maryland corporations owned by non-residents, but 
 they are not now considered taxable. Securities of a non- 
 resident deposited in Maryland for safe keeping are taxable. 8 
 This tax has been producing between $100,000 and $150,000 
 annually. 
 
 Among the more prominent corporations organized under 
 the laws of Maryland are: 
 
 Baltimore & Ohio (also Va.) 
 Consolidation Coal 
 Northern Central Railway (also Pa.) 
 Western Marvland 
 
 'For constitutionality see Tyson vs. State, 28 Md. 577. 
 'Public General Laws (1904) Section 117 as amended by Chapter 695, 
 Laws of 1908. 
 
 "State vs. Dalrymple, 70 Md. 294.
 
 INHERITANCE TAXES. 35 
 
 
 
 4. 
 
 DELAWARE. 
 
 Delaware adopted a collateral inheritance tax in 1869. 
 In 1883 its application was limited to strangers in blood. In 
 1909 the following schedule was adopted: 1 
 
 Direct inheritances exempt 
 
 (to father, mother, grand- 
 parents, husband, wife, 
 child, adopted child or lineal 
 descendant) 
 
 Brother, sister, and descendant 
 
 of brother or sister 1% 
 
 Brother or sister of father or 
 mother and their descend- 
 ants 2% 
 
 Brother or sister of grandfather 
 or grandmother and their 
 descendants 3% 
 
 More distant collateral relations 
 
 and strangers in blood 5% 
 
 The exemption is $500 and applies to individual shares. 
 No tax is claimed on stock of Delaware corporations owned by 
 non-residents. Delaware has been realizing almost nothing 
 from its inheritance tax. 
 
 Among the more prominent corporations organized under 
 the laws of Delaware are: 
 
 American Pneumatic 
 
 Consolidated Cotton Duck 
 
 Crex Carpet 
 
 Giroux 
 
 Miami 
 
 Shannon 
 
 of 1909, Chapter 225.
 
 36 INHERITANCE TAXES. 
 
 
 5. 
 
 OHIO. 
 
 Ohio imposed a collateral inheritance tax in 1893. In 
 1894 it was the first s.tate to tax direct inheritances, and was also 
 the first state to adopt rates increasing progressively accord- 
 ing to the size of the estate. The act was held unconstitutional 
 in 1895, on account of the progressive feature, and because it 
 was not provided that the exemption ($20,000) should be de- 
 ducted from all estates exceeding that amount. 1 This decision 
 has not been generally followed in other jurisdictions. 
 
 In 1904 a uniform tax of 2% was imposed on direct in- 
 heritances with an exemption of $300. This was repealed in 1906. 
 
 At present collateral inheritances only are taxed. The rate 
 is uniformly 5% and the exemption is $200 which applies to the 
 estate as a whole, not to the individual shares. The inheritances 
 which are altogether exempt are those to father, mother, hus- 
 band, wife, brother, sister, niece, nephew, lineal descendant, 
 adopted child and its lineal descendant, wife or widow of son and 
 husband of daughter. 2 
 
 Stock in an Ohio corporation owned by a non-resident is 
 not taxed. 
 
 Among the more prominent corporations organized under the 
 laws of Ohio are: 
 
 Cleveland, Cinn., Chic. & St. L. (also Ind.) 
 
 Hocking Coal 
 
 Hocking Valley 
 
 Kanawha & Michigan (also W. Va.) 
 
 Lake Shore (also 111., Ind., Mich., N. Y., Pa.) 
 
 Northern Ohio Tract. 
 
 Toledo Ry.&Lt. 
 
 Wheeling & Lake Erie 
 
 Wabash (also 111., Ind., Mich. & Mo.) 
 
 State vs. Ferris, 53 Ohio State 314. 
 "General Code 1910, Section 5331.
 
 INHERITANCE TAXES. 37 
 
 6. 
 MISSOURI. 
 
 Missouri's first attempt at a collateral inheritance tax in 
 1895 was held unconstitutional. 1 A second attempt in 1899 
 fared better. 2 
 
 Collateral inheritances only are taxed. The rate is uni- 
 formly 5% and there is no amount exempted. The inheritances 
 exempt are those to father, mother, husband, wife, lineal de- 
 scendant and adopted child. 8 
 
 This law has produced from $200,000 to $400,000 annually. 
 An interesting detail is that the proceeds of the tax are devoted 
 to the support of the University of Missouri, providing a sort of 
 compulsory bequest for higher education from every estate. 
 
 Missouri taxes stock of a Missouri corporation owned by a 
 non-resident; 4 it taxes stock of a corporation organized elsewhere 
 owning property in Missouri, and it apparently taxes stock of a 
 foreign corporation owned by a non-resident if the stock certi- 
 ficate is kept in Missouri. 
 
 Among the more prominent corporations organized under 
 the laws of Missouri are: , 
 
 Kansas City Southern 
 
 Laclede Gas 
 
 Missouri Pacific (also Kan., Neb.) 
 
 St. Louis & San Francisco 
 
 Wabash (also 111., Ind., Mich. & Ohio) 
 
 *State vs. Switzler, 143 Mo. 287. 
 
 2 State vs. Henderson, 160 Mo. 190. 
 
 3 Revised Stats. 1909, Chapter 2, Article 14, Sections 309-331. 
 
 4 Conflicting information is at hand on this point.
 
 38 INHERITANCE TAXES. 
 
 7. 
 
 MASSACHUSETTS. 
 ALL INHERITANCES TAXED NON-RESIDENTS REACHED AN 
 
 ATTEMPT To AVOID DOUBLE TAXATION. 
 Massachusetts first adopted a collateral inheritance tax in 
 1891, ' and a direct inheritance tax in 1907, which applies to es- 
 tates of persons who have died since Sept. 1 , 1907. 
 
 The following taxes are imposed : * 
 Direct inheritances, 
 
 Inheritances to husband, wife, father, mother, 
 child and adopted child. 
 
 Oto $50,000 1% on entire amount 
 $50,000 to $100,000 1J% " 
 Over $100,000 2% " 
 
 Exemption $10,000* 
 
 Inheritances to other direct heirs including 
 lineal ascendants (except parents), lineal 
 descendants (except children), lineal descend- 
 ant of adopted child, wife or widow of son, 
 husband of daughter. 
 
 to $50,000 1% on entire amount 
 $50,000 to $100,000 \\% " 
 Over $100 ,000 2% " 
 
 Exemption $1000* 
 Collateral inheritances, 
 
 Inheritances to brother, sister, nephew, niece. 
 
 to $25,000 3% on entire amount 
 $25,000 to $100,000 4% " 
 Over $100,000 5% " 
 
 Exemption $1000* 
 All other inheritances, 
 Taxed uniformly 5% 
 
 Exemption $1000* 
 
 *Exemptions apply to each individual inheritance and not 
 to the estate as a whole. In the case of a non-resident, as has 
 already been noted, the inheritance is taxable if the entire amount 
 of the share passing is greater than the amount exempted, 
 though the portion of the share in Massachusetts is less than 
 the exempted amount; but in such case the tax is levied only 
 
 J For constitutionality see Minot vs. Winthrop, 162 Mass. 113; Crocker 
 vs. Shaw, 174 Mass. 266. 
 
 2 Acts of 1909 chap. 490 part IV. See also Acts of 1909 chap. 266, 
 268, 527, Acts of 1910 chap. 481,
 
 INHERITANCE TAXES. 39 
 
 on the portion of the inheritance subject to Massachusetts 
 jurisdiction. For example, a non-resident leaves a child $100,- 
 000, of which $5000 is stock in a Massachusetts corporation. 
 Massachusetts taxes this $50, 1% on $5000. 
 
 It should be noted that the tax, where levied, is on the full 
 amount without deducting the exemption. Thus a bequest 
 of $10,000 by a resident to a child would be taxed nothing, a 
 bequest of $20,000 would be taxed $200, 1% on the full $20,000. 
 But the tax must not reduce the inheritance below the exempted 
 figure, so an inheritance of $10,001 would pay only $1. 
 
 Among the points that have been decided by the Massa- 
 chusetts Supreme Court are the following: 
 
 Stocks in Massachusetts corporations and in national banks 
 doing business in Massachusetts, owned by a non-resident, are 
 subject to the tax. 1 
 
 But if a non-resident owns stock in a railroad company 
 incorporated in Massachusetts and other states, the tax is 
 based only on the proportionate amount of the line within 
 Massachusetts. 2 This also applies to street railway, telephone 
 and telegraph companies incorporated in Massachusetts and 
 other states. 
 
 The following property of a non-resident kept in Massa- 
 chusetts is subject to the tax; cash, bonds of corporations of 
 other states, Ohio Municipal Bonds, New Hampshire State 
 Bonds, United States Government Bonds. 8 
 
 Bonds of Massachusetts corporations, owned by a non- 
 resident, if kept within the state are taxed; if kept outside the 
 state are not taxed. Stocks of foreign corporations kept in Massa- 
 chusetts by a non-resident are not taxed. 
 
 J Greves v. Shaw, 173 Mass. 205. 
 
 2 Kingsbury v. Chapin, 196 Mass. 533. See also, Matter of Cooley, 
 186 N. Y. 220; Moody vs. Shaw, 173 Mass. 375. 
 8 Callahan v. Woodbridge, 171 Mass. 595.
 
 40 INHERITANCE TAXES. 
 
 Shares in voluntary associations like Massachusetts Gas 
 and Massachusetts Electric, and also shares in local real estate 
 trusts, have been regarded by the tax commissioner as standing 
 on the same footing as Massachusetts corporations, and have 
 been taxed whether owned by a resident or non-resident. The 
 right to collect such a tax on real estate trust shares is being 
 contested in a case now pending in the Supreme Court. 
 
 A corporation that transfers stock, and a person or corpo- 
 ration that delivers over securities of a non-resident estate 
 before the tax is paid, are made liable for the tax. 
 
 It is the practice of the tax commissioner's office to require 
 an inventory of the entire estate of a non-resident, as the com- 
 missioner deems it necessary for a proper computation of the 
 tax. 
 
 Massachusetts is one of the very few states that have 
 made any attempt to avoid double taxation. 
 
 If personal property of a deceased resident, which is out- 
 side the state, has been taxed in other states and this includes 
 stock in foreign corporations, whether the certificate is actually 
 kept in Massachusetts or not Massachusetts will not tax it, 
 unless the outside tax is less than the Massachusetts tax, and 
 then Massachusetts collects only the difference. 1 For instance, 
 a Massachusetts estate owns stock in American Telephone which 
 is incorporated only in New York. As the estate pays a tax 
 on this to New York, Massachusetts does not tax it. This ex- 
 emption has been construed not to apply to shares owned by 
 a resident, in a company incorporated in Massachusetts and 
 other states. A bill has been introduced in the legislature now 
 sitting to extend the exemption to such a case. 2 
 
 The result is that at present, so far as the inheritance tax 
 is concerned, for a Massachusetts investor, stocks in Massachu- 
 
 1 cf. Frothingham vs. Shaw, 175 Mass. 59. 
 4 This bill was passed at the 1911 session.
 
 INHERITANCE TAXES. 41 
 
 setts corporations are most desirable, stocks in corporations of 
 states whose taxes are no heavier than Massachusetts are a 
 second choice, while stocks in corporations of states whose taxes 
 are heavier than Massachusetts, are less desirable. 
 
 The attempt to avoid double taxation in the case of non- 
 residents has as yet been of little practical value. There is 
 a reciprocal clause in favor of non-residents owning stocks 
 in Massachusetts corporations which provides that such 
 itock shall not be taxed (except for the difference if Massa- 
 chusetts rates are higher) if owned by a resident of a state which 
 extends similar courtesies to residents of Massachusetts. 
 There are only five other states to which by any possibility 
 this could apply. It has been ruled that residents of Maine 
 are entitled to the exemption; the same ruling is likely to 
 be made when occasion arises as to Vermont and Kansas; 
 the attorney general has ruled that the retaliative provision 
 in the Connecticut law does not satisfy the reciprocal require" 
 ments, and it is probable that the same ruling would be made 
 as to West Virginia. 
 
 The receipts under the old collateral inheritance tax (ap- 
 plying only to estates of persons who died before Sept. 1, 1907) 
 reached a maximum in 1908. As the new law allows two years 
 in which to pay the tax, its full effect as a revenue producer 
 was not realized until 1910. 
 
 The following have been the receipts, including interest, 
 under both laws, for the last four years: 
 
 Under old New direct 
 
 collat. tax andcollat. 
 
 (persons dying (persons dying 
 
 before Sept. since Sept. 
 
 1,1907) 1,1907) 
 
 1910 $252,265 $1,470,365 
 
 1909 563,718 908,685 
 
 1908 906,365 357,655 
 
 1907 796,075
 
 42 
 
 INHERITANCE TAXES. 
 
 Among the numerous companies organized under the laws 
 of Massachusetts may be mentioned the following: 
 Listed on the Boston Stock Exchange: 
 
 Boston & Albany (also N. Y.) 
 Boston Elevated 
 Boston & Lowell 
 Bos.&Me. (also N. H.&Me.) 
 Boston&Northern Street Ry. 
 Boston & Providence 
 Bos., Revere Beach & Lynn 
 Conn. River (also N. H.) 
 Edison Electric 
 
 Fitchburg(alsoN.Y.,N.H.& H.) 
 
 Mass. Electric* 
 
 Mass. Gas* 
 
 New England Cotton Yarn 
 
 N.YN.H.&H. (also Conn&R.I.) 
 
 Old Colony Railroad 
 
 Old Colony Street Ry. 
 
 Prov. & Wor. (also R. I.) 
 
 West End Street Railway 
 
 *Voluntary associations, not corporations. 
 
 Mill, manufacturing and miscellaneous stocks: 
 
 Acushnet Mills 
 American Glue 
 Arlington Mills 
 Ark wright Mills 
 Barnaby Mfg. 
 Barnard Mfg. 
 Berkshire Mfg. 
 Bigelow Carpet 
 Boott Mills 
 Borden Mfg. 
 Boston Belting 
 Boston Duck 
 Boston Wharf 
 Boston Woven Hose 
 Butler Mill 
 Chapman Valve 
 Chicopee Mfg. 
 Cornell Mills 
 Dartmouth Mfg. 
 Davis Mills 
 D wight Mfg. 
 Essex Co. 
 Everett Mills 
 Flint Mills 
 Fisher Mfg. 
 
 Fore River Shipbuilding 
 Granite Mills 
 Grinnell Mfg. 
 
 Lancaster Mills 
 Laurel Lake Mills 
 Lawrence Mfg. 
 Lowell Bleachery 
 Luther Mfg. 
 Lyman Mills 
 Manomet Mills 
 Mass. Cotton Mills 
 Mass. Mills in Ga. 
 Maverick Mills 
 W. H. McElwain Co. 
 Merrimac Mfg. 
 Middlesex Co. 
 Narragansett Mills 
 Nashawena Mills 
 Naumkeag Steam Cotton 
 Nonquitt Spinning 
 Pacific Mills 
 Parker Mills 
 Pierce Mfg. 
 Plymouth Cordage 
 Pocasset Mfg. 
 Renfrew Mfg. 
 Sagamore Mfg. 
 Shaw Stocking 
 Seaconnet Mills 
 Stevens Mfg. 
 Suncook Mills
 
 INHERITANCE TAXES. 
 
 43 
 
 Gosnold Mills 
 Hamilton Mfg. 
 Hamilton Woolen 
 Hargraves Mills 
 Harmony Mills 
 Hood Rubber 
 
 Tecumseh Mills 
 Thorndike Co. 
 Tremont & Suffolk Mills 
 Union Cotton Mfg. 
 Wamsutta Mills 
 Whitman Mills 
 
 Also all street railway, electric light and gas companies doing 
 business in Massachusetts.
 
 44 INHERITANCE TAXES. 
 
 8. 
 
 NEW YORK. 
 A STATE WHICH HAS RECENTLY TAKEN AN EXTREME POSITION. 
 
 New York has had a collateral inheritance tax since 1885, a 
 direct inheritance tax on personal property since 1891 and on 
 real estate since 1903. l Until 1910 the rate was 1% on direct in- 
 heritances, and 5% on collateral inheritances. The present much 
 criticised law took effect July 11, 1910, and introduced gradu- 
 ated rates running up to 25%. 
 
 It provides for the following taxes: a 
 
 Inheritances to father, mother, widow, minor child. 8 
 First $5,000 exempt 
 
 Excess over $5,000 up to $25,000 1% 
 Excess over $25,000 up to $100,000 2% 
 Excess over $100,000 up to $500,000 3% 
 Excess over $500,000 up to $1,000,000 4% 
 Excess over $1 ,000,000 5% 
 
 Inheritances to all other direct heirs including hus- 
 band, adult child, brother, sister, wife or widow 
 of son, husband of daughter, adopted or mutu- 
 ally acknowledged child and lineal descendant. 8 
 Tax is the same except that the exemption 
 is only on the first $500. 
 
 Inheritances to all others: 8 
 
 First $100 exempt 
 
 Excess over $100 up to $25,000 5% 
 
 Excess over $25,000 up to $100,000 10% 
 Excess over $100,000 up to $500,000 15% 
 Excess over $500,000 up to $1 ,000,000 20% 
 Excess o ver $ 1 ,000 ,000 25% 
 
 'For constitutionality see Matter of McPherson, 104 N. Y. 306; Matter 
 of Keeney, 194 N. Y. 281; Orr vs. Oilman, 183 U. S. 278; Beers vs. Glynn, 
 211 U. S. 477. 
 
 *Law8 of 1909, Chap. 62, Sect. 220-245 as amended by Laws of 1910, 
 Chap. 600 and 706. 
 
 "This is the interpretation of the law as made by the Comptroller's office, 
 and followed by many Surrogates. Other Surrogates rule that if the legacy 
 exceeds the exempted amount, the entire legacy is taxable without deducting 
 the exemption. See Matter of Mason, 126 N. Y. Supplement 998. See 
 also Matter of Jourdan, 70 Misc. 159 for a slightly different interpretation of 
 the whole table.
 
 INHERITANCE TAXES. 45 
 
 The exemptions apply to each inheritance rather than to 
 the estate as a whole. In the case of a non-resident, apparently, 
 if the New York portion of the inheritance is less than the 
 exempted amount, the inheritance is not taxable. 
 
 The New York courts have laid down the rules that have 
 been generally followed in the states that have taken a radical 
 position. Among the important points that have been decided 
 are: 
 
 Stocks in New York corporations held outside the state by a 
 non-resident are taxable; 1 but the same case holds that bonds 
 of a New York corporation so held are not taxable. 
 
 Bonds of either New York or foreign corporations and stock 
 of New York corporations, owned by a non-resident and kept 
 in a New York safe deposit vault are taxable, but stocks of for- 
 eign corporations so kept are not taxable. 2 (By a foreign cor- 
 poration is meant a corporation organized under the laws of any 
 other jurisdiction.) United States bonds so kept are taxable. 3 
 
 A safe deposit company or any person or corporation that 
 delivers over or transfers securities of a non-resident without 
 notifying the tax authorities, is not only made liable for the 
 tax, but is subject to heavy penalty as well. 
 
 A deposit by a non-resident in a New York trust company or 
 bank is taxable. 4 In the Blackstone case the estate had already 
 paid a tax on the deposit to Illinois where the deceased lived. 
 The case was carried to the United States Supreme Court and 
 resulted in the decision already referred to, that the Constitution 
 does not prohibit such double taxation. 5 
 
 Matter of Bronson, 150 N. Y. 1. 
 
 2 Matter of Romaine, 127 N. Y. 80; Matter of Whiting, 150 N. Y. 
 27; Matter of Morgan, 150 N. Y. 35; Matter of Palmer, 183 N. Y. 238. 
 
 8 Matter of Plummer, 161 N. Y. 631; affirmed in Plummer vs. Coler, 
 178 U. S. 115. 
 
 4 Matter of Houdayer, 150 N. Y. 37; Matter of Blackstone, 171 N. Y. 
 682; Matter of Daly, 182 N. Y. 524. 
 
 5 Blackstone vs. Miller, 188 U. S. 189.
 
 46 INHERITANCE TAXES. 
 
 It is the usual practice to require an inventory of the entire 
 property of a non-resident. The Comptroller's Office states that 
 this is ''only for the purpose of seeing that the stocks of New York 
 corporations are fully set forth, and for the purpose of prorating 
 the property in this state in the payment of legacies under the 
 decedent's will or the interstate law of decedent's domicile." 
 That is to say, for the purpose of preventing non-resident execu- 
 tors from satisfying only tax-exempt inheritances out of the New 
 York portion of the property. 
 
 New York is not one of the states that tries to collect a tax 
 on the shares of corporations not organized under its laws, but 
 owning property in the state. In the case of corporations organ- 
 ized under New York laws and the laws of other states as well, 
 such as Boston & Albany, the stock is taxed on the proportionate 
 value of the property in New York. 1 
 
 The immoderate zeal displayed by New York in trying to get 
 at non-resident estates can be illustrated by mentioning one line 
 of attack. Administrators in other states, very soon after their 
 appointment, are likely to receive a letter from a New York 
 attorney, reciting that he has been designated for the purpose 
 of instituting inheritance tax proceedings against the estate, 
 demanding that a complete inventory of the estate be sent to 
 him, and suggesting a penalty if it is not done promptly. 
 
 There seems to be a very strong sentiment in New York 
 that this drastic law is a mistake. Farmers' organizations are 
 protesting against the heavy burden it places on small estates. 
 The Chamber of Commerce has adopted resolutions favoring the 
 amendment or repeal of the law. The president of the American 
 Chamber of Commerce in Paris has written saying: "We 
 know many foreigners who have recently sold their securities 
 and withdrawn their balances from New York to avoid payment 
 
 Walter of Cooley, 186 N. Y. 220; Matter of Thayer, 193 N. Y. 430.
 
 INHERITANCE TAXES. 47 
 
 of new heavy legacy taxes in case of their death." A Surrogate 
 in a public address has referred to this law as "a policy of 
 greed" and declared that because of it millions would be driven 
 out of the state of New York. 
 
 The New York Safe Deposit Association has adopted a 
 resolution petitioning the legislature to repeal the statute and 
 calls upon other bankers' and merchants' organizations to join 
 in the appeal. They claim that the new inheritance tax law is 
 driving personal securities out of their vaults and outside the 
 state "by the wagonload." 
 
 Clark Williams, state comptroller, in his current report 
 to the legislature, says that the recently enacted amendments 
 to the inheritance tax law are forcing men of wealth to take up 
 their residence in other states. He says: "Evidence is not 
 lacking that the exodus has already begun. Instances have 
 lately been brought to my attention in which foreign capital 
 seeking investment in New York, through banking houses, 
 which by reason of their connection would, under normal condi- 
 tions, have invested it in the stocks of domestic corporations, 
 has, by reason of the hardship of this law, been diverted from 
 the natural course and invested in the stocks of corporations 
 domiciled in other states . No argument is needed to show the 
 effect which a continuance of the present policy must have 
 upon the corporations domiciled here." 
 
 The new amendments cannot be justified on the plea of need 
 of addition revenue. The previous law, though obnoxious 
 in its application to non-residents, had the merit of reasonable 
 rates and was an important factor in eliminating direct property 
 taxes for state purposes. It produced almost $7,000,000 in 
 1909. In 1910 over $8, 200,000 was realized. The increase 
 is not attributed by the comptroller to the new law, but to the 
 collection of $1,908,000 from six unusually large estates. The
 
 48 INHERITANCE TAXES. 
 
 comptroller apparently is inclined to believe that the new law 
 may actually reduce the revenue by driving large estates out 
 of New York. 
 
 The present law may tax a distant relative or a stranger 
 2 %, and this too, although any one of six other states may 
 have already collected 15%. 
 
 Its effect upon as near a relative as a nephew may be almost 
 as bad. Suppose a resident of New Jersey has $2,000,000 of 
 registered bonds of a Kansas corporation in a safe deposit vault 
 in New York City. He dies and leaves this to his nephew, also a 
 New Jersey resident. The New York tax (computed on a gradu- 
 ated scale with a maximum of 25%) is $418,745; the New 
 Jersey tax (5% straight) is $100,000; the Kansas tax (from 
 3% to 12% graduated) is $233,220, a total of $751,965, or 
 over 37 % of the inheritance. 
 
 Then carry this a step further. Suppose the legatee dies 
 within a few months before there has been any change in the 
 location of the bonds and he in turn leaves the property, or 
 what there is left of it, say $1,250,000 for round figures, to his 
 nephew. The New York tax on this is $231 ,245; the New Jersey 
 tax $62,500 and the Kansas tax $139,470, a total of $433,215, 
 bringing the estate down to only a little over $800,000 against 
 $2,000,000 a few months before. Other states might well be 
 substituted for New Jersey and Kansas without materially 
 changing this result. 
 
 In 1897 Governor Black refused to sign an inheritance tax 
 bill with a maximum rate of 15%, because of the hardship in the 
 case of deaths in quick succession in the same family, because it 
 would tend to drive away capital, and because the rates proposed 
 were not uniform or fair. The more hat publicity is given to 
 this recent enactment, the less it is liked. It wi 1 not be sur- 
 prising if it is substantially modified.
 
 INHERITANCE TAXES. 
 
 49 
 
 Among the many prominent companies organized under 
 New York laws are: 
 
 Adams Express* 
 
 American Express* 
 
 American Telephone 
 
 Brooklyn Rapid Transit 
 
 Brooklyn Union Gas 
 
 Buffalo, Rochester & Pittsburgf 
 
 Butterick Co. 
 
 Central & South Am. Tel. 
 
 Consolidated Gas 
 
 Delaware & Hudson 
 
 Erie 
 
 General Chemical 
 
 General Electric 
 
 Interborough-Metropolitan 
 
 International Paper 
 
 Lackawanna Steel 
 
 Lake ShoreJ 
 
 Long Island Railroad 
 
 Manhattan Elevated 
 
 Mergenthaler Linotype 
 
 New England Telephone 
 
 New York Central 
 
 New York, Ontario & Western 
 
 Pacific Mail 
 
 Sears-Roebuck 
 
 Singer Manufacturing Co. 
 
 Third Avenue 
 
 United Cigar Stores 
 
 United States Express* 
 
 *The express companies are not corporations but joint stock associa- 
 tions under New York laws., 
 
 fBuffalo, Rochester & Pittsburg also in Pennsylvania. 
 
 JLake Shore also in Illinois, Indiana, Ohio, Michigan, Pennsylvania. 
 
 NOTE. Governor Dix in a special message to the legislature in March, 
 1911, recommended the repeal of this law. A bill has been introduced in 
 accordance with this recommendation following the line of the model bill 
 of the International Tax Association referred to later (page 113 infra).
 
 50 INHERITANCE TAXES. 
 
 9. 
 
 OKLAHOMA. 
 TAXATION THAT Is CONFISCATION A STARTLING POSSIBILITY. 
 
 Oklahoma did not wait long after its admittance to the 
 Union before adopting an inheritance tax law. This law was 
 enacted at the 1907-8' session of the Oklahoma legislature and 
 will not disappoint those who have learned to look to Oklahoma 
 for radical and complicated legislation. The rather startling, 
 though perhaps not wholly surprising feature of the law, in view 
 of what supposedly conservative states have done, is that there 
 is a progressive feature which results in the confiscation of all 
 in excess of certain amounts, and not very large amounts at 
 that. 
 
 The scheme of taxation may be briefly summarized as 
 follows: l 
 
 Inheritance to widow: 
 
 First $10,000 exempt 
 
 Excess over $10,000 up to $15,000 1% 
 
 Excess over $15,000 1-125 of 1% in- 
 crease in rate for every $100 
 
 Excess over $1 ,252,500 100% 
 
 Inheritances to husband, lineal descendant, lineal 
 ancestor, adopted or mutually acknowledged 
 child, and lineal descendant of such child: 
 
 First $5,000 exempt 
 
 Excess over $5000 up to $10,000 1% 
 
 Excess over $10,000 1-125 of 1% in- 
 crease in rate for every $100 
 
 Excess over $1,247,500 100% 
 
 Inheritances to brother, sister, descendant of 
 brother or sister, wife or widow of son, husband 
 of daughter: 
 
 First $500 exempt 
 
 Excess over $500 up to $2500 l% 
 
 Excess over $2500 1-50 of 1% in- 
 crease in rate for every $100 
 Excess over $495,000 100% 
 
 'Oklahoma Compiled Laws 1909, Page 1549, Article 14, Chapter 98; 
 session laws 1907-8, Page 733, Article 11, Chapter 81.
 
 INHERITANCE TAXES. 51 
 
 Inheritances to brother or sister of father or 
 mother or their descendants: 
 
 First $250 exempt 
 
 Excess over $250 up to $2250 3% 
 
 Excess over $2250 1-50 of 1% in- 
 crease in rate for every $100 
 Excess over $487,250 100% 
 
 Inheritances to brother or sister of grandfather 
 or grandmother or their descendants: 
 
 First $150 exempt 
 
 Excess over $150 up to $650 4% 
 
 Excess over $650 1-10 of 1% in- 
 crease in rate for every $100 
 Excess over $96,650 100% 
 
 All other inheritances: 
 
 First $100 exempt 
 
 Excess over $100 up to $600 5% 
 
 Excess over $600 1-10 of 1% in- 
 crease in rate for every $100 
 Excess over $95,600 100% 
 
 Exemptions apply to each individual inheritance and not 
 to the estate as a whole. 
 
 We hesitate to suggest that under a literal reading of the 
 statute the rate of tax continues to increase even after 100% is 
 reached . 
 
 Oklahoma taxes both stock and registered bonds of Okla- 
 homa corporations owned by non-residents and the corporation 
 itself is responsible for the tax if it transfers securities before the 
 tax is paid. 
 
 This remarkable statute suggests interesting possibilities- 
 Suppose a rich New York resident shows his appreciation of 
 his best friend by naming him his executor, and leaves him in 
 addition a handsome legacy of $2,000,000 worth of stock in an 
 Oklahoma corporation. The executor is not familiar with the 
 gyrations of inheritance tax laws, and as he wishes to receive 
 his dividends, he sends along the stock for transfer. Some one 
 has borrowed our table of logarithms and our higher mathe- 
 matics are a little rusty, but under this handicap we figure
 
 52 INHERITANCE TAXES. 
 
 that $1,951,930 is a very close approximation to the Oklahoma 
 tax on this legacy. 
 
 The exhilarating feature of the situation is not that he has 
 only $48,070 of the $2,000,000 left when Oklahoma is through, 
 but is that a tax of $418,745 is still due on the legacy to the state 
 of New York, and the executor is personally responsible for the 
 payment of the en tire' amount! 
 
 This act has yet to be passed upon by the Oklahoma Supreme 
 Court; a court which, it may be noted, has already shown much 
 sanity. It is hard to believe that the act could be sustained 
 even under the remarkable constitution of this state. 
 
 It may not be surprising to learn that no corporation of 
 really national importance has organized in Oklahoma. Among 
 the prominent railroads in the state are Atchison; Kansas City; 
 Mexico & Orient; Kansas City Southern; Missouri, Kansas & 
 Texas; Rock Island; St. Louis & San Francisco, but none of them 
 are incorporated under the laws of the state. 
 
 There is, however, a substantial amount of outside capital 
 invested within the state in national banks, and in state banks 
 and public service corporations that are organized under Okla- 
 homa laws.
 
 INHERITANCE TAXES. 53 
 
 10. 
 MAINE. 
 
 Maine began to tax collateral inheritances in 1893 and 
 direct inheritances in 1909. The following taxes are now 
 imposed: 
 
 Direct inheritances, 
 
 Inheritances to husband, wife, father, mother, 
 child , adopted child : 
 
 Under $50,000 1% 
 
 $50,000 to $100,000 l% 
 
 Over 100,000 2% 
 
 Exemption $10,000* 
 
 Inheritances to lineal ancestor (except parents), 
 lineal descendant (except children), lineal 
 descendant of adopted child, wife or widow 
 of son, husband of daughter: 
 
 Under $50,000 1% 
 
 $50,000 to 100,000 1|% 
 
 Over 100,000 2% 
 
 Exemption $500* 
 Collateral inheritances, 
 
 Inheritances to brother, sister, uncle, aunt, 
 nephew, niece, cousin: 
 
 Under $50,000 4% 
 
 $50,000 to 100,000 4i% 
 
 Over 100,000 5% 
 
 Exemption $500* 
 All other inheritances. 
 
 Under $50,000 5% 
 
 $50,000 to 100,000 6% 
 
 Over 100,000 7% 
 
 Exemption $505* 
 
 Revised Statutes Chap. 8. Sections 69-85, as amended by laws of 
 1905, Chapter 124, and laws of 1909 chapters 186 and 187. 
 
 *Exemptions apply to each individual inheritance and not 
 to the estate as a whole. 1 Probate Courts have charge of inheri- 
 tance tax matters. In some of them the tax is imposed on the 
 full amount of the inheritance; thus an inheritance of $40,000 
 to a child is taxed $400, 1% on the whole $40,000; but in other 
 
 iState vs. Hamlin, 86 Me. 495.
 
 54 INHERITANCE TAXES. 
 
 Probate Courts the tax is collected on the excess over the ex- 
 emption only, and in such courts the tax would be only $300, 
 1% on the excess over $10,000. The same uncertainty prevails 
 in the case of large inheritances, as to whether they are taxable 
 at the increased rate only, on the excess over the minimum figure 
 or on the entire inheritance. There has been as yet no authorita- 
 tive decision. 
 
 Maine has taken an advanced position in trying to avoid 
 double taxation. 
 
 Property of a resident situated outside the state, if taxed 
 by another state or country, is taxed in Maine only for the differ- 
 ence if the Maine tax is the greater. 
 
 Property of a non-resident within the jurisdiction of Maine, 
 if subject to a tax in his home state or country, pays to Maine 
 only so much as the Maine tax may be in excess of the tax in 
 the place of residence. 
 
 Maine is taxing stock of Maine corporations owned by non- 
 residents, but the usual provision that the corporation itself 
 shall be responsible for the tax if it transfers stock before the 
 tax is paid, is wanting in the Maine laws. 
 
 It seems to be the general practice in the Probate Courts 
 to tax Boston & Maine shares on their full value, though the 
 company is also incorporated in Massachusetts and New Hamp- 
 shire, and only a relatively small portion of its line is in Maine. 
 When an authoritative ruling is made on this point, it w r ill be 
 surprising if it does not follow the Massachusetts and New York 
 practice of taxing the stock according to the relative proportion 
 of the line within the state. 
 
 The collateral inheritance tax was producing $75,000 to 
 $100,000 annually. The addition of a tax on direct inheritance is 
 likely to increase this materially.
 
 INHERITANCE TAXES. 55 
 
 Among the better known companies organized under 
 Maine laws are: 
 
 American Zinc Mexican Tel. & Tel. 
 
 Androscoggin Mills Nevada Consolidated 
 
 Arizona Commercial Nipissing 
 
 Atlantic, Gulf & W. I. Northern Texas Electric 
 
 Bangor & Aroostook Pepperell Mfg. 
 
 Bates Mfg. Ray Consolidated 
 
 Berlin Mills Reece Buttonhole 
 
 Boston & Corbin Reece Folding Machine 
 B.&M. (also Mass, and N.H.) Revere Sugar 
 
 Continental Mills Submarine Signal 
 
 Draper Company Torrington 
 
 Eastern Steamship Union Mills 
 
 Edwards Mfg. U.S. Envelope 
 
 Franklin Company U. S. Smelting 
 
 Galveston Houston Elec. U. S. Worsted 
 
 Hill Mfg. Utah Apex 
 
 Inspiration Winthrop Mills 
 
 Int. Buttonhole York Mfg. 
 
 Island Creek Coal. Yukon Gold 
 La Rose 
 
 NOTE. The 1911 Legislature exempted from the inheritance tax stock 
 owned by non-residents in Maine corporations whose business is done out- 
 side the state. The missing provision holding the corporation responsible 
 if it transfers stock on which the tax has not been paid was inserted . It 
 was also provided that shares of railroad and similar corporations owned 
 by non-residents should be taxed only on the proportionate part of their 
 line within the state of Maine. Laws of 1911, chapter 163.
 
 56 INHERITANCE TAXES 
 
 11 
 NEW HAMPSHIRE. 
 
 New Hampshire's first inheritance tax, 1% on collateral 
 inheritances, enacted in 1878, was held unconstitutional in 
 1882.' 
 
 An amendment to the constitution in 1903 paved the way 
 for the present collateral inheritance tax enacted in 1905. 2 
 
 The tax is on collateral inheritances only, the rate is uni- 
 formly 5%, and no amount is exempt. No tax is levied on an 
 inheritance to father, mother, husband, wife, lineal descendant, 
 brother, sister, adopted child, lineal descendant of adopted 
 child, wife or widow of son, husband of daughter. 8 
 
 New Hampshire taxes stock in a New Hampshire corporation 
 owned by a non-resident 4 and, moreover, taxes registered bonds 
 of a New Hampshire corporation owned by a non-resident 
 though kept outside the state. Corporations and individuals 
 transferring or delivering securities or other assets of non-residents 
 are made responsible for the tax. Boston & Maine stock is 
 taxed only on the proportion of its line within New Hampshire. 
 
 It is the practice to require a complete inventory of a non- 
 resident's estate. 
 
 New Hampshire is the only New England state that has no 
 provision whatever for preventing or reducing double taxation. 
 
 This tax has been producing about $80,000 a year. 
 
 Among the more prominent companies organized under the 
 laws of New Hampshire are the following: 
 
 Amoskeag Mfg. Jackson Company 
 
 B. & M. (also Mass. Me.) Nashua Mfg. 
 Great Falls Mfg. 
 
 'Curry v. Spencer, 61 N. H. 624. 
 
 'Tor constitutionality see Thompson vs. Kidder, 74 N. H. 89. 
 'Laws 1905, chap. 40, as amended by Laws 1907, chaps. 68, 82, 138 
 and Laws 1909, chap. 104. 
 
 Gardiner v. Carter, 74 X. H. 507.
 
 INHERITANCE TAXES. 
 
 57 
 
 Also the following Boston & Maine subsidiaries: 
 
 Concord & Claremont 
 Concord & Montreal 
 Concord & Portsmouth 
 Franklin & Tilton 
 Manchester & Keene 
 Manchester & Lawrence 
 Nashua & Acton (also Mass.) 
 
 Nashua & Lowell (also Mass.) 
 Northern Railroad 
 Pemigewasset Valley 
 Peterborough R. R. 
 Peterborough & Hillsborough 
 Suncook Valley 
 Wilton R. R. ' 
 
 NOTE. The Legislature of 11911 enacted an inheritance tax law which 
 confirms and strengthens the earlier laws (House Bill 37) .
 
 58 INHERITANCE TAXES. 
 
 12. 
 VERMONT. 
 
 Vermont's first collateral inheritance tax was enacted in 
 1 896 > and substantially amended in 1904. Its main features 
 are very similar to the New Hampshire statute. 
 
 The tax is on collateral inheritances only, the rate is uni- 
 formly 5%, and no amount is exempt. No tax is levied on an 
 inheritance to father, mother, husband, wife, lineal descendant, 
 step-child, adopted child, child of step-child or of adopted child, 
 wife or widow of son, husband of daughter. 2 
 
 A bill for a graduated direct inheritance tax passed the 
 House of Representatives during the 1910-1911 session but 
 it failed to pass the Senate. 
 
 Vermont taxes stock in a Vermont corporation or national 
 bank owned by a non-resident and like New Hampshire taxes 
 registered bonds as well. It goes even a step further and makes a 
 claim for an inheritance tax where a deceased non-resident 
 owns stock in a corporation not incorporated under the laws of 
 Vermont provided such foreign corporation has its principal 
 office in Vermont. Corporations and individuals transferring 
 or delivering securities, and banks that pay deposits of non-resi- 
 dents, are made responsible for the tax. 
 
 It is the practice of the tax authorities to require an inven- 
 tory of the entire property of the deceased, and a copy of the will 
 before permitting a Vermont corporation to transfer securities 
 owned by a deceased non-resident. 
 
 If any inheritance tax has been paid by either a resident 
 or non-resident to any other state or government, except the 
 
 J For constitutionality see Hickok's Estate, 78 Vt. 259. 
 Public Stats, chap. 38, 821-901 as amended by Acts 1908, No. 31, 
 approved January 28, 1909.
 
 INHERITANCE TAXES. 59 
 
 United States, on account of the transfer of securities, bank 
 deposits or other assets, the Vermont tax is limited to an amount 
 sufficient to make the total tax 5%. 
 
 Vermont does not tax the bank deposits of a Ver- 
 mont resident in another state and this would seem to apply 
 to securities outside the state as well. 1 
 
 Among the more prominent companies organized under the 
 laws of Vermont are: 
 
 Fairbanks & Co. 
 Central Vermont 
 Conn. & Pass. Rivers 
 Rutland R. R. (also N. Y.) 
 Vermont Valley R. R. 
 
 ^oyslin's Estate, 76 Vermont 88.
 
 60 INHERITANCE TAXES. 
 
 13. 
 ILLINOIS. 
 
 A STATE WHOSE PRACTICE Is MUCH CRITICISED IN SPITE OF 
 LIBERAL EXEMPTIONS. 
 
 Illinois adopted a tax on all kinds of inheritances in 1895 
 which included progressive rates applying to distant relatives 
 and strangers with a maximum of 6%. J The constitutionality 
 of the statute was sustained in the Illinois Supreme Court.' 
 Later the question was raised in the Supreme Court of the United 
 States, which, in a very far-reaching decision, held that progres- 
 sive taxation and substantial exemptions do not infringe the 
 equal protection of the laws guaranteed by the Fourteenth 
 Amendment. 8 
 
 The following taxes are now imposed: 4 
 
 Direct inheritances including those to father, 
 mother, husband, wife, child, brother, sister, 
 wife or widow of son, husband of daughter, 
 adopted or acknowledged child, lineal descen- 
 dant: 
 
 Under $20,000 exempt 
 
 From 20,000 to $100,000 1% 
 
 Over 100,000 2% 
 
 ($20,000 is always exempt and only the 
 
 excess over this amount is taxed.) 
 Collateral inheritances: 
 
 Inheritances to uncle, aunt, niece, nephew and 
 their lineal descendants. 
 
 Under $2,000 exempt 
 
 From 2,000 to $20,000 2% 
 
 Over 20,000 4% 
 
 ($2,000 is always exempt and only the 
 excess over this amount is taxed.) 
 
 1 Lawsof 1895, p. 301. 
 
 "Kochersperger vs. Drake, 167 111. 122. 
 
 "Magoun vs. Illinois Trust & Savings Bank, 170 U. S. 283. See also 
 Billings vs. Illinois, 188 U. S. 97. 
 
 <Rev. Stats. 1909, Chapter 120, Sections 366-388; Senate Bill No. 
 498 approved June 14, 1909.
 
 INHERITANCE TAXES. 61 
 
 All other inheritances, 
 
 Under $500 exempt 
 
 From 500 to $10,000 3% 
 
 From 10,000 to 20,000 4% 
 
 From 20,000 to 50,000 5% 
 
 From 50,000 to 100,000 6% 
 
 Over 100,000 10% 
 
 The exemptions apply to the individual shares, not to 
 the estate as a whole. The exemption of $20,000 is the most 
 liberal given to direct heirs in any state. 
 
 Illinois taxes stock in Illinois corporations owned by non- 
 residents wherever held. If the corporation transfers the stock 
 without notifying the tax authorities, it is made liable for the 
 tax and is subject to a penalty as well. 
 
 A bank deposit of a non-resident in Illinois, and both stocks 
 and bonds of an Illinois corporation, kept by a non-resident in a 
 safe deposit box in Illinois, are subject to the inheritance tax, 
 but stocks and bonds of foreign corporations owned by a non- 
 resident so kept in a safe deposit box are not subject to the tax. 1 
 
 Illinois requires the executor or administrator of a non- 
 resident estate to answer, under oath, a printed list of questions 
 before consent is given to the transfer of any Illinois stocks; 
 but this does not necessarily involve setting forth an inventory 
 of the entire estate. 
 
 Illinois is taxing stock, owned by non-residents, of foreign 
 corporations that own property in Illinois. We are informed by 
 the tax authorities "that it depends upon the conditions under 
 which the property is held here as to whether a claim would be 
 made." We have yet to learn, however, of any condition under 
 which such stock would not be taxed. 
 
 There seems to be more complaint made against the treat- 
 ment of non-resident estates by Illinois than in the case of any 
 other of the states, not even excepting New York. 
 
 'People vs. Griffith, 245 111. 532.
 
 62 INHERITANCE TAXES. 
 
 A lawyer expresses this sentiment as follows: 
 ''The state of Illinois is particularly unfair toward non- 
 residents and perhaps indicates it in no stronger way than by its 
 refusal to apportion such stocks as that of Illinois Central, 
 organized under the laws of Illinois and extending through several 
 other states, while at the same time insisting upon an apportion- 
 ment of such stocks as Rock Island, which are incorporated in 
 other states but have some of their line in Illinois. In other 
 words, this particular state is grabbing everything in sight." 
 On this subject the Inheritance Tax Attorney for Illinois says: 
 "The rates of taxation in New York, New Jersey and all 
 other eastern states, as well as all states in the Union which have 
 inheritance tax laws, embody rates of taxation greatly in excess 
 of those provided in the inheritance tax laws of this state. The 
 exemptions provided by our law are so large and liberal that 90% 
 at least of all of the securities transferred (owned at death by 
 non-resident decedent) are not taxable at all." 
 
 This tax has been producing a revenue of between $500,000 
 and S750,000 annually. 
 
 Among the more prominent companies organized under the 
 laws of Illinois are: 
 
 Chicago & Alton 
 
 Chicago, Burlington & Quincy 
 
 Chicago & Eastern Illinois 
 
 Chicago Great Western 
 
 Chicago & Northwestern (also Wis. & Mich.) 
 
 Chicago Railways 
 
 Chicago, Rock Island & Pacific Ry.* (also la.) 
 
 Chicago Telephone 
 
 Diamond Match 
 
 Illinois Brick 
 
 Illinois Central 
 
 Peoples Gas 
 
 Pitts., C., C. & St. L. (also W. Va., Pa., Ind.) 
 
 Pullman 
 
 Wabash (also Ind., Mich., Mo., Ohio) 
 
 'Chicago, Rock Island & Pacific Railroad is an Iowa corporation. 
 Rock Island Co. is a New Jersey corporation.
 
 INHERITANCE TAXES. 63 
 
 14. 
 
 CONNECTICUT. 
 
 A RETALIATIVE CLAUSE AGAINST DOUBLE TAXATION SOME 
 OFFICIAL INFORMATION FROM OTHER STATES. 
 
 Connecticut adopted a collateral inheritance tax in 1889 
 and extended it to direct heirs in 1897. The state Supreme Court 
 decided that the personal property of a non-resident was not 
 taxable under this statute, but that the law as amended in 1903 
 included such property. 1 There were important revisions in 
 1907 and 1909. 
 
 The following taxes are imposed: 2 
 
 Direct inheritances, including those to parent, husband, 
 
 wife, lineal descendant and adopted child, 
 
 uniformly 1%. 
 Exemptions: 
 
 If the entire estate passes to such heirs, exemption is 
 $10,000. This applies to the estate as a whole, not to 
 the individual shares. If the estate passes in part to 
 direct heirs and in part to others, such portion of $10,000 
 as the share of the direct heirs bears to the whole es- 
 tate is exempt. This exemption applies to the aggre- 
 gate interest of the direct heirs, not to the individual 
 shares. 
 
 An estate of a non-resident is only entitled to an ex- 
 emption of such portion of $10,000 as the Connecticut 
 part of the estate is to the entire estate, and this may 
 be reduced as above if other than direct heirs share 
 the estate. 
 
 Collateral inheritances, including all other inheritances, 
 
 uniformly 5%. 
 No exemption. 
 
 The Connecticut statute is unique and commendable in 
 that it specifically sets forth the property of non-residents 
 
 iQallup's Appeal, 76 Conn. 627. For constitutionality see Nettle- 
 ton's Appeal, 76 Conn. 235; Hopkins' Appeal, 77 Conn. 644. 
 
 2Gen. Stats. 305, 2367-2377: Acts 1903, chapter 63; Acts 1905, 
 chapter 256; Acts 1907, chapter 179; Acts 1909, chapter 218.
 
 64 INHERITANCE TAXES. 
 
 which is subject to the tax. In most states the statute is silent 
 on the subject, and as there are few authoritative decisions, the 
 tax authorities must make their own ruling. This portion of 
 the statute is worth quoting. It provides that the following 
 property belonging to non-residents shall be subject to the tax: 
 
 "All real estate and tangible personal property, including 
 moneys on deposit, within this state; all intangible personal 
 property, including bonds, securities, shares of stock, and choses 
 in action the evidences of ownership of which shall be actually 
 within this state; shares of the capital stock or registered bonds 
 of all corporations organized and existing under the laws of this 
 state the certificates of which stocks or such bonds shall be without 
 this state, where the laws of the state or country in which such de- 
 cedent resided shall, at the time of his decease, impose a succes- 
 sion, inheritance, transfer, or similar tax upon the shares of the 
 capital stock or registered bonds of all corporations organized 
 or existing under the laws of such state or country, held under 
 such conditions at their decease by residents of this state." 
 
 This last retaliative provision, under which Connecticut 
 taxes stock and registered bonds of Connecticut corporations 
 owned by residents of states which so tax stocks and registered 
 bonds of their own corporations when owned by Connecticut 
 residents, is an interesting attempt to reduce double taxation 
 and is more effective in doing so than the Massachusetts recip- 
 rocal provision. 
 
 Because the wording of the inheritance tax statute in many 
 of the states is so ambiguous, the Tax Commissioner of Connecti- 
 cut as has already been noted considers it his duty to obtain 
 official information from the different states as to the practice 
 which is there followed. 1 Under date of Dec. 15, 1910, the tax 
 commissioner enumerates the following states as the ones whose 
 
 'See page 16 supra.
 
 INHERITANCE TAXES. 65 
 
 residents must pay an inheritance tax on stock of a Connecticut 
 corporation wherever the certificate may be: 
 
 Colorado New Hampshire 
 
 Illinois New Jersey 
 
 Iowa New York 
 
 Kansas North Carolina 
 
 Maine Oklahoma 
 
 Massachusetts Vermont 
 
 Michigan Wisconsin 
 
 A resident of the following states must pay an inheritance 
 tax on the registered bonds of a Connecticut corporation wherever 
 the bonds may be : 
 
 Colorado New Hampshire 
 
 Kansas Oklahoma 
 
 Michigan Vermont 
 
 Estates of residents of the states not enumerated are not 
 required to pay a tax on Connecticut stock or registered bonds 
 as the case may be. 
 
 Since 1908 eight states have been added to, and two states 
 dropped from the Connecticut list of states taxing stock of non- 
 residents, and three states added to the list of those taxing 
 registered bonds. 
 
 Hon. William H. Corbin, Tax Commissioner of Connecticut, 
 who has been a leader in the movement for a uniform inheritance 
 tax in urging that the duty of determining inheritance taxes be 
 transferred to his office, says in his report to the 1911 Legislature: 
 
 "Under the present statute, each probate judge of Connec- 
 ticut determines the amount of the inheritance tax due the state 
 on all estates under his jurisdiction. There are 113 probate judges 
 in as many probate districts in the state. With some diversity 
 in the interpretation and application of the inheritance tax law 
 by these judges, a quite different method of determining this tax 
 is followed by some judges from that which obtains with others." 
 
 From this faithful picture of conditions in a state whose 
 statute is the most specific and definite, the situation can be
 
 66 INHERITANCE TAXES. 
 
 imagined in most of the states whose statutes are vague and 
 general . 
 
 Any person or corporation that transfers or delivers any 
 taxable property of a non-resident without the permission of the 
 tax commissioner is subject to a penalty of three times the 
 amount of the tax. 
 
 It is not the practice to require a complete inventory of the 
 estate of a non-resident, but the total amount of the estate 
 must be set forth and an inventory of the property actually 
 and constructively in Connecticut is required. The tax has 
 been producing about $300,000 annually. 
 
 Among the more prominent companies organized under the 
 laws of Connecticut are: 
 
 American Agricultural Chemical 
 
 American Brass 
 
 Connecticut Ry. & Light 
 
 N. Y., N. H. & H., (also Mass, and R. I.) 
 
 Pope Mfg. 
 
 Scovill Mfg. 
 
 United States Finishing
 
 INHERITANCE TAXES. 67 
 
 15. 
 NORTH CAROLINA. 
 
 North Carolina had a collateral inheritance tax from 1847 
 to 1874. A modest tax was imposed on both direct and col- 
 lateral inheritances in 1897. In 1901 the rates were substan- 
 tially increased and made progressive with a maximum of 15%.! 
 This enactment was much more radical than that adopted by any 
 of the states up to that time, but almost duplicated the national 
 inheritance tax of 1898, which was then in force. 
 
 The following taxes are imposed: 2 
 
 Direct inheritances, 
 
 Inheritances to wife or husband, entirely exempt. 
 
 Inheritances to lineal issue, lineal ancestor, 
 brother, sister, or person standing in relation 
 
 of child f of 1% 
 
 Collateral inheritances, 
 
 Inheritances to descendant of brother or 
 sister l% 
 
 Inheritances to brother or sister of father or 
 mother or descendants of same 3% 
 
 Inheritances to brother or sister of grand- 
 father or grandmother or descendants of 
 same 4% 
 
 All other inheritances, 
 
 Under $5,000 5% 
 
 $5,000 to 10,000 7$% 
 
 10,000 to 25,000 10% 
 
 25,000 to 50,000 12% 
 
 Over 50,000 15% 
 
 Exemption in every case $2,000. 
 
 The exemption applies to each individual share and not to 
 the estate as a whole. 
 
 North Carolina taxes stock in a North Carolina corporation 
 owned by a non-resident. It holds the corporation responsible 
 
 Tor constitutionality see Pullen vs. Commissioners, 66 N. C. 361; 
 In re Morris Estate, 138 N. C. 259. 
 
 2 Public Laws 1909, Chapter 438, 6 to 21.
 
 68 INHERITANCE TAXES. 
 
 if it permits the transfer of such stock before the tax is paid. 
 The statute applies to the transfer by the corporation of bonds 
 as well, but no tax is being collected on bonds of North Carolina 
 corporations owned by non-residents. This tax has been pro- 
 ducing about $10,000 annually. 
 
 No corporation of national investment importance is organ- 
 ized under North Carolina laws.
 
 INHERITANCE TAXES. 69 
 
 16. 
 TENNESSEE. 
 
 Tennessee adopted a collateral inheritance tax in 1891 and 
 extended the tax to direct inheritances in 1909. 
 The following taxes are imposed : l 
 
 Inheritances to father, mother, husband 
 wife, child (but not adopted child) lineal 
 descendant, 
 
 Under $5,000 exempt 
 
 From 5,000 to 20,000 1% 
 
 Over 20,000 1|% 
 
 All other inheritances, 
 
 Under $250 exempt 
 
 Over 250 5% 
 
 The exemption applies to the entire estate, not to the indi- 
 vidual shares. 
 
 Tennessee is not attempting to collect a tax on stock in a 
 Tennessee corporation owned by a non-resident when the shares 
 are physically out of the state, although there is a clause holding 
 the corporation responsible if it transfers stock for a foreign exe- 
 cutor or administrator before the tax is paid, and the language of 
 the statute does not differ materially from that in many states 
 which tax such stock. 
 
 The collateral inheritance tax was producing about $50,000 
 annually. The addition of direct inheritances should materially 
 increase this. 
 
 Among the more prominent companies organized under the 
 laws of the state of Tennessee are: 
 
 Nashville, Chattanooga & St. Louis 
 Tennessee Central 
 Tennessee Coal & Iron 
 
 1893, Chapter 174; Acts 1903, Chapter 561; Acts 1909, Chap- 
 ter 479, Section 20; See Zickler vs. Union Bank, 104 Tenn. 277.
 
 70 INHERITANCE TAXES. 
 
 17. 
 ARKANSAS. 
 
 Arkansas adopted a collateral inheritance tax in 1901 and 
 extended the tax to direct inheritances in 1907. The following 
 taxes are now imposed : l 
 
 Inheritances tj grandparent, father, mother, 
 husband, wife, lineal descendant, brother, 
 sister, adopted child, 
 
 If entire estate is under So, 000 exempt 
 
 On the excess over $5,000 1% 
 
 Inheritances to uncle, aunt, niece, nephew and 
 their lineal descendants, 
 
 If entire estate is under $2,000 exempt 
 
 On the excess over $2,000 2% 
 
 All other inheritances: 
 
 If entire estate is under $1,000 exempt 
 
 If entire estate is $1 ,000 to 10,000 3% 
 
 If entire estate is 10,000 to 20,000 4% 
 
 If entire estate is 20,000 to 50,000 5% 
 
 If entire estate exceeds 50,000 6% 
 
 The Attorney General has ruled that the exemptions apply 
 to the estate as a whole, not to the individual shares. 
 
 We are advised by the Attorney General's office that shares 
 of stock in an Arkansas corporation owned by a non-resident 
 decedent, and passing to a non-resident beneficiary, are subject 
 to the inheritance tax, as being property within the jurisdiction 
 of the state of Arkansas, on the ground that as the domicile of 
 the corporation is in Arkansas and its capital stock is taxable in 
 Arkansas, any of that stock owned by a decedent, whether a 
 resident or a non-resident, would be liable to a succession tax. 
 
 On the other hand, the tax commissioner of Connecticut is 
 officially informed that Arkansas does not tax shares of stock in 
 Arkansas corporations owned by non-resident decedents when 
 
 Actof May 31, 1909.
 
 INHERITANCE TAXES. 71 
 
 such shares of stock were physically out of the state on the date 
 of the death of the decedent, and for that reason has ruled that 
 the retaliative provision of the Connecticut law does not apply 
 to residents of Arkansas. The usual provision holding the corpor- 
 ations responsible for the collection of the tax is not found in the 
 Arkansas statutes, and it contains no specific reference to the 
 property of non-residents. The tax has been producing less than 
 $1000 per year. 
 
 Among the more prominent companies organized under the 
 laws of Arkansas are: 
 
 Arkansas Midland 
 Arkansas Southwestern 
 Louisiana & Arkansas
 
 72 
 
 INHERITANCE TAXES. 
 
 18. 
 
 TEXAS. 
 
 Texas adopted a collateral inheritance tax in 1907. Inheri- 
 tances to father, mother, husband, wife and lineal descendant 
 are exempt. 
 
 The following taxes are imposed: l 
 
 Inheritances to lineal ancestor (except father or 
 mother) brother or sister and lineal descendant 
 of same, 
 
 Under $2,000 exempt 
 
 Excess over 2 ,000 u p to $ 1 ,000 .... 2% 
 Excess over 10,000 up to 25,000.... 2% 
 Excess over 25 ,000 u p to 50 ,000 .... 3% 
 Excess over 50,000 up to 100,000.. . . 3% 
 Excess over 100,000 up to 500,000. . . 4% 
 Excess over 500,000 5% 
 
 Inheritances to uncle or aunt or their lineal de- 
 scendants, 
 
 $1,000 exempt 
 
 Under 
 Excess over 
 Excess over 
 Excess over 
 Excess over 
 Excess over 
 Excess over 
 
 All other inheritances: 
 
 1,000 up to $10,000... 
 
 10,000 up to 25,000... 
 
 25 ,000 up to 50,000... 
 
 50,000 up to 100,000... 
 100 ,000 up to 500 ,000... 
 500,000 
 
 Under 
 Excess over 
 Excess over 
 Excess over 
 Excess over 
 Excess over 
 Excess over 
 
 $500 
 
 500 up to $10,000.. 
 
 10,000 up to 25,000.. 
 
 25, 000 up to 50,000.. 
 
 50, 000 up to 100, 000.. 
 
 100,000 up to 500 ,000.. 
 
 3% 
 4% 
 5% 
 6% 
 
 7% 
 8% 
 
 exempt 
 
 4% 
 5*% 
 
 7% 
 8*% 
 10% 
 
 500,000 12% 
 
 The exemption applies to each individual share, not to the 
 estate as a whole. 
 
 Texas is not now claiming a tax on stock of a Texas corpor- 
 
 Laws of Texas, p. 496; Acts First Called Session, 30th Legis- 
 lature (1907), chap. 21.
 
 INHERITANCE TAXES. 73 
 
 ation owned by a non-resident, and there is no provision for 
 collecting such a tax through the corporation, such as is usually 
 found. The language of the statute, however, does not differ 
 materially from that of many of the states that claim such a tax. 
 Among the more prominent companies organized under the 
 laws of the state of Texas are: 
 
 International & Great Northern 
 Texas Central 
 Texas Co.
 
 74 INHERITANCE TAXES. 
 
 19. 
 KANSAS. 
 
 Kansas adopted a tax on all inheritances in 1909. The 
 following taxes are imposed : * 
 
 Inheritances to- husband, wife, lineal ancestor, 
 lineal descendant, adopted child, lineal descen- 
 dant of adopted child, wife or widow of son, 
 husband of daughter: 
 
 Under $25,000 1% 
 
 Excess over 25,000 up to $50,000 2% 
 
 Excess over 50,000 up to 100,000 3% 
 
 Excess over 100,000 up to 500,000 4% 
 
 Excess over 500,000 5% 
 
 Exemption $5,000 (to husband, wife, father, 
 mother, child, adopted child only). 
 
 Inheritances to brother, sister, nephew, niece: 
 
 Under $25,000 3% 
 
 Excess over 25,000 up to $50,000 5% 
 
 Excess over 50,000 up to 100,000 7$% 
 
 Excess over 100,000 up to 500,000 10% 
 
 Excess over 500,000 12$% 
 
 Exemption $1,000. 
 
 All other inheritances: 
 
 Under $25,000 5% 
 
 Excess over 25,000 up to $50,000 1\% 
 
 Excess over 50,000 up to 100,000 10% 
 
 Excess over 100,000 up to 500,000 12$% 
 
 Excess over 500,000 15% 
 
 No exemption. 
 
 The exemptions apply to each individual share not to the 
 estate as a whole. If the Kansas portion of the inheritance is 
 less than the exemption Kansas collects no tax. 
 
 Kansas is taxing stock of a Kansas corporation owned by 
 a non-resident, and registered bonds as well. The corporation 
 is held responsible if it transfers securities before the tax is paid. 
 
 Kansas is the only state outside New England, except West 
 Virginia, whose statute contains any provision for avoiding 
 
 'Laws 1909, chapter 248. Gen. State. (1909) chapter 116, Article 
 7, 9265 to 9291.
 
 INHERITANCE TAXES. 75 
 
 double taxation. It is the same reciprocal clause that is found in 
 Massachusetts. Personal property of a deceased resident 
 outside the state which is taxed by another state or country is 
 not taxed by Kansas unless such tax is less than the Kansas tax, 
 and then Kansas collects only the difference. Property of a 
 non-resident in Kansas, including stock wherever situated in a 
 Kansas corporation, will not be taxed (except for the difference 
 if Kansas rates are higher) if owned by a resident of a state which 
 extends similar courtesies to residents of Kansas. Massachu- 
 setts, Maine and Vermont seem to be the only states that do so. 
 
 It is the practice in Kansas to require a complete inventory 
 of the estate of a non-resident which has any property subject 
 to Kansas jurisdiction. 
 
 Among the more prominent companies organized under the 
 laws of Kansas are: 
 
 Atchison 
 
 Kansas City, Ft. Scott & Memphis 
 
 Kansas City, Mexico & Orient 
 
 Missouri, Kansas & Texas 
 
 St. Joseph & G. I. (also Neb.)
 
 76 INHERITANCE TAXES. 
 
 20. 
 NEBRASKA. 
 
 Nebraska enacted its inheritance tax in 1901 ^ The fol- 
 lowing taxes are imposed: 2 
 
 Direct inheritances, including those to father, 
 mother, husband, wife, child, brother, sister, 
 wife or widow of son, husband of daughter, 
 adopted or acknowledged child, lineal descen- 
 dant, 
 
 Under $10,000 exempt 
 
 Excess over $10,000 1% 
 
 Collateral inheritances, 
 
 Inheritances to uncle, aunt, niece, nephew 
 and lineal descendant of same 
 
 Under $2,000 exempt 
 
 Excess over 2,000 2% 
 
 All other inheritances, 
 
 Under $5,000 2% 
 
 $5,000 to 10,000 3% 
 
 10,000 to 20,000 4% 
 
 20,000 to 50,000 5% 
 
 Over 50,000 6% 
 
 Exemption $500. 
 
 The exemptions apply to each individual share rather than 
 to the estate as a whole, though the language creating the $500 
 exemption is ambiguous. 
 
 It is a fair construction of the statute that stock in a Ne- 
 braska corporation owned by a non-resident is subject to the 
 tax, especially as there is a provision holding the corporation 
 responsible if it transfers stock for a foreign executor before 
 the tax is paid, if it has knowledge that the stock is subject to 
 tax. The tax authorities are not collecting a tax on such stock 
 at present if the certificate is kept outside the state. 
 
 The proceeds of the inheritance tax are to be spent for the 
 
 'For constitutionality see State vs. Vinsonhaler, 74 Neb. 675. 
 "Compiled Stats. (1905) chapter 77, Article VIII., 5176 to 5196.
 
 INHERITANCE TAXES. 77 
 
 improvement of county roads, but if there are no other funds 
 available for the purpose, the county roads can hardly have 
 reached the European standard as yet the receipts have aver- 
 aged less than $3000 a year. 
 
 Except St. Joseph & Grand Island (also incorporated in 
 Kansas) there is no corporation of national investment import- 
 ance organized under Nebraska laws.
 
 78 INHERITANCE TAXES. 
 
 21. 
 WISCONSIN. 
 
 Wisconsin's first inheritance tax law, passed in 1868' 
 amounted to little more than a sliding scale of probate fees, and 
 after various amendments was declared unconstitutional. 1 
 A genuine inheritance tax, enacted in 1899, was declared un- 
 constitutional because the exemption applied to the estate as a 
 whole, not to the individual shares. 2 Finally in 1903 the legis- 
 lature passed an act which satisfied the constitutional require" 
 ments. 8 
 
 The following taxes are imposed: 4 
 Direct inheritances, 
 Inheritance to widow: 
 
 First $10,000 exempt 
 
 Excess over 10,000 up to $25,000 1% 
 
 Excess over 25,000 up to 50,000 l% 
 
 Excess over 50,000 up to 100,000 2% 
 
 Excess over 100,000 up to 500,000 2% 
 
 Excess over 500,000 3% 
 
 Inheritances to husband, lineal issue, lineal 
 ancestor, adopted or mutually acknowledged 
 child and lineal issue of such child: 
 
 First $2,000 exempt 
 
 Excess over 2,000 up to $25,000 1% 
 
 Excess over 25,000 up to 50,000 l% 
 
 Excess over 50,000 up to 100,000 2% 
 
 Excess over 100,000 up to 500,000 2$% 
 
 Excess over 500,000 3% 
 
 !State vs. Mann, 76 Wis. 469. 
 
 'Black vs. State, 113 Wis. 205. 
 
 "Nunnemacher vs. State, 129 Wis. 190. 
 
 4 Laws 1903, Chapter 44, 249; Laws of 1905, Chapter 96; Laws 1907, 
 Chapter 500; Laws 1909, Chapter 38, 504; Wisconsin Statutes, Sections 
 1087-1 to 1087-24 inc., 162, 3818, 3813a, and 3871a.
 
 INHERITANCE TAXES. 79 
 
 Collateral inheritances, 
 
 Inheritances to brother, sister, or their descend- 
 ants, wife or widow of son, husband of daughter: 
 First $500 ............... exempt 
 
 Excess over 500 up to $25,000 ____ l% 
 
 Excess over 25,000 up to 50,000 ____ 2J% 
 
 Excess over 50,000 up to 100,000 ____ 3% 
 
 Excess over 100,000 up to 500,000 ____ 3f % 
 
 Excess over 500,000 ................ 
 
 Inheritances to brother or sister of father or 
 mother or their descendants: 
 First $250 ............... exempt 
 
 Excess over 250 up to $25,000 ____ 3% 
 
 Excess over 25,000 up to 50,000 ____ 4J% 
 
 Excess over 50,000 up to 100,000 ____ 6% 
 
 Excess over 100,000 up to 500,000 ____ 7j% 
 
 Excess over 500,000 ................ 9% 
 
 Inheritances to brother or sister of grandfather 
 or grandmother or their descendants: 
 First $150 ................ exempt 
 
 Excess over 150 up to $25,000 ____ 4% 
 
 Excess over 25,000 up to 50,000 ____ 6% 
 
 Excess over 50,000 up to 100,000 ____ 8% 
 
 Excess over 100,000 up to 500,000 ____ 10% 
 
 Excess over 500,000 ................. 12% 
 
 All other inheritances: 
 
 First $100 ................ exempt 
 
 Excess over 100 up to $25,000 ____ 5% 
 
 Excess over 25,000 up to 50,000 ____ 1\% 
 
 Excess over 50,000 up to 100,000 ____ 10% 
 
 Excess over 100,000 up to 500,000 ____ 12% 
 
 Excess over 500,000 ................ 15% 
 
 The exemption applies to each individual share, not to the 
 estate as a whole. If the Wisconsin portion of an inheritance 
 is less than the exempted amount, Wisconsin imposes no tax. 
 
 Wisconsin taxes stock in a Wisconsin corporation owned 
 by a non-resident in a foreign corporation owning property in 
 Wisconsin also taxable. On this point the Attorney General 
 says: 'This question has never been before our Supreme Court,
 
 80 INHERITANCE TAXES. 
 
 and this department has not had occasion as yet to deal with a 
 case squarely in point." 
 
 A corporation or individual that transfers or delivers any 
 securities or assets of a non-resident without first notifying the 
 Attorney General, and then receiving his permission to do so, 
 is responsible for the tax. It is not the practice to require a 
 complete inventory of a non-resident's estate. The tax is pro- 
 ducing not far from $200,000 annually. 
 
 Among the more prominent companies organized under the 
 laws of Wisconsin are: 
 
 Chic. & N. W. (also 111. & Mich.) 
 Chic., Mil. & St. P. 
 Chic., St. P., Minn. & Omaha 
 Northern Pacific
 
 INHERITANCES TAXES. 81 
 
 22. 
 CALIFORNIA. 
 
 California adopted a collateral inheritance tax in 1893 follow- 
 ing the old New York law. In 1905 the present law was passed 
 copying the Wisconsin statute except that the exemptions are 
 more liberal. 
 
 The following taxes are imposed: 1 
 
 Direct inheritances, 
 
 Inheritances to widow or minor child : 
 
 First $10,000 exempt 
 
 Excess over 10,000 up to $25,000 1% 
 
 Excess over 25,000 up to 50,000 \\% 
 
 Excess over 50,000 up to 100,000 2% 
 
 Excess over 100,000 up to 500,000 2% 
 
 Excess over 500,000 3% 
 
 Inheritances to husband, lineal issue (except 
 minor child), lineal ancestor, adopted or 
 mutually acknowledged child, 
 
 First $4,000 exempt 
 
 Excess over 4,000 up to $25,000 1% 
 
 Excess over 25,000 up to 50,000 l% 
 
 Excess over 50,000 up to 100,000 2% 
 
 Excess over 100,000 up to 500,000 2j% 
 
 Excess over 500,000 3% 
 
 Collateral inheritances : 
 
 Inheritances to brother, sister, or their descend- 
 ants, wife or widow of son, husband of daughter: 
 
 First $2,000 exempt 
 
 Excess over 2,000 up to $25,000 lj% 
 
 Excess over 25,000 up to 50,000 2J% 
 
 Excess over 50,000 up to 100,000 3% 
 
 Excess over 100,000 up to 500,000 3|% 
 
 Excess over 5CO,000 4% 
 
 Inheritances to brother or sister of father or 
 mother or their descendants: 
 
 First $1,500 exempt 
 
 Excess over 1,500 up to $25,000 3% 
 
 Excess over 25,000 up to 50,000 4j% 
 
 Excess over 50,000 up to 100,000 6% 
 
 Excess over 100,000 up to 500,000 . . . 7J% 
 Excess over 500,000 , 9% 
 
 Statutes 1905, Chapter 314.
 
 82 INHERITANCE TAXES. 
 
 Inheritances to brother or sister of grandfather 
 or grandmother or their descendants: 
 
 First $1 ,000 exempt 
 
 Excess over 1,000 up to $25,000 4% 
 
 Excess over 25,000 up to 50,000 6% 
 
 Excess over 50 ,000 up to 100,000 8% 
 
 Excess over 100,000 up to 500,000 10% 
 
 Excess over 500,000 12% 
 
 All other inheritances: 
 
 First . $600 exempt 
 
 Excess over 500 up to $25,000 5% 
 
 Excess over 25 ,000 up to 50,000 7$% 
 
 Excess over 50,000 up to 100,000 10% 
 
 Excess over 100,000 up to 500,000 12% 
 
 Excess over 500,000 15% 
 
 The exemptions apply to each individual share, not to the 
 estate as a whole. 
 
 The Supreme Court of California has decided that the tax 
 is on the excess over the exemption, not, as in many states, on the 
 entire inheritance if it exceeds the exemption. 1 
 
 We are advised by the Controller's office that California 
 taxes stock of a California corporation owned by a non-resident. 
 This is the construction of the statute made by Superior Courts, 
 but the question has not been passed upon by the Supreme Court. 
 
 Corporations and individuals delivering or transferring 
 certificates or assets of a non-resident estate are responsible for 
 the tax. It is not the practice to icquire a complete inventory 
 of a non-resident's estate. 
 
 The old collateral tax seldom produced more than $300,000 
 annually. The present tax receipts are running close to $1,000,- 
 000. 
 
 Among the more prominent companies organized under the 
 laws of the state of California are: 
 
 Pacific Tel. & Tel. 
 Southern Pacific R. R. a 
 
 'Estate of Bull, 153 Cal. 715. 
 
 ^Southern Pacific Co., the holding company, whose shares are active 
 in New York, is a Kentucky corporation.
 
 INHERITANCE TAXES. 83 
 
 23. 
 IDAHO. 
 
 Idaho, in 1907, copied the present California law almost 
 verbatim. 1 
 
 The classification, rates of tax and exemptions are exactly 
 as given for California. 2 
 
 Idaho is not collecting a tax on stock of an Idaho corporation 
 owned by a non-resident if the shares are physically outside of the 
 state, although the statute contains the common provision hold- 
 ing the corporation responsible for the tax if it transfers such 
 stock before the inheritance tax is paid. The tax has as yet 
 been of no consequence as a revenue producer. 
 
 There are no companies of general investment importance 
 organized under the laws of Idaho. 
 
 Session Laws 1907, p. 558; Idaho Revised Codes, Title 10, Chapter 
 5, 1873 to 1897. 
 2 See page 81.
 
 84 INHERITANCE TAXES. 
 
 24. 
 MINNESOTA. 
 
 Minnesota has had much difficulty in getting an inheritance 
 tax that would satisfy the courts. Graduated probate fees 
 similar to those in Wisconsin, first adopted in 1875 and extended 
 in 1885, were held unconstitutional. 1 The same fate successively 
 befell the inheritance tax laws of 1897, 1901 and 1902. 2 The pres- 
 ent Act adopted in 1905 survived, but none too easily. 8 A 
 restrictive constitutional amendment adopted in 1894 4 which 
 the legislature persisted in disregarding, was supplanted in 1906 6 
 by another amendment, which gives the legislature broad powers 
 to impose inheritance taxes. 
 
 The following taxes are imposed: 6 
 
 On all inheritances, 
 
 Under $10,000 exempt 
 
 From 10,000 to 50,000 l% 
 
 From 50,000 to 100,000 3% 
 
 Over 100,000 5% 
 
 The exemption applies to each individual share, not to the 
 estate as a whole, and the tax in every case is only on the excess of 
 the inheritance over $10,000. Minnesota and Utah are the only 
 states that make no distinction between direct and collateral in- 
 heritances. The attorney general ruled on Dec. 14, 1909, that 
 stock of a Minnesota corporation owned by a non-resident and 
 kept outside the state is taxable. The statute provides that no 
 
 v. Gorman, 40 Minn. 232. 
 2 Drew v. Tifft, 79 Minn. 175; State v. Bazille,87 Minn. 500; State v. 
 Harvey, 90 Minn. 180. 
 
 "State v. Bazille, 97 Minn. 11. 
 'General Laws 1895. p. 3. 
 'See Laws of 1905, chapter 168. 
 "General Laws 1905, chapter 288.
 
 INHERITANCE TAXES. 85 
 
 transfer of stock shall be valid unless the tax is paid, and that 
 any person, bank or institution that transfers or delivers securi- 
 ties before the tax is paid shall be responsible for it. It is not the 
 practice to require an inventory of the estate of a non-resident. 
 Among the more prominent corporations organized under the 
 laws of Minnesota are: 
 
 Great Northern 
 
 Minneapolis & St. Louis 
 
 Minn. St. Paul & S. S. M. (also N. D.) 
 
 Greene-Cananea 
 
 North Butte 
 
 Shattuck-Arizona
 
 INHERITANCES TAXES. 
 
 25. 
 MONTANA. 
 
 Montana's inheritance tax was adopted in 1897. 1 The 
 following taxes are imposed: 9 
 
 Direct inheritances, including those to father, 
 mother, husband, wife, child, brother, sister, 
 wife or widow of son, husband of daughter, 
 adopted or mutually acknowledged child, 
 
 lineal descendant 1% 
 
 Exemption, estates under $7,500. 
 (It seems to have been intended to ex- 
 empt from taxation real estate passing to 
 direct heirs. The language of the statute is 
 very much confused, and as it reads, real 
 estate passing to lawful issue, brother, sister, 
 wife or widow of son, husband of daughter, 
 adopted child and lineal descendant of adopted 
 child is not taxed; but real estate passing to 
 father, mother, husband or wife is taxed 5%.) 
 
 Collateral inheritances, including all other in- 
 heritances 5% 
 
 Exemption, estates under $500. 
 
 The exemptions apply to the estate as a whole, not to the 
 individual shares. 
 
 Montana is not taxing stock of Montana corporations owned 
 by non-residents, though the statute contains a provision hold- 
 ing the corporation responsible for the tax if it transfers stock 
 with actual or constructive knowledge that it is subject to the 
 tax. 
 
 It is therefore rather surprising to find that Montana taxes 
 stock of non-residents in foreign corporations which own property 
 in Montana. It is not the practice to require an inventory of 
 
 *For constitutionality see Gelsthorpe vs. Furnell, 20 Mont. 299. 
 'Revised Codes 1907, Sections 7724 to 7751.
 
 INHERITANCE TAXES. 87 
 
 a non-resident's estate. The tax has been producing between 
 $10,000 and $20,000. 
 
 The most important company organized under Montana 
 laws is Anaconda. The other important companies doing busi- 
 ness in Montana are organized under the laws of other states.
 
 88 INHERITANCE TAXES. 
 
 26. 
 NORTH DAKOTA. 
 
 North Dakota adopted a collateral inheritance tax in 1903. 
 Collateral inheritances only are taxed. The rate is uniformly 
 2% on the excess over $25,000. 
 
 Inheritances not taxed are those to father, mother, husband, 
 wife, lineal descendant, adopted child, lineal descendant of 
 adopted child - 1 
 
 Stock in a North Dakota corporation owned by a non-resi- 
 dent is not taxed. This tax has produced little, if any, revenue. 
 It is of so little importance that we know of lawyers who have 
 been officially advised by the state authorities that North 
 Dakota has no inheritance tax. 
 
 Revised Codes 1905, chapter 10, Sections 8320 to 8339.
 
 INHERITANCE TAXES. 89 
 
 27. 
 SOUTH DAKOTA. 
 
 South Dakota's inheritance tax, adopted in 1905, was 
 held unconstitutional in May, 1910. * The attorney general's 
 application for re-hearing was granted and the matter is still 
 pending. 
 
 The following taxes are imposed : 2 
 
 Direct inheritances: 
 
 Inheritance to widow 1% 
 
 Exemption $20,000. 
 
 Inheritances to father, mother, husband, child, 
 brother, sister, wife or widow of son, husband 
 of daughter, adopted or acknowledged child, 
 
 lineal descendant 1% 
 
 Exemption $5,000. 
 Collateral inheritances: 
 
 Inheritances to uncle, aunt, nephew, niece and 
 
 their lineal descendants 2% 
 
 Exemption $500. 
 All other inheritances: 
 
 Under $10,000 4% 
 
 From 10,000 to $20,000 6% 
 
 From 20,000 to 50,000 8% 
 
 Over 50,000 10% 
 
 Exemption $100. 
 
 The exemptions apply to individual shares, not to the estate 
 as a whole. 
 
 A tax is not claimed on stock of South Dakota corporations 
 owned by a non-resident and kept outside the state, though 
 there is the usual provision holding the corporation responsible 
 for the tax. It is not the practice to require an inventory of the 
 estate of a non-resident. 
 
 There are no corporations of general investment importance 
 organized under the laws of South Dakota. 
 
 iMcKennan's Estate, 126 N. W. 611. 
 
 Session Laws 1905, chapter 54; Compiled Laws (1910) vol. 1, pp. 
 549-553.
 
 90 INKER TANCE TAXES. 
 
 28. 
 COLORADO. 
 
 Colorado enacted an inheritance tax in 1901, l using the 
 Illinois statute of 1895 as a model. It was radically amended in 
 1909. 
 
 The following taxes are imposed: 2 
 
 Direct inheritances, including inheritances to 
 father, mother, husband, wife, child, brother, 
 sister, wife or widow of son, husband of daugh- 
 ter, adopted, or acknowledged child, lineal 
 descendant, 
 
 Under $10,000 exempt 
 
 Excess over $10,000 2% 
 
 Collateral inheritances, 
 
 Inheritances to uncle, aunt, nephew, niece and 
 
 their lineal descendants 3% 
 
 Exemption $500." 
 All other inheritances, 
 
 Under $10,000 3% 
 
 From 10,000 to $20,000 4% 
 
 " 20,000 to 50,000 5% 
 
 " 50,000 to 500,000 6% 
 
 Over 500,000 ..." 10% 
 
 Exemption $500. 
 
 The exemptions apply to individual shares and not to the 
 estate as a whole. 4 
 
 Colorado taxes stock in a Colorado corporation owned by 
 a non-resident. It is only within the past year that such prop- 
 erty has been taxed to any appreciable extent. The state is now 
 deriving considerable revenue from this source. 
 
 Any person or corporation must notify the attorney general 
 before delivering or transferring securities of a non-resident, 
 and must see that the tax is paid. A non-resident's estate must 
 
 1 For constitutionality see Estate of Magnes, 32 Col. 527. 
 Colorado R. S. of 1908, Sections 5551 to 5571, as amended by Session 
 Laws 1909, chap. 193. 
 
 *The statute is not clear as to this exemption. 
 4 People v. Koenig, 37 Colorado, 33.
 
 NHER^TANCE TAXES. 91 
 
 make an affidavit as to its property before consent will be given 
 to the transfer of securities. 
 
 Among the more prominent companies organized under the 
 laws of Colorado are: 
 
 Colorado Fuel & Iron 
 
 Colorado & Southern 
 
 Denver & Rio Grande (also Utah) 
 
 Wells-Fargo&Co.
 
 92 INHERITANCE TAXES. 
 
 29. 
 UTAH. 
 
 Utah since 1901 has taxed all inheritances at the uniform 
 rate of 5% on the excess of the entire estate over $10,000. 1 
 
 The state of Utah has officially notified the state of Con- 
 necticut that it does not tax stock of Utah corporations owned 
 by non-residents if the stock is kept outside the state; but, 
 nevertheless, the state of Utah is collecting the tax. The 
 E. H. Harriman estate paid Utah $798,546 in March, 1911, as 
 an inheritance tax on its Union Pacific stock. 
 
 The inheritance tax has been producing about $40,000 a 
 year. 
 
 Among the more prominent companies organized under 
 the laws of Utah are: 
 
 Central Pacific 
 
 Denver & Rio Grande (also Col.) 
 San Pedro, Los Angeles & Salt Lake 
 Union Pacific 
 
 iCompiled Laws of Utah (1907), Title 36, Sections 1220 X to 1220 
 XJ31.
 
 INHERITANCE TAXES. 93 
 
 30. 
 OREGON. 
 
 Oregon enacted its inheritance tax in 1903, using the Illinois 
 statute of 1895 as a model. It has since been substantially 
 amended. 
 
 The following taxes are imposed: 1 
 
 Direct inheritances, including inheritances to 
 grandparent, parent, husband, wife, child, 
 brother, sister, wife or widow of son, husband 
 of daughter, adopted or acknowledged child, 
 
 lineal descendant 1% 
 
 Exemption, estates less than $10,000 not taxed. 
 Tax is on excess over $5000 to each person. 
 Collateral inheritances: 
 
 Inheritances to uncle, aunt, nephew, niece and 
 
 their lineal descendants 2% 
 
 Exemption, estates less than $5000 are not taxed. 
 Tax is on excess over $2000 to each person. 
 All other inheritances : 
 
 Under $10,000 3% 
 
 From 10,000 to $20,000 4% 
 
 From 20,000 to 50,000 5% 
 
 Over 50,000 6% 
 
 Exemption Tax is levied only when the inheritance 
 exceeds $500. 
 
 Stock in an Oregon corporation owned by a non-resident 
 is not taxed unless the certificate is physically within the state, 
 but stock in any corporation owned by a non-resident is taxable 
 if the certificate is kept within the state. A corporation is re- 
 sponsible if it transfers any taxable securities for a non-resident 
 before the tax is paid. Every estate is required to file a com- 
 
 iGeneral Laws Oregon (1903) pp. 49-65, Laws 1905, chap. 178; Laws 
 1909, chap. 15.
 
 94 INHERITANCE TAXES. 
 
 plete inventory. The receipts from this tax have been small, 
 seldom exceeding $10,000. 
 
 Among the more prominent companies organized under 
 the laws of Oregon are: 
 
 Oregon & California 
 
 Oregon-Washington Railroad & Navigation 
 
 Oregon Short Line
 
 INHERITANCE TAXES. 95 
 
 31. 
 WYOMING. 
 
 Wyoming adopted an inheritance tax in 1903, which was 
 modified in 1909. 
 
 The following taxes are imposed: 1 
 
 Direct inheritances, including inheritances to 
 father, mother, husband, wife, child, brother, 
 sister, wife or widow of son, husband of daugh- 
 ter, adopted or acknowledged child, lineal 
 descendant, 
 
 If entire estate is under $10,000 exempt 
 
 On excess over $10,000 2% 
 
 Collateral inheritances, including all other in- 
 heritances 5% 
 
 If entire estate is under $500 it is not taxed. 
 
 Wyoming is not now collecting a tax on stock of a Wyoming 
 corporation owned by a non-resident if the stock certificate is 
 kept outside the state, though it apparently was doing so in 1908, 
 and the statute contains the usual provision holding the corpora- 
 tion responsible for the collection of the tax. 
 
 The receipts from this tax have been insignificant. 
 
 The best known company organized under the laws of 
 Wyoming is Goldfield Consolidated. 
 
 Compiled Statutes (1910) Chapter 165.
 
 96 INHERITANCE TAXES. 
 
 32. 
 MICHIGAN. 
 
 Michigan's first inheritance tax law enacted in 1893 was 
 held unconstitutional. 1 The present statute dates from 1899, 2 
 with important amendments in 1903, 1907 and 1909. An in- 
 teresting feature is that in the case of direct inheritances, personal 
 property only is taxed. 
 
 The following taxes are imposed: 8 
 
 Direct inheritances, including inheritances to 
 father, mother, husband, wife, child, brother, 
 sister, wife or widow of son, husband of 
 daughter, adopted or mutually acknowledged 
 
 child, lineal descendant 1% 
 
 Exemptions, real estate, per- 
 sonal property up to $2,000. 
 Collateral inheritances, including all other in- 
 heritances 5% 
 
 Exemption $100. 
 
 The exemptions apply to individual shares, not to the estate 
 as a whole. 
 
 Michigan taxes stock of a Michigan corporation owned by 
 a non-resident wherever held. It taxes registered bonds of a 
 Michigan corporation as well. A person or corporation that 
 transfers or delivers securities or assets of a non-resident before 
 the tax is paid is responsible for the tax. 
 
 Michigan taxes stock or bonds of a foreign corporation 
 owned by a non-resident if the certificates are kept in Michigan. 
 It is the practice to require an inventory of the entire estate 
 before permission is given to transfer securities of a Michigan 
 
 Chambe v. Judge, 100 Michigan, 112. 
 
 'Tor constitutionality see Union Trust Co. v. Judge, 125 Mich. 487. 
 -Public Acts 1899, No. 188; Public Acts 1903. No. 195; Public Acts 
 1907, No. 155, No. 238; Public Acts 1909, No. 44, No. 298.
 
 INHERITANCE TAXES. 97 
 
 corporation. This tax has been producing from $200,000 to 
 $300,000 annually. 
 
 The application of the inheritance tax law of Michigan 
 to securities owned by non-residents is of particular importance 
 because of the large number of Michigan mining companies 
 whose shares are listed on the Boston Stock Exchange and are ex- 
 tensively owned in New England. 
 
 Among the more prominent companies organized under 
 the laws of Michigan are: 
 
 (Listed New York Stock Exchange) 
 
 Chicago & Northwestern (also 111. & Wis.) 
 
 Detroit United 
 
 Duluth, South Shore & Atlantic (also Wis.) 
 
 Michigan Central 
 
 PereMarquette (also Ind.) 
 
 Wabash (also 111., Ind., Mo., and Ohio) 
 
 (Boston Copper stocks) 
 
 Adventure Mayflower 
 
 Ahmeek Michigan 
 
 Allouez Mohawk 
 
 Algomah New Arcadian 
 
 Arnold North Lake 
 
 Atlantic Ojibway 
 
 Calumet & Hecla Old Colony Copper 
 
 Centennial Osceola 
 
 Franklin Quincy 
 
 Hancock Seneca 
 
 Indiana South Lake 
 
 Keweenaw Superior 
 
 Lake Tamarack 
 
 La Salle Victoria 
 
 Laurium Winona 
 
 Mass Wolverine 
 
 Wyandot
 
 98 INHERITANCE TAXES. 
 
 33. 
 WEST VIRGINIA. 
 
 West Virginia adopted a collateral inheritance tax in 1887 
 and extended it to direct inheritances in 1907. The following 
 taxes are imposed: 1 
 
 Direct inheritances: 
 
 Inheritance to widow, 
 
 Under $15,000 exempt 
 
 Excess over 15,000 up to $25,000 ... 1% 
 
 Excess over 25,000 up to 50,000 ... l% 
 
 Excess over 50,000 up to 100,000 ... 2% 
 
 Excess over 100,000 up to 500,000 2% 
 
 Excess over 500,000 3% 
 
 Inheritances to husband, child, lineal descendant, 
 lineal ancestor, 
 
 Under $10,000 exempt 
 
 Excess over 10,000 up to $25,000 ... 1% 
 
 Excess over 25,000 up to 50,000 ... lj% 
 
 Excess over 50,000 up to 100,000 ... 2% 
 
 Excess over 100,000 up to 500,000 . . . 2J% 
 
 Excess over 500,000 3% 
 
 Collateral inheritances, 
 
 Inheritances to brother or sister (not including 
 half blood), 
 
 Under $25,000 3% 
 
 Excess over 25,000 up to $50,000 . . . 4% 
 
 Excess over 50,000 up to 100,000 ... 6% 
 
 Excess over 100,000 up to 500,000 . . . 7% 
 
 Excess over 500,000 9% 
 
 All other inheritances, 
 
 Under $25,000 5% 
 
 Excess over 25,000 up to $50,000 . . . 7% 
 
 Excess over 50,000 up to 100,000 . . . 10% 
 
 Excess over 100,000 up to 500,000 . . . 12^% 
 
 Excess over 500,000 15% 
 
 West Virginia Code, chapter 33; Code Supplement (1909) ch. 33; 
 Acts 1907, ch. 55; Acts 1909, ch. 63.
 
 INHERITANCE TAXES. 99 
 
 The exemptions apply to the individual shares, not to the 
 estate as a whole. 
 
 As to the position of stocks in a West Virginia corporation 
 owned by a non-resident, the tax commissioner says: 
 
 "The legislature of 1909 attempted to pass a law whereby 
 such inheritance tax could be collected on stock in West Virginia 
 corporations owned by deceased non-residents, but so far no 
 taxes have been collected under this statute. The collection 
 of the same has been resisted with a claim that the statute does 
 not fix a tax on such stock." 
 
 The statute contains a retaliative provision designed to re- 
 duce double taxation of non-resident securities similar to that in 
 Connecticut, though not limited to registered bonds. It provides 
 that the state shall tax stock and bonds of a West Virginia 
 corporation kept outside the state if owned by residents of states 
 which so tax stocks and bonds of their own corporations if owned 
 by West Virginia residents. 
 
 The following property of all non-residents is specifically made 
 taxable: all real estate and tangible property including money 
 on deposit within the state; all intangible personal property 
 including bonds, securities, shares of stock and choses in action, 
 the evidence of ownership of which is actually within the state, 
 
 Double taxation of personal property belonging to a resident 
 of the state but kept outside the state is avoided by a provision 
 similar to that in Massachusetts, that if such property has been 
 taxed in other states West Virginia will not tax it, unless the 
 outside tax is less than the West Virginia tax, and then West 
 Virginia collects only the difference. 
 
 A corporation is responsible for the tax if it transfers se- 
 curities before the tax is paid if it had reasonable cause to know 
 that the property was subject to the tax. It is not the practice 
 to require an inventory of the estate of a non-resident.
 
 100 INHERITANCE TAXES. 
 
 Among the more prominent companies organized under the 
 laws of West Virginia are: 
 
 Kanawha & Michigan (Also Ohio) 
 U. S. Industrial Alcohol 
 United Verde
 
 INHERITANCE TAXES. 101 
 
 34. 
 KENTUCKY. 
 
 Kentucky adopted a collateral inheritance tax in 1906. 1 
 
 Inheritances to father, mother, husband, wife, lawful issue, 
 wife or widow of son, husband of daughter, adopted child, lineal 
 descendant are exempt. 
 
 All other inheritances are taxed uniformly 5%, with an 
 exemption of $500 which applies to each individual share. 
 
 We are informed that the attorney general has ruled that 
 stock of a Kentucky corporation owned by a deceased non- 
 resident is subject to the tax. Kentucky is not, however, in- 
 cluded in the Connecticut list of states that are taxing such stock 
 held outside the state. Kentucky claims a tax on stock owned by 
 a non-resident in a foreign corporation which owns property in 
 Kentucky if the proportionate value of the Kentucky property 
 can be ascertained. 
 
 The statute provides that when a foreign executor assigns 
 or transfers any stocks or loans in the state which are liable to 
 the tax, the corporation which permits such transfer shall be 
 liable for the tax if it is not paid. Under this the state claims 
 that a bank is responsible for the tax if it pays over a deposit of 
 a non-resident. The tax authorities in this state seem to be 
 particularly energetic in their claims. In one case the tax authori- 
 ties sought to levy a tax on an Ohio estate which had no Kentucky 
 property of any sort, simply on the ground that the executor 
 was a resident of Kentucky; but the Court prevented this. 2 
 
 iActs of 1906, chapter 22, article 19. 
 2 Kentucky v. Peebles, 134 Kentucky, 121.
 
 102 INHERITANCE TAXES. 
 
 It is not the practice to require an inventory of the estate of 
 a non-resident. 
 
 Among the more prominent companies organized under the 
 laws of Kentucky are: 
 
 Cumberland Tel. & Tel. 
 Louisville & Nashville 
 Southern Pacific Co.
 
 INHERITANCE TAXES. 103 
 
 35. 
 NEW JERSEY. 
 
 TAXES COLLATERAL INHERITANCES A TRADE WITH INFORMERS. 
 
 New Jersey has had a collateral inheritance tax since 1892. 
 There have been various revisions, the last one in 1909. Col- 
 lateral inheritances only are taxed, at the uniform rate of 5%, 
 with an exemption of $500 which applies to individual shares, 
 not to the estate as a whole. Inheritances not taxed are those 
 to father, mother, husband, wife, child, lineal descendant, 
 brother, sister, wife or widow of son, husband of daughter. 1 
 
 In 1908 the Court of Appeals of New Jersey decided that 
 under the law of 1894 stock in a New Jersey corporation belong- 
 
 2 
 
 ing to a testator domiciled in a foreign country was not taxable. 
 
 Under the present law New Jersey is taxing stock in a 
 New Jersey corporation owned by a non-resident. 8 A cor- 
 poration which transfers such stock without permission from the 
 comptroller is responsible for the tax and subject to a penalty as 
 well . 
 
 If the entire estate of a non-resident passes to exempt heirs, 
 the executor or administrator must file with the comptroller 
 a copy of the will, if any, and an affidavit setting forth the names 
 and relationship of the beneficiaries, whereupon a waiver will be 
 issued permitting any New Jersey stock to be transferred. 
 
 If any portion of a non-resident's estate goes to other than 
 exempt heirs, it is necessary to file in addition a complete inven- 
 tory of the estate. In such a case the tax on the portion of the 
 
 a Laws of 1909, chapter 228; Laws of 1910, chapter 28. 
 
 2 Neilson v. Russell, 76 N. J. L. 655; 19 L. R. A. N. S., 887 and Note. 
 
 3 See Dixon v. Russell, 78 N. J. L. 296, reversed in 76 Atl. 982.
 
 104 INHERITANCE TAXES. 
 
 estate in New Jersey is that proportion of the tax which the es- 
 tate would have had to pay if the deceased had been a resident 
 of New Jersey which the New Jersey portion of the estate bears 
 to the entire estate. 
 
 The comptroller is authorized to make an arrangement to 
 pay a percentage of the tax that may be collected to any person 
 giving information about estates of residents that have not 
 taken out administration within one year after the date of 
 death, and estates of non-residents that have any property 
 taxable in the state if the tax is not paid within three months 
 after the death. We know of no other state which has entered 
 into such a partnership with informers. 
 
 The inheritance tax has usually produced something over 
 $200,000 a year. 
 
 An acquaintance with the inheritance tax laws of New Jersey 
 is of the greatest importance to investors because of the very 
 large number of corporations organized under the laws of that 
 state. Among the more prominent are: 
 
 Allis-Chalmers Int. Silver 
 
 Amalgamated Int. Smelting 
 
 Am. Beet Sugar Int. Steam Pump 
 
 Am. Brake & Foundry Isle Royale 
 
 Am. Can Kansas City Ry. & Lt. 
 
 Am. Car & Foundry Lake Superior Corp. 
 
 Am. Cement Library Bureau 
 
 Am . Cotton Oil Minn . Gen . Electric 
 
 Am. Hide & Leather Natl. Biscuit 
 
 Am. Ice Natl. Carbon 
 
 Am . Linseed Oil Natl . Enam . & St . 
 
 Am. Malt Natl. Lead 
 
 Am. Radiator N.Y. Air Brake 
 
 Am. Sewer Pipe N. Y. Susq. & West. (Also Pa.) 
 
 Am. Shipbuilding Niles-Bement-Pond 
 
 Am. Smelting North American Co. 
 
 Am. Snuff Otis Elevator 
 
 Am. Soda Fountain Pacific Coast 
 
 Am. Steel Foundries Pittsburg Coal 
 
 Am. Sugar Pressed Steel Car
 
 INHERITANCE TAXES. 
 
 105 
 
 Am. Tobacco 
 
 Am. Type Founders 
 
 Am. Woolen 
 
 Am. Writing Paper 
 
 Butte Coalition 
 
 Central Leather 
 
 Cent.R.R.ofN. J. 
 
 Chic. Junct. R. R. & Un. St. Y. 
 
 Chic. Pneumatic Tool 
 
 Chic. Subway 
 
 Copper Range 
 
 Corn Products 
 
 Crucible Steel 
 
 Distillers Sec. 
 
 Dupont Powder 
 
 Electric Storage Battery 
 
 Gen. Asphalt 
 
 HavanaElec. 
 
 Hey wood Bros. & Wakefield 
 
 Ingersoll Rand 
 
 Int. Harvester 
 
 Int. Mer. Marine 
 
 Quaker Oats 
 
 Ry. Steel Spring 
 
 Repub.I.& S. 
 
 Rock Island Co. 
 
 St. Mary's Min. Land 
 
 Sloss-Sheffield 
 
 Standard Oil 
 
 Tennessee Copper 
 
 Twin City R. T. 
 
 Union Bag & Paper 
 
 United Fruit 
 
 United Shoe Machinery 
 
 U.S. C.I. Pipe 
 
 U.S.Red.&Rfg. 
 
 U.S. Realty 
 
 U.S. Rubber 
 
 U.S. Steel 
 
 Utah 
 
 Utah Cons. 
 
 Va.-Car. Chemical 
 
 Vulcan Detinning 
 
 Western Tel.
 
 106 INHERITANCE TAXES. 
 
 36 
 LOUISIANA. 
 
 EXEMPTS PRO* ERTY' THAT HAS BORNE ITS SHARE OF TAX- 
 ATION FORMERLY DISCRIMINATED AGAINST ALIENS. 
 
 Three states, Louisiana, Iowa and Washington, have at 
 some time discriminated severely against non-resident aliens. 
 The law has been repealed in Louisiana, practically nullified by 
 a decision of the State Supreme Court in Washington, but still 
 stands in Iowa. 
 
 Louisiana was the second state to tax inheritances. This 
 was in the form of a tax of 10% imposed on estates passing 
 to non-resident aliens, which was enacted in 1828. l This re- 
 mained in force until 1877. It was revived in 1894 and ex- 
 tinguished by the new Constitution of 1898. 
 
 Its constitutionality was sustained in the Supreme Court 
 of the United States which held that as a state has the power to 
 forbid an alien to take any property whatever situated within 
 its limits, it may impose any tax it chooses as a condition to 
 allowing an alien to succeed to property. 2 The Supreme Court 
 of the United States also held that the statute did not conflict 
 with a treaty withWurtemberg which had evidently been intended 
 to secure equal treatment for aliens and residents. 8 Yet the 
 Louisiana Supreme Court decided that the statute conflicted with 
 a similar treaty with France and so could not apply to French 
 citizens 4 
 
 The Constitution of 1898 authorizes a direct inheritance 
 
 'Acts 1828, No. 95, 1, 2. 
 2 Mager v. Grima, 8 How. 490. 
 8 Freaerickson v. Louisiana. 23 How. 445. 
 Succession of Dufour, 10 La. An. 391.
 
 INHERITANCE TAXES. 107 
 
 tax of not over 3% with a minimum exemption of $10,000, and 
 a collateral inheritance tax of not over 10%. J 
 
 The next article of the Constitution is as follows: 
 
 "The tax provided for in the preceding article shall not be 
 enforced when the property donated or inherited shall have borne 
 its just proportion of taxes prior to the time of such donation or 
 inheritance." 2 It is a stock argument in defence of an in- 
 heritance tax that it reaches much property that has escaped 
 taxation during the owner's lifetime, without considering that 
 it equally reaches property that has not escaped. Louisiana by 
 exempting property that has borne its proper burden is the 
 only state in the country that is honest in this respect. 8 
 
 The present law was adopted in 1904 and modified in 1906. 
 The following taxes are imposed: 4 
 
 Direct inheritances, including those to direct descendants 
 and direct ascendants, 2%. 
 
 Exemption $10,000. 
 
 Collateral inheritances, including collateral relations and 
 strangers, 5%. 
 
 No exemption. 
 
 The exemption applies to the individual shares, not to the 
 estate as a whole. 
 
 We are informed that Louisiana is taxing stock of a Louisiana 
 corporation owned by a non-resident. The statute provides 
 that no bank having money or securities shall turn them over, 
 and no corporation, the stock or registered bonds of which are 
 owned by the deceased, shall deliver or transfer the same to any 
 heir until the tax is paid. Louisiana is not included, however, 
 in the Connecticut list of states that are taxing stock or bonds 
 
 2 Louisiana Constitution, Article 236. 
 1 Louisiana Constitution, Article 235. 
 3 But see succession of Kohn, 115 La. 71. 
 4 Acts 1904, No. 45; Acts 1906, No. 109.
 
 108 INHERITANCE TAXES. 
 
 owned by non-residents. This tax has been producing from 
 $100,000 to $200,000 a year. 
 
 Among the more prominent companies organized under the 
 laws of Louisiana are: 
 
 Louisiana & Northwest 
 
 Louisiana Ry. & Navigation 
 
 Louisiana Western 
 
 Morgan's La. & Tex. R. R. & S. S. Co. 
 
 New Orleans Great Northern 
 
 Opelousas, Gulf & Northeastern
 
 INHERITANCE TAXES. 109 
 
 37. 
 
 IOWA. 
 MORE DISCRIMINATION AGAINST THE NON-RESIDENT ALIEN. 
 
 Iowa adopted a collateral inheritance tax in 1896. In- 
 heritances to father, mother, husband, wife, lineal descendant, 
 adopted child, step child, lineal descendant of adopted child 
 or step child are exempt. 
 
 The following taxes are imposed : 1 
 
 Collateral inheritances, 
 
 Inheritances to other relatives and strangers 
 
 except non-resident aliens 5% 
 
 Exemption $1,000. 
 
 Inheritances to brothers or sisters who are non- 
 resident aliens 10% 
 
 Inheritances to more distant relatives or strangers 
 who are non-resident aliens 20% 
 
 The exemption applies to the estate as a whole rather than 
 to the individual shares. 2 The validity of this discriminatory 
 tax against non-resident aliens has not been passed upon by 
 the courts, but it would be very surprising if it should not be 
 held that it is in violation of most of the present treaties with 
 the important foreign countries. 
 
 Iowa taxes stock of an Iowa corporation owned by a non- 
 resident, 8 and the corporation is held responsible for the tax. 
 Iowa also claims a tax on the stock of a non-resident in a foreign 
 corporation which owns property in Iowa. Safe deposit com- 
 panies and kindred institutions are made liable for the tax unless 
 they notify the state treasurer before delivering over securities 
 
 of 1897, also Code Supplement 1907, Title 7, chapter 4; Acts 
 33 G. A. 1909, chapter 92. 
 
 2 Herriott v. Bacon, 110 Iowa, 342. 
 "Estate of Culver, 123 N. W. 743.
 
 110 INHERITANCE TAXES. 
 
 to the representative of an estate. This tax has been producing 
 between $150,000 and $200,000 annually. 
 
 Among the more prominent companies organized under the 
 laws of Iowa are: 
 
 Chic., Rock Island & Pac. R. R. 
 Des Moines & Ft. Dodge
 
 INHERITANCE TAXES. Ill 
 
 38. 
 WASHINGTON. 
 
 Washington adopted an inheritance tax in 1901 1 with im- 
 portant amendments in 1905 and 1907. 
 The following taxes are imposed : 2 
 
 Direct inheritances, including inheritances to 
 father, mother, husband, wife, lineal descen- 
 dant, adopted child, lineal descendant of 
 adopted child, 
 
 Under $10,000 exempt 
 
 Excess over 10,000 1% 
 
 Collateral inheritances, 
 
 Inheritances to collateral heirs to and including 
 the third degree of relationship, 
 
 Under $50,000 3% 
 
 Excess over 50,000 up to $100,000 .. 4j% 
 
 Excess over 100,000 6% 
 
 Inheritances to collateral heirs beyond the third 
 degree, or strangers, 
 
 Under $50,000 6% 
 
 Excess over 50,000 up to $100,000 .. 9% 
 
 Excess over 100,000 12% 
 
 Inheritances to collateral relatives or strangers 
 who are aliens, not residing in the United 
 States 25% 
 
 The exemption under direct inheritances applies to the 
 estate as a whole, not to individual shares, and if the Washington 
 portion of the estate of a non-resident is less than this amount, 
 the estate is not taxed. 
 
 The Supreme Court of the stare of Washington has decided 
 that the 25% tax on inheritances to non-resident aliens vio- 
 lates the treaty with Norway and Sweden. 3 There are similar 
 treaties with nearly all other important countries. The tax com- 
 
 1 For constitutionality see State v. Clark, 30 Wash. 439. 
 2 RevenueLawsofWashington,1907,204to 221; Rem. & Ball. Code 
 (1910), Title 76, chap. 7. 
 
 8 Estate of Peder G. Stixrud, 58 Wash. 339.
 
 112 INHERITANCE TAXES. 
 
 mission is no longer attempting to collect such a tax, though the 
 law has not actually been repealed. 
 
 Washington taxes stock of a Washington corporation owned 
 by a non-resident. A corporation that transfers stock or a safe 
 deposit company that delivers over securities without notifying 
 the state treasurer is responsible for the tax. 
 
 Washington has not hitherto made any claim for inheritance 
 taxes where a deceased non-resident owns stock in a foreign 
 corporation owning property within the state of Washington, 
 but the tax commission proposes to undertake the collection of 
 such a tax in the near future. It is not the practice to require 
 an inventory of the entire estate before permitting the corpora- 
 tion to transfer stock owned by a deceased non-resident. 
 
 Among the more important companies organized under the 
 laws of the state of Washington are: 
 
 Chic., Milwaukee & Puget Sound 
 Pacific Coast Power 
 Seattle Electric 
 
 NOTE. The 25% non-resident alien clause was repealed at the 1911 
 
 session.
 
 CHAPTER VIII. 
 A MOVEMENT FOB A UNIFORM INHERITANCE TAX LAW. 
 
 The demand for a uniform inheritance tax law found ex- 
 pression in the report of a committee on the subject made to the 
 Fourth International Tax Conference held at Milwaukee, Wis- 
 consin, in the summer of 1910. Thirty-five states, two Canadian 
 provinces and sixteen universities were represented by officially 
 appointed delegates. 
 
 At the first Conference in 1907 the following resolution had 
 been adopted. 
 
 WHEREAS, the principles of international and interstate 
 comity require that the same property should not be taxed 
 by two jurisdictions at the same time, and the laws for taxation 
 of the transfer of property at death commonly transgresses these 
 principles, be it 
 
 RESOLVED, that succession and inheritance tax laws should 
 be so amended that the same property shall not be taxed by 
 two jurisdictions at the death of the owner. 
 
 At the second conference in 1908 a committee was appointed 
 to prepare a model bill which would accomplish this result. This 
 committee included: 
 
 Hon. William H. Corbin, State Tax Commissioner of Con- 
 necticut. 
 
 Prof. Charles J. Bullock, Harvard University. 
 
 Hon. Lawson Purdy, President of the Dept. of Taxes, New 
 York City. 
 
 Mr. A. C. Pleydell, Secretary, New York Tax Reform 
 Association.
 
 114 INHERITANCE TAXES. 
 
 Mr. E. L. Heydecker, Asst. Tax Commissioner, New York 
 City. 
 
 Prof. Joseph H. Underwood, University of Montana. 
 
 Prof. S. S. Huebner, University of Pennsylvania. 
 
 The committee aimed to produce a bill imposing a reasonable 
 tax which would provide a fair revenue and also a tax definitely 
 fixed and easily computed. The tax proposed is graded as to 
 relationship and progressive as to the amount of the inheritance, 
 and is based on the value of each inheritance, not on the total 
 value of the estate. It avoids double taxation of securities by 
 proposing that they should be taxed only at the residence of the 
 owner. 
 
 "Tangible property" is defined to mean corporeal property 
 such as real estate and goods, wares and merchandise. "In- 
 tangible property" is defined to mean incorporeal property, 
 including money, deposits in bank, shares of stock, bonds, 
 notes, credits, evidences of an interest in property and evidences 
 of debt. 
 
 The proposed law then provides that a resident shall pay 
 an inheritance tax on all his intangible property and on his tan- 
 gible property situated within the state, and that a non-resident 
 shall pay an inheritance tax only on tangible property within the 
 state. 
 
 The classification and rates proposed are as follows: 
 
 Direct inheritances, including those to father, 
 mother, husband, wife, child, brother, sister, 
 wife or widow of son, husband of daughter, 
 adopted or mutually acknowledged child, lineal 
 descendant, 
 Under $2,500 (to each heir) . . . exempt 
 
 Excess over 2,500 up to $25,000 1% 
 
 Excess over 25,000 up to 250,000 2% 
 
 Excess over 250,000 up to 1 ,000,000 3% 
 
 Excess over 1,000,000 4%
 
 INHERITANCE TAXES. 115 
 
 Collateral inheritances, including all other in- 
 heritances, 
 Under $500 (to each heir) . . . exempt 
 
 Excess over 500 up to $10,000 2% 
 
 Excess over 10,000 up to 25,000 3% 
 
 Excess over 25,000 up to 100,000 5% 
 
 Excess over 100 ,000 u p to 1 ,000 ,000 10% 
 
 Excess over 1,000,000 15% 
 
 The conference recommended to every one of the states the 
 adoption of such a bill. Whatever difference of opinion there 
 may be as to the rates suggested, there certainly can be no sound 
 excuse for not adopting the provisions that eliminate double 
 taxation. 
 
 To obtain uniform legislation, concerted action throughout 
 the country is necessary as it was, for example, in the adoption 
 of the uniform "Negotiable Instruments Act." The power to 
 impose an inheritance tax is shared by the states and the federal 
 government independently so that federal legislation cannot 
 accomplish uniformity. 
 
 Incidentally, the Tax Conference has taken a very decided 
 position that the federal government should not exercise its 
 power to levy an inheritance tax but should leave this tax to the 
 states. 
 
 It will be interesting to see if the well-reasoned plan of this 
 Conference, which included delegates appointed by the governors 
 of 35 states, will have any effect in stopping the riot of double and 
 triple taxation.
 
 CHAPTER IX. 
 
 SOME MATTERS NOT TOUCHED UPON THE POSITION Or TBUST 
 CERTIFICATES SOME EFFORTS To AVOID DOUBLE TAXA- 
 TION. 
 
 The purpose of these articles has been only to indicate to 
 investors in a general way how their securities may be affected 
 by inheritance tax laws, especially of states other than the ones 
 in which they reside. For that reason many matters of con- 
 siderable importance have not even been touched upon. 
 
 The position of bequests for religious, charitable or educa- 
 tional purposes has not been gone into. Such bequests are 
 usually exempt from inheritance tax, though frequently the 
 bequest is exempt only if the money is to be spent in the state. 
 
 No attempt has been made to deal with the complicated 
 details involved in computing the inheritance tax where property 
 is left in trust, or otherwise, to one person for life and then passes 
 to some one else. 
 
 Nor has there been any attempt to go into questions of ad- 
 ministrative details such as who determines the tax, who col- 
 lects the tax and when it is due. There is usually some ad- 
 vantage in prompt payment and a penalty in the way of exces- 
 sive interest if payment is delayed beyond a certain time. 
 
 From numerous inquiries that we have received it seems 
 that there is some confusion as to the basis of the computation 
 of the inheritance tax on securities. Many people have an idea 
 that the tax is based on their par value. Such is not the case. 
 The tax on all property is based upon its real or market value 
 at the time of death. 1 
 
 'Hooper v. Bradford, 178 Mass. 95.
 
 INHERITANCE TAXES. 117 
 
 There is much uncertainty as to the status of trust certifi- 
 cates like Great Northern Ore certificates. It has been noted 
 that Massachusetts treats very similar organizations, such as 
 Massachusetts Electric and Massachusetts Gas, as standing 
 on the same footing with Massachusetts corporations, although 
 they are not incorporated and their shares represent only a bene- 
 ficial interest in property held by trustees. As to the status of 
 Great Northern Ore certificates (it will be remembered that Great 
 Northern Railway is a Minnesota corporation, the Chairman of 
 the Minnesota Tax Commission says : 
 
 Our courts have not yet passed upon the question whether 
 the Great Northern Ore certificates are subject to the provisions 
 of the inheritance tax law. Inasmuch as these certificates are 
 merely evidences of indebtedness, payable upon certain contin- 
 gencies, our attorney general has been unable to determine 
 their situs for taxation and has not placed them in the category 
 of 'stocks.' Whether any attempt will be made to do so in the 
 future is very problematical." 
 
 As has been noted, very few of the many questions that arise 
 have been settled by the courts. Where a question has not been 
 passed upon by the courts, it may be safely assumed that the 
 tax authorities will construe it in such a way as to get a tax for 
 the state and the biggest one possible. To this situation is due 
 much of the irritation occasioned by the operation of inheritance 
 tax laws. Though a state may make the most preposterous 
 claims, it is often cheaper to pay than to fight, but there is grad- 
 ually accumulating an amount of righteous indignation that 
 will certainly result in the substitution of at least common decency 
 for highway robbery in the administration of inheritance tax 
 laws. 
 
 There have been some interesting efforts to meet the injus- 
 tice of these laws. An expedient that is finding increasing
 
 118 INHERITANCE TAXES. 
 
 favor with investors is to keep their stock certificates of foreign 
 corporations in the name of their banker or broker. This 
 seems not only an effective, but a square and legitimate method 
 of preventing the outrage of double taxation. The only pos- 
 sible pretext that a state has for levying an inheritance tax 
 on stock of a domestic corporation, owned by a non-resident, is 
 that ordinarily it is necessary to resort to the protection of the 
 laws of the state to transfer the securities, but if securities are 
 held in such a way that it is not necessary to transfer them in 
 settling an estate, the state of incorporation certainly has no 
 moral or legal right to a transfer tax. 
 
 A simple method of avoiding the payment of a collateral 
 inheritance tax in a state which does not tax direct inheritances, 
 is found in an Iowa case in which the collateral legatees and others 
 interested in the will, all united in renouncing the provisions of the 
 will and agreeing that the property might be distributed as in the 
 case of intestacy. The court upheld their right to do this, 
 with the result that the property passed entirely to direct heirs 
 and the state got no tax. Though it was fairly evident that there 
 was some sort of an understanding that the collateral legatees 
 should not suffer by their renunciation, the effect of such an 
 understanding was not passed upon by the court. 1 
 
 Other people have tried incorporating themselves into a hold- 
 ing company. To a man holding securities in corporations of 
 numerous states, this plan has much to commend it. On his 
 death his estate consists simply of the shares of the holding 
 company in whose treasury are held his other securities. In a 
 Minnesota case a man incorporated himself, turned over all 
 his property to the corporation, issued the stock to his family 
 in the proportions in which he wished them to share his property 
 on his death, and then had the property leased by the corporation 
 
 'In re Stone, 132 la. 136.
 
 INHERITANCE TAXES. 119 
 
 back to him for his life. This family did not pay any inheritance 
 tax. 1 
 
 Such devices are, however, not common, and only worth 
 while for large estates. For the estate of ordinary size inheri- 
 tance taxation is frequently not taxation, but legalized or "offi- 
 cialized" robbery. 
 
 We have spoken of double and triple taxation. If a man 
 lives in one state and has stock in a corporation organized in 
 another state, which does all its business in a third state, and 
 keeps his stock in a safe deposit box in a fourth state, his estate 
 may be obliged to pay a full inheritance tax four times. The 
 first state may be any one of 38; the second state any one of 
 at least 24, the third state any one of nine and the fourth state 
 any one of half a dozen. 
 
 !State v. Probate Court, 102 Minn. 268.
 
 CHAPTER X. 
 CANADA. 
 
 Corporations may be organized either under the laws of 
 the Dominion or under the laws of the different Provinces. 
 The Provinces have the power to incorporate companies, and 
 these companies have power to do business anywhere they wish. 
 Apparently there is no difference as far as succession duties go 
 whether the companies are incorporated under the laws of a 
 Province or under the laws of the Dominion. 
 
 The Dominion government collects no tax but the Prov- 
 inces do. The local law does not allow transfers of stock without 
 the payment of succession duties to the Province in which the 
 registry office of the company is located. The fact that the 
 companies are incorporated by the Dominion government ap- 
 parently makes no difference. This might raise an important 
 constitutional question as to whether or not the Provinces have 
 power to tax such transfers, but the courts have held that the 
 Provinces have the power to impose a license fee on a company 
 incorporated by the Dominion doing business within the sepa- 
 rate Provinces, so on the same principle, it would seem that the 
 taxation would be held constitutional. 
 
 An American estate owning stock of Canadian Pacific, 
 which is incorporated by the Dominion government, would have 
 to pay succession duties to the Province of Quebec, where there 
 is a registry office; that is, if the stock was on the Quebec reg- 
 istry. Canadian Pacific also has a registry in London, and if 
 the stock was on the London registry, this, of course, would not 
 apply.
 
 INHERITANCE TAXES. 121 
 
 A resident of Montreal who owns shares or bonds of an 
 American railroad would pay an inheritance tax to the Province 
 of Quebec in addition to what he might have to pay in the States. 
 
 There is an important case (Lovitt v. The King) which 
 is to be argued in July, 1911, before the Privy Council. In this 
 case a resident of Nova Scotia had money on deposit at the branch 
 of the Bank of British North America in St. John, New Bruns- 
 wick, which had issued a deposit receipt not restricted, however, 
 to payment by that specific branch, and the bank had also 
 branches in Nova Scotia. The question came up as to whether 
 there would be a liability for a succession duty to New Bruns- 
 wick as well as Nova Scotia. The New Brunswick Court held 
 that New Brunswick could collect succession duties, 1 the Supreme 
 Court of Canada, with two judges dissenting, held it could not. 2 
 
 The following schedule of rates and exemptions is taken from 
 the Report of the Inheritance Tax Law Committee at the In- 
 ternational Tax Conference, 1910. 
 
 Direct '. 
 Province Rate 
 Alberta li~~ 5 
 
 Inheritances 
 Exemption 
 $25,000 
 25,000 
 4,000-25,000 
 50,000 
 25,000 
 50,000 
 10,000 
 5,000 
 25,000 
 
 Collateral Inheritances 
 Rate Exemption 
 5 -10 5,000 
 5 -10 
 1 -10 2,000- 7,000 
 5 -10* 5,000-10,000 
 5 -10 5,000 
 1 -10 10,000 
 2- 7 3,000 
 5 -15f 
 5 -10 5,000 
 
 British Columbia. l- 5 
 Manitoba .... 1 10 
 
 New Bru nswick . . . lj- 5 
 Nova Scotia 2 5 
 
 Ontario 1 -10 
 
 Prince Edward Is , lj- 2 
 Quebec 1 8 
 
 Saskatchewan . . . l- 5 
 
 *To persons residing out of Providence rate is doubled. 
 
 fTo person residing out of the British Empire an additional 5%. 
 
 !King v. Lovitt, 37 N. B. R. 558. 
 
 2 King v. Lovitt, 43 S. C. R. 106. 
 
 The principal other Canadian cases are as follows: 
 
 Attorney General v. Newman, 1 O. L. R. (Ont.) 51. 
 
 In re McDonald, 9 B. C. R. 174. 
 
 Lambe v. Manuel, 1903, App. Cas. 68. 
 
 Woodworth v. Atty. Gen'l., 1908, App. Cas. 508.
 
 122 INHERITANCE TAXES. 
 
 Among the important companies organized under the laws 
 of the Dominion of Canada are: 
 
 Canadian Pacific 
 Canadian Southern 
 Mexican Light & Power 
 
 Under laws of Provinces are: 
 
 Dominion Coal (Nova Scotia) 
 Dominion Iron & Steel (Nova Scotia) 
 Granby (British Columbia) 
 Montreal Lt. H. & P. (Quebec) 
 Montreal St. Ry. (Quebec) 
 Sao Paulo Tr. Lt. & P. (Ont.)
 
 APPENDIX. 
 
 The following is an editorial from the Boston News Bureau 
 of Feb. 18, 1911: 
 
 ROBBING HEN ROOSTS. 
 
 Radical legislatures have been running riot in taxing in- 
 heritances since Mr. Roosevelt in 1906 advocated the employ- 
 ment of a high progressive inheritance tax as a means of se- 
 questering "swollen fortunes." 
 
 In theory an inheritance tax is said to be not a property tax 
 but a tax on the right to transmit or succeed to property; a 
 right which the state protects and therefore taxes. It is hard 
 to find in this protection anything to justify a 25% rate. 
 
 A moderate tax, especially on collateral inheritances, is 
 usually thought to be an inoffensive method of raising revenue. 
 The apologists for the exorbitant progressive rates that have 
 become so common urge that they will break up and return to the 
 community the great fortunes that it is supposed have been 
 acquired by illegal or extra-legal means. That is the argument 
 of the demagogue and forgets that the tax is not limited to tainted 
 fortunes. 
 
 Again it is said that property is reached that has been es- 
 caping taxation during the lifetime of the owner. But the 
 property that has paid its full share of taxes is reached at the 
 same time. 
 
 Most of the talk about property escaping taxation is pure 
 buncombe. Property that escapes taxation is a rarity. Much 
 property escapes double taxation in states, like Massachusetts, 
 that have a personal property tax which is in effect nothing more 
 than an income tax of 30% to 40% designed to be levied almost 
 exclusively on the property of widows and orphans. 
 
 An inheritance tax is essentially a cowardly tax. The
 
 126 APPENDIX. 
 
 state, like a great bully, takes away from the family a portion 
 of its property at a time when it is most needed, and at the time 
 when the property has lost the service of its natural protector. 
 
 There are few men with an income of $10,000 a year who 
 leave more than $50,000 to their families. It is considered 
 proper to seize a substantial part of this from the family that 
 is trying to readjust itself to an income reduced to $2500 a year 
 or less. 
 
 Lloyd-George in England was at least honest when he de- 
 scribed estates of deceased owners as convenient "hen roosts" 
 to rob. 
 
 It has become common for states to levy inheritance taxes 
 on the property of men who never set foot within the state and 
 never owned a dollar's worth of property physically within the 
 state, because under our methods of corporate organization a 
 convenient "hen roost" is provided. 
 
 There used to be something said about "Taxation without 
 Representation." The resentment against a tax that did not 
 begin to be as unfair as the current inheritance taxes once found 
 expression in a certain Tea Party. 
 
 Where is the line between a tax dodger and a patriot?
 
 LIST OF CORPORATIONS. 
 
 The following is a list of some of the more prominent com- 
 panies, showing the state in which they are incorporated, and 
 the exchange where their securities are listed. Those marked * 
 are not corporations, but joint stock companies or voluntary 
 associations. 
 
 State where incorp. 
 
 Name of Co. Exchange or organized 
 
 Acushnet Mills Mass. 
 
 Adams Express N. Y. N. Y.* 
 
 Adventure Boston Mich. 
 
 Ahmeek Boston Curb Mich. 
 
 Algomah . . . Boston Mich. 
 
 Allis-Chalmers N. Y. N. J. 
 
 Allouez Boston Mich. 
 
 Amalgamated Copper Boston, N. Y. N. J. 
 
 Am. Agricultural Chem. . . . Boston, N. Y. Conn. 
 
 American Beet Sugar N. Y. N. J. 
 
 American Brake & Fy N.Y. N.J. 
 
 American Brass Conn. 
 
 American Can N.Y.,Chic. N.J. 
 
 American Car & Fy N. Y. N.J. 
 
 American Cement N.J. 
 
 American Cotton Oil Boston, N. Y. N.J. 
 
 American Express N. Y. N. Y.* 
 
 American Glue Mass. 
 
 American Hide & Leather .. N.Y. N.J. 
 
 American Ice Securities .... N.Y. N.J. 
 
 American Light & Traction N.Y. N.J. 
 
 American Linen Mass. 
 
 American Linseed N.Y. N.J. 
 
 American Locomotive N.Y. N.Y. 
 
 American Malt N.Y. N.J. 
 
 American Manufacturing . . Mass. 
 
 American Pneumatic Ser. .. Boston Del. 
 
 American Radiator Chic. N.J. 
 
 American Railways N.J. 
 
 American Screw R.I. 
 
 American Sewer Pipe Pitts. & Clev. N. J. 
 
 American Shipbuilding .... Chic. N.J. 
 
 American Silk N.Y. 
 
 American Smelters Sec. . N.Y. N.J.
 
 INHERITANCE TAXES. 
 
 State where incorp. 
 
 Name of Co. Exchange or organized 
 
 American Smelt & Ref N. Y. N. J. 
 
 American Snuff N.Y. N.J. 
 
 American Soda Fountain .. N.J. 
 
 American Steel Foundries .. N.Y. N.J. 
 
 American Sugar Boston, N. Y. N. J. 
 
 American Tel. & Tel Boston, N. Y. 
 
 Chic. Phila. N. Y. 
 
 American Thread N.J. 
 
 American Tobacco N.Y. N.J. 
 
 American Typefounders Chic. N.J. 
 
 American Woolen Boston, N.Y. N.J. 
 
 American Writing Paper ... N.Y. N.J. 
 
 American Zinc Boston Me. 
 
 Amoskeag Mfg N. H. 
 
 Anaconda Copper Boston, N. Y. Mont. 
 
 Androscoggin Mills Me. 
 
 Ann Arbor N.Y. Mich. 
 
 Arizona Commercial Boston Me. 
 
 Arkansas Midland Ark. 
 
 Arkansas Southwestern .... Ark. 
 
 Arkwright Mills Mass. 
 
 Arlington Mills Mass. 
 
 Armour and Co 111. 
 
 Arnold Boston Mich. 
 
 Associated Merchants N.Y. Conn. 
 
 Associated Oil Los. Ang. Cal. 
 
 Atchison,Top.&S. F Boston, N.Y. Kan. 
 
 Atlantic Coast Line N. Y., Bait. Va. 
 
 Atl. Gulf & W. Indies Boston Me. 
 
 Atlantic Mills R. I. 
 
 Atlantic Mining Boston Mich. 
 
 Atlas Portland Cement .... Pa. 
 
 Baker Co. (Walter) Mass. 
 
 Baltimore & Ohio N.Y. Md.,Va. 
 
 Bangor & Aroostook Me. 
 
 Barnaby Mfg Mass. 
 
 Barnard Mfg Mass. 
 
 Bates Mfg Me. 
 
 Batopilas Mfg Boston, N. Y. N. Y. 
 
 Berkshire Mfg Mass. 
 
 Bethlehem Steel N.Y. N.J. 
 
 Bigelow Carpet Mass. 
 
 B'mgh'm Ry. Lt. & Power . Ala. 
 
 Bonanza Boston Colo. 
 
 Boott Mills Mass. 
 
 Borden Mfg Mass.
 
 INHERITANCE TAXES. 
 
 129 
 
 States where incorp. 
 
 Name of Co. Exchange or organized 
 
 Boston & Albany Boston Mass., N. Y. 
 
 Boston & Corbin Boston Me. 
 
 Boston & Lowell Boston Mass. 
 
 Boston & Maine Boston Mass. N.H. Me. 
 
 Boston & Northern Boston Mass. 
 
 Boston & Providence Boston Mass. 
 
 Boston Belting , . . . . Mass. 
 
 Boston Duck Mass. 
 
 Boston Elevated Boston Mass. 
 
 Boston Revere B. & Lynn . . Boston Mass. 
 
 Boston Suburban Boston Mass. 
 
 Boston Wharf Mass. 
 
 Boston Woven Hose Mass. 
 
 Brill Co. (J. G.) Phila. Pa. 
 
 Brooklyn Rapid Transit . . . N. Y. N. Y. 
 
 Brooklyn Union Gas N. Y. N. Y. 
 
 Buffalo, Rochester & Pitts. N. Y. N. Y., Pa. 
 
 Bush Terminal N. Y. 
 
 Butler Mill Mass. 
 
 Butte-Ballaklava Boston Ariz. 
 
 Butte Coalition Boston N. J. 
 
 Butterick Co N. Y. N. Y. 
 
 Calumet & Arizona Boston Ariz. 
 
 Calumet & Hecla Boston Mich. 
 
 Cambria Steel Phila. Pa. 
 
 Canada Sou them N.Y. Dom. of Canada 
 
 Canadian Pacific N. Y. Dom of Canada 
 
 Capital Traction Wash. Dist of Columbia 
 
 Centennial Boston Mich. 
 
 Central Coal & Coke Phila. St. Louis Mo. 
 
 Central of Georgia N. Y. Ga. 
 
 Central of New Jersey N. Y., Phila. N. J. 
 
 Central Leather N.Y. N.J. 
 
 Central Pacific Utah 
 
 Central Vermont Boston Vt. 
 
 Central & So. Am. Tel N.Y. N.Y. 
 
 Chapman Valve Mass. 
 
 Chesapeake & Ohio N.Y. Va. 
 
 Chicago & Alton N.Y. 111. 
 
 Chicago & Eastern Illinois . Boston 111. 
 
 Chicago & Northwestern ..N.Y. III., Wis., Mich. 
 
 Chicago, Bur. & Quincy . ... 111. 
 
 Chicago Great Western N.Y. 111. 
 
 Chic. Jun.Rys.&Stk. Yds. Boston N.J. 
 
 Chicago, Mil. & St. Paul ... N.Y. Wis. 
 
 Chicago Pneumatic Tool . . . Chicago N.J.
 
 130 
 
 INHERITANCE TAXES. 
 
 State where incorp. 
 
 Name of Co. Exchange or organized 
 
 Chicago Railways Chicago 111. 
 
 Chicago, R I & Pac R R Co. Iowa 
 
 Chicago R I & Pac Ry Co. . 111. & Iowa 
 
 Chic., St. Paul Minn. &Om. N.Y. Wis. 
 
 Chicago Subway Chicago N. J. 
 
 Chicago Telephone Chicago 111. 
 
 Chicopee Mfg Mass. 
 
 Cinn. Hamilton & Dayton . . Ohio 
 
 Clev. , Cinn. Chic. ,& St. L. N.Y. Ohio&Ind. 
 
 Colorado Fuel & Iron N.Y. Colo. 
 
 Colorado & Southern N. Y., Boston Colo. 
 
 Columbus & Hocking C & I N.Y. Ohio 
 
 Commonwealth-Edison . . . Chicago 111. 
 
 Con. & Claremont ( B & M) N. H. 
 
 Con. & Montreal (B & M) . Boston N. H. 
 
 Con.&Portsm'th(B& M) . N.H. 
 
 Conn & Pass. Riv. (B&M). Boston Vt. 
 
 Connecticut River (B. & M.) Boston Mass., N. H. 
 
 Connecticut Ry. & Light . . Conn. 
 
 Consolidated Cotton Duck . Del. 
 
 Consolidated Gas N.Y. N. Y. 
 
 Con.GasElecLt&P(Balt) Bait. Md. 
 
 Consolidated Mercur N.Y. N.J. 
 
 Consolidation Coal Bait. &St. Louis Md. 
 
 Continental Mills Me. 
 
 Copper Range Consolidated Boston N.J. 
 
 Corn Products N. Y., Chicago N. J. 
 
 Cornell Mills Mass. 
 
 Cramp Shipbuilding Phila. Pa. 
 
 Crex Carpet N.Y. Del. 
 
 Crucible Steel Pitts. N. J. 
 
 Cuban American Sugar .... N.Y. N.J. 
 
 Cumberland Tel. & Tel Boston Ky. 
 
 Daly-West Boston Colo. 
 
 Dartmouth Mfg Mass. 
 
 Davis Mills Mass. 
 
 Delaware & Hudson N.Y. N.Y. 
 
 Delaware , Lack . & West . N.Y. Pa . 
 
 Denver & Rio Grande N.Y. Col. & Utah 
 
 Detroit United N. Y., Cinn. Cle. Mich. 
 
 Diamond Match Chicago 111. 
 
 Distillers Securities N.Y. N.J. 
 
 Dominion Coal Montreal Nova Scotia 
 
 Dominion Iron & Steel .... Montreal Nova Scotia 
 
 Draper Co Me. 
 
 Duluth So. Shore & Atlantic N.Y. Mich., W r is.
 
 INHERITANCE TAXES. 
 
 131 
 
 State where incorp. 
 
 Name of Co. Exchange or organized 
 
 Duluth-Superior Traction . N. Y. Conn. 
 
 Dupont Powder N.Y.,Chic. N. J. 
 
 Dwight Mfg Mass. 
 
 East Boston Co Boston Mass. 
 
 East Butte Boston Ariz. 
 
 Eastern Steamship Boston Me. 
 
 Eastman Kodak Rochester N. J. 
 
 Edison Co Boston Mass. 
 
 Edwards Mfg Me. 
 
 Electric Storage Battery. . . . Phila. N. J. 
 
 Elgin Watch Chicago 111. 
 
 Elm River Copper Boston N. J. 
 
 Erie N.Y. N. Y. 
 
 Essex Co Mass. 
 
 Everett Mills Mass. 
 
 Fairbanks & Co Vt. 
 
 Federal Min. & Smelting . . N.Y. Del. 
 
 Fisher Mfg "... Mass. 
 
 Fitchburg Railroad Boston Mass., N.H.,Vt.&N.Y. 
 
 Flint Mills Mass. 
 
 Fore River Shipbuilding ... Mass. 
 
 Franklin Co Me. 
 
 Franklin Mining Boston Mich. 
 
 Franklin & Tilton (B & M) . N. H. 
 
 Galveston Hous. Elec. Co. . Boston Me. 
 
 General Asphalt . . Phila. N. J. 
 
 General Chemical N.Y. N.Y. 
 
 General Electric Boston, N.Y. N. Y. 
 
 General Motors Chic., Clev. N. J. 
 
 Giroux Boston Del. 
 
 Goldfield Consolidated N. Y., Los Ang. Wyo. 
 
 Gorham Mfg R. I. 
 
 Gosnold Mills Mass. 
 
 Granby Boston, N. Y: Brit. CoL 
 
 Granite Mills Mass. 
 
 Great Falls Mfg N. H. 
 
 Great Northern N.Y. Minn. 
 
 Great Northern Ore N.Y. Minn.* 
 
 Greene-Cananea Boston Minn. 
 
 Grinnell Mfg Mass. 
 
 Hamilton Mfg Mass. 
 
 Hamilton Woolen Mass. 
 
 Hancock Boston Mich. 
 
 Hargraves Mills Mass . 
 
 Harmony Mills Mass. 
 
 Havana Electric . N.Y. N. J.
 
 132 
 
 INHERITANCE TAXES. 
 
 State where incorp. 
 
 Name of Co. Exchange or organized 
 
 Helvetia Boston Ariz. 
 
 Hey wood Bros . & Wakefield N.J. 
 
 Hill Mfg Me. 
 
 Hocking Valley N. Y. Ohio 
 
 Hood Rubber Mass. 
 
 Illinois Brick Chicago 111. 
 
 Illinois Central N. Y. 111. 
 
 Illinois Traction Me. 
 
 Independent Brewing Pitts. Pa. 
 
 Indiana Lighting Ind. 
 
 Indiana Mining Boston Mich. 
 
 Ingersoll Rand N. Y. N.J. 
 
 Inspiration Copper Boston Me. 
 
 Interboro-Metropolitan N. Y. N. Y. 
 
 Interboro Rapid Transit . . . N. Y. N. Y. 
 
 International & Great Nor . Texas 
 
 International Button Hole . Boston Me. 
 
 International Harvester. ... N. Y. N. J. 
 
 International Mer. Marine . N. Y. N.J. 
 
 International Nickel N. J. 
 
 International Paper N. Y., Boston N. Y. 
 
 International Power N. Y. N.J. 
 
 International Silver N.J. 
 
 International Smelt & Ref . Boston N. J. 
 
 International Steam Pump . N.Y. N.J. 
 
 International Traction .... N.J. 
 
 Iowa Central N. Y., Boston 111. 
 
 Island Creek Coal Boston Me. 
 
 I de Royale Copper Boston N.J. 
 
 Jacksonville Traction Mass. 
 
 Jones & Laughlin Steel .... Pa. 
 
 Kanawha & Michigan Ohio, W. Va. 
 
 Kansas City, Ft Scott&Mem N. Y., Boston Kan. 
 
 Kansas City, Mex. & Orient Kan. 
 
 Kansas City Ry. & Light . . Chicago N.J. 
 
 Kansas City Southern N.Y. Mo. 
 
 Kerr Lake Boston N. Y. 
 
 Keweenaw Boston Mich. 
 
 Lackawanna Steel N.Y. 
 
 LacledeGas N. Y., St. Louis Mo. 
 
 Lake Copper Boston Mich. 
 
 Lake Erie & Western N.Y. 111. 
 
 Lake Shore & Mich. Sou. .. N.Y. 111., Ohio, Mich, 
 
 Ind, Pa, N. Y. 
 
 Lake Superior Corp Phila. N. J. 
 
 La Salle Copper Boston Mich.
 
 INHERITANCE TAXES. 
 
 133 
 
 Name of Co. Exchange 
 
 Lancaster Mills 
 
 Lanett Cotton Mills 
 
 Laurel Lake Mills 
 
 Laurium Mining 
 
 Lawrence Mfg 
 
 Lehigh Coal & Navigation . Phila. 
 
 Lehigh Valley N. Y., Phila. 
 
 Long Island R.R N.Y. 
 
 Lorraine Mfg 
 
 Louisiana & Arkansas 
 
 Louisville & Nashville N.Y. 
 
 Lowell Bleachery 
 
 Luther Mfg 
 
 Lyman Mills 
 
 Mackay Cos N.Y. 
 
 Maine Central Boston 
 
 Manchester & Keene (B & M) 
 
 Man. & Lawrence (B&M) . Boston 
 
 Manhattan Elevated N.Y. 
 
 Manomet Mills 
 
 Manufacturers Lt. & Heat . Pitts. 
 
 Mass Consolidated Boston 
 
 Massachusetts CottonMills 
 Mass Cot. Mills in Georgia . 
 
 Mass. Electric Boston 
 
 Mass. Gas Boston 
 
 Maverick Mills 
 
 Mayflower Mining Boston 
 
 McElwain Co., W. H 
 
 Mergenthaler Linotype .... Boston 
 
 Met. West Side Ry Chicago 
 
 Mexican Lt. & Power Montreal 
 
 Mexican Tel. & Tel Boston 
 
 Mexico Cons Boston 
 
 Miami Boston 
 
 Michigan Central N.Y. 
 
 Michigan Mining Boston 
 
 Michigan State Tel Chicago 
 
 Middlesex Co 
 
 Minneapolis & St. Louis ... N.Y. 
 Minneapolis Gen. Electric . Boston 
 Minn., St. Paul &S.S.M. . N.Y. 
 Missouri, Kansas & Texas . N.Y. 
 
 Missouri Pacific N.Y. 
 
 Mobile Electric 
 
 Mohawk Mining Boston 
 
 State where incorp. 
 or organized 
 Mass. 
 Ala. 
 Mass. 
 Mich. 
 Mass. 
 Pa. 
 Pa. 
 N.Y. 
 R.I. 
 Ark. 
 Ky. 
 Mass. 
 Mass. 
 Mass. 
 Mass.* 
 Me. 
 N.H. 
 N.H. 
 N.Y. 
 Mass. 
 Pa. 
 Mich. 
 Mass. 
 Mass. 
 Mass.* 
 Mass.* 
 Mass. 
 Mich. 
 Mass. 
 N.Y. 
 111. 
 
 Dom. of Canada 
 Me. 
 Me. 
 Del. 
 Mich. 
 Mich. 
 Mich. 
 Mass. 
 Minn. la. 
 N.J. 
 
 Min. Wis. & Mich. 
 Kan. 
 
 Mo. Kan. Neb. 
 Ala. 
 Mich.
 
 134 
 
 INHERITANCE TAXES. 
 
 Name of Co . Exchange 
 
 Montreal Lt., Heat & Power Montreal 
 
 Montreal St. Ry Montreal 
 
 Narragansett Mills 
 
 Nashawena Mills 
 
 Nashua Mfg 
 
 Nash. & Act (B. & M.) ... 
 Nashua* Lowell (B.&M.) . 
 
 Nash., Chat. & St. Louis .. N.Y. 
 
 National Biscuit N.Y. 
 
 National Carbon Chic., Boston 
 
 National Enameling & Sta . . N . Y . , St . Louis 
 
 National Fire Proofing .... Pitts. 
 
 National Lead N.Y. 
 
 National Rail ways of Mex. . N.Y. 
 Naumkeag Steam Cotton .. 
 
 Nevada Consolidated Boston, N.Y. 
 
 New Arcadian Boston 
 
 New Central Coal 
 
 New England Cotton Yarn . Boston 
 NewEngland Navigation.. . 
 
 New England Tel . & Tel Boston 
 
 New River Fuel 
 
 New York Air Brake N.Y. 
 
 New York Central N.Y. 
 
 N. Y., Chi. & St. Louis .... N.Y. N.Y 
 
 New York Dock N.Y. 
 
 N. Y., N. H. & H N. Y., Boston 
 
 N.Y.,Ont.& Western N.Y. 
 
 N. Y. Susquehanna & West. Phila. 
 
 New York Telephone 
 
 Newmarket Mfg 
 
 Nicholson File 
 
 Niles-Bement-Pond 
 
 Nipissing Boston 
 
 Norfolk & Western N.Y. 
 
 North American Co N. Y.,St. Louis 
 
 North Butte Boston 
 
 North Lake Boston 
 
 Northern Central Phila., Bait. 
 
 Northern Ohio Lt. &Trac. . Clev., Cinn. 
 
 Northern Pacific N.Y. 
 
 Northern R. R. (B.&M.) . . . Boston 
 
 Northern Securities 
 
 Northern Texas Electric . . . Boston 
 
 Ojibway Boston 
 
 State where f incorp. 
 
 or organized 
 Quebec 
 Quebec 
 Mass. 
 Mass. 
 N.H. 
 
 N.H.,Mass. 
 N.H.,Mass. 
 Tenn. 
 N.J. 
 N.J. 
 N.J. 
 Pa. 
 N.J. 
 Mex. 
 Mass. 
 Me. 
 Mich. 
 Md. 
 Mass. 
 Conn. 
 N.Y. 
 W. Va. 
 N.J. 
 N.Y. 
 
 ,, Ohio, Ind., Pa. 
 N.Y. 
 
 Conn., Mass., 
 R.I. 
 N.Y. 
 N.J.,Pa. 
 N.Y. 
 Mass. 
 R.I. 
 N.J. 
 Me. 
 Va. 
 N.J. 
 Minn. 
 Mich. 
 Pa., Md. 
 Ohio 
 Wis. 
 N.H. 
 N.J. 
 Me. 
 Mich.
 
 INHERITANCE TAXES. 
 
 135 
 
 State where incorp. 
 
 "Name of Co. Exchange or organized 
 
 Old Colony Copper Boston Mich. 
 
 Old Colony R. R Boston Mass. 
 
 Old Dominion Boston Me. 
 
 Oregon & California Ore. 
 
 Oregon Short Line Ore. 
 
 Ore. -Wash. Railroad & Nav. Ore. 
 
 Osceola Boston Mich. 
 
 Otis Elevator Chicago N. J. 
 
 Pacific Coast Co N.Y., Boston N.J. 
 
 Pacific Gas & Electric Cal. 
 
 Pacific Mail N. Y. N. Y. 
 
 Pacific Mills Mass. 
 
 Pacific Telephone & Tel. ... N. Y. Cal. 
 
 Parker Mills Mass. 
 
 Parrot Mining Boston Mont. 
 
 Pennsylvania N. Y., Phila. Pa. 
 
 Pennsylvania Coal & Coke . Pa. 
 
 Pennsylvania Steel Phila. N. J. 
 
 Peoples Gas N. Y., Chicago 111. 
 
 Peoria & Eastern N. Y. 111. 
 
 Pepperell Mfg Me. 
 
 Pere Marquette N. Y. Mich., Ind. 
 
 Philadelphia Co N. Y., Phila. Pa. 
 
 Philadelphia Electric Phila. N.J. 
 
 Philadelphia Rapid Transit Phila. Pa. 
 
 Pierce Mfg Mass. 
 
 Pitts. ,Cin., Chic. ,& St. L. N.Y., Phila. Pa.,W.Va, Ohio 
 
 Ind., 111. 
 
 Pittsburg Brewing Pitts. Pa. 
 
 Pittsburg Coal N. Y. N.J. 
 
 Pitts., Ft. Wayne & Chicago Ohio, Ind., III., & Pa. 
 
 Pittsburg Plate Glass Pitts. Pa. 
 
 Plymouth Cordage Mass. 
 
 Pocasset Mfg Mass. 
 
 Pope Mfg Conn. 
 
 Pressed Steel Car N. Y. N. J. 
 
 Pullman N. Y., Bos., Chi. 111. 
 
 Quaker Oats N.J. 
 
 Quicksilver Mining N. Y. N. Y. 
 
 Quincy Mining Boston Mich. 
 
 Railway Steel Spring N. Y. N.J. 
 
 Ray Consolidated Boston Me. 
 
 Reading N. Y., Phila. Pa. 
 
 Reece Button Hole Boston Me. 
 
 Reece Folding Macine Boston Me. 
 
 Renfrew Mfg Mass.
 
 136 
 
 INHERITANCE TAXES. 
 
 State where incorp. 
 
 Name of Co. Exchange or organized 
 
 Republic Iron & Steel N.Y. N.J. 
 
 Revere Sugar Me. 
 
 Rock Island Co N.Y. N.J. 
 
 Rotary Ring Boston Del. 
 
 Rutland R. R Boston, N. Y. Vt., N, Y. 
 
 Sagamore Mfg Mass. 
 
 St. Joseph & Grand Island.. N.Y. Kan., Neb. 
 
 St. Louis & San Francisco . . N.Y. Mo. 
 
 St. Louis Southwestern .... N.Y. Mo. 
 
 St. Mary's Mineral Land .. Boston N.J. 
 
 S. Pedro, Los Ang. & Salt L. Utah 
 
 Santa Fe Gold & Copper . . . Boston N.J. 
 
 Sao Paulo T. L. & Power . . Montreal Ont. 
 
 Savannah Electric Boston Ga. 
 
 Scovill Mfg Conn. 
 
 Seaconnet Mills Mass. 
 
 Seaboard Air Line Va. 
 
 Sears-Roebuck N. Y., Chicago N. Y. 
 
 Seneca Mining Mich. 
 
 Shannon Copper Boston Del. 
 
 Shattuck-Arizona Boston Minn. 
 
 Shaw Stocking Mass. 
 
 Shawinigan Water & Power . Quebec 
 
 Singer Mfg N.Y. 
 
 Slater Mills Mass. 
 
 Sloss-Sheffield N.Y. N.J. 
 
 South Utah Boston Me. 
 
 Southern Pacific N.Y. Ky. 
 
 Southern Railway N. Y., Bait. Va. 
 
 Standard Cordage N.Y. 
 
 Standard Oil N.Y. Curb N. J. 
 
 Standard Screw N.J. 
 
 Stevens Mfg Mass. 
 
 Submarine Signal Me. 
 
 Sullivan County R. R N. H. 
 
 Suncook Mills Mass. 
 
 Superior Copper Boston Mich. 
 
 Superior & Boston Boston Ariz. 
 
 Superior &Pittsburg Boston Minn. 
 
 Swift & Co Boston III. 
 
 Tamarack Boston Mich. 
 
 Tecumseh Mills Mass. 
 
 Tennessee Central Tenn. 
 
 Tennessee Coal, Iron & R. R. N.Y. Tenn. 
 
 Tennessee Copper Boston, N. Y. N. J. 
 
 Terre Haute, Ind. & East . Ind.
 
 INHERITANCE TAXES. 
 
 137 
 
 State where incorp. 
 
 Name of Co. Exchange or organized 
 
 Terre Haute Trac. & Light . Ind. 
 
 Texas Central Texas 
 
 Texas Co N. Y. Texas 
 
 Texas Pac. Land Trust N. Y. Tex.* 
 
 Texas & Pacific N. Y., Phila. U. S. 
 
 Third Avenue N. Y. N. Y. 
 
 Thorndike Co Mass. 
 
 Toledo Ry. & Light N. Y. Cinn. Clev. Ohio 
 
 Tol. St. Louis & Western .. N. Y. Ind. 
 
 Tonopah Mining Phila. Del. 
 
 Torrington Boston Me. 
 
 Tremont&Suffolk Mills Mass. 
 
 Twin City Rapid Transit . . N. Y. N. J. 
 
 Union Bag & Paper N. Y. N. J. 
 
 Union Cotton Mfg Mass. 
 
 Union Mills Me. 
 
 Union Pacific N. Y., Boston Utah 
 
 Union Switch & Signal .... Pa. 
 
 Union Traction (Phila.) . . . Phila. Pa. 
 
 United Box Board Chicago N. J. 
 
 United Cigar Mfgrs N. Y. N. Y. 
 
 United Dry Goods N. Y. Del. 
 
 United Fruit Boston N. J. 
 
 United Gas Improvement .. Phila. Pa. 
 
 United Railways Investment N.Y., Phila. N. J. 
 
 United Shoe Machinery . . . Boston N. J. 
 
 U.S. Cast Iron Pipe N. Y. N. J. 
 
 U. S. Envelope Me. 
 
 U.S. Express N. Y. N. Y.* 
 
 U.S. Finishing Conn. 
 
 U.S. Industrial Alcohol ... W. Va. 
 
 U.S.Lt.& Heating N. Y. Curb. Me. 
 
 U. S. Realty & Improvement N. Y. N.J. 
 
 U.S.Red.&Ref N. Y. N.J. 
 
 U.S. Rubber N.Y.& Boston N.J. 
 
 U. S. Smelt. , Ref. & Mining Boston Me. 
 
 U.S. Steel N.Y., Boston N.J. 
 
 U. S. Worsted Me. 
 
 United Verde W. Va. 
 
 Utah Apex Boston Me. 
 
 Utah Consolidated Boston N. J. 
 
 Utah Copper N.Y., Boston N.J. 
 
 Vandalia Ind., 111. 
 
 Vermont Val. R. R. (B.&M.) Vt. 
 
 Victoria Copper Boston Mich. 
 
 Virginia-Carolina Chemical . N.Y. N.J.
 
 138 
 
 INHERITANCE TAXES. 
 
 Name of Co. Exchange 
 
 Va. Iron Coal & Coke N. Y. 
 
 Virginian Railway 
 
 Vulcan Detinning N. Y. 
 
 Wabash N. Y. 
 
 Wab.-Pitts Terminal 
 
 Wamsutta Mills '.-.... 
 
 Washington Ry. & Elec. . . . 
 
 Wells-Fargo N. Y. 
 
 West End Street Ry Boston 
 
 Western Maryland N. Y. 
 
 Western Electric Chicago 
 
 Western N. Y. & Penn. Ry. Phila. 
 
 Western Tel. & Tel Boston 
 
 Western Union N. Y. 
 
 Westinghouse Elec. & Mfg. N. Y. 
 
 Wheeling & Lake Erie N. Y. 
 
 Whitman Mills 
 
 Wilton R. R 
 
 Winona Boston 
 
 Winthrop Mills 
 
 Wisconsin Central N.Y.& Boston 
 
 Wolverine Boston 
 
 Wyandot Boston 
 
 Yazoo & Miss. Valley 
 
 York Mfg 
 
 State where incorp. 
 or organized 
 Va. 
 Va. 
 N.J. 
 111., Ind., Mich., 
 
 Mo., Ohio 
 Pa., Ohio, W. 
 
 Va. 
 Mass. 
 
 District Col. 
 Colo. 
 Mass. 
 Md. 
 111. 
 
 Pa., N. Y. 
 N.J. 
 N.Y. 
 Pa. 
 Ohio 
 Mass. 
 N.H. 
 Mich. 
 Me. 
 Wis. 
 Mich. 
 Mich. 
 Miss. 
 Me. 
 
 Companies marked * are not corporations, but joint stock companies 
 or voluntary associations.
 
 INDEX. 
 
 Page 
 
 ALABAMA ......... 26 
 
 ALIENS-NON-RESIDENT ..... 106, 109, 111 
 
 ARIZONA .......... 28 
 
 ARKANSAS ......... 70 
 
 CALIFORNIA 81 
 
 CANADA 120 
 
 COLLATERAL INHERITANCES DEFINED .... 10 
 
 COLORADO . 90 
 
 CONNECTICUT ......... 63 
 
 CORPORATIONS, LIST OF ....... 127 
 
 DELAWARE ......... 35 
 
 DIRECT INHERITANCES DEFINED ..... 10 
 
 DISTRICT OF COLUMBIA ....... 27 
 
 DOUBLE TAXATION, ATTEMPTS To AVOID .... 118 
 
 EXEMPTIONS, TABLE . . . . . .14 
 
 FLORIDA .......... 28 
 
 GENERAL RULES ........ 21 
 
 GEORGIA . . . . . . . . . . . 28 
 
 HAWAII 14 
 
 IDAHO 83 
 
 ILLINOIS .60 
 
 INDIANA .......... 29 
 
 IOWA 109 
 
 KANSAS .......... 74 
 
 KENTUCKY ......... 101 
 
 LOUISIANA ......... 106 
 
 MAINE .......... 53 
 
 MARYLAND ......... 34 
 
 MASSACHUSETTS ........ 38 
 
 MICHIGAN ......... 96 
 
 MINNESOTA 84 
 
 MISSISSIPPI 29 
 
 MISSOURI . . .._ ^. ..... 37 
 
 MONTANA 86
 
 140 INDEX. 
 
 Page 
 NEBRASKA ......... 76 
 
 NEVADA .......... 29 
 
 NEW HAMPSHIRE 56 
 
 NEW JERSEY 103 
 
 NEW MEXICO ......... 29 
 
 NEW YORK ......... 44 
 
 NON-RESIDENTS, WHAT STATES TAX, TABLE ... 19 
 
 NORTH CAROLINA 67 
 
 NORTH DAKOTA ........ 88 
 
 OHIO 36 
 
 OKLAHOMA 50 
 
 OREGON ; 93 
 
 PENNSYLVANIA 30 
 
 PORTO Rico 15 
 
 RATES OF TAX, TABLE 14 
 
 RHODE ISLAND ......... 27 
 
 SOUTH CAROLINA . . . . . . .29 
 
 SOUTH DAKOTA ........ 89 
 
 TABLES: 
 
 EXEMPTIONS 14 
 
 RATES . . . . . . . . .14 
 
 STATES THAT TAX INHERITANCES . . . . 11 
 
 STATES THAT TAX FOREIGN CORPORATIONS OWNING 
 
 PROPERTY - . 19 
 
 STATES THAT TAX NON-RESIDENT SECURITY HOLDERS 19 
 STATES THAT Do NOT TAX INHERITANCES . . . 26 
 
 TENNESSEE . 69 
 
 TEXAS .72 
 
 TRUST CERTIFICATES .' .117 
 
 UNIFORM LEGISLATION, PROPOSED . . . . .113 
 
 UNITED STATES .10 
 
 UTAH . .92 
 
 VERMONT . . . . . . . . .58 
 
 VIRGINIA .33 
 
 WASHINGTON . .111 
 
 WEST VIRGINIA . . . . . . . . 98 
 
 WISCONSIN . . . . . . . . . 78 
 
 WYOMING .... 95
 
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 IN PREPARATION 
 
 INHERITANCE TAXES 
 
 The Boston Book Company announces that an 
 authoritative treatise on Inheritance Taxes is in prep- 
 aration, to be published about Sept. I, 1911. This 
 work will contain all the statutes and all the decisions 
 in every state, with tables, and a list of corporations. 
 It will be the first complete treatise on the subject 
 
 since 1895, 
 
 BY 
 ARTHUR W. BLAKEMORE 
 
 (Of the Boston Bar; author of Massachusetts Court Rules Annotated; The 
 
 Abolition of Grade Crossings in Massachusetts; the article on 
 
 Wills in "CYC," etc., etc.) 
 
 and 
 
 HUGH BANCROFT 
 
 (Of the Boston Bar; sometime District Attorney, Middlesex County, 
 Massachusetts; and a director of the Boston News Bureau.) 
 
 Orders for this book may be sent to the Boston News Bureau, 25 
 Exchange Place, Boston, Mass.
 
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