Certificates of Deposit. § 220 "to the said Abraham S. Hewitt or his assigns on the return of this certificate, which is assignable only on the books of the company. 99. The certificate also reserved the right, upon five days' notice, to reduce the rate or discontinue payment of interest or pay the principal. Decedent also had on deposit in the United States Trust Company, in New York city, $300,000, for which that company had issued a certificate similar to the one mentioned above. At the time of decedent's death, both these certificates of deposit were in the possession of decedent in the State of New Jersey. In transfer tax proceedings upon this estate the appraiser reported the two sums of money in said trust companies as property of the decedent within this State, and an order was accordingly entered by the surrogate of New York county assessing a tax thereon. The executors and legatees appealed from this order on the ground that the property of which the decedent died possessed was not the sums of money so deposited with the trust companies, but the two certificates of deposit for said sums, respectively, and that, as such certificates were in New Jersey at the time of decedent's death, neither the money so deposited nor the certificates were taxable under the Transfer Tax Law of this State. The surrogate affirmed his order assessing the tax upon said two sums of money, and this order was in turn affirmed by the Appellate Division of the First Department, without opinion (98 App. Div. 624, 90 N. Y. S. 1100), and the order of the Appellate Division entered November 30, 1904, was, on the 25th day of April, 1905, affirmed by the Court of Appeals, without opinion. § 220 Notes Payable Outside This State. 253. Money Deposited with a Trust Company. Money deposited with a trust company organized under the laws of the State of New York to the credit of a resident of the State of Illinois, representing the proceeds of the sale of a number of shares of stock of an Illinois corporation owned by such resident of Illinois, is subject, upon his death, to a transfer tax under the laws of this State. The balance of a deposit account kept by such nonresident at the time of his death with a firm of bankers in the city of New York is also subject to tax. Matter of Blackstone, 69 App. Div. 127, 74 N. Y. S. 508; affd., 171 N. Y. 682. See excerpt from decision of the United States Supreme Court in Blackstone v. Miller, paragraph 215 (ante). 254. Promissory Notes, Payable Outside This State, but Kept Here by Nonresident Decedent, Are Taxable. The promissory notes owned by the nonresident decedent and payable outside of this State by nonresident makers, having been kept by the decedent in this State and been physically present here at the time of his death are taxable (Matter of Wall, N. Y. Law Journal, January 18, 1905; affd., 105 App. Div. 643), and this notwithstanding that some of them are secured by mortgages on lands situated outside of this State (Matter of Gibbs, 60 Misc. Rep. 645 and cases cited). On the principle applied in the Matter of Clinch (180 N. Y. 300, 302), the debts on simple contract which were owing to the decedent from residents of this State at the time of his death, are also taxable, it being necessary to invoke the law of this State for their collection. This principle was not weakened by the decision in the Stock of Domestic Corporations. § 220 Matter of Gordon (186 N. Y. 471). Matter of Bell, N. Y. Law Journal, March 22, 1909- Surrogate Thomas. 255. Appraisal of Stocks of Domestic Corporations Owned by Nonresident. Shares of capital stock of a domestic corporation owned by a nonresident decedent represent an interest in property within the jurisdiction of this State for the purpose of taxation upon its transfer, and the assessment thereof is properly computed upon the value of his interest in the whole of the corporate property as evidenced by the number of shares of stock of which he died possessed, and not upon that proportion of its value which represents the proportion of the capital and assets of the corporation employed here. Matter of Palmer, 183 N. Y. 238. The decedent in this case owned 4,855 shares of the N. Y. Central and Hudson River Railroad Company, a corporation of this State, and the executors claimed that the tax should only be imposed upon that proportion of its market value which represents the proportion of the capital and assets employed within the State of New York, that is to say, because it appeared that about 36 per cent. of the corporate capital was invested in properties within this State, the appraisement of the value of the stock should have been proportionately less. The court held " that value, whatever it may be in the market, is the worth attached to an interest in the corporate assets and properties regarded as a whole. A share of capital stock represents the distinct interest which its holder has in the corporation, and his right to participate in the distribution of the net earnings of the corporation, as a going concern, or in § 220 Id.; When Incorporated in Two or More States. that of its assets, upon a dissolution, is proportionate to the number of shares which he holds. They evidence the extent of his proprietary interest, and their assessment for taxation purposes must be upon that interest, regarded as an entity, and is unapportionable with reference to the situs of the corporate properties." 256. Stocks of Corporations Incorporated in This State and One or More Other States, When Owned by a Nonresident, Are Appraised Proportionately. The Palmer Case (supra) was considered as authority for appraising the stock of corporations incorporated in this State and one or more other States, at the full market value at the time of the nonresident's death, on the theory that such corporation was a domestic corporation, although it may have become incorporated in another State, and this practice prevailed until the decision of the Court of Appeals in the Matter of Cooley, 186 N. Y. 220. In the Cooley case the stock of the Boston and Albany Railroad Company was under consideration, and it was shown that this company is a consolidation formed by the merger of one or more New York corporations and one Massachusetts corporation. The merger was authorized and the said consolidated corporation duly and separately created and organized under the laws of each State, by the contemporaneous action of the Legislature of both States, and there was but a single issue of capital stock representing all of the property of the consolidated and dual organization. The court held that for the purpose of imposing a transfer tax upon stock of a nonresident testator in this company the valuation of the stock should be based upon an apportionment of the property between the Id.; When Incorporated in Two or More States. § 220 New York and Massachusetts corporation; that the stock should not be appraised at its full value, but at a value representing the property of the corporation within this State, and a proper proportion of that situate outside of either State and moving (as in the case of rolling stock) back and forth between both States; that such a method avoids double taxation and is equitable and just. It was also suggested that an apportionment based upon trackage, or figures drawn from the books and balance sheets of the company would be substantially correct. The only question settled by this decision was that in appraising stocks of this character only a proportionate value of the market value of such stock was to be appraised for transfer tax purposes, but the manner of ascertaining this value was left for future adjustment. Upon the reappraisal of the Cooley estate it was concluded that track mileage distance between the two terminal points within and without this State was a fair and practical basis upon which to appraise the stock of the Boston and Albany Railroad; that from the evidence produced before the appraiser it appears that the total main line mileage within this State and the State of Massachusetts amounts to 199.91 miles; that of said mileage 161.35 miles are within the State of Massachusetts, while 38.56 miles thereof are within the State of New York, and based upon such figures 19.29 per cent. represents the proportion of such mileage within this State, and the stock was appraised at 19.29 per cent. of its market value at the time of the decedent's death. Applying this method in appraising the stock of the Fitchburg Railroad Company, a corporation incorporated in this and several adjoining |