Property Transferred by Power of Appointment. § 220 residuary legatee. His individual property in this State amounted to $115,000. His wife Emily M. Lord, also a resident of New Jersey, died a few days after his decease, and it was held that the principal of the two trust funds within this State was property of the said Emily M. Lord within this State at the time of her death and taxable, but that the property which had belonged absolutely to the husband, or the proceeds thereof, was received by her estate by reason of her claims against the estate of a nonresident, and the amount which her estate should receive by reason of that claim could only be determined upon an accounting by the executor of her husband's estate. The amount which her estate ultimately received could not, therefore, be said to be property within this State at the time of her death, and is therefore, not taxable as such, although the securities constituting her husband's estate were within this State when she died. Matter of Lord, 111 App. Div. 152; affd., 186 N. Y. 549; affd., sub nom. Beers v. Glynn, 211 U. S. 477. 263. Property in New Jersey Transferred under Power of Appointment by Will of a Resident Decedent Is Taxable. Where a resident decedent by his will exercised a power of appointment transferring a certain trust fund held by a trustee residing in New Jersey, and consisting of cash and bonds and mortgages on property in New Jersey, and representing the proceeds of sale of real property in New Jersey which constituted the trust fund at the time the power of appointment was created, the property so transferred is subject to a transfer tax. Under transfers of this kind the question is not where the property is located, or whether it was real or personal property, but whether the bene § 220 Notes and Bonds Secured by Real Estate. ficiary came into its possession through the exercise of a privilege conferred by the State of New York. Matter of Hull, 111 App. Div. 322; affd., 186 N. Y. 586. 264. Notes, and Bonds Secured by Real Estate without This State, Are Taxable if Located Here. An obligation whether it is in the form of a negotiable promissory note or in the form of a bond secured by real estate in the State of which decedent was a resident, if located here is in either event taxable. In the appraisal of the Estate of Gibbs, 60 Misc. Rep. 645, 113 N. Y. S. 939, in the affidavit submitted by the administrator, a note payable to decedent was described as "Mortgage on property in the State of Virginia," while the appraiser in his report describes it as "Note on property in the State of Virginia. The papers on appeal did not contain a copy of the note nor any description of it which would enable the court to determine whether it was an ordinary promissory note or an obligation in the shape of a bond secured by real estate in Virginia. Surrogate Beckett held that "if it is to be regarded as a negotiable promissory note it is taxable (Matter of Wall, N. Y. Law Journal, January 17, 1905; affd., without opinion, 105 App. Div. 643; Blackstone v. Miller, 188 U. S. 189). If it is to be regarded as a bond, the fact of its having been located here at the time of decedent's death makes it taxable (Matter of Whitney, 150 N. Y. 27; Matter of Morgan, 150 N. Y. 35).” 265. Certificates of New York Corporations Issued for Stock of a New Jersey Corporation in Liquidation, Deposited with It, Are Not Taxable. Among the assets of a nonresident decedent were inventoried a certificate of deposit of the Central Trust Certificates of New York Corporations. § 220 Co., of New York, for 9,521 shares of U. S. Leather preferred stock, valued at $999,705, and another certificate of the same company for 3,500 shares of the common stock of said Leather Company, valued at $38,500. The decedent shortly before his death accepted and became a party to a contract intended to reorganize or else close up the affairs of the U. S. Leather Company by the complete surrender of all its stock to the Central Trust Company, of New York, a depositary company, in exchange for the delivery by such trust company of certain certificates issued by it which fully replaced the former evidences of property. The holders of these certificates had the right to participate, through the contract entered into, in the final outcome in whatever form of property might result from the liquidation of the old Leather Company, the interests or rights in which were surrendered and made over to the local Trust Company. These certificates of the Trust Company were listed and quoted daily on the New York Stock Exchange, but were negotiable only by registration at the office of the Trust Company in New York. The value of these certificates were appraised in transfer tax proceedings in New York county on the decedent's estate, and an order entered imposing a transfer tax thereon. On the appeal therefrom by the executors, Surrogate Thomas reversed the taxing order, holding (Matter of Rhoades, N. Y. Law Journal, April 24, 1907; affd., 120 App. Div. 882, 190 N. Y. 525, without opinion) that the testator did not part with the title to his stock in the New Jersey corporation when he deposited it with the Central Trust Company, of New York, and accepted the receipts or certificates of that company therefor, and the § 220 Bonds of Foreign Corporations. Trust Company did not then or at any time acquire any transferred ownership therein. At the time of the death of the testator he continued to own that stock subject to the rights acquired by the other owners of stock in the New Jersey corporation, who became parties to the pending scheme for its reorganization, and the Trust Company was in substance mere stakeholder and the agent and bailee of the real parties in interest. 266. Bonds Owned by Foreign Corporation Not Taxable as Property of a Deceased Stockholder. In the Matter of Heillman, 116 App. Div. 186, it appears that the decedent at the time of his death was a resident of Alabama, and was the president of a foreign corporation which had contracted with another foreign corporation to sell its property, to be paid for in the stocks and bonds of the purchaser, which were to be delivered first to the selling company and subsequently divided among its stockholders. The purchasing company mortgaged its property to a New York corporation as trustee to secure its bonds, but at the time of decedent's death no bonds had yet been issued, although decedent was entitled to receive 500 of these bonds. The court held that decedent's interest in the bonds were not taxable, as they had not vested in him personally at the time of his death; that prior to any distribution to the decedent personally as a stockholder the bonds were to be owned by the corporation of which he was president, and that the title of said corporation could not be divested except by action of its directors, which action had not been taken at the time of his death; that the property of a foreign corporation cannot be considered to be the property of its stockholders for the purpose of taxation. Contract for Delivery of Stock. § 220 267. A Contract for Delivery of Stock of a New York Corporation Is Not" Property within This State." The contract of the nonresident decedent with residents of this State for the delivery to him on February 1, 1910, of 155 shares of stock of the New York corpo. ration of Lord and Taylor, which contract was by its terms not transferrable before the day appointed for such delivery, and the decedent dying before that time did not, even though the written evidence of such contract was kept here, constitute property within this State within the meaning of the Transfer Tax Law, and is not taxable. Matter of Bell, N. Y. Law Journal, March 22, 1909 — Surrogate Thomas. 268. If Transaction Shows the Relation of Resident Debtor Instead of Agent, the Amount Due the Nonresident's Estate Is Taxable. Decedent, a resident of Massachusetts, a little over a year prior to his death, placed in the hands of his nephew, a resident of New York city, $50,000 in securities and cash, and as evidence of this transaction the nephew sent his uncle a letter stating: "This is to ack. loan of $50,000 kindly made by you to me, the loan to bear int. at the rate of 4 per cent. per annum, the money to be used in the purchase of securities at my discretion, the profits to be reinvested, and at the expiration of the loan the net profits to be equally divided between us; this loan is to be repaid and settlement made on 30 days' notice. * The uncle died leaving considerable property in this State, and this transaction was considered by the appraiser as a debt due from the nephew, and was appraised and taxed with the other assets within this State. The executor claimed that while the letter |