Id.; Stock of the B. & A., and Fitchburg R. R. Co. § 230 The Fitchburg Railroad Company is also incorporated in the States of New York, Massachusetts, Vermont, and New Hampshire, and the stock of this company, when owned by a nonresident decedent, was appraised at its market value at the time of decedent's death. In the Matter of Cooley, 186 N. Y. 220, it was held that in appraising the stock of the Boston and Albany Railroad the valuation of the stock should be based upon an apportionment of the property between the New York and Massachusetts corporation, and upon the reappraisal of this estate it was shown that the main-line mileage of the Boston and Albany Railroad was 199.91 miles, 161.35 miles being in the State of Massachusetts and 38.56 miles thereof in the State of New York, and the appraiser found the value of the stock to be 19.29 per cent. of the market value of the stock at the time of decedent's death. Upon the same basis the stock of the Fitchburg Railroad was appraised at 35.66 per cent. of the market value. In the Matter of Thayer, 58 Misc. 117; affd., 193 N. Y. 430, Surrogate Beckett, in the appraisal of stock of both of these railroads, determined the value thereof differently, holding that an apportionment on the basis of the total mileage within this State was preferable to either (1) the mileage between terminal points, or (2) a detailed inventory and valuation of all the pieces of property belonging to the corporation, or (3) a computation upon figures taken from the books and balance sheets of the company. This apportionment made the per cent. of property taxable within this State 18.37 per cent. of the market value of the Boston and Albany Railroad and 25.51 per cent. of the value of the Fitchburg Railroad. The differ $ 230 Joint Stock Associations. ence in the value of the Fitchburg stocks, as shown in the Cooley case (supra), was owing to the allowance of a deduction of $1,812,000 representing wharves, grain elevators, and connecting tracks in Boston and Somerville, and which were not to be considered a part of the ordinary freight and passenger terminals of the road, from the total capital before the apportionment of the capital stock on a mileage basis. This decision was affirmed by the Appellate Division without opinion, and in the Court of Appeals the principal ground for reversal contended for by the Comptroller was that the deduction of the sum representing the marine terminals referred to was improper in determining the value of this stock on a total mileage basis. The Court of Appeals affirmed the order holding that the valuation of the stock was a question of fact, and the decision of the surrogate having been unanimously affirmed by the Appellate Division, it was conclusive in that court as no error of law was involved. 509. Joint-stock Associations. The shares of a joint-stock association constitute personal property and are taxable as such, irrespective of the character of the property represented thereby, whether real or personal, and where the shares are not listed upon the Stock Exchange or sold in the open market, the value of the realty may be considered upon an appraisal in order that their value may be established. Matter of Jones, 172 N. Y. 575; revg. 69 App. Div. 237, 74 N. Y. S. 702. 510. Joint-stock Associations and Corporations, Difference Between. The fact that a joint-stock association is not in legal contemplation a corporation, and not liable to taxation Appraisal of Inactive Stock. § 230 under acts seeking to reach corporations, in no way militates against the position assumed by the Comptroller. It is competent for private individuals to create a joint-stock association, issue shares of stock, and in that form dispose of property by last will and testament. The associates by contract have created the same situation as to shares of stock that a corporation secures by charter. Matter of Jones, 172 N. Y. 575-581. 511. Taxable Value Where There Is No Market Value. Where there is no market value for the extremely profitable stock of a porous plaster company, because the stock is not for sale, an appraiser may properly estimate its taxable value upon the basis of the earning capacity of the corporation, its good-will, and the value of its secret recipes used in the manufacture. Matter of Brandreth, 28 Misc. Rep. 468, 59 N. Y. S. 1092. 512. Appraisal of Inactive Stock. The State, upon the appraisal of an inactive stock, may properly introduce as evidence of the fair market value, the opinion of witnesses qualified to answer; the price quotations of the stock contained in market reports and authentic publications; the prices established by actual sales made in the regular course of business, even though not made on the exchanges, and in the absence of other competent evidence, the actual or intrinsic value of the property itself. Matter of Proctor, 41 Misc. Rep. 79, 83 N. Y. S. 643. 513. The Test of Value. The true test of value by which the tax is to be measured is the value of the estate at the time of the § 230 Appraisal of Notes, Claims, etc. transfer of title and not the value at the time of the transfers of possession. Matter of Davis, 149 N. Y. 539. (Decided, Act 1887.) 514. Notes Directed to Be Canceled, Appraisal of. Where a testator directs his executor to cancel and surrender certain promissory notes to the makers thereof, without payment, such notes should, for the purpose of determining the transfer tax thereon, be appraised at their fair market value and not at their face value. Morgan v. Warner, 45 App. Div. 424, 60 N. Y. S. 963; affd., 162 N. Y. 612. 515. Notes or Claims in Litigation. The amount of a note on which suit has been brought by the administrator and is still pending when an appraisal for a transfer tax is made should be excluded from the valuation and reserved for future appraisement in case the administrators succeed in collecting it. Matter of Westurn, 152 N. Y. 93. 516. Disputed Claim Not Appraised at Face Value. Where an executor has made an advantageous compromise of a claim in favor of the estate, the amount actually received, and not the face value of the claim, is the proper basis for the appraisal value. Matter of Thomas, 39 Misc. Rep. 223, 79 N. Y. S. 571. 517. Worthless Account Excluded. A worthless account is to be excluded in estimating value of decedent's taxable estate. So held as to an account of a son who was one of the legatees under the will of his father, but who at the time of the death of his father was wholly insolvent. Matter of Manning, 169 N. Y. 449; affg. 59 App. Div. 624, 69 N. Y. S. 1140. § 230 Appraisal of Real Property. 518. Evidence of Value of Real Estate. The evidence of a real estate appraiser who testifies to an opinion of the value of the property is not sufficient to overcome an actual sale where the evidence is that diligent effort had been made to sell the property and the price at which it was sold was the best that could be obtained. Matter of Arnold, 114 App. Div. 244, 99 N. Y. S. 740. In the Matter of Kennedy, affirmed 112 App. Div. 902, the surrogate modified his taxing order by reducing the value of three parcels of real estate from the value as reported by the appraiser upon the testimony of an expert witness, to the value as shown by the assessment roll, and the Appellate Division affirmed the taxing order as modified. 519. Error for Appraiser to Value Real Property Greater than Shown by Evidence. Where it appears there was no evidence before the appraiser to show that the value of certain real property was greater than the amount stated in the affidavit submitted on behalf of the executor, the report will, on appeal, be remitted to the appraiser for correction as to the value of such real property. Matter of Meenan, N. Y. Law Journal, March 5, 1908, Surrogate Beckett. 520. Real Property Impressed with a Resulting Trust - When Not to Be Appraised. When a deceased executrix who had a life interest in personal property purchased lands therewith without the consent or knowledge of the remaindermen, taking title thereto in her own name, the property is impressed with a resulting trust and the remaindermen may claim under the original will. The property is |