PROBLEM No. 17.

Mr. Montagu Summers had a conscientious objection to the Income Tax, and a positive loathing of the Super-Tax, and the trouble lay in the fact that he had ama.s.sed a considerable fortune in the City of London.

Something had to be done, however, to relieve Mr. Summers of a portion of this scandalous taxation, and so, converting as much of his property into cash as he could spare, he invested the same in various ways in other countries.

He bought Russian 4-1/2% Bonds in Holland of the nominal value of 200,000 Guilders, and a Freehold Farm near Amsterdam, which cost in English money about 8,000.

He bought Freehold Land in Canada, for which he paid 80,000, and deposited with the Calgary Investment & Security Trust $300,000 at 5%.

He lent on Mortgage in New Zealand 40,000, and he had a balance of Fcs.

8,600 to his credit at the Swiss Bankverein, Berne.

[Ill.u.s.tration: "Mr. Montagu Summers had a conscientious objection to the Income Tax, and a positive loathing of the Super-Tax."]

On the 14th November, 1913, Mr. Summers died of blood poisoning, the result of cutting a corn with a blunt razor.

His property in England consisted of his Furniture and Effects valued at 3,800, Cash balance at the London, City & Midland Bank, Queen Victoria Street, 300, and his interest as a Partner in the firm of Montagu Summers & Nephew, which was agreed at 32,640.

The Russian Bonds were sold on the Amsterdam Exchange for 180,000 Guilders, the Farm was valued at 112,800 Guilders, and the Land in Canada was estimated for duty purposes at $122,000.

a.s.suming the Death Duties in Holland to be 5%, in Switzerland nil, and the rates in the Colonies to be similar to what they are in this Country, show what Estate Duty would be payable in England.

The rates of Exchange can be taken as follows:--

Holland--12 Guilders = 1 Switzerland--25 Francs = 1 Canada-- 5 Dollars = 1

All accruing income to be ignored.

PROBLEM No. 18.

Mr. Harold Wimpole died in his Opera Hat, and was buried in Willesden Cemetery.

His Will had been proved, Estate Duty had been paid, and the Widow, who was the sole Beneficiary, had found considerable consolation in the 56,200 which had come to her.

This 56,200 represented the Gross Estate, less Debts due by Mr. Wimpole at his death 1,416, Funeral Expenses 39 17s. 0d. which were regarded by all, including the Inland Revenue Authorities, as most reasonable, Estate Duty, Interest on Estate Duty 31 16s. 0d., Testamentary Expenses 140 3s. 0d. and Legacy Duty.

[Ill.u.s.tration: "The Curate looked at the Widow, and the Widow looked at the Curate."]

Eight months had pa.s.sed away and the rules of Society permitted Mrs.

Wimpole to smile occasionally; the Curate, who took an extraordinary interest in Mrs. Wimpole's salvation and the carving of an ancient j.a.panese Cabinet, had called for tea. The Reverend gentleman, with a sandwich in his hand, was recording the incidents connected with the birth of Buddha, when his fingers happened to touch the spring of a secret drawer in the aforementioned Cabinet.

The Curate looked at the Widow, and the Widow looked at the Curate, and there they stood together, hand in hand, like two young children, in silent amazement, for the secret drawer in the j.a.panese Cabinet disclosed 25 4-1/2% Foreign Government Bonds to Bearer, of the nominal value of 500 each, and several memoranda of Stock Exchange dealings between Mr.

Wimpole and his Broker. The coupons were payable on the 10th March, and the 10th September in each year, and the last coupon which had been cut off was dated 10th September, 1912, exactly 8 months previous to the death of Mr. Wimpole. Mrs. Wimpole consulted the Reverend Oscar Veritas long and earnestly over the matter, and the Reverend Oscar admitted that it was a case necessitating very great firmness of character and honesty of purpose. Ultimately, however, he arrived at the conclusion that Mrs.

Wimpole would be unworthy to bear his name in the future, unless she did her duty in the present instance.

What was the pecuniary value of the good man's conclusions to the Inland Revenue in the matter of Estate and Legacy Duty, bearing in mind the fact that the Bonds stood at 92 on the day of Mr. Wimpole's death, and 90, ten months later when Mrs. Wimpole's Solicitor finally settled the matter?

Note.--The Honeymoon was spent in j.a.pan.

PROBLEM No. 19.

Sir Robert Rushforth, J.P., was a big man with a big heart and a wooden leg. He had inherited a fortune, gone bankrupt, and married a Widow, and if anyone had told him he wasn't a sportsman he would have called that individual a liar, and opened a second bottle.

He died on the 4th June, leaving all his property to his Widow, with the exception of his wooden leg, which he directed to be handed over to the Royal Hospital for Incurables, at Putney.

Such was the man, and the contents of his Will so exactly reflected the character of her husband that Lady Rushforth at once had recourse to the smelling salts on reading the doc.u.ment.

He directed the debts, from which he had obtained a legal discharge in Bankruptcy, to be paid in full, he forgave all his Debtors, and instructed his Widow, whom he had appointed sole Executrix and Residuary Legatee, to meet in full all his Gaming Debts. He further directed that a certain debt, in respect of which he had pleaded in his younger days the Statutes of Limitation, should be paid in full.

The name of this latter creditor was Gunter, and the debt, amounting to 25, was in respect of repairs to certain pig-sties.

The discharge from Bankruptcy had been obtained by Sir Robert eight years previous to his death. His liabilities had amounted to 16,200, and he had paid 2s. 6d. in the .

He owed his bookmaker, Mr. Hollins, of Houndsditch, 200.

He had lent his Vicar, the Rev. Aaron Cranium, 100, his sister Blanche 300, and his intimate but impecunious friend, Mr. Algernon O'Gizzard, 50. This latter loan was rendered necessary by reason of the fact that Mr. O'Gizzard had stood bail for a friend who had got into trouble with the police, and who failed to put in an appearance before the Magistrates on the day appointed. Now, Sir Robert happened to be on the Bench that morning, and ordered the bail to be estreated before he realised with whom he was dealing.

Apart from the above property Sir Robert left Personal Estate valued at 62,000. There was no Real Property.

Show what Estate Duty and Legacy Duty were payable upon Sir Robert's death.

Note.--The wooden leg was returned by the Secretary of the Royal Hospital for Incurables at Putney, and being found to be of no intrinsic value was eventually deposited in the family Mausoleum at Norwood.

PROBLEM No. 20.

Mr. James Hotchkiss died in the autumn of age on the morning of his 93rd birthday.

During his protracted life he had always surrounded himself with every comfort, and was reputed to be an exceedingly rich man.

No wonder then that his death should occasion an unparalleled outburst of grief and hatbands on the part of his weeping relatives.