Part 6 (1/2)

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.