James Clark McReynolds

“ No attempt was made by Virginia to tax the equitable interests of thebeneficiaries of the trust. That the thing taxed or the measure of the tax is different from the equitable interests of the beneficiaries, as affected by the specified contingencies, sufficiently appears from the fact that the one may well have been of different value than the other. In fact, the securities seem to have been assessed at their full value, although the equitable interests of the beneficiaries are less than the whole. ”

“ Manifestly, the securities are subject to taxation in Maryland where they are in the actual possession of the trust company-holder of the legal title. That they are property within Maryland is not questioned. De Ganay v. Lederer, 250 U.S. 376, 382, 39 S.C.t. 524, 63 L. Ed. 1042. Also, nobody within Virginia has present right to their control or possession, or to receive income therefrom, or to cause them to be brought physically within her borders. They have no legal situs for taxation in Virginia unless the legal fiction mobilia sequuntur personam is applicable and controlling. ”

“ It seemed to me going pretty far to discover even that limitation in the Fourteenth Amendment. It opens vistas to extend the restriction to stocks and bonds in a way that I cannot reconcile with Blodgett v. Silberman, 277 U.S. 1, 48 S.C.t. 410, 72 L. Ed. 749. Taxes generally are imposed upon persons, for the general advantages of living within the jurisdiction, not upon property, although generally measured more or less by reference to the riches of the person taxed, on grounds not of fiction but of fact. ”

“ If either of said two sons shall die before receiving his share of said principal and accumulations, then the same shall be paid over and delivered to his children living at his death; and if either shall die before receiving his share without issue, then such share shall be added to the share of the survivor and be held for his use and benefit in the same manner precisely as his original share is held.'
The deed made no provision for the event of death of both sons under 25 without issue. The donor reserved to himself power of revocation, but without exercising it, died in 1920. ”

“ One State may tax the owner of bonds of another State, although it certainly contributes nothing to their validity. Bonaparte v. Appeal Tax Court, 104 U.S. 592, 26 L. Ed. 845. It is admitted that Maryland could tax the trustee in this case although most at least of the securities handed over were beyond the power of Maryland to affect in any substantial way. The equitable owners of the fund were in Virginia and I think they could be taxed for it there. ”