stock having no market value must be taken as the latter until the contrary is shown." In determining the value of shares in a joint stock association, which are not listed on the stock exchange or sold in the open market, the value of the property they represent, including the real estate, should be ascertained.48 Judicial knowledge will be taken that the value of stock in an industrial corporation often does not bear close relations to the rate of dividends which may have been paid at any given time; the rate of dividends is not a controlling gauge of values.“ § 259. Time of Which Valuation Determined.— Since inheritance taxes are imposed upon the succession rather than upon the property, and the succession takes place at the time of the decedent's death, it follows that the tax is to be measured by the value of the estate as of the death of the decedent, not as of the date of the probate of the will, the distribution of the estate, or any other proceeding looking toward the administration of the estate and the collection of the tax. The appraisement is to be made and the tax fixed according to the value of the property as of the day of the decedent's death, without regard to subsequent depreciation, appreciation, or income, unless, as is the 47 Estate of Brandreth, 28 Misc. Rep. 468, 59 N. Y. Supp. 1092, 169 N. Y. 437, 58 L. R. A. 148, 62 N. E. 563; Estate of Proctor, 41 Misc. Rep. 79, 83 N. Y. Supp. 643. As to the determination of the value of inactive stocks of which sales are infrequent, see Estate of Curtice, 111 App. Div. 230, 97 N. Y. Supp. 444, affirmed, 185 N. Y. 543, 77 N. E. 1184; Estate of Cook, 50 Misc. Rep. 487, 100 N. Y. Supp. 628. 48 Estate of Jones, 172 N. Y. 575, 60 L. R. A. 476, 65 N. E. 570. 49 Estate of Smith, 71 App. Div. 602, 76 N. Y. Supp. 185; Estate of Curtice, 111 App. Div. 230, 97 N. Y. Supp. 444, affirmed, 185 N. Y. 543, 77 N. E. 1184. case in Montana and perhaps some other states, the statute expressly requires the increase to be taken into consideration. This general rule has been recognized by the courts, although not clearly expressed or required by the statutes.50 61 § 260. Report of Appraiser.-The appraiser should report any property, estate, or interest therein subject to the inheritance tax. His report should clearly express that it embraces all of the property which may be taxed at the date of the death of the decedent; and if it does not do so, it should not be confirmed. It should also show the basis or foundation of his findings.52 But it was not the duty of the appraiser, under the early New York practice, to include in his report a statement of exempt property," nor make any deductions on account of debts and expenses of administration." Before the surrogate has acted upon a report, he may send it back to the appraiser for the introduction of additional proof.55 The report of the appraiser is simply advisory to the court whose duty it is, ultimately, to fix the value of the property and the tax to which it is liable.56 50 Hooper v. Bradford, 178 Mass. 95, 59 N. E. 678; State v. Probate Court, 112 Minn. 279, 128 N. W. 18; Estate of Hartman, 70 N. J. Eq. 664, 62 Atl. 560; Estate of Davis, 149 N. Y. 539, 44 N. E. 185; Morgan v. Cowie, 49 App. Div. 612, 63 N. Y. Supp. 608; Estate of Earle, 74 App. Div. 458, 77 N. Y. Supp. 503; Estate of Lines, 155 Pa. 378, 26 Atl. 728. It is said that the tax should be imposed upon the property in the form in which it stood at the time of the death of the decedent: Estate of Offerman, 25 App. Div. 94, 48 N. Y. Supp. 993. 51 Estate of Earle, 74 App. Div. 458, 77 N. Y. Supp. 503. 53 Estate of Astor, 6 Dem. Sur. 413, 2 N. Y. Supp. 630; Estate of Vanderbilt, 2 Con. 319, 10 N. Y. Supp. 239; Estate of Wolfe, 29 Abb. N. C. 340, 66 Hun, 389, 21 N. Y. Supp. 515, 522. 54 See sec. 271, post. 55 Estate of Kelly, 29 Misc. Rep. 169, 60 N. Y. Supp. 1005. 56 County Court v. Watson (Colo.), 118 Pac. 979. § 261. Reappraisement of Property.-A second ap-. praisement is not allowable under the law of Pennsylvania; the statutes of that state seem to contemplate that the first appraisal shall be final. The remedy for an erroneous appraisement is by appeal." But in most of the states the inheritance tax statutes contemplate a second appraisement of an estate when the first one has failed truly or sufficiently to present the property to the probate court for the assessment of the tax. Indeed, many statutes authorize the probate courts or judge, either upon his own motion or the application of any interested person, to appoint an appraiser as often as or whenever occasion may arise. Under this statutory provision a county court in Colorado has jurisdiction, on its own motion, when the report of an appraiser is insufficient to enable the court to fix the inheritance tax, to vacate the order appointing the appraiser and appoint a new one." 58 In Iowa, when the state has not had notice of an appraisement, and has not been a party thereto, the district court may, on the application of the state, and a showing of error in the proceedings theretofore had, order a new appraisement to correct the error.59 When property has been submitted to a surrogate for taxation, his decree, if wrong, can ordinarily be reviewed only on appeal. His decision concludes the parties and puts the matter beyond question in other proceedings. Yet when property belonging to an estate has not come to the knowledge of an appraiser, and for that reason has been omitted from the appraisement, a further appraisement may be ordered. Such property has never been submitted to the jurisdiction of the appraiser or surrogate. It has never "had its day 57 Estate of Moneypenny, 181 Pa. 309, 37 Atl. 589. in court." " Where personal property not taxed on the first appraisal because claimed by a daughter of the decedent as having been assigned to her by the deceased is subsequently adjudged, on the suit of another daughter, to be a part of the decedent's estate, the surrogate has authority to order a further appraisement. But in Pennsylvania, where the statutes do not contemplate or provide for more than one appraisement, a second appraisement is not allowable in case the appraiser omits property not through fraud or accident, but through a mistake of law."2 61 62 The conclusiveness of appraisements and the power of the probate court to modify or vacate its decrees in the matter of appraisements and assessments will be further considered in a subsequent chapter. 63 60 Estate of Smith, 23 N. Y. Supp. 762; Estate of Wolfe, 137 N. Y. 205, 33 N. E. 156. 61 Estate of Lansing, 31 Misc. Rep. 148, 64 N. Y. Supp. 1125. 62 Estate of Moneypenny, 181 Pa. 309, 37 Atl. 589. 63 See secs. 290-293, post. § 274. Debts Owing by Nonresident Decedents. § 275. Apportionment Between Exempt and Nonexempt Assets. § 276. Expenses of Funeral and Interment. § 278. $279. Fees and Disbursements of Temporary Administrator. § 280. Compensation of Executors or Administrators. § 281. Compensation of Trustees. Commissions of Brokers. § 282. § 284. United States Succession Tax. § 285. Homestead, Exemptions, and Family Allowance. § 286. Property Misappropriated by Executor. § 270. Net Succession as Measure of Tax.-While the inheritance tax is said to accrue as of the time of the death of the decedent, yet it does not attach to the very articles of property of which he dies possessed, but rather upon such property as remains for distribution after the payment of debts and expenses of adminstration. The tax is imposed upon the legatee, devisee, or heir, and upon him only as to such property as he actually takes on distribution. The amount of the tax as to any distributee is to be determined according to the value of the "net succession," that is, the value of such property as remains for him after the satisfaction of such charges and burdens as may lawfully be satisfied in due course of administration, for it is only such property that can truly be said to pass to him. The courts have recognized this doctrine without any express statutory declaration.1 1 Estate of Kennedy, 157 Cal. 517, 108 Pac. 280; Estate of Hite, 159 Cal. 392, 113 Pac. 1072; Appeal of Gallup, 76 Conn. 617, 57 Atl. |