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AUSTIN
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,QgwwCMUm~
A?mmQ- .:, '.; :
Roaorabia J;, 0. Looney.
county +Iitor “. .
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shown. in’the
sdds +mr 6 paid
$1~ ~‘in other
WounseL for.‘the ~~~dlninistratrlx’oontends .
thst th8s.e liquidating &ivid&ids .ar? a part of’
the oorpus of the eatata, and. as suoh not subjsot. ‘I’
to ‘the oonunlssion of onzehalf of one per cent
due the County Judge un3ar &!t. 3926, ..RCS, ‘althpugh
the full amount roproscxta ‘pn inorrask over the
actual inventory values.
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’ Eonorable S. D.’ .kooney pace $2
*Iii taxlny, the coats in this case, should one-
.heflf of on6 per. cent~oommlsalon bo taxed by the County
Judge on thla itern~.~of.,~l~uldati.ng’dlolden0a,?~
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In reply ‘to our litqulry ,am‘to how this ‘iioulda-
~~0~ ~was~‘hanQ.ad,.your’ &et.tar. of Ootobar 20, 1943, i+ter:
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“The .&bsF .oornpai& wound ui b&i&~“& .’
’ .. $ald’ oi? the. 3nterest of share holders partly In
. ‘cash‘and partly by lssu~oc of:. stock .ln ,a.:new . ...’
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aorporotlon.N ,, .-‘I . . . .
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. ,. hrtldlc .3326g R?ilied Civiiz &tu&&d~ zin
.j&‘& f,o~lgwe: _’.‘:yf;:;‘.:.: ..;, . .: r..: : : :
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. . -: “The co&y: Judg’e ahe.ll’:ai$o raoelk the .I
~.,rf+lowlag:reesr ~,
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.“1.. .A oommfea’ii.-+;of cne-lialf bi oki peroeht
up03 the aotual oosh reoelpta’ of: eaoh bxecutor,
(Idmlnlstrator or~guar~lan, upon.ths approval of
the exhlblta,and tea fini set$lemen$ oi the” :-<.
qoa+nt -of :.auoh xksogtor; administrator, or ~
euardian,~ .bnt .no’mojc,ti‘Ithan ‘on.6 such ,ao&slselon :
shell ?@ .oh~&ed; ‘On w. k.wiunt received :by ‘any
suoh ereou~~r;“‘cr~~l?trator’ or, &uardlan.W
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The an&war to ,your .qvoe,tl?q~: d6pend.a. upon ~a ,.
Iroper construotiun. of: the term’ “aotual~. ce.sh~~~eailipt?33’~~ail
csed ln tho sb~ove:statuttir :-Under the iacts asxe?under- ’ ‘.
atsnd them, deaeased ~“bwned.‘stoc$. .!n.. a. ‘qofporatlon at the
time of. hle death;. Since thtrt time,.’ this asset of .the
estate hns be.?n ohcu;ged’G fqrm.. In exchange tor thk
stoc4, the ndminlstratrlx has rrosived. fra?l the ‘corpora-
tlon casi cnd:~aome .stoo& ~&na ~IFIRoorporatlon. ,: Thi,
sdninlstr.atrlx-hFie. raported this: tranqaction .in hsr ’ a
snnusl occocnt recently filed in the ocunty coprt. Do ;‘
thess new essets;. abquire$ In ,lieu of: the ,old, ‘constitute
*sotual ~qash reoelpts.* ‘witbin.. the aeenini; or..-the ‘dbove
atatute~, ‘, i’, .: ~’‘T..:
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The contention of oounkel.~ for. ihe admlhlstiatrix.
as reterred, to.,ln ~yohr .letter i”’ eitparontly based Upon their
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Honorable 3: D.. Looney pare $3
interpreta$lon OS the longuace OS the Court OS Cloll Appeala
ia the case of :Ylllla vs. Harvey, 26 S. X. (2) 288, In whloh
Cese writ OS error was reiused. In that ease the court
reviewed a decision oS the trial jud e allowing the oounty
judge a oommlsslon under Article 392 t , eupr.a, of one-heir
.Or one .peroent on,oash OS the teatatrl% on, deposit in the
bank’ at tha. time of her death. The executors appealed from
the rulln~.mak~ng this allowance. 1Yaquota the Sollowln~
excerpt Srom the deolalon OS the, Courts..
“The aOt vary Olsarly has in.vIew the provid-
I& OS. oompensatlon to the probate judge for hIa
oSSlcIal’oontro1 OS eststqe, based on @the aotual
oaah reoslpt~’ shown by the exhibits and the SInal
settlement OS the .aaaoouqt oS the *executor*. But.
properly cdnstrufng the Aot;,lt Is believed that
the speOISIo case presented here on appeal may..
not be reg’lrded as wl thin. its soope and rr1thl.n
Its purpose. There Is nothing in: then words or the
diti.616 to atteoh’ a~dlff orent mianing Oapabls OS
eipresalg embracing It. An Independent exeoutor
Is not .lncluded wIthin the term ‘exeoutor,’ as
employed In the article, snd the:~term*reoeIpta*
therein .used~,,does not embraoa Oash on deposit ‘,,‘ _’ : ‘.
ti the bank batsthe death OF the teatator. The .~ :
word .*ifxeoutor* as’ used Is mall6 clear and apa~ltld .
by considering the assoclsted words @administrator
or guardian. * Judged Sror Its associated words,
.~ the term ‘exdoutor * wee meant .to refer to the
exec?utor admInisterIng the estates OS the testator
under the oontrol OS the probatd oourt. suoh . .
olass of exeo’utors are required, ‘as admlnfetra-
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tors and guardians are, to present to the pro- .
bate court In ah exhibit OS ecoountlng; under
oath,- all sums in oash terlved from sales, 001-
lectlons, and like sources in due oourse OS ad-
mlnIstratlon. The probote &d&e Is required to
examine and approve all suoh exhibits oS aocount-
lnc whsn ,dtip presented to him by such exeOUtOr
or a&lnIstrator or guardian.- The oSflolal situation
cS an independent exeoutor is dliiarent, and it-
‘is OtherwIse provided es to his leeal duties and
euthorlty. The statute of this atote authoriaes
admlnlstration independent OS the control OS .~
prob,e$s jurisdiction wh#:.xothe tes%atOr has 80
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Ronorable J. D. Lqoney page #4.
‘. lndlosted by the terms of the tvlli thnt such 16
.;-. ~h18 a06ire. The independent exeoutor so named
:. In .ths will.16 qualliled to a ot, and Independently
of the, probate oourt, fro61 the time the wIll*ap
poIntlnC him is’ adsltted to Probate.. Colemauv.
boduoa Co. (Tex.CIt. App.) 204 3. K. 382; Pepper : .
. II: ‘Galling (Tel. Clv. A.p.) 195 S. V. 892; Roy
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‘. v.. Ghltaker, 92 Tar. 34i , 4.8 s. x. .ct92, 49 s. 2.367.
: Be need .not neoessarily return sn inventory In
order to mske hI6 execUtOr6hIp valid. Cooper Y.
Homer, 62 Tex. 356; i~lllls V. Ferguson,. 46 Tex
496, .lt ‘Is thou&it. the term l actual oash reoelpts~’
should.be held to Sp6OIriOally de6cribe money ,Y.
” reo.elvad.by the exeoutor other than the 066h or
oorpus oft ,the estats which was on hand when the
te8tatOk died, btiosuse th6 Words US& point t0
:.. end Imply:that meaning.. .tid ,too, -another seotion
of the: statute,. bearing. upon the same .subjeot-
:*. f&tar .of Oompea66tfoa,~ make6’I.t evident ,th6t
suoh was’ the meaning that the Legislature intended
. stiou1d .be put. upon the tern ‘Used In, the’ presently
oonsldsred artIol6: The one 6eotIoa of the
statute. St&d6 '66 the context or the other, and
‘they-msy’be’comp6red-and read t~cgethar as a
means of. &vlng.‘ta. the lsuguage~, used ~the maiming:
.Intended:by~ the LegIsl.ature~ Ry :suoh S~eotIons
(s.rticle 3689 and. 3690) exeoutoks an& admidietrators j
~.8- allow8a~~commI6sion on “911 s.ums they iaay aotually
raoolver Ia:cash* .~but..vhich. shall not InolUde c.ang .’
cash which was 0~1 hand at’ the time, or the death ot
the teststor .or Intestaterg “Also by artiole .4310
., R.S., ,oo.ihiss’Iona -ore expressli denleq to .the guirdlan
on *f.Gtate.~*I*- * first delIvered,( .The ‘express shuttltig
out of a oo~mmlsslon ‘to exeoutors,:snd admInl6trators
oh ‘Cash’* * *. on hand at the * * *.death OC the
testator .or Intestate’ ahd to guardlana * on the
estate first delivered’ Is to. be. taken .a? ‘an .eXprc8sIon .
0: leglslatlve Intent oi tho scope land purpose of
cticle 3926. There Is no dtffcrence In the msan-
Ins of. the tcrm6 ‘aotually reo’eive. In oash’ as used
in article 3689, and ‘aotual cash reoeipts-,* as
._used in artiale 3926, ttna testate when .flrst delivered!,
63 used In art1016 4310. The vary .purpose of the
etatuta In authorI6icC akexeautor to not Independently
of control of the probate oourt Is, as statod In
Ullhelm’ 6 .8State V. Datthews ,(Tex. CIv. App. ) 274 S. Z.,
* 251, 752: ‘To avoid the ulsual 0.08t6 aad b&her. Of
rsgular admIn16tratIon.W
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:ocomble. J. 3. Loonsy as’-c ii
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Claarly, under the nbovo hslain& the omaty
j&e-‘$9 COt Cdft!tldd t3 il OCtd88iCLi ml OSeh Ofihaad OT .
in tho bmk at the tiae of’..t,h:a aasth of the 4~0~0nad. ;za
1 mitw ci fact, t?cle wos the snly ~osua In the oasa.
;;eat .not 0.3v3m.m the I3*m~e of fhn 4rolaica 80 lzld- .
1~: by way si diOt4 tblt Uaeh ~lr_oocxUu fra7 disposition
of tbff’ OO?:US Cf the CStoC0 y&?ht--&i'&~1ai881ciato the
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.cxnty~ 5u.dr.e. In inot, a0 daainioa of our appellate
. ~tl%l baa t3f~~rtee my oxoer-'ioa
” OS the tqrsa-actual
~1~1:raoslQt.aw 6s used I& aa:C iMiLo2~ 3924 dCh%t thw
C-XI&Ic;t; &m&. 02 la tha b.snk aa tha dota.,izsitha daetb .of
.. cbe owaar. ,
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The f8Ot thct &nCy~ju&.E43 9m antlt:sd t3 a. " : .:.
fee akufl
.lOnOtQ df% a.7:?VCrte& hit0 OtaStl in ths QOW88 Gf .
p6zfcfsteri~~~nn uct*to 13 sLw !:: Cw dceiolm of tho
3E~%Ld ~hil‘t +I &ybS Vit. L- ‘:CiS, 134 3. 2. (2) 131,
fa thit oaoc at th0 time of CYB dontb of the teotatorr.be6' -:. ;
cimod s 13,WO eora~xanoh; os.zsiderable lluastock PR& ewe. ':::
ranch a: r1p%xit. Ah of oaid osaetb wuru sold and the -. - . .
adticl3trritorp&f'thS.then axutty judge bm-hsU ol on9 :
;zrcent oti the ~roaaoda bf thrr ffalc. A later osxkty ju42g.a’~
&a apprzmod the fi~nl dotmat ‘FOF the eetstc clcrf;o.od the,
’0milff8lh 6bOUUl hhva be= yild w .hl.&and. brou ?d.t.
xx 0-t 15 rta o~lalcm by ‘fuqtloe’ Sharp, as wsl tha ‘: !‘, .
Cwst Of .ciV%l +oblS ia its O@ian,. in’daIfyin&’reli6f >. .+
to t!f3flaw oouaty .JUd~:e,SW.726’.GD Eks It rcw ~rsfito4:. ~’.e-
t&t cof:vnrslan of tho p.~oper;y of tba oatnta into conh
armt~~ *actual osah rsoelpta * 3i or!iioh tha jud~,e asrltcd ..
4 ~az3im310aa, tn4.ia'b.o~o2uslos, the cupr9zis Cowt baldi ..
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Yaoh oouskfy judge~wss Quid the aQouat Cue hln :
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qnomble J. 0. &n%y pcG:c :6
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WC are ratbor inclined to tz~mr. tne
C-kit? JI;dF,eah~ul.d ba. F;3Lr!a aokiaaion: : .
.. on nil aot~tl cash rna%ivad by the iida&nlstrator
x.tlls act aa wch fro: ttia.ssla of proparty
r owed by deoodent at ths Cfoc of Ido 468th. or
froz tha .oallootl.jn~of duhts bolqQg t:,the . :, .
. aststa et tho tlsa of his hsnth, OF 0~. . . . ‘.
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: rentals, ata., ze . .or on sotunl oqah raasfnln6
. . . . SPOZIthe p~onaoztian of tho doaeQeat!r
buaiae89.m .
.The .Caaalaslah oi kygxals ln‘revarolny. the
tGcisi63, wotb4 tb.6.sbovs oxaorpt, apporantly iindl3C
fault onLo vittr tho lmt 1t.a~ tceaouas it ps not llbaral
srlaw& It qs th%re held thgt. the $x4@ YI%IImtltlad to ’
. s’c~lsal~a on"811 xawl ta of tht? buabvms ro&srdLeao .
of tha faat- they wer% in frr~,e masyra pild right out ;,.
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9x1s ~&fcsla 53 zot c;rnSfafsC .to reoslpta
aPie irm twlas of bzoperty oolleotlon of
: cobto,- rent- OS prop%?sy, $to; tt sag ba oolleotod
an. rmdpta’ arlelttg fpoci tha canduet of R btrsinssa
.e.
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._ ‘Ii ~dfaacoslkigona g?~rr af t&t% i&s, tbd Con&a-
sidt:oi hppsals fc the oplniact bet alta+’ anid:
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%i oxhib,ft tlaua by .a.i arcdutor or aac&aia-
. t:itor. . .abtirq the c.xaCU.i:x3OS oald sstste
an4 na sacount oi ell rsonsy roacload anC psid oug ' -~
0% scoo-Jnt or talc astste, . . .ab~~ii bs riled
kltb *,ho oler!c,. 5 . .oftzr r::io!atbo oourt thall
imnlna snI4 axS?bit, sac if oorrect, render
jabigaat of 3~provsl Sbe~e~ md order It to
b6-.rsoordoU.-i
A oelreful exas?mtloli oi'tha Lore&a6 outborltise .-
- isadi to the 00naluaS05 thst.whcta, in the ao:~mm of ~11 odtlin-
.. iotratlm, part of.+ aor;un o? the ant‘m3 in csnrbrtac If&o :
exit, the county jti~:e ia sntItl.o\ltn a wr.zaiseio5 on tha
a:saG h,i ruuh emh. tie aaa no rw&eon why the ama p&xi&8. . .
aswld aot apply to the ooah racaIwQ in the atoak Crenaetltm
1OYOlVCllhcta, as apply la the COD0 OC u-%eh raoo1veu rpoc R.
snla of.the oorpus o,C tha eatssz or cs& rec!tva! Frm tho
coll*otlw. of 3 debt ~t'ioh.rmsr prt of the corjm ot the estate.
lo thIrr cmc, the ~dtinlstrntr::x hsua rllsd har annucrl 6xhlbIt !.
.or %ocwt~cho?iln~ the .wcdy txken in in th6 stock liq!&htioa.
Mar Artlola‘.3321, ~usra, It 2,s ths ?as~onzlbIllty 02 the
cxrt to appow the st~0oc5t If corrsot. 'iho oxhlbit rmcr;la
Ust 'canaswt ot %he 6stzta, ~tonic ln. B corporstlon, baa
m;: cmvartad iato 5 4:frfmnt :03x3. The op~rovsl by the
JUCEOot $5~ ncoout ia cfrect @oerr thB court’s starip of
3rproYtsl on tJl0 tT3ns?otIon by shluk .oalsh and stocr; In a ‘:
aax cor~orotio& WCTB acoapted L;i'Llau oi stock la the old
'. ~orporstlcn.
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qonorable J. P. Lboney page .‘:‘8
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Aooordlhgly we are o? the opiaion that the
oouut+judee is ‘qntltled to a conmission of one-half,
of an6 peroent on the aotusl c~h reoeived in the
l~quidotion tranaaotion, but hs would not be entitled.
to’s c01nIdSS~On on. the stook rsoeloed in the new ‘_
~rporatlon.
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Youri vary truly
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f’8. Arthur Sandlln . . . .
(1’ Assistant
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