MELTING FORTUNES

Evening Star, Issue 21286, 15 December 1932, Page 1

MELTING FORTUNES

IHGHCAPE'S WEALTH PROBLEM OF WIPE’S LEGACY. For an unknown Glasgow clerk who landed in India in 1874 with no financial resources to leave a fortune of more than £2,000,000 on his death this year is indeed a romance, and much interest has been shown in the will of the late Lord Inchcape. Perusal of the various clauses indicates, however, how seriously Lord Inchcape’s fortune must have suffered during the last few years as the result of the world-wide depression and depreciation of values or all sorts. HIS KINDLY NATURE. One clause in the will, made in 1929, stipulates that an annuity of £IOO,OOO a year, free of all duties, income-tax and surtax, and other taxation, should bo paid out of the estate to the widow, Lady Inchcape. Obviously, a man of the brilliant ability of the late Lord Inchcape would not insert a clause of this nature in his will, in addition to the very large number of legacies to relations, friends, and employees, which, incidentally, are chai-aoteristic of his kindly nature, without believing his fortune would allow for their payment. Actually, an income of £200,000 a year would have to pay the Treasury something like £IOO,OOO annually in taxation, so that to provide a net income of £IOO,OOO a year a gross income of £200,000 would be required. If we assume this income is derived from investments yielding 5 per cent., a reasonable _ assumption before the recent reduction in yields, a capital sum of £4,000,000 would be required. But this sum would have to fao available after the payment of estate and legacy duties. An estate duty of 50 per cent, is levied on all estates exceeding £2,000,000, in addition to a small legacy duty. Therefore, to leave a capital sum of £4,000,000 after paying these duties, a fortune of over £8,000,000 must be available. From these figures and in view of the cither legacies, it would appear that in 1929 the late Lord Inchcape estimated liis fortune at something not far short of £10,000,000. His will, nowproved, showed that his estate at his death on May 23 was valued at £2,124,707. This figure indicates bow vast fortunes _ have melted away during the financial crisis of the past few years. FALL IN SHARE VALUES. The late Lord Inchcape was obviously a largo shareholder in the Peninsular and Oriental Steam Navigation Company, which had benefited from his genius for so many years. P. and O. deferred stock in i 929 was standing at £3 9s 3d for the £1 unit. On tho day of Lord Incheaips’s death tho pricu was 14s. Other shipping interests during tho period had depreciated to a still greater extent.