24 Report of the President 



cash contributions of the Trustees annually almost equal the 

 income on $1,000,000, while the deficiency of the City Mainte- 

 nance appropriation is more than the interest on a one-million- 

 dollar endowment. Consequently, while these noble bequests 

 swell the General Endowment to more than $3,000,000, an 

 additional $2,000,000 is required to put the Museum on a 

 secure financial footing for its general purposes. 



The munificent bequest of Mrs. Russell Sage is by far the 



largest which the Museum has received for its general work. 



It was accompanied by the following provision 



Bluest in MrS * Sa £ e ' s wil1 : 



"It is my desire that each religious, educational 



or charitable corporation which may receive a share of my 



residuary estate shall use the whole or a part of the legacy 



received by it for some purpose which will commemorate the 



name of my husband, but I simply express this as a desire and 



do not impose it as a condition of my gift." 



This bequest furnishes a striking and convincing example of 



the disastrous effect of the law of September 8, 



Repeal of 1916, imposing a tax on bequests to education 



Education an< ^ philanthropy, instead of exempting them 



from taxation as in all former legislation of the 



Government. 



Under Mrs. Sage's will the Museum is to receive two shares 

 of the residuary estate estimated as $1,600,000, out of a total 

 residuary estate of $41,600,000. The Federal Estate Tax 

 would amount to $12,652,500, but the loss through forced 

 liquidation to pay the tax is estimated as $3,643,400. Thus the 

 total reduction of the residuary estate would amount to $16,- 

 295,900, or approximately 40%. Hence, instead of receiving 

 the $1,600,000 of the original bequest, the Museum would 

 receive only $960,000. 



In 1917, through a General National Committee,* of which 

 I had the honor to be Chairman, a vigorous effort was made 

 to have this law repealed, with respect to the taxation of be- 

 quests or gifts to educational, philanthropic and religious insti- 



See Annual Report of the President for 1917, pages 20-24. 



