NIEMAN $5,000,000 BEQUEST FINALLY UPHELD BY COURT

Harvard's right to the Nieman bequest, estimated at $5,000,000, was upheld by the Wisconsin Supreme Court yesterday afternoon. This decision defeats the claims of two half-uncles and a half-aunt of the former Mrs. Lucius W. Nieman to this gift on the grounds that she was "not of sound mind and under duress when she made the will."

Since no Federal law applies to this case, the decree of the Wisconson Supreme Court is final and the money will come to the University. But just how much of this sum will be absorbed by taxes is still uncertain.

Complicated History

The history of the gift is a complicated one. When Mr. Nieman died in October, 1935, he divided his wealth evenly between his widow and a niece. His total fortune was estimated at $10,000,000, a sum which is subject to the Federal inheritance tax. Since liquidation of this property involves the sale of a large block of shares of the Milwaukee Journal, a transaction of uncertain magnitude, the amount of Mrs. Nieman's share is still not definitely known, but is probably around $5,000,000. Federal taxes will deduct about 50%, leaving $2,500,000 as an estimated sum which would have been realized by Mrs. Nieman had she lived.

Not Tax Exempt

According to Wisconsin State Law, "property transfered to corporations of this state organized solely for religious, humane, charitable, or educational purposes which shall use said property exclusively for such purposes 'within the state' shall be exempt from the inheritance taxes." This means that Harvard would not come under the usual tax-exempt category. Another clause, however, stipulates that taxes on bequests should not exceed 15% of the amount given to any one beneficiary, leaving approximately $2,000,000 which will eventually be realized by the University. Federal taxation will not effect Mrs. Nieman's grant because of its educational use, and also because Federal inheritance taxes cannot be twice collected on the same money within a five year period.

The Nieman estate will not be settled for at least another year, and money will not flow into the Harvard coffers until that time.

University officials declined to comment on the decision. No plans for the use of the money will be made until a more exact estimate of its amount can be obtained