Men of Wealth (1944) - Ludwig von Mises Institute

380 MEN OF WEALTH
pressures while its owners have ceased to be dominating factors
in any important business.
These pressures are several. They are the logical development
of the whole system. One of them is the inheritance tax. New social
philosophies are now powerful. But state necessities are even more
imperative. Governments need so much taxes that ways have to be
found to get them. The inheritance tax is the one that generates
the least effective resistance. During life, income taxes now weaken
the power of the fortune to accumulate, and, at death, the government
steps in to take the lion's share.
The Vanderbilt fortune is one in point. Until his death old
Commodore Vanderbilt strode the country like a colossus with his
hundred million. His son William H. made it two hundred millions.
He owned the New York Central Railroad as a man owns his corner
store. But he found it wasn't healthy for one man to control a great
railroad. He found it to his advantage to sell a lot of his control.
When he died he left eight children. Eight children subject a fortune
to a very enfeebling division. But his sons, Cornelius and William
K. got $50,000,000 each. Cornelius' fortune at his death went to
several children, but Alfred got the bulk, $80,000,000. When he
died it had shrunk to $35,000,000. It was split $5,000,000 to his
son William, $8,000,000 to the widow, and the balance to two sons
of bis second wife. William K. left $100,000,000. It went to two
children, Consuelo and William Harold. The former withdrew her
fortune to a ducal dynasty in England. Among the various heirs, a
good slice drifted into the hands of Frederick W. Vanderbilt. He
died in June, 1938. His estate, valued at $72,588,000, was liquidated
in 1939, and the Federal government and state of New York
took $41,2 72,000 of it in taxes.
Andrew Carnegie was worth at one time $300,000,000. He gave
away most of it to the Carnegie Corporation for libraries and education.
When he died his estate showed $23,000,000 left. His partner,
Henry Clay Frick, left an estate valued at $150,000,000.
$117,000,000 went to public benefactions. His children got $25,-