hoy De Thatcher oe ee December 26, 1936.6 meet this present situation and give to those whose interests are concerned the advantages they desire and are seeking. I% is generally considered that the usual type of trust has too many restraints and restrictions upon the trustees to keep it free from adverse tax assessments. This question of restraints ang), 7estrictions and the ultimate effect they may have on taxes is senething/Pequiresvery careful consideration, may have Gonsiderasle bearing under a11 this as this is a feature new tax legislation that in deter~ mining how a trust shall be taxed, as a pure trust or as an association, Under the usual type of trust the trustees have some Clearly defined and far reaching restrictions imposed upon them by the trustors. It is con~ tended that the aim of the taxing boards from now on will be to consider and construe these restraints end restrictions as a tyne of control the trustees and ¢ta., which justify olassifieations of such trusts Sesoclations for tax purposese Whatever becomes of this effort of taxing bodies is something for the future to determine, definitely claimed by some trust students that the Simpler ment is and trustees the fewer restraints the better chance tax advantages, Glassification and restrictions such trust will heave are over ag on the part but 1¢ is very a trust acreoe imposed upon in obtaining the the fullest provided 411 other requirements are met as regards tax meurieesest. the fasts you outlined coneerning the transfer of the stoak are true. One of the clearest decisions on this subject is to be found in Parmers Her Santile and Supply Company vs Laun, 146 Wisconsin 262. There is an extensive note in 65 AsLeRe 1159 on this subject and considerable diseuss~ ion in 14 Corpmis Juris 666 and followings the written consent of & portion of a11 stockholders of her stoek to certain that transfer is desired. this may still Both the in view regard very Olsen and be obtained Browning-Olsen be done of us Mrse could Trustees I have felt to the transfer Lide, of the purpose sacredly the and we that are for which this harmony and L00de Will of the two families concerned in the Drowning corporation. If this harmony is ever disturbed i+ will not be a result of anything we shall ever do. Whatever we aim at accomplishing with our Browning-Olsen Trusteeship must be done with the harmonious Support and sanetion of a11 other stocke holders, otherwise we will surrender &li the advantages this plan will give $O Use We do feel, however, that each Stookholder should be given the opportunity to acquire every advantage in tax avoidance and eStater conde re. vation of their property available. This, we are sure, will be readily Gonceded by a11 other stockholders and 1f those who caused the present restrictions to be incorporated in the by-law g of the company had been able to fore~see the present need for each member/make arrangements to obtain these advantages they would have modified the restrictions relative to the transfer of stock to permit of some such act in each individual case. Furthermore, I know that Val and Varriner are willing that this transfer be male in our case if we consider that 1% would be to our interest to have it, We are certain that we shall be able to 0 happily on to the most advant~ ageous solution of these various problems which are of mutual Gonsern and interest too every member of the it has been stated corporations that a peoper waiver holder for their signature of stock has been made | We have of the option discussed be sent this to each and 8t0Cik= let us consider that this transfer 19 Property of Browning~Olsen Trustees, From herelet us ep on and wort out a method of meeting the situation s0 that our rights be best served and provided for and aG the same time not in any degree work a hardship on anyother stockholders interests. I gure it Sang be done and no one will lose any advantage.