with the regulations. The rates of annual subscriptions and payment are fixed by certain tables annexed to the rules. Insurances may be effected at the discretion of the directors on the life of any officer or clerk or other person employed in the Customs in England, and whose age is not less than sixteen years, for an annuity under Table A., not exceeding 1007., and for a capital sum under Table B., not exceeding 2,000l., with power for any person to agree with the directors for paying up and liquidating his subscriptions in any limited number of years, the calculations for ascertaining the amount being made on the basis upon which the tables are constructed. The widow is the first objection of the institution, and for her benefit an annuity may be expressly insured under Table A.; *and if the annuity so insured bear a certain proportion to the capital sum insured (one-third, computing 101. of annuity as equivalent to 1001. of capital money), then the subscriber may, by will or by an instrument in writing signed by him in the presence of a witness, and which, at the option of the subscriber, may be made absolutely irrevocable, direct the whole capital money to be applied in any manner or proportion he may think proper for the benefit of his widow, children, or relatives, or nominees. If an annuity or one of proper amount is not insured, then, after appropriating sufficient of the capital sum to make it good, the residue is to be applied as the subscriber shall in like manner direct. But in lieu of every 1001., so to be applied for the benefit of the widow the subscriber has the option of directing that the interest of not less than 2001, to be invested in Consols shall be paid to her, in which case, at her death the stock is to be at his disposal. In like manner, where the subscriber does not by will or other instrument direct the application of the money, it is to become the property of his children living at his death, in equal proportions, and the issue (per stirpes) then living of any that may be dead. If he leave no issue, then it is to be appropriated to increase the widow's annuity. If no widow or issue, then it is to belong to the persons entitled as next of kin according to the Statute of Distributions, and for the purpose of such application is to be paid to the subscriber's personal representatives. Where any capital money becomes the property of any infant it is to be invested in the names of the trustees of the fund, who are to pay the interest to a trustee for the infant's benefit, and may advance to such trustee out of the capital such sums as they may think fit for the infant's maintenance or education. 5. The late George Burlton Abdy was an officer of Customs, and, as such, effected an insurance on his life for a *capital A.-G. v. ABDY. [ *268] [* 269] sum of 500l., payable out of the said fund, upon the terms and conditions contained in the said Act of Parliament and the rules and regulations made pursuant thereto. And on the 16th day of July, 1855, the said George Burlton Abdy (who had not then and never had any wife or children, and who had not previously in any way directed the application or payment of the said capital sum) made his will in writing, duly signed and attested, so far as it is necessary for the purposes of this suit to state the same, in terms as follows: "I give all that policy of assurance effected on my life with the Reliance Insurance Company, in King William Street, for the sum of 500l., and all that policy of assurance effected on my life in the Customs' Fund for the sum of 5007., and all moneys to become payable under the same policies respectively, whether now secured or by way of bonus, accretion or otherwise, unto my sister Charlotte Mary Abdy absolutely, and I appoint her sole executrix of this my will." 6. On the 14th of September, 1856, the said George Burlton Abdy executed a codicil to his said will, by which he gave to his sister Charlotte Mary Abdy absolutely all his furniture and household effects, &c., and appointed Henry Pickering Clark executor of his will and codicil. 7. The said George Burlton Abdy died after the time appointed for the commencement of the Succession Duty Act, 1853, without having revoked his will; and the will with the said codicil thereto was, on the 27th day of October, 1856, duly proved by the said Henry Pickering Clark alone in the Prerogative Court of the Archbishop of Canterbury; and upon the death of the said George Burlton Abdy, his sister, the said Charlotte Mary Abdy became entitled to the capital money forthcoming by virtue of his insurance in the said fund, as a succession derived from him under the disposition thereof made as herein before *stated, and a duty at the rate 37. per cent. upon the value of succession became payable to her Majesty in respect thereof. 8. On the 18th day of December, 1856, the directors of the Customs' Annuity and Benevolent Fund paid to the said Charlotte Mary Abdy the whole of the capital money forthcoming by virtue of the insurance of the said George Burlton Abdy in the said fund, amounting to the sum of 498l. 13s. 1d. sterling. But neither the said directors nor the said Charlotte Mary Abdy have or has ever paid any part of the duty payable in respect of the succession of the said Charlotte Mary Abdy in the said capital money, notwithstanding applications requiring them so to do. Prayer (inter alia). That it may be declared that the defendant is chargeable with duty, at the rate of 31. per cent. in respect of her succession, on the said sum of 4981. 13s. 1d.; and that the defendant may be decreed to pay such duty. The answer of the defendant (so far as material) was as follows: 1. I admit that George Burlton Abdy, who had been for many years an officer of Customs in England, died on the 6th day of October, 1856, after having made such will and codicil as in the said information mentioned, and that the said will with the codicil thereto was, on the 27th day of October, 1856, proved by Henry Pickering Clark, the executor in the said codicil named, in the Prerogative Court of the Archbishop of Canterbury. 2. To the best of my belief the said George Burlton Abdy was on or about the 6th day of January, 1849, admitted as a subscriber to the Customs' Annuity and Benevolent Fund for the capital sum of 500l. No policy of assurance for the said sum was ever executed or given to the said George Burlton Abdy, but having made an application *upon a printed form, supplied by [ *271 ] the secretary of the said fund, he received a printed letter of acceptance, signed by the secretary and comptroller of the said fund, and I have been informed and believe that his name was thereupon entered in the insurance book, kept at the office of the said fund, as a subscriber for such capital sum as aforesaid. The said George Burlton Abdy paid the annual premiums in respect of the said sum down to the time of his death, when, as I was informed and believe, the capital money forthcoming by virtue of his insurance in the said fund, after deducting the sum of 1l. 6s. 11d. for the premium and poundage then due thereon, amounted to 498l. 13s. 1d. sterling, and that sum was on the 18th day of December, 1856, under or by virtue of the rules and regulations then in force for the management of the said fund, and the application of the capital moneys, forthcoming at the deaths of subscribers thereto, paid to me by order of the directors of the said fund, without any deduction for succession duty or otherwise. 3. I admit that I have never paid any duty in respect of the said sum of 498l. 13s. 1d., because, as I am advised and submit, that under the provisions and regulations contained in the Act of Parliament (56 Geo. III. c. lxxiii.), and the rules and regulations for the management of the said fund, from time to time made and passed under the authority of the said Act, by virtue. of which the payment aforesaid was made to me, no succession, according to the definition thereof contained in the Succession Duty Act, 1853, took place, and consequently no succession duty. became payable. 4. The statements in the information respecting the said Act of Parliament (56 Geo. III. c. lxxiii.) therein referred to, and the establishment and constitution of the Customs' Annuity and Benevolent Fund thereby authorized to be established, and the provisions for raising and maintaining the *said fund, and the rules and regulations for the management thereof, and for the application and distribution of the capital moneys forthcoming from the same as alimentary provision for the widows and children of deceased officers of the Customs, or other claimants entitled thereto, are not, as I believe and submit, sufficiently or accurately set forth in the said information; and for greater certainty, I crave leave to refer to the said Act of Parliament, and to printed copies of the several rules and regulations and tables of rates of subscription and payment of the Customs' Annuity and Benevolent Fund, from time to time made and passed in pursuance of the said Act, and also to the following statements, which I am informed and believe contain a more accurate description and explanation of the objects, constitution, and management of the said fund than is contained in the said information. 5. In the year 1816 a project was set on foot, with the approval of the Board of Customs and the sanction of the Lords Commissioners of the Treasury, for the establishment of a provident institution or benevolent fund, by means of which the widows, children, and relatives of deceased officers and persons belonging to the department of Customs in England, who might not have been able out of their salaries or pay to make a sufficient or any provision for the future support of their families, might be relieved and preserved from absolute want. 6. The principal objects sought to be attained in the formation of the said institution were: First, to fix the annual payments or contributions to be made by the officers or other persons desirous of making a provision for their families by means of the fund, at such an amount as to bring them within the reach of all classes of officers and servants employed in the department of Customs, whose salaries would generally be low during the earlier periods of their services, and liable to considerable reduction on their final retirement or superannuation. And secondly, to secure the absolute and entire benefit of the provision so to be made for the parties, for whose maintenance and support it was intended, free from all other claims or demands whatsoever. 7. In order to secure the first object, with a due regard to the security of the fund, it was enacted, by the Act 56 Geo. III. c. lxxiii., s. 4, above referred to, "that a contribution of poundage in aid of the general purposes of the Customs' Annuity and Benevolent Fund should be raised and collected in the port of London, and remitted from the outports, in the manner therein referred to, either by deduction or otherwise, out of the salaries payable to all the officers, clerks, or other persons of every rank, situation, or nomination whatsoever, who should not signify that they declined to make such contribution in manner directed. by the said Act; and such contribution should be assessed for the first eight quarters, to be reckoned from the commencement thereof, or thenceforth from the first assessment of every officer, clerk, or other person, as aforesaid, appointed after the passing of the said Act to the said department of Customs, in respect of whom the said contribution of poundage is thereby declared to be and thereafter to continue to be compulsory, at the rate of twopence in every pound sterling, and in every fractional part of a pound sterling, and for every succeeding quarter the sum of one penny in every pound sterling, and in every fractional part of a pound sterling; but so that nothing in the said Act contained should authorize the taking any such contribution of poundage out of the day-pay allowance of any person employed in the Customs, or to the salary or sum awarded by way of compensation or superannuation to any officers, clerks, or other persons who might have belonged to the *said department; and the money which should be so collected as aforesaid should be paid over to such person or persons, or to such account, as should be specified in the rules and regulations thereinbefore referred to in relation thereto. And thereafter, all such contribution to such fund should be raised, collected, paid over, laid out, accounted for, and applied according to such rules and regulations." And by rule 4 of the rules and regulations aforesaid, it is provided and declared, that in order that the amount of insurance effected by subscribers may bear a proportion to the amount of contribution of poundage levied under the authority of the said Act upon their respective salaries, every subscriber shall be charged, over and above the amount of the subscription payable under the Tables A and B, a sum of 2s. 1d. annually upon every annuity of 107., and also upon every capital sum of 100l. insured; but the contribution of poundage shall be allowed in reduction of such additional charge." 8. In order to secure the second of the objects above mentioned, it was enacted, by the 11th section of the said Act, that "in order to insure to the widows of the subscribers, or any other claimants on the said fund, the full benefit intended by the said Act as alimentary provision for the widows or other claimants entitled thereto, no annuity or sum of money payable to any A.-G. v. ABDY. [ *274] |