The opinion of the court was delivered by: GIBSON
The court, after hearing and consideration, makes the following findings of fact and conclusions of law:
The court finds the facts to be as set forth in the stipulation filed by the above named parties on October 26, 1944.
I. The plaintiff is entitled to judgment.
II. The deficiency assessment in respect to the trusts created in favor of the Carnegie Institute of Technology and Georgetown University was erroneous.
The instant action is brought by the executor of the estate of Charles Gulentz, deceased, to recover a deficiency estate tax. The legal interpretation of the basic facts is in dispute, but not the facts themselves.
Charles Gulentz died on July 26, 1941, without descendants. By his will be bequeathed $100,000 to the Carnegie Institute of Technology for the purpose of establishing tuition scholarships. The residuary legatee was Georgetown University of Washington, D.C. The Georgetown bequest was for scholarships covering tuition, board and lodging.
The Carnegie scholarships were of two classes. The first contemplated three scholarships, two for males and one for females of the name of "Gulentz" who were in any ay related to the testator's family, wheresoever they may reside, but limited to high school graduates, in sound physical condition, and also in need of help. The second class was for the benefit of any male or female Roman Catholic of good moral character, residents of Pittsburgh, physically sound, high school graduates and in need of help. Competitive examinations were provided for each class if there were more applicants than scholarships. Also, if no applicants appeared for the first class ("Gulentz") the scholarships were available to the second class, and if none applied for the second class the scholarships could be awarded to non-Catholics.
The Georgetown University scholarships were also divided into two classes. The first class was for any phsyically sound Roman Catholic male high school students of good moral character of the name of "Gulentz" in any way related to testator, wherever they may reside. The second class was for the benefit of physically sound Roman Catholic high school graduates of good moral character. Should there be more applicants than scholarships, competitive examinations were to be held for award of the scholarships; and if in any year no applicants appeared for the first class, the scholarships were available ...