Appeal from decree of Orphans' Court of Schuylkill County, Sept. T., 1963, No. 10, in re estate of Thomas J. Anthony, deceased.
John T. Pfeiffer, III, with him John B. McGurl and Ronald J. Ulmer, for appellant.
Robert M. Zimmerman, with him Guy E. Waltman and E. Mac Troutman, for appellees.
Paul Maloney and Ernest Scott, and Pepper, Hamilton & Scheetz, filed a brief under Rule 65.
Thomas N. Griggs, and Griggs, Moreland, Blair & Douglass, filed a brief under Rule 65.
Bell, C.j., Musmanno, Jones, Cohen, Eagen, O'Brien and Roberts, JJ. Opinion by Mr. Justice Roberts. Concurring Opinion by Mr. Justice Cohen.
The single question presented on this appeal is whether 900 shares of General Motors common stock
distributed by E. I. duPont deNemours and Company pursuant to an anti-trust divestiture decree shall be allocated by the trustees of a testamentary trust to corpus or income. The court below, relying on § 5(3) of the Principal and Income Act of 1947,*fn1 entered a decree nisi confirming an allocation of the shares to principal. Exceptions taken by the life tenant were dismissed and a final decree entered.*fn2 This appeal followed.
Thomas J. Anthony, a resident and domiciliary of this Commonwealth, died testate on February 26, 1934. In his will, testator devised and bequeathed the whole of his residuary estate in trust, directing that the income be paid to his wife, Sadie Rohrer Anthony, for life, and the principal, at her death, to certain named beneficiaries. Included within decedent's residuary estate, and, subsequently conveyed into trust, were 450 shares of common stock of E. I. duPont deNemours and
Company, which shares, as the result of a stock split have increased to 1800. On the basis of these holdings, the trust received, on July 9, 1962, the distribution here in dispute.
The background and circumstances of the duPont-General Motors distribution are sufficiently known to make a detailed review of those events unnecessary.*fn3 It suffices for present purposes to note that as a result of the successful prosecution of an anti-trust action instituted against duPont, on March 1, 1962, 63,000,000 shares of General Motors, acquired over a period dating back to 1917, and constituting almost 25% of the assets of duPont, were ordered divested. United States v. E. I. duPont deNemours & Co., 366 U.S. 316, 81 S. Ct. 1243 (1961). In accordance with the options permitted duPont, compliance with the divestiture decree was had through the distribution of the shares to duPont ...