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Home My WebLink AboutOC1969-0692 - ESTATE OF CAPPELLIDUPLICATE LETTERS J (fnmmnuwenlt4 nf 'eun.ayluttuitt.!.a.a:1IllItt.a4i:tgtnu ~nunty. KNOW .AlL MEN BY THESE PRESENTS:Whereas,at Washington,in the County aforesaid (}J.the 8th.d:a.yof May A.D.19 67,before me, Russell Marin':>,Register for the Probate of Wills and Granting Lett~rs of Admiaistratior.in and for the County of Washington,in the Commonwealth of Pennsylvania, the l'ast Will and Testarn=nt of Michael Cappelli late of Ca:1ton r:'ownship in the County aforesaid,deceased, (.El tme copy whereof is to these presents annexed),was duly admitted to probate;and Nellie C Cappelli rix the I.xecutm in said vVill and Testament named,having appeared before me and taken and subscribed Nellie C Cappelli glan:these LEITERS '='ESTAMENTARY,unto the said ,Register as aforesaid,doRussellMarinoNUW,THEREFOR3:,I, the ooth of office pr,escrib.ed by law; committing unto hel;'the administration of all and singular the goods and cmtt~ls,rights aad credit3,which were ·:>f said deceased,and requiring her to exhibit a true and pelfect inventory thereof into the Register's Office,at Washington,within ninety days from the dale hereo:,and to rendEr a just and true account of said administration at the expiration of sUo:months frcmthe Cate hereof,and to regard and comply with the provisions of the laws of this CanDonwealth relating t.inheritance taxes. IN TESTIMONY WHEREOF,I have hereunto set my hand and the seal of said Office at Washington,this 8th. daye-!May in 'the year of our Lord one thousand nine hundred and sixty-seven ~.~. .'Register i' ~:-t~+-+--~ rIl a II.P:;:~0 HP:l ...LlI ~'" ~ts:t I-&l .$~« r:tl a I-r.l4 ...:I en r.l4LlI ~ts:t « $.t 08J~<C :::~ 0 rJ:1H~<...:I ~:r:Pot 0P-H Ai ~ ::. ." \ ,..~.!':!';.,..~.....'.."".' ~~....-~ LAST \HLL AND TE~TAHENT ,.'/J:.:','/':1'.Vi... I,MICHAEL C\PPELLI,of Canton Township,Washington Sounty,Pennsylvania,being of sound mind and disposing memory, do herety make,publish and declare this to be my Last Will and .restamerlt,in manner and form fol1mving,hereby revoking any t-Jill orWill~heretofore made by me • .FIRST~I direct that all my just d3bts and funeral expenses be fully paid and satisfied as soon ~s conveniently may I. be after my decease and that my funeral be cO:1ducted in a manner corresponding with my estate and station in life. SECOND:I give,devise.and bequeath to my daughter, 'Kathryn Luba,her heirs and assigns forever,the farm together 'tvith al:..the improvements erected thereon,situate in Hope'tve11 Township,containing a,pproximately 155 acres,more or less, ..absolutely. THIRD:I give,devise and bequeath to my da.ught.er, Patricia Ann Cappelli,her heirs and assigns forever,my home situate in Canton Township referred to as 33S Crescent Drive togethe'c with all the improvements erected tl:ereon,absolutely. FOURTIi:I give,devise and bequeath to my beloved wife,N=lll.e C.Cappelli,her heirs and assigns forever,all my property,real,personal or mixed,of what ncture or kind soever, and whe~esoever the same shall be at the time of my decease. FIFTH:.In the event that my wife,Nellie C.Cappelli, should predecease me,I give,devise and bequeath to my children, Raymond Cappelli,Kathryn tuba Cappelli and Patricia Ann ,Cappelli,share and share alike,their heirs and assigns forever, all my property,real,personal or mixed,of what nature or kind soever,and wheresoever the same shall be at the time of my decease. I I 'to .' ." 'I -::'". (I. .,.:.,I '.'-1..'-' !I.I I• §IXTH:In case I shall leave a minor child living at·f the time of my decease,I do appoint my wife,Nellie C.cappelli,!I guardian of said minor child during her minority;in case of he"I death during the minority of said childv I appoint my son,I I Raymond Cappelli,to her guardianship dt.:ring her minority.I I 'SEVENTH:I give,devise and bequeath all the residue I· I of my estate,both real and personal,unto my children then ! .living,.share and share alike,to'hold the same to them and their,' heirs and assigns forever.I, EIGHTH:I nominate,constitute and appoint my wife, Nellie C.Cappelli,Executrix of this my Last I'JiII and Testament;, and,in case 'she shall predecease me .01."r.enounce,then I appoint my son>Raymond Cappelli,as Executor in her place and direct that neither may be required to give bond or security for the performance of their duties.It is further understood and agreed that none of the fiduciaries herein named shall receive or expect any compensation or con~issions for theperforrnance of their duties as may be ~equired under thiE \'Jill. NINTH:I nominate,constitute and appoint Edward V. Sciamanna,·Esquire,as attorney for the fiduciaries in the settlement of my estate. IN WITNESS l'JHEREOF,I,l1ICHAEL C~\PPELLI,the Testator ny nai11e and affixed my Sixt}-four (1964). above mentioned,have hereunto seal on the ;k 9 day of of Our Lord One Thousand Nine ~--in the Year '.. .•-~""-'11_..r'''..··-....;.~-.,....~ ...~. 'r .'~ .Signed,sealed,published and'C:ecla.red by the above nained Testator,Michael Cappelli,as and for his Last ~-Jill and Testament,in the presence of us \l1ho have hereu'nto subscribed our names at his request as \·Jitnesses hereto,in the presence of said Testator and in the presence of each othe~. f .. 1 \.I "' ADDRESS .' ........._......,._..._,....,._"--,....u "'11~~),l"":""'",...,"Il?'!u ""~~-+l~•.""'lnl"l.·-~·'?l""""'"-.""'_~~,....'"'·.~.Rf"'l':lf~:t~""j__,...•.••..----.~.--- ~~ ~."""-(/ "'i".'." </~1\-II l' IN THE COURT OF COMMON PLEAS , ¥N.""nF WASHTNGTON COUNTY.PENNA.1 ~.)~ORPHANt '~COURpJpVIS'I ON \ ~l~! '"NO.P ~q ._,,,t~~:! I i·IiN RE: , }'~~l I~t j I EST.ATE OF I'J, I<Iv I MICHAEL CAPPELLI,~.I I I :Deceased "ItII~• II II 'j ~ "i i! )"-£..'-'".~, ",, " APPEAL TROM ASSESSMENT~,!~.,•- .-!;,.~r=II i .~~~--:":''...ilen.,'I (~~II ~,~tDN.),~~»fTi ::0~9 C)c C-r-I.-(f)=;:,-(/?(f)':Il':: ~-;-1 fT1 rn••G?:1""1 f-tD2':;:':::r Q Z'~~.-0 ... I',~::E J>::::!:·o -::0 r'1..-',-_-:.1 Z ,\-W"0 :I~V>..c:::-f-,c.o iI I .' III!ITHOMASJ.TERPUTAC,ESQ. 729 Washington Trust Building I waShinJjSn,Pennsylvania 1530 I ~,,~i ,. _.c~"--."a;;Of I I /p/?;@"~2 :3.::4 I '~I .1'II /"~_-&7 , "c":\.\~<-, !['~l~:K '-'-\.(la."'J( " IN THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY,PENNSYLVANIA ORPHANS'COURT DIVISION IN RE: ESTATE OF MICHAEL CAPPELLI, Deceased. ) ) ) ) ) ) ) ) APPEAL FROM ASSESSMENT TO THE HONORABLE,THE PRESIDENT JUDGE OF SAID COURT: AND NOW,comes the appellant,NELLIE C.CAPPELLI, Executrix of the Estate of Michael Cappelli,deceased,by her attorney,THOMAS J.TERPUTAC,ESQ.,and files the following appeal and avers as follows: 1.The appellant,Nellie C.Cappelli,is an individual who is the Executrix of the Estate of Michael Cappelli,deceased, who died testate on April 27,1967,a resident of Washington County,Pennsylvania. 2.The appellant filed a Protest with the Department of Revenue,Commonwealth of Pennsylvania,under Section 1001 (1) of the Inheritance and Estate Tax Act of 1961. 3.On May 16,1969,the Department of Revenue made its final assessment regarding the matters complained of in said written Protest,a copy of which is attached hereto and made a part hereof. 4.The appellant is not satisfied with the decision of ! ••ItheDepartmentofRevenuerendered~n consequence of sa~d Protest I and hereby appeals under Section 1003 of the Inheritance and EstatJ [ /~ " j .." "'.r " Tax Act of 1961. 5.This appeal is filed from said decision of the Department of Revenue upon the following subjects for the followi~g reasons: a.Second Ward t City of Washington property (Winky's): The building valuation is excessive due to improper use of accepted appraisal techniques.The three approaches should be used on all commercial properties and with the proper use of these t consideration should be given for the value of the 'lease.The land,building and lease are grossly over assessed. b.Seventh Ward,City of Washington property (Distributing Company): Valuation on both land and building is excessive due to the poor access on that side of the streett and partially for the reason that there is less value on a small lot ,without the value of assemblage.The building at the time of death was relatively of no value. c.The valuation of $31 t OOO.OO entered on the Inventory filed by the Executrix was inadvertently entered and is incorrect.This sum,evidenced by Certificate of Deposit No. 246 was actually opened in Septembert ·1966 t (not March 3,1967) and was the sole money of Raymond M.Cappelli received as his own share from the sale of real estate to Alpine Star Lodge #9. This Certificate of Deposit should not be assessed and taxed fo inheritance tax purposes t and the decision of the Department of Revenue that it should be taxed at one-half the rate is imprope and illegal. ). " ,- "\, WHEREFORE,the appellant,NELLIE C.CAPPELLI, Executrix,files this appeal and respectfully requests your Honorable Court to correct and amend the assessments made by the Department of Revenue in accordance with this appeal and testimony to be adduced at the hearing thereon. .. •I COMMONWEALTH OF PENNSYLVANIA COUNTY OF WASHINGTON ) ) ) SS: t 1969. Personally appeared before me.the undersigned authority.NELLIE C.CAPPELLI.who t bei~g duly sworn according to law t deposes and says that she is the Executrix of the Estate of Michael Cappelli.deceased;that the facts and allegations contained in the foregoing Appeal from Assessment are true and correct to the best of her knowledge.information and belief t and that said Appeal from Assessment is not entered for the purpose of delay. e ~e c.Cappel 'Sworn and subscribed .~.~ ,.··.flerorce me this _,;:;;0__~_day ~.Of·~ *l Notary fSubiic MY COI~L1A!$S~ON ~~Ilff~[\[~MAilCf!;24,1'l:172 .UJ';I:t ©',l.\:?~\SF~:!W3]!~2\\'!j(~;1~f\l@m~~.~9U~1!.ittQ ",I '--",~-,,--~;?.;~~,-:.,"",'" -,..',;."~,'.;.:.,\:..'.'..',~U~t~~nt.l(~~I,~,r-;r.kc1~·v~~,i ~~·;·~"i~·&~:~€·r~t.;i~'~iit\ DEPARTMENT OF REVENUE BUREA"iJ OF:COUNTY COLL'E'710NS \-HARRISBURG 17127 ~Y 16,1969 .'.:' Thoma3 J.Terputac,Esquire 222 W~shington Trust Building Washington,Pennsylvania 15301 Re:Estate bf MichaeiCappelli File No.,9408-77 County of Washington The Inheritance Tax.Protest Board of the PenJ;lsylvania."",,. Department of Revenue met 'on the 9th day of May,1969,and considered the Protest filed in the above estate.~The decision of the Board follows: The Protest filed January 28,1969,in tje above matter is hereby Sustained in part as to the value of the real estate, Lots 21,22, 23,and the Winky Building situated Ll the Second Ward of tbe City of Washington,Washington County,Penn3ylvania being reduced to $139,000.00 for transfer inheritance t~<purposes. The Protest is Denied as to the 'laluatio~of the realty located in the Seventh Ward of said city.The suhject realty was correctly appraised at $35,800.00.' The Protest is Sustained as to the real~y transferred to the caughter of the decedent,as the transfer was ~ot made in con- templation of death. '..'//-L_~~;~--ichard L.Witmer,Director Bureau of Courity Collections For:'Warner M.Depuy Secretary of Revenue ;, The Protest is Sustained in part as to the Pittsburgh National Bank Certificate of D~osit No.246 being one-half t~) able at the date of death.(x::-..:j-...-'JJ _~.,../-€:._.R-.-1?..:..~ ,The Protest is Denied 'as to the valuaticn~,of the 1166 Cadillac Sedan and the 19q6 Volkswa ,:' '•.:~-:r.""'."..,.......<......•...·~"·r·_··'-~.~- , •I Tl~, ".' ",I.. ,~"~<.............-.''~I"':.','". 'j ,J, "'" .~'. " ,'.',';-: I'!':"'I.,·,, ,',J - - "'."F, "',:'\1 ,I'-L'1 /::..' .j.. ,.~ ':.'1 1",-..;'.. '-'-... ";..,/1 \. ~.........-~ -rD J1-/0 -£'~~ t.3 -C"f-~Y~· ,Jul,y 8,1969 Mr.Gene P.Amanati Amanati and Tucci Realtors 292 East Maid¢n Street Wasb1ngton"Pennsylv~a 15301 Re:.Estate of Michael Cappelli Washington County Date of Death:.AprU 27:;1967" Dear 'Mr.Amanati: With the approval of the Honorable Warner M,Depuy, Secreta-ryof Revenue,you are hereby appointed to act as ' expert appraiser in the above mentioned estate.,The fee to be paid is not to exceed '$300.00. I t is sugges ted that you contact Mr.William R, Chaney~Chief Inheritance Tax Appraiser for Washington County, ,243-44-45 Trust Buildillg,Uast Beau and South Main ,Street, Washington,Pennsylvania,for a:ay information concerning tbe above estate•. It is urgent that this appraisal be accomplished as soon as possible for the reason that the hearing on this case is scheduled for Wednesday,July 16,1969. For: ve,rr ~~YO,?ff '.'..#~,:;:7.~ W~iam S,Br~damore,Director Bureau QfCounty Collections Warner M,Depuy Secretary of Re\Tenue Russell Marino,Reg.of Wills V Wm.R.Chaney,Chief 1nh.TaX Appraiser Atty.Charles 9...Keller . Joseph Shamay Mildred H.Holz CC: ".. li , ,.~. ,".}:or •,..,..•••.,1, T_'"T'·· ,"'4.'1"'~'...~ ..<"-". ~.""/~, ,...\ '1. " ...\ " .,..k " ..~. r ." r , ..... ~'t ., ... (1 .,.,. " \..to -f"'" rn o... ,.e ~l In the Court of Common Pleas of Washington County,Pennsylvania 01.'1Jhami I Court IJ'lv'l8ton Nu.092 of 1909 In Re: Estate of MICHAEL CAPPELLI, ;J Deceased. "~ ORDER AND DECREE (Marino,P.J.) "0'ho,..,...'f\'!IlJ'"t:t'r_.~.iaJ40 ...,..i:O ,.~t.'i'---c:':::l "'.-.."<:-"J 'i''-"f·• ~ "" =<::0 ):';..",;J;JCl>oc::r:-C!')-en en:z--j rr,c."')n'1 r--i -"~a -..;i·-- -,,·0 "'-""1'1 2.:: C")~•• O ::r.:_'\---.....-'\':r:~ -Or-a?>u, ';;) ::L~ ...-....ll"-... ~ t.n rT!..~ c;... :; ORPHAN'S COURT WASHINGTON.PA. I 'Jr IV -,;,/)7' ~2 . llJ THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY 1 PENNA. ORPHANS'COURT DNISION ll'J RE: E3tate of Jv.I.ICHAEL CAPPELLI, D3ceased. ( ) ( ) ( ) ( No.692 of 1969 ORDER .AND DECREE th3.t she elect~d to ·have the correctness of the CommonweaUh1s appraisemen dEtermined by this Court at the time of audit,or prior thereto. After a full and thorough consideration of all the testimony acduced at a hearing held for the purpose,this Court makes the following DECREE And Now)October 10,1969,it is Ordered,Adjudged and Decree ,: 1.Appellant filed her appeal in the matter of the appraisement of a Certliicate of Deposit NO.246)of the Pittsburgh National Bank (Vi.-ashington office).Originally this Certificate of Deposit was appraised at fu"J value.Upon the protest being entered by the executrix)the Pennsylvani DE:partment of Revenue,Inheritance Tax Protest Board,reduced this liabilit to one-half the amount thereof.Appellant has taken this further appeal being dissatisfied with the appraisement which was fixed at one-half the value of the Certificate of Deposit.We have no doubt that the fund deposited when thi. ce:-tificate was originally purchased)was the sole money of Raymond M. .......~ 1-.. Cappelli,which was received as his share from the sale of real estate in Wa·shington.However,Raymond Capp.eUi permitted his father,the decedent, to purchase a Certificate of Deposit in both names,that is in the names of Michael Cappelli,the de~edent,and Raymond M.Cappelli,his son. Although this certificate was purch.ased while Raymond Cappelli was in Alaska on a visit,the father was admittedly acting for his son in the purchas of said certificate.(Testimony-P.64).Hence,under the law,there resulted a :gift of one-half of the full amount of this deposit from the son to the father.When Raymond Cappelli returned from Alaska,he made no mov whatever to have the title of this Certificate of Deposit changed in any way. While it may be true that Raymond Cappelli paid federal income tax on the interest received from said certificate,that will not change the status of the title in which it was carried.The appeal in this matter is dismissed and the appraisement as returned and recorded is confirmed;it should be noted, however,that the liability for the tax on this certificate is not a liability of the decedent's estate,but is that of Raymond M.Cappelli exclusively. 2.In the appraisement of the real estate in the Second Ward, City of "Vilcl.shington,together with the restaurant building situate thereon, known as the Winky building,the Inheritance Tax Protest Board sustained the protest filed by this appellant,and reduced the appraisement on this property for transfer inheritance tax purposes to the sum of $139,000.We do not have in the record the original figure given by the tax agents in this County and which was reduced,as stated,by the Board.However,it appearr almost certain that this appraisement is excessive,since the sole expert wh testified for the Commonwealth placed this ~;tgure at $126,900;thus it is see that their.;own expert reduced this figure by more than $12,000.The experts -2- I,." for the appellant fixed a fair price of this property at about $100,000.Takin into '~onsideration all the matters introduced and the testimony of the expert , we feel that the appraisement of this property should be further reduced to t e sum of $105,000,and it is so ordered. 3.The matter of the appraisement of the real estate situate in the Seventh Ward,City of Washington,known as the warehouse property was app:raised by the Board,after protest,at $35,800.The Commonwealth was unable to sustain this valuation in testimony presented before the Court,its sole expert testifying that this property had a fair market value of $25,000, or~10,800 less than the amount fixed by the Board.Appellant's expert wihesses returned this property at much lesser figure.We feel that the fair market value of this property at the time of death is $19,000 and the apI=raisement is reduced accordingly. In the event that any party in interest shall enter an appeal from thi3 Decree,or any part of same,and serve notice thereof as provided by Supreme Court Rule 63,this Court will thereafter file an Opinion of record, in compliance with said Supreme Court rule. -3- STATE OF PENNSYLVANIA, WA~HI~GTON COUNTY,~55: The within named Accoun~an't being duly sworn according to law,deposes and say sthat the above,account as st:l·ed is true and correct as-~.h~veri Iy bel ieve.s. Sw2ri~rd~~~scribedt·efore me thiS.....I!.!!:...... .~"..(~ day .),~/~tU/19...?9.. J~~.':uM ~. :Jf~c ~~.................:.._,;,~. Nelhe C,Cappe i "MY COoAM1S?ION EXPlliES MARCH 24.1972 Or"0:WASHINGTON.ViASHINc;!9.~C:OUtiU';~ \:. I do certify that I have given legal notice 'to all persons concerned of the filing of the within account in the manner prescribed by Sta1ute and Ru e of Court,as evidenced by proofs thereof filed to Nob..3.~..2Q::..3.70 . Witness my hand and (.fficial 'seal.this 31.f!!!!::.. -------;------lli~------i 19.20 .~...Tl~..... .Register of Wills day of . Wa1s,.,ngtor CountY,s:;: '1'''''''EI'1,~/',)\"lOIIJ-'..'r·'/."I,\"....;'\-'-,...,,_... nECISTER OF \:VILLS Wi\SHINGTON CO,.PA. u~ Q oz ~o .'.....~ ._:;.......-.r ..' ~.'-~ ,.,,:. ). .'~.r ,f ---------~-~-.." .(. ..' .... ,..... ..',..:::~ B9E9Ge~aEfit~iti!i'irETT Washington,Pennsylvania (PU3LISHED BY WASHINGTON COUNTY BAR ASSOCIATION) PROOF OF PUBLICATION In comtliance with the Newspaper Advertising Act of May 16,1929,P.L. 1~4 Sec.3,paragraphs (3)and (25). CevNTY CF.WA.aHINOTONt ST.Tf:OF PSNNaYLVANIA (SS. Pere:mall,appeared before me,a Notary Public in and for said County and Conmonwa:alth,CHARLES C.KELLER,who,being duly sworn,deposes and say.:that he i:the Editor of the WASHINGTON COUNTY REPORTS,the official legal perodical for said Washington County,publisbed weekly having its place of buinese at Washington,Washington County,Pennsylvania,and is act- ing as its agen:in this behalf;that the said WASHINGTON COl'NTY REI-ORTS was e.stablished on March 31,1920,and was designated as the official legaL public.ation lor Washington County,Pennsylvania,by order of the several courts of sac COllnty,dated November 11,1920;that the printed notice or adver- tiserr..ent att.ac'hed hereto is a copy of a notice or advertisement,exactly as printed or pciblished,whi6 appeared in the said legal periodical in its regular issues on the follcm:ing da~s: ...~t~Y Htt ~.~.).~D.~L J~§.?. that tre affian or .he corporation in behalf of which he is acting is not interested in the :ubject matter of said notice or adverti~~d that all of the allegations O.f this affdavit as to ~harac~.he~~ Sworn t<l and SJbS~e me thi~~··Edi~~; .....lJy day .f ~.·.~:::J.Mn.~~~,196 .7.'• ....~..£~..r2.<~ N6tary Public KATHERInE C.YARD,~.a lfluPlic""as'l1hrr4on.~a:shingt .'o.Pa. ol'.""J1Y··,""h~oio1~1 .xPi!'ii&%ll ·';-......~Q)Ie!llblll'1dWa Estate NotIces The Register of Wills has granted letters, testamentary or of administration,in the following estates.Notice is hereby given to all persons indebted thereto to make payment without delay and to those hav- ing claims or demands to present ~hem for settlement to the Executors or Admin- istrators or their Attorneys. • • 0 •••••••(I •••••• CAPPELLI.MICHEAL,Dec'd. Late of'Washington:WashingtonCounty,Penna. Executrix:Nellie C.Cappelli 335CrescentDr.,Washington,Penn'a. Attor!1ey:Edward V.Sciamanna,222WashmgtonTrustBldg.,WashingtonPenna.' .' IN THE COURT OF COMMON PLEAs OF WASHINGTON COUNTY, PENNSYLVANL\ ORPHANS'COURT DIVISION IN RE:".~....._.-.~...-)~~ ESTATE OF MICHAEL CAPPELLI. Deceased. ) ) ) ) ) ) ) NO.692 OF 1969 THE FIRST AND FINAL ACCOUNT OF N;ELLIE C.CAPPELLI,EXECUTRIX OF THE ESTATE ,OF MICHAEL CAPP~LLI,DEC. Date of Decedent's Death:April 27,1967 The Accountant charges herself as followE,: REALTY: Real estate situate in the 2nd Ware of the City of Washington,with restaurant building situate the reon known as Winky's. As per Inventory and Appraisemen:$73,706.15 As modified by Order of Court dated October'lO,1969 $105,000.00 Real estate situate in the 7th Ward of the City of Washington,known as the warehouse property. As per Inventory and Appraisement As modified by Order of Court dated October 10,1969 13,468.50 19,000.00 Real estate situate in the 2nd Ward of the Borough of Canonsburg,being an unim:;>roved lot. As per Inventory and Appraisement Sold to ThomasPallaria et ux.in November,1968 .' PERSONALTY: Pennsylvania Railroad Company Steck, as per Inventory and Appraisem~nt 850.00 1,000.00 286.25 Madison Fund,Inc.,Stock,as per Inventory and Appraisement 1966 Cadillac Sedan,as per Inventory and Appraisement As adjusted by the Inheritance Tax Department 1966 Vo1kswagon,as per Inventory and Appraisement As adjusted by the Inheritance Tax Department $3,100.00 1..000.00 $69.75 3,500.00 1..200.00 Michael Cappelli and Raymond Cappelli,t/aWashington Distributing Company (50%interest)-as per Inventory and Appraisement 21,138.94 Mt.Lebanon Federal Savings and Loan Association of Canonsburg,Account No. X-1660..Michael Cappelli in Trust for Nellie C.Cappelli 12..671.94 Pittsburgh National Bank,Certificate of Deposit No.246 in the names of Michael Cappelli or Raymond M.Cappelli - $31,000.00 15..500.00 Gross income from rentals received from Winky property from the date of death to June, 1970.29,999.88 Debts attributable to Winky property: 3/6/67 7/29/67 7/31/67 5/1/68 7/23/68 9/17/68 4/24/69 7/15/69 8/4/69 7/29/67 12/14/67 8/8/68 8/21/68 6/10/69 7/7/69· City Tax (1967 School Tax (1967) County Tax (1967) City Tax (1968) County Tax (1968) School Tax (1968) City Tax (1969) County Tax (1969) School Tax (1969) Chambers Ins.(fire) Chambers.Ins.(1iahility) Chambers Ins.(fire) Chambers Ins.(liability) Chambers Ins.(liability) Chambers Ins.(fire) $493.92 596.17 165.12 555.66 188.71 596.17 617.40 212.30 596.17 353.00 84.00 368.00 97.00 78.00 371.00 ..Total Debts Net Income From Rentals Total Assets of Estate 5,372.62 24,627.2E $203..994.14 1.967 The Accountant takes credit for the following disbursements: '. Elll El16 E/19 5/25 5/25 5/25 5/25 5/25 6/2 6./2 7j26 8./21 .9/22 1968 4/9 7/2 1969 1,13 Josephine M.Douglas~Reg.,Letters and short certificates Washington County Reports,;adiTertising estate The Catholic Cemeteries Association, cemetery plot Abel Funeral Home,funeral bin Abel Funeral Home~death cerLficates Clark and Company~accounting service Pittsburgh Newspapers,death notices Simon White and Sons~grave marker Observer Publishing Company~advertising estate Lybrant~Ross and Montgomery~accounting service Russell Marino~Agent,paymer-t on account of inheritance tax Josephine M.Douglas,Reg.,filing Inventory Edward V.Sciamanna~Esq.~a:torney's, fee Internal Revenue Service~1967 [ncome Tax Russell Marino~Register~short certificate Russell Marino~Register,cert:..fied copy of Will Expenses involved in the sale of the real estate situate in the Borough of Canonsburg: Broker's Commission $50.00 Transfer Tax 10.00 Recording quit claim deed 7.50 $28.50 1 12.50 130.00 l~985.00 20.00 550.00 37.50 400.00 12.50 95.00 3~000,.00 12.00 2~000.00 l~924.16 1.00 6.50 67.50 EllO E)lO ~/23 8/26 8./26 P>}26 10/28 1~70 5.'15 Xerox copies Russell Marino~Register~filing Appeal From Assessment Notary fees J.C.McC1eery~appraisal and Court Testimony Jackie Hammond~transcript of hearing Certified Mail Letters Julian 1.Fine~Appraisal and Court Testimony Julian 1.Fine~appraisal Internal Revenue Service~Federal Estate Taxes Thomas J.Terputac~Esq.,attorney's fees Russell Marino~Register,filing Account Nellie C.Cappelli,family exemption Total Disbursements SUMMARY $12.40 5.00 7.00 400.00 23.75 1.20 450.00 35.00 25,313.15 2,200.00 18.00 l~000.00 $39~747.66 "'/' Principal Disbursements Balance $203,994..14 39,747.66 $164~246.48 Observer .Reporter WASHINGTON,PENNSYLVANIA PROOF OF PUBLICATION In compliance with the Newspaper Advertising Act of 16 May,1929, P.L.1784,as amended. Commonwealth of Pennsylvania,County of Washington,SS:. Personally appear,ed before file,a Notary Public in and for said County and State,Ri.c.b.ar.4 $G.9W~JL ,who being duly sworn according to law,deposes and says tha;t he is the ~~.~..~..Y..!....~...~~~.~..~.• of the Obs'erver Publishing Company,a Pennsylvania corporation,and its agent in this behalf;that the said Company is the owner and publisher of the Observer-Reporter,succ'essor to The Washington Observer,established September 18,1871,and The Washington Reporter,established August 15, 1808,a daily news,pap'er of general circulation,printed and published and havin'g its place of bus,ines's at Washington,Washington County,Pennsyl· vania,where it or its predecessors have been established and published continuousIy for more than six monthSI prior to the publication of the notice hereto abtached;that the printed notice or advertisement hereto attached is a 'copy of an official advertisement,official notice,legal notice or legal advertisement,exactly as printed or published in the ObSierver·Reporter in its regula;r editions on the following date or dates;. ...........................................J~a.Y l7..,Z.4 ~n.g 3J.I-J.9.9..7 .. that neither the affiant nor the Observer Publishing Company is interested in the subject matter of Staid notice or advertising and that all of the allega· tions'of this affidavit as to the time,~d character of publication are tme.. --./t.~7.k:..I,.~. ExEcUTRIX-NOTICE ,.'1ESTATE•.OF MICHAE!l'ICAPELLr I~e_ce:ased,)ate,of,<~_ashington,Wash:m~onICounty,...P..enna:..,.,! ..~~ters..Testamentary upon the ,above estat~bavinl(been~grantedto)tJ;ie underslg1!edllnoticell';is hereby,gl~en t~ose"Jindebted thereto to'make iI!!meaiate'qpayment and to those ,h~~ingrcl!!ims'01"demand~,to,present them'Tfor settlement.'- Nellie'C.Cappelli 335 Crescent Drive ,Washington,Penna."Edward V.Sciamanna '222 Washington Trust BldgWashington,Penna.. •671~Wed.·3t ; Sworn to and W.26752 SUbsc~A'~ore me this...~J ...day Q M~-Y..._l9.Jt7.....m~~;~:.~~;G;~~:~;V··· MY COMMISSION EXPIRES MAY 6,1969 './ In the natter oil the Audit of Account in ..........................................................p~.~~.?I?~.g . ."~692 of 1939 'No : ,,19:,A.A. ;' TO THE AUDITING JUDGE: .. Enter ffiy _..............appearance for ~~.~.~~~G..~g.~P.P.~g~~.:.:~.~~.~.~~.~~.~:~:.._.. .'........_-___~.~. .........____. ..___m_m.mm.mm.m m..mmm m.m~-~2::-~ .}.~~.~day of ~~.P~.~.~~E...........................19.7.9.. N.B.-Counsel shall,by separate paper,present a concise statement of each claim,with supporting calculation of any interest claimed. Objections to an account as filed,shall be concisely st~ted in a separate paper.Counsel suggesting proper distibution ,hall file a separate concise statement in that regard. No ~.~.?..,of..J~.§.~,19 ,A.A. ': ro- In re Audit of Account in Estate of MICHAEL CAPPELLI1.............................-_-_--.-.-. Deceased.....:---. ,. AUDI.T ~'rUtript fnr !\pptUruurt FOR NELLIE C.CAPPELLI1............__::;;.__~~..:-:.~,_. EXECU;ElfJ?6 c:::J .~_.·····························uj"·C',···c··············c::::s·.....~:..............•........ x-en ('""")r -lfJ en --1 . -..··:······__··················:::;··~···fTi··············.::.::.·······f'i··f·················..··· '...t.I 4--_ ---t ;::0 f---~···························:;:··0···········..·..·········...........•,,~. -.,3:::-0 .................................g ::;;e;:~;:;;;:.. :--1'Jr.;z..··················..······~···r.::-Te·········.···········-.c.n t.n -'J THOMASJ.TERPUTAC Attorney ~5 ,j~I.( .. I IN THE COURT OF COMMON PLEAS. OF WASHINGTON COUNTY.PENNA• ORPHANS I COURT DIVISION NO.692 OF 1969 IN RE: ESTATE OF MICHAEL CAPPELLI. Deceased. \! ~-':-'."", ~ I ~. .;; PAY TRAN§G.{UPT }>ri1:D~2 (;")C=::-;:(/) :2 :,~of} :":)ri 'Ic;;; g~;r =u r::~:~!>(;")0 1/ "Q -...Je;:, -,--r-;:;) r;-:.: "'" '>'i;~ t .•6.,~~ r......., -c:-e..c t.:;. -~-'1' ./' f THOMAS J.TERPUTAC.ESQ. 729 Washington Trust Building Washington.Pennsylvania 15301 PETITION SUR AUDIT 1M THE ORPHANS'COURT OF WASHINGTON COUNTY Ec-,-f Michael Cappelli,....to e ::>._.••..•..••...•..........__ _.._ D-3ceased No ~.~.?..~~.}.~.~~_A.A.. Fiduciary J~~!.~.~~..g.~g.~p.P.~.n~.'---.~. Executrix._..---._.._..-..-_-_.-_ _.._~.__--.---_._. D~tE o~,.,.Date of Decedent's death ~p.~P.-..??!~~~.?_._.__Grant of Letters M~Y:..~J..}~~.?__._..., Th' . h FirEt and Final ...,'--:;f~1 d ..th'·t tIS IS I"e,;,account Ie In,IS es a.e .~-:: .~.'.."~-l;''.>'.'--=:..;.-,·-.NoneIftherehGYeb.een forrner of=coynts flied In this estate,II~t file nu_m~er.Qr:,number,~?~_t~rm ,"'')..__._ Election to take Under cr Against w~11.(cross out one) Date Election Place of;/ Filed Record ,_..-! Nome of su~ivingi spouse_N~.~~.~~..g.~:..g.?:PP..~.~~~:~,__._ Li:ot issue,where material: R::'YI!Jpn~Capp~~~i :Son .K::.tnryn·.CappeFi ~ub::.,c:-i.Day.gpter Pc.tnc:.a·_!.\nn CEppelli.Watson .Daughter Di.j c€cede,t·marr)o after eo<ecution of will?(indicate)¥~No.Any children born after execution of will?(indicaJe) ~"'-10 If answer yes,name them :_,. ,...-_.,-_.~_..-..----__.._-_._.--..---..-.-_._..---_-----_..--------.--.__-~.-__.- Le~at6es Nelli-~..C.Cappelli .,... "J Relationship .Wife Interest All Fiduciary,'if dec'eased ,or not sui ju~is List i':e><ceptions to above .NO:le f p::Ir~al in'estacy,giv~facts: " .None Adeemed:Revoked:Lapsed:Abated:Give Cause: Notice to int-:!rested parties.Have all parties,having either vested or contingent interests and all crediors entitlec io n.)tice 'Co.lrt Rule No.9 p::Iragraph C:Section 6:Subdivision c)received written notice of the filing of the account end of :::011 01 audit?Yes.'~. tf any e?,<:eption give cause:N.9.:n~. lFile :0l='y cf l'-otice and date of mailing A·-!~?t.~.~.A..A~.?.9 ~.:". Is estate subject to the filing of a Federal,Estate Tax Return?~~.~:•..:•.....:.,:..,,::.::..:.::i:.:'..::.::.:.:;""" A '',''d"P I"T f I'h 't TAt $3..0000 00 'ctua payment ma e on ennsy vania rans er n en ance ax,moun :. If the Will makes any portion of estate ~ubject to a life-estate,give name and birth date of life tenant ~9,~~. Give Names and addresses of all unpaid creditors who are legally entitled to notice,together with the amounts ,of such claims;state whether they are admitted to be correct;arid whether the claim is denied, none -''7 Give reference to such parts of the will as require interpretation by the Court;a reference to all questions re- quiring adjudication,and a statement of any other facts deemed necessary for the preparation of the adjudication: 'None ~ Balance f,or distribution per account, Itemize any additional debits not shown,by account:164..246.48$. Total additional debits (Add) ItelT!j.ze any additional ~credits not Internal Rev;enue'~r:I'v ice.. ,(interest and-penalty) shown by oc~qunt: Federal Estate Tax.":'. , ,$491.~9 $.. Total additional credits (Subtract)? Balance for distribution 491.39 '$. "163..755.09 .$:. If balance for distribution is not in cash,list each item held in kind,giving appraised Value (or distribution Value); Lots Nos.22 ..23 and a portion.of Lot 21 in the Shirls Addition in the Second Ward of the City of Washington..WashingtGn,c.ounty,Appraised Value $105"000.00 A Penn$ylva;nia Railroad Company Stock -Appraised Value $286.25 \Madison'Fund..,Inc.Stock -Appraised Value '$69.75 Balance in Cash. ''''-, ,~ .....••"'l... ;::. 'tt.. If Fanil~Exemptior claimed by Petition,give place o.f Record:·~~.~~:''" If Fanil~'Exemption is claimed at audit,give name,relationship and basis fo·Claim:~~. L st any ad,ancement or di";:;tribution on account that has been made,and n:::rture and amount of same: None Suggested cistribution of bclance shown,both as to principal and income,attaching signed and itemized elections: to take ..n kind if bJlance i:;not in cosh:residuary shares being stated in p::-oportions: ~,-'.\..'11 :..I Nelli~,C.~Jappelli -All " COUNTY OF WA~HINGTON,55: COIv'tMON'-VEALTH OF PENNSYLVANIA. TI-e Jbove named Fiduciary or .representative thereof, t.Ein~dJly_~.~~.J?:_doth depose and say h Jt -he facts set fcrth in tl--e foregoing petition are true '.t:>th:l best of ~.:r.__knowledge and belief. '\::,~.\J-''.. -SWcrri/:'\t d'b 'b d b f.·~.,-;..··....;;ij c:~:·~····_····jn:;~~U;AC~I;ee ore n€his -If d;{y :of..~e!v.J!':-:f./.1I;..-);9...?Q.~.nl ct:•.eo:fPffi~~.~ II'eo',cer.M-'/~oM~iissi;;NOxpiRES.~2 " OffiCE EXP'res....J~m.,.2t~~~t:!~~~~!'!i ..~~~~I~~!~~~..-;~-:~~~.~~~.~~. .And your petitioner will ever pray,etc. ". ,.:lf~_..({~. Nellie c~Cappelli :••••••••••••~~•••••~.~'!'•••••....~.~.!~~'P.p!~..,.~'!''!'".'!'~••••'!' .. ./ -"".,:,;~,..692 of 1969 _..~AANo:_ _ Estate of__.WHQHA~~_.QAPp~~~J_~.....,,-... l , .;),v·1".'"" Fiduciary.....~~.~.~.~~._g.~...~~~~.~~~.!!_.__'" .) ~ Deceased u ,~.::<;'"~• ',",'.J • '"":"!,;::•-'. \.~l.;,';""1;;'/~\\',~"".\..~~'--L~'""':tj ,,-;,.~\./.~:"II.II.(~~,l~,r":::~;'\\\\"'.("(J fr--,'->f...\\\'v,'"\\\\·tffQltIHtllllI\\\ .EXECUTRIX. \.)PETITION SUR AUDIT FROM WHERE DECEDENT LEFT A WILL Counsel of Fiduciary will submit herewith the following,in conformity with Court Rules adopted effective December 3,1951,being rule No.9:paragraph b-c;and divisions thereof:shown on pages 23-24. 1.Wri!ten praecipes of all Counsel in the case. .2.Copy of order appointing Guardian ad litem,i.f pertinent. 3.Copy of Order appointing Trustee ad litem,if pertinent. 4.Proof of service of above. 5.Letters Testamentary or Administration C.T.A or an attest copy of Will. 6.Copy of inventory and appraisement. 7.Proof of advertisement of grant of letters if not filed with account. 8.Certificate of liens in case any of the funds for distribution are from judicial sale of real estate. 9.Signed and itemized elections if any distribution in kind. 10.Copy of Federal Estate Tax return if eS"= tate is subject thereto. THOMASJ.TERPUTAC Attorney ~2 '''i1d "00 N01~NIHSVM STllh\.:10 tJ31SI~3t1 ONIHV\f·1 ll]SSnCl 8S 2 Wd ~l DO OL ~r~."~..'.......,I\!....;1 I "1"_f ....J!---:-- \) u u .' ,THOMAS'J.TERPUTAC, ATTORNEY AT LAW wAsi-tiNGTO;'"TRUST BUILDING WASH'ING~C)N;PENN~YLVANIA15301 AUg\1st 25,1970 .... ••AREA,CODE 412 .TELEPHONE 222·8260' ,j /F'J,','~. (Q) ]Fe Mrs.NeUie C.Cappelli 335 Crescent Drive Washington,Pennsylvania.15301 In Re:Estate of Michael Cappelli,deceased No~692 of 1969, Dear Mrs.Cappelli: You are he.reby notified that the li'irst and Final Account in the above estate has·been filed at the above number and te no snd that said Account will be presented to the OrphansI .Court for audit 'on Tuesday,September15.1970,at 10:00 o'clock ,A.M.•"E.l).S.T.". You ,may oppear if you so ,desire a,t the time of the audit hearing,but it,will not be necessary for you to do.so, unlese you want to take exc~ptiontQtheAccount;or to any claim which has been presented.or to 'present a claim of your o~n. .TJT:amp "Very truly y.ouI-s....('\.: :'..l!Li·•oJ Thomas J.,Terputac\-,. I'·...,.' ·. .\ .-,J ,'1 .\ \J :In t4e (ttnurt nf (ttnmmnn -'lens nf IIns4ingtnn (ttnunty, Jenusylunntn,(@rp4nns t (ttnurt 1!ltniainn ESTATE OF Michael Cappelli, deceased. No.__-=6~9:.=2~of=----=1~9~6....!..9 _ First and FinalInthematterofthe'_ Account of__N_e_1_1_i_e_C_._C_a..::.p..::.p_e_1_1_i__ Executrix ADJUDICATION AND DECREE And now Oc tober ,19 70 ,this matter came on for hearing, audit and distribution at this session and testimony ken;and thereupon,upon due consideration thereofr~3 ~~ij9for distribution in 'the hands of the Accountant is determined to be $,.and the account is accordingly confirmed;and it is ordered, adj~dged and decreed that the said balance be paid out by the Accountant in accordance with the schedule of distribution hereto attached and made a part hereof,unless exceptions hereto be filed sec reg.or an appeal be taken herefrom sec.leg. SCHEDULE OF DISTRIBUTION BaG:mce per account _ 110.00 $163,645.09r!J~~fG.197() Pcf)·//().(){) -I--9.dO (Q~!:t;~~cf! 169.69 /f\$;1.63.798.03 'JJ.J..;../97D P&.3(1(:)./,s(0 A ••110 ~"'.....A (I'~~ 300.6c;(J $163.497.38 Addi tiona1 credit asked at aud it Balonce,_ Deduct Clerk's Costs &Receipts'-_ AM:orney__......T......h....Q....m...9.....:s'--""J'-'".---"'T....e.....r"""puoul.lotUiilauoe~1 RU!3se11 Marino,Olerk O.C.,costs in certifying real esta'te to Recorder $4.00 end costs filing Opinion on transfer inheritance tax appeal, $5.00, Re~order of Deeds of Washington County,costs re ~ol'ding certifica tion of real estate and costs re~istering same, ICo~tribution by Raymond Cappelli for'the 'purpose of paying Transfer inheritance tax on individual liability, RU9se11 Marino,Agent,transfer inheritance ta,x; Estate liability and including·individual lia- bility of Nellie C.Cappelli,and the individual liability of Raymond Cappelli,$265.00 Interest from 7-27-68 to 10-24-70 35.65 491.39 $163,636.09 /IJ ~.l~.7.7{" ~)r;,cr $163,628.34 Nellie C.Cappelli,widow,residue,including ca!!lh and real estate as hereinbelow described, held in kind and distributed as such,and inclu- ding 5 shares Pennsylvania Railroad Company stock and 3 shares of Madison Fund Inc.stock,l61h97.1i) 0 ~. ~ .....z !r :l. n ~....? 0 :r ~. 0 c (\).... ~CD a 3 -' 0 0 0.....~ ," _...... +0'\ ",.o.;<>,::t;L'!a .. t j:P"..-., 0 ,-,_...... = .....:r ::: (\) "~& t J:I j,S~ .. '. ,.( <:.r (I .:... .-.......c....,.·..'·\ \ ;,i -'- REAL ESTATE TO BE CERTIFIED TO THE RECORDER OF W HINGTO COUNTY BY THE CLERK OF THE ORPHANS'COURT DI lSION 150 C ppelli of Michae Cappelli pelli of record in Deed Book 989,ppgge tt'92;or 3.Deed of Lizzie McBride,unmarried, record in Deed Book 1143,page 69. 1.Deed of Ralph lfQlhes and Han~on Holmes of record in Deed Book 715,page 94; 2.Deed of Mary S.Birch and J.Russel Bir h to Mi hael Cap- For source of ti tIe reference,is made to th follow ng deeds: estate described a8,.VIZ: ALL those two lots end a portion of a third lot or la:ld s.itu~te in the:Second Ward'~f the City of W shingto ,Washing- to~Gount,.,Pennsylvania,known "and.designated a on of Lot No..21 and Lots 22 and 23 inShirls Addi tion bo ded by Av~nue and Meadow AIle,.. Said lots together front on Jefferson Avenue a dis ta feet and extend back a distance adow Al Michael Cappelli,devisor to Nellie C.Cappelli,of all the right,title end interest of the devisor in end of real CERTIFIED TO RECORDER:OCTOB 22"19 0 • •t II '.'j ;'';:1 ; ,..'" .. •t 1 I ~ "'of'",.r '. ._~...........>-" .-, .,.,; 1.1 I','-.J:.,r:.·.:"j ~.",. t:YI~i....r'\.,,'1,',..~-, .~ '1 t'r:.J ,I i!).:·J~{t ". == ,' ,\.. • I J ..- '+j'"" ~.' .. .. 1 ....,- "fl1-•• •r- ..,,. .. .'. r".(~...)'""'''1.'J ~-,-... I ':l.,\•,. :" ,..:)"''1",.."r ,',i'., .'-t,.I .·f ,o •f';" f'"O( t •.r r.~'........t.,....;.1,. IN THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY.. PENNSYLVANIA ORPHANS'COURT DIVISION j IN RE:) ) ESTATE OF ) ) MICHAEL CAPPELLI..) ) Deceased.) NO.692 OF 1969 ELECTION TO TAKE IN KIND I..the undersigned..heir of the above decedent..d~hereby elect to take in kind the following: 5 Shares of Pennsylvania Railroad Company Stock 3 Shares of Madison Fund Inc.Stock WlTNESS: Dated the Lift day of ~..1970. "5 5\-r-..::;-,J :::J -S'S.s·..J__"!.J ... '3 S .-''C}:.----O::l Lon CJ)«:0 -J 0-Z -JI'-l .....-,...."..0 ::.·s:t::..~r ::...,..(;)0_::~l.L-:z:..0a 0 r,~--'1:1::to--,--'W (2;;W l..i...!to-Z;-.V)if)-l C-.:l (jJ :::r::c::>J CO)v'")n::W <c:;)c::~tJ-r-- '" -<':r s I IN THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY~ PENNSYLVANIA ORPHANS'COURT DIVISION IN RE:) ) ESTATE OF ) ) MICHAEL CAPPELLI~) ) Deceased.) NO.692 OF 1969 ELECTION TO TAKE IN KIND I~the undersigned~heir of the above decedent~do hereby elect to take in kind the following described real estate: ALL those two lots and a portion of a third lot or parcel of land situate in the Second Ward of the City of Washington~Washington County~Pennsylvania~known and designated as a portion of Lot No.21 and Lots 22 and 23 in Shirls Addition bounded by Jefferson Avenue and Meadow Alley. For full and complete description see Real Estate to be Certified to Recorder. Dated the -L-I....L'4_rfl_._day of ~~1970. WITNESS: ~m!LfJJ?4tMJ .' s l " I IN THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY, PENNSYLVANIA ORPHANS I C OURT DIVISION " IN RE:) ) ESTATE OF ) ) MICHAEL CAPPELLI,) ) Deceased.) NO.692 OF 1969 PAY TRANSC RIPT " 1,the undersigned,distributee under the Adjudication aLd Decree at the above number and term,do hereby acknowledge receipt of the amount of $163,497.38,including cash,real estate, 5 3hares of Pennsylvania Railroad Company stock and 3 shares of Ma.dison Fund Inc.stock held in kind,and Nellie C.Cappelli,Executrix of the Estate of Michael Cappelli,deceased,is released and discharged I.t from any and all liability in connection with the administration of the ab::>Ve estate. WITNESS: Dated this c!tJdday of---,?7~_a",-,__Z_~_._,_,1970. , i"':..:.,v,,--.... COpy OF INVENTORY J NeW.C.CappeW • notal'J'pub11c XXXKII..IIIIIS IIlcbae1 CappeW lsi Nellie C.Cappelli rlu....lz...X it-•••111.... , "IIe/Mrs.Anna Mae Pascoe My CommiS,81on Expires March 24,1988 City-f1 Was¥niton,Wasblngton County,Penna. \- ,'\ \\ '\II \ "'r i/1 . I/1', I I 1Jl1url1tnry attb 1\ppratsrmrut -of the goods and chattels,rights and credits which were MIchael Cappelli .Clt7 of w.ahtnltonof..._l...:late of.:..................................., W ~hingtod County,Pa.,taken and made in conformity with the abo-ve affida"Vit., (SEAl,) September DOLLARS CENTS RBALTY:•••> ALL tho••two lob aDd •polilon et a tldrd.lot aUuat.lb the ~ Second Ward'01 the Clt7 01 Wasblqtoo.W••bln&ton CoWlty.PaDUa •• known od d••Jinated ••,LoU 22 and '8 in the Shirl.AdtiUoo aDd • .....~,. sat"lota loaeth...front em leflerlClD Avenue .•~latance of 150:'."and.. extend back •d18tance of 1&0 fettto IIAdow AUq.Fe.tuU aDd compl.....delcripUon of the porUon of Let 21 reference ...made to deed of Lissie McBride,unmarried.to Micbae!CappeUl 01 record 10 a ••d:Book nfl.pap QO.Par lull an4 complete d.acrtpt1oc.cI. Lot 32 reference 18 made to deed of M&l7 S.Btrcb and J.Ru..l Bu-ch to IUeba.}CappeUl d.record 1D Deed Book oal.pap U2. "or full and complfte cI••crlpUon or Lot za.rtference"made to deed at Ralph Holm••andBaolon Helm••to Mlcbae1 Cappe1l1 d. "cord In Deed Book '115,pale H.Sa~1DI.rectedthereon a Wlak7 Drlve-Io Reataunat.The saleS preml8n ue autJjed to • L•••• made b¥Mlcbael Cappelli and Ne1U.CappelU.btlwtfe.to JltlJ \aUk CODlll~.•PellllqlYanla CD................jen•.,....1•••• ~.~. r.~ .!:"Y ,'.>"'JIM'~'.I.....~~_r _~~ J~\...., ",,. and runs lor a period of fifteen years commencln,Ma,.1~ 1985.A port form ot said L•••waa entered of record in the Reco:r4ert •Office of Waab1nlton CoUDty,Pennsylvania, an~appear.of record in Deed Book nea.pap 60S.The Lea••provide.inter alia a fixed minimum rent of '10,000.00 •,.eat payable at the me at $8SS.33 monthly. W1nky DuJldlng 14nd ALt,that certa1n lot of groand iili~1e in tbe Seventh Ward of the Cit,.of Wa.h1nIton,Waab1niton Cowrty,PeJ.11Wylvanla,beine Lot No.29 intlle pian of Iota lald out by J onatban Am.on and bavlnj erected thereon a ene at017 tile bt.JUdiq and a one .nor,.block pra,.wblcb la used a.3 warehouae and office'for a be...d1atrlbaUDI butne..known ••the Wallldn.lton DtatrtbuUDJ C~mpaD1.i~or flJ11 and complete de.crlpUon ref_Hne.ia made to deed at EUa.beth Bumprnel",Widow, 10 l\lIlcba~-CappellI.dated Aupst 10,19M and of record 10 Deed Book 004,pal.Ul. Warebouae atld Oltie. Laud ALl~that certain lot of ,round 81tuat.in the Second Ward of tbeBorough of Canonabur,.Penn871van1a. ,eneraUy dllacribed as a pareel d land 48 teet.mON 01" Ie••,in wldtb.and 110 teet,more or lGa8~In length.For full and complete d••criptlon,ref"rence lJI made to AdjtldlcatlOi1 aJid Decre.;trom the Emte fA A.naelo •"...'10 •.~•• Cappelli,dec.to·'bChaei C~pp.1U Of recordm the --, H.cOl"d.r;'.;~lce ..~Wa.h1naton County,Pcnmqlvanla, .!/•~.'•'"..t •44,908.15 28.SOO.00 •U••Sa.50 2,000.00 1ft nfed:Book 1322,pap 84.Tb1e la an unimpl'O'fed.vacant lot.•850.00 ,. PERSONALTY: : Pennsylvania Railroad CompaDJ Stock in the name of Michael Cappelli.Stock Cert.No.180504, 1)Shares Jlad180n Fund.Inc.Stock in the name of Michael Cappelli.Stoek Cert.Mo.251099.S Sbar•• 191.Cadillac 5~an in the name of Mi<:uel CappelU l&SS Volk.....f)D.1800 sertes In tbe name of Michael Cappelli ).Ucbael Cappelli and naYlnond Cappelli,tIe Wa.hington OlatrlbutllW Company.located at 810 Jefter.on Avenue,Wa.h1npon.PeDnll.,in which decedent bad a fifty (&0)per cent tntereet at tbe time of b1s death per partner.hip Agreement dated Marcb II,19S1,between Mlcbae1 Cappelli and llaymond Cappelli,b1a .on. Pltt.burQb National Bank.Certifieate 01 Depoeit No.248 tn tbe names of Michael Cappelli or Paymond M. Cappelli.In.son.OP!~d Mareb !t 198-1:Tbl8 sum l"epreaeat.tb1!l'e.ldue 01'baluce derived Ubder Article of A,reement between Mlcbael Cappelli ell us.and R8)'D1ond M.Cappelli et ax. to Alpine Star Lodle •9.a nonprofit corporation of the City ct W••b1Dlton.~.ab1nlton County. Pt:tmBjitra'm.}dated 3'tdy if.1986,wherem the .".atdAlpmt.Lodl.pa~'\21.000.~tor two tract. ~.,"t of land betna Lot No.1'1 .a mor.fullY deacrlbed in..;.....~,-. De~"SOok 1~.2i."pal'~~t.a,mI Tract Second.,more tully described in Deed Book UN.DallfJ 68'1. •288.'25 69.15 8,100.00 1,000.00 21,188.94 S g1.000.CO AND AGE~T OF TME COMMONWEALTH OF _W_E-~_S_H_I_N_G_·r-::_O_N__COUNTY OFFICE ~.TME .REGISTER C""WILLS •...J .~~,;:v STATEMENT OF DEBTS AND DEDUCTIONS •.,_.Form RC C l~·-f\1 __M_:..c_h_a_e_l_C_a..,;p:..,;p::..-el_l_i LATE OF City of Washington,Washi~gton Co.,Pa.ES1'ATE OF '.April 27,1967OATEOFRLINGAFPRAISEMENTDAT5OFDEATH----.;:.::J:~~=...:.~F..:::i:-=------- Sim,::>n White and Sons Grave marker Nellie C.Cappelli Fiduciary commission AMOUNT 28 50 12 50 130 00 1,985 O€} 20 0,0 37 50 12 50 4 00 16 00 4 50 1,000 00 NonE 4~200 00 95 00 400 00 1119 ~ It lS' Family Exemption Filing Account REMARKS Cemetery plot Filing Inventory Letters and short certificates Notary fees Advertising estate Death Certificates Funeral bill Death Notices Advertising estateObserverPublishingCo. The Catholic Cemeteries Ass. Ab~l Funeral Home Jesephine M.Douglas,Reg. Wc.shington County Reports Jcsephine M.Douglas,Reg. Abel Funeral Home Jos=phine M.Douglas,Reg. Pit:sburgh Newspapers Nel~ie C.Cappelli Anna.Mae Pascoe Edward V.Sciamanna,Esq.Attorney's fees Lyb::-ant,Ross and Montgomery Accounting service O....TE NO."'F .~~-..ouc..~'1 ~ 5 ~l 5/~6 5 :.9 5 ~5 5 25 5 25 '.6 2 8 2L ___-I-_---!I__---1 --:-+-+-;/~/___+--- \ CO~MON""'EALTH OF PENNSYLVANIA COUNTY OF Washington I,Nellie C.Cappelli HEREBY CERTIFY.THAT.TO THE BEaT OF M "'MY ~~OMrvfssloN EX:O:RES WJ1CH 24.1958 ' Cll"1 O'F IVASH.liGTON,WLSHI::iGTON CP.lJNT.Y,P..EN~) " "'...1••\:....t,\ II I • ,.~.I .. I I :'"I.J';'\I "•I .~5'- :"",;'r,"",,~¥ i~ <• \1 \".\ • ..' "'.,. , " .''.:} .. \ \..•,...:...I, •I.'r ,..., .•1""\',lV,1,.•,....'. <' . , r •v \..'~i.:',.'r ~I .\.,, -..i ....... .~.~.~,"....lJ <)_.. \.'- ~.....-..::".\1 ._-..1;\ ..,'. •f "•".....1.\_' ., . ,~I <,..'J "'........,1, t,. ~J:...._.\.<•!;.\.' .1• ,.., .-.:...)...., ",..1. .".'. ,.'.I.! J.'[. L l.;..' I ....t..~;I(....J '.... C'J / ;['-).I v "..:.:.9-- i.:=~1 <,"..:..-J VI}-.' \'"..,. ((.l ". I)'.. •,)C ,J ,<;>"''1,1'1 It,-~.__.." .0·J.MONWE.~L1"ti 0:=?E--:N;,YLV'ANIA TRAl'iSFER !NHER!TAN~i TAX RESICENT [IECEDENT ,, SUMMARY J ====_=_,~__,.._,,=====~----=-:---o:-::=========='========== FlLi..Ii ')1.08-77 ni l'f'li\T ell"T:\J!r<:,tTT:\N(;!~'f,\X \PPftAISEn, T.tJw Itrl"('-'"i,~n0.(t duly appointeet Inheritahce Tax :\ppraiser in and for the r.:ount~',of f 63 \:ash:'..:';;"t,cn ,Pcnm;Jrlvani.a,do respectfully report that I have appraised the n'A..il.nd'pl~rsonal )lrop0rt~'as reported in the foregoing return at the values 'set forth oPP':Jsit~C'ar.}~ttr'm i,n the lAS',r,olumn to the right i.n Schedules "A"""B","C"and "E". Dat-:?,i:12-1.0-68 7 /~J "(~//~('.-'/oN 04-'c 7-67 "I NHER I TANC ~AP P RA I Si{? nl':]'()i\'f OF TIm REGISTER OF WILLS' I,th,'"\In.tp.l si.;!;ned dul)p.l~r.tNl iteg;ister of Wills in'ani'l for ~ [:OU)]ty,f'cnnsylv,m:La,t.!.'"sp",:t['lU l.v report that I have allowed deductions in the amounts cla_med.-)~'rlep,(\I1er.t,,"XC:',"as to thos(~i terns where a greater or lesser 'amount is set forth in :];e'last coluJl"1 t.o tl~(;r'i,glit in Schedl.,lie '''F'',which greater or lesser amount represents, the Stlill allowed.as a deduc tion. Dat-=cl: T\'VE~TOHY , Ilea::'Prrper t.~'(c;,C'..herl.ule ,\) Per:;oL:,j Propp.rt~(~(;11nclule n) Tr<l.J:lsf'e,s (Schedule C) J oillit-Helcl Property (Schedule E) TOTAL G:10SS ,\S~:TS LES~n,::bts and.D,C)-:luc tions (SCHEDULE F) ~LE,:_:l.\'.\LT'E OF ESTATE vALlJE 1\S 11.1':]='0RTED S 88J 02h.65, ----.:);..-5q/.~"l-'-_"::.?~-'~'-- l'(.25CO oOO '-- I~7,759•02.' 17<:1 (."7 f·'7.:11-·-'-'J''''~·.o .__ =====.- REGISTtR OF WILLS ,.n ./~I ""Wi\. ValLa t,~\;n anl11_i ~ie'S ,,~'life-8S tn.,tes or $----- EST.:_T~T\X ,\SSESS~mNTS COMPUTi\TION OF TAX 'i'ax on ~~ T ax on ,';,._ Tax nTl ,';~_ Tax on S _ Ex8r:lp t ions"",.=======.__(,::) Tot~l ESLate .~ TOTAL Ti\X L8ss tax preViously pai~ DALA:\'CE Les=.:=,:0::'tax if paid within 3 me,D thg.after death ",'" $----.,...---S======,=$------_._- $======1= (:~)A.sevidenced by Charitable Exemption C~rt~ficates issued by the Secretary of ,Revenue. $,-~--:..._---- $-------*---------$ TOTAL TAX BALANCE PAID ;L\L)!:\CE JF Ii\HEIU fA.NCE TAX DUE ~-------- Add interest at r~te of A%,from La $_ A.\!Olr\T 0."ESTATE fAX ASSESSED $.,..--__, Estate t~x paid ~__~~_ BALANCE DUE Add in~~rest at rate of 6%from to FOil I;~T~_,J.::..J \EG ~ST:;;H QN}JY AnJUST1vfENTS :'\O'[f.:j\"1(-:r'"sl.lbs-:l'luent adjustments ,are made to'the above compu~ation of tax by the, fl:'lgi s ter 0:'Wills,for proper reason,same shoulrl.be noted b~,",rith short e<pLtnatioi1.(\..3Y .,.....,; '.DEPA~TMENTOF REVENUE .BUREAU .CF COUNTY COLLECTIONS HARRI&BURG,PENNA.171 Z7 COMMONWEALTH OF PENNSYLVANIA RESIDENT INHERiTANCE TAX .APP.RAISEMENT DATE ..P.~.~.~.r.~'?.~£~.2.~_~.~.~.~. ..NTY·.\';ashincton \:COU _.__ _.._. F1LE ·NO•......................_?~.~g.~=?7__J..i Whereas,Hj,.G.m.9.l 9..m:m.~g~::·late of :g.:?'.~~~?~~~?.~..: . :,th·C t f . .v!ashit'1Fton Co 'I h f Pl''d'·me·oun yo ;9.............................................................................mmon .\lea t 0 ennsy vama,havmg led 0:1 tl::..2r ,th ..d .f . ..bril .67·d d·f.e L ay 0 ........................•....................................................19 ,seIze an possessed o·an estate st:bject to Inheritance Tax under the laws of the Commonwealth of-Pennsylvania; Th"refore I·.;'i.R.Crane'l·. ...r'·d I .t d d't I --",,,an appraIser u y appom e accor mg 0 av,~· ~E:Ying been designated to make a fair and conscionable appraisement of .the said .estate,and to assess and 11=... the cash value of ~ll annuities and life estates growing out of said estate,tereby file the·following appraisement: In he event tha',any future interest in this eState is transferred in possession 'or enjoyment to coll~teral heirs of the decedent aftel' the·expiution of any estate for life or for years,the Commonwealth hereby expressly reserves the right to appraise and aSsess transfe::- interitan~e taxes at the lawful collaternl rate on any such future interest..... . i, t .\. of I Unit AggraisemertDescrlgUonA..ot Values Made for Inhorlanco .. Ta.Purgo,.. R.~.:J~1'I-:{:$--- All tboso t~-:o 10t6 <.:nd a portion of a third lot situate in the • [,;:;c'):-.:1,t':::.rd of the City of \';ashinston,1'iashin:::;ton COlmt.:.r ,Pa., k-w n end d3si[.~nJ.tcd '"'S Lots 22 and 2]in the Shirsl Additon , , a'1d F:.>rtion of lot 21-Havi erectec.lot 23 ''i.r.r·~,..!";g on >.:lllAY .c.!tCi.-".'1.···"",) IJr'iv~-In h.entB.ura...'1t..f1;7.1-;;\'''''Q"F'iV;''O'i.••'_n,II:OV...f•.,.-!._••"....._..! of fYrotmd situ'-te .iT:t.he Seventh \IJard ..!.411 th,~-t certcin lot 0"t.r:f Cih"of \·;·;.:.~;hin!'ton•\'lashinrton County~Pa.~being·;,tldt:·!o.29 in the plan of 10\''3 laid :Jut by Jonailllall Allison , B.:=ld he",·.itli-·ercctt:\l t:.(;i.'on .?:..or.o st.ory til(;;buildinr;end a O~($~tor~'tile buildi~~and ",one stor:r block g2.rage which<.. is u:Ed '..l<:.rehou~e and office for a beer distriburting ias2.( Distributing Co.··35,eOO.Oo ...!h::ls.in~ss t:no\--;n as the i1.:lshingt·;:m ~n.l ttat certain lot of j.:-round situ.::.te in the Second . ~;3.~d cf the lJorough of Canons'ourg,l-'a.,general:']described I .. as Cl pr2.cel of le.n':':'46 ie,.t,r:orc or less,in ,'lidth,and ../~ ~I LO fc..;t,more or less in length.c~t;O.OO ,2('Yi',~.~....",,".,Ai ~t'--""'-'".."~O-r_<.:(-"~)'t':A·,J....;.:.!;~~1;95(..,,'" I 7..;-:[,;;~p ()(/116:?SO t:'{/ P;':iJ..Sv~}~.L1Y : i)~::::1s'ylv;ni;~n linilrred Co.~tock ~ll:X;.....:U!,;.~~-,{286.?-5 \ ~~::..dison Fund Inc.Stock 69.75 1::66 C-:ld illi.lC Sodi.m 3,500.00.. lC.Gb \i()ll{u\\oagon 1,200.00 I:::'C~l~el CDY;pelli and liay;.:ond Ca:1pe::li,M/A \'!ashir:cton 610 Jei'for~on J~"e.,I I::Ltz'ioutln Co.,located at ::C:3:~in~on,Pa.,in Hhich decedent had a fi:Et!t per cent (cor:.ti..ucd) Havmg been duly sworn.according.to law,I do hereby certify that the above appraisement is made in con- formity vith law on this L?:..~.~~.<:...:::..day of ·~~~;;:.;;:t.;.~.:>:.:.:::::::::(:,:~Z:=;::::::·.::::::·.·:::·.~.:::::·.:·.::~~~.;;::::::::;.:·;:·.JZ;.·.:::.·.·~.~=~..: ..:..:..:.,~.~:"..~:::(....:~~~.~~~.~~. .(Number and Street)....'..~.<~:.....~:t.:....n:······::::··..7···::····:··"·(r~~i···Oiii~~i··········:·································,Penna. COUNTY _~__._.. ,FILE NO _:__.__. ..", •-.C';;PAt:.TMENT OF :tEVENlJE,. BUREAU OF COUNTY COLLECTIONS H!\RRI~BURG.PENNA.'17'1 Z7 •COMMONWEALTH OF PENNSYLVA)li-A RESIDENT INHE'RITANCE TAX APPRAISEMENT DATE ::_-__. Wr.ereas,,late of :::,:::. in the County of - :: : :Commom...ealth of Pennsylvania,having died on, th~:..,_ : ::.day of ;:19._,seized and possessed of an estat~ subject to Inheritance Tax under·the laws of the Commonwealth of Pennsylvania;. Therefore,I~_:,:.,an appraise.r duly appointed according,to law. hwing been desig:J.ated to make a'fair and conscionabl~appraisement of the said estate,and to assess a~d fbi th~cast value of all annuities and life estates growing out of said estate,hereby file thE,!following appraisement: In the event that any future Interest In this estate Is transferred in possession or enjc.yment to collateral heirs of the decedent afte::- the explretlon of any estate for life or for years,the Commonwealth hereby expressly resel ves the right to appraise and assess transfel Inheritance taxes at th·e lawful collateral rate on any such future Interest. I Unit AppralsomonDesoriptlon0'Assot Mado 'or Inhorl ancoValuosTaxPurpolo.: ~te!'est S.t tr.;;time of his death per rnrtnership $ , ,,~re'E::ment datoo F.arch 11:,.1961.bct..·;een gichael Cappelli .........: ;:1.1;38.9/t ,y/ I..... t.rlc.rtay:~:ond Ceppelli,his son. Total 26~194.94 .26,194 94' ." JT.L:.LfJ : fitts-::ru.rr:h ~Jati .na1·Bank~Ce;:·tif:tcp.te ",I"Deposit Ho.2h6....1 in 1"}'.,0-:'-!-lich~cl Capelli &:HayT;\ond ,.Cap;x;;lli ;.1,000.00....;.~...nnr:.DS .1'1. l·ii';,:;t Fed0rL'.1 ;:';~vingo .and Loan Assn.of ~.'ashillt!:t011,Fa. in tiE)n<.mcs ::>:'I~:i.chaHl Cappelli or Katl;ryn Luba 2,1.20.70 j·:t.L-3b2\r:otl FeJe:,.'o.l ~).wint~s '·.,·Lo.:ln Assn.0';:Canonsburg : 1-:.1.~::1cha.<::1 Cilpp~lli in Trust for Nellie c.Cappelli 12,671.94 r"'itt::J~ur{;h !;ationa1 B nk Checking Acct.·in the names ./A- Ca':JlJelli •11..966.38 V v of l·:ic:hacl Cappelli or Patricia Ann .. 47.759.02-47.759 02 Tji.A:·i~:='t4~~3 : kG tr.ate ccrt<:.in tract of lDIld sitWltc in:Hope',:cll Twp.,- .:i.S!!ir"c.,;ton COlli.ty,fa.,conC!.ting 155 acre-..cmd 34 pt:rches .,·'u-.cOJ:!plete descr:i..ptio:J.J;'efer-once is r.::ade tol'.)I'1.1.enG. De~-:l c.f ;':ichacl Cappelli and Nellie C.Cappelli"his ".'Lfe t.o Arthur Luba and·Kathryn Luba his ~dfe and .--'.-" and deughter of the decedent of recrd in Deed Book V' ];45,f..:lge 3248 17,500.00 17,50C 00 '. Total ;iZ~,4.U ."<)6;t~.:i..::',~f I Ii.c//_ .Havir.g been dull swo.rn according to law,I do hereby certify that the above appraisement is made iIi con- forreity w:th law on ihis ::: :day.of.:,:.': ,:19 : . ...".:,,,. Appraiser (!Cumber and Stroot) ••••••••••••••••••••••••••••••••••••••;a , .(POlt Oftlco). P~nna. .,..•r- / --C;::)r-.. ..\~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ,0.0 RCC-3~(1"6'4)..CO:~:4.0N\'IEt<LTHO F PENNSYLVA,NIA DEPA~TMf-l'-TOF REVENUE .BURF,....\.J OF COUNTY COLLECTIONS TRA'N~FER I"lHERITANCE TAX RESID:::NT DECEDENT SCHEDULE "A"" REAL PROPERTY :'(eal )roperty in Pennsylvania,with statement of r.lOrtgage encumbran'ces upon each parcel at deat;,'of dece- :lent.Where property held.as~int·tenant or t~nancy by entireties,repo'rt on Schedule "~".Property b..ld by -he dEcedent as tencnt in common with another or others,should .be identified asto 'quantum of interest and 'he e~timated value should be that of the decedent's interest only. The re.1 prop~rty.Iocated in the Commo!'lwealth of Pennsylvania should be described by ot and block number,street and street number,together with a 'genelal des:ription of the property,with a reference to the record of the convey:Jnce b·which the decedent took title;if a form state number of a- cres;a.so statement of mor7gage encumbrances upon each parcel at death of decedent.Taxes,assessments,acciued Intere.st on .martgages,etc.,are to be I'_sted o~Schedule "F"and must not be deducted from this schedule. ALL thooe two lots and a portion of a'. third lot situate in the Second '¥ard of the City 0:Wa3hington,V/ashington County,Penna., kaovm :::md dcsigna',ed as Lots 22 and 23 in the, Shirls Addiiion and a portion of Lot 21,bounded by Jeffersol:"J.Avenue and Meadow AUey;Said lots ~()gether front on Jefferson Avenue a d:'stance ci 150 feet and extend back a distance of 150 feet to Meadow Alley.:For full and complete description of the portion of Lot 21 reference io made to deed of Lizzie McBride, unr.ilarried,to Michael Cappelli of record in 'D~cd 300k 1143,page 99~For full and complete descr:'ption of Lot 22 reference is made to deed oi Ma:-y S.Birch and J.Russel Birch to (1){2}(3)/ DEPARTMENT ASSESSED VALUE VALU~TION FOR YEAR OF ESTIMATED CAUTIONDECEDENT'S'MARKET VALUE (Do not write DEATH 'In 'th Is spoce) .. ,. l\'I .'1ft 300-00 I N.:dchael Cappelli of record in Oeed Book 989, p~gG ~92.For full and complete description of ·L:)t 2~i..refc:,,"ence is made to deed of'.Ralph : :f-f).L:r.l.'1E::'S end Hanlon Holmes to Michael Cappelli of record in Deed Book 715.page 94.Having erected thereon Q Winky Drive-In'Restaurant·. The snid premises are subject to a Lease mad'e by Michael Cappelli and Nellie Cappelli,his w-Je,-:0 Jiffy Stc:*Company.a Pennsylvania cClrporutiol1~d:::.tcd January 4,1965,rmd runs ~Sqo 00 , '. , '. .. S,5~,C!-oo ..".-.- .. Insert this total opposite "real proper'ty",Schedule "A"in the XX X X X "As REport~d"column on the last page of this return. .' RCC-14 (f-ll':> C~~MONWE~ALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU '0 =COUNTY CJLLECTIONS T,i?.A'NSFER INHERITANCE TAX RESlJENT jECEDENT _ SCHEDULE "A",, REAL PROPERTY ,~*R..';''-,.f.....:-,'~ Real property ir Pennsylvania,with statement of mortgage encumbrances upon each parcel at death of dece- ,dent Where prcperty held as joint tenant or tenancy by entireties,report on Schedule "E".Property hf'ld by- the ie,cedent'as tenant in common with another or others,should be identified as to quantum of interest and the E-stimated v.lue should be that of the decedent's interest only. The r:lal praperty located e1n the Commor'wealth of Pennsylvania should be descr"bed by lot and blod.number,str"ilet and street number,together wi th a gen;,ral dascription of t~,e property,with a reference to the,record of the conveyanc;e ~y which the decedent took title;if a farm state number of a. cres;olso s·atement of mcrtgoge encum~rances upon each parcel at death af decedent.Taxes,asse:ssments,accrued Interest on mortgages,etc.,are to be listed ::In Schedule "F"and mus~not be deducted from this schedule. for a period of fifteen years commencing May 1, 1ge5.A short form of said Lease was entered of ,' record in the REcorder's Office of \Vashington C.o-lnty.Penn~yJvania,and appears of record in De~d B::>ok 1195"page 505.The Lease provides inter,alia a fixed minimum rent of $10,000.00 a..'.. year pay~ble'at -;he rate of $833.33 monthiy. Vfinky Building Lt;lnd ' ALL that certain lot of ground situate in the Seventh VIai'o of the City of Washington, (1) 'ASSESSED VALUE FOR YEAR OF DECEDENT'S' DEATH $8,965.00 ~,450',00 (2) ESTIMATED MARKET VALUE $4~ ..2~h-8GOoGO /3;9.000,00 .,I • (3) DEPARTMENT ,VALUATION CAUTION (Do not write In this space) 'Washington Cour:ty,Pennsylvania,being Lot .No.23 ,in 1he pt:ln of lots laid out by Jonathan Allison anc having erect:ad ther.eon a one st'ory tile building and a or..e st01.7 block'garage which is used nss 'w:lrehouoe and office for a beer distrlbut in,g business kno;;vn as the Washington Distributing Company.jj"'or fill and complete description reference is made to deed of Elizabeth Bumgarner widow,to Michael Cappelli,dated August 10, 195-1 and of record in D,ee<:f'Book 904.page 421. ·;/arehoucc and Office Land .\LL that certain lot of ground situate i~ the Second 'Nard of the Borough of Canonsburg. $4',740.00 1,.200,00 /r r,,,....... ,~.." $'11;:4£B:;::5Q 2rOOO&o- ~O,000 ,DO Pernsylvo.nia.generally described as a parcel of Insert this tJtal opposi-e "real property",Schedule "A"in the ',X X X X X IIAs R~port(-d"column on the lost page of this return, ·'.f RCC-34 (r"6~l , C~I,\MONW'::'AL TH OF PENNSYLVANIA/ DEP'ARTM':NT OF REVENUE ' BUR=Al,.I OF COUNTY COLLECTIONS 'YRA"lSFE~INHERITANCE TAX RESWENT,DECEDENT :..." 'SCHEDULElIA"',', REAL PROPERTY ';. .: *'C'.~'<.1:~."',.' .......¢..J,,... ,. Rea property in Pennsylvania,with statement of mortgage encumbrances uponeacn 'parce/'at death ~f d'ece- dent.Where property heid as'joint tenant or tenancy by entireties,report 'on Schedule "E".Property hf'ld by thede,cedent'as tenant'in common "lith 'another or others;should be idimtified a's to'quantum of interest and th'e rst'imated value should be that ~f the decedent's j'riterest only.'' , The rtlal prc,perty located in the Commo(lwealth of Pennsylvania shoul.d be described br lot and block number,str;et and street number,together with a gen3ral description of the property,with a reference to the record of the conveyance by which the decedent took title;'if ,a farm state number of a-, cras;.olso s~otement'of mortgage encumbrances upon each parcel at 'death ' of daCLedent,Taxes,assessments,acc;ued Interest on mortgages,etc.,ara to be listed ~n Schedule "F"and must not be deducted from this schedule. land!46 feet~more or less~in width,,and 110 feet~ more or less.in length.Po'r full and,complete ASSESSED VALUE FOR YEAR OF ,DECEDENT'S DEATH (2), ESTIMATED MARKET VALUE {31 DEPARTMENT VALUATION ,CAUTION ,(Do not write; In th I••pace) :;', description reference is made to Adjudication and, Decree ffom the Estate of Angelo Cappelli,dec.to Michael Cappelli 01 record in the Recorder,'s Office of Washi."'1gton County,Pennsylvania,in Deed Book 1222,page,84.This 1s an ll.71iraproved,vacant lot. Insert this tot::d opposite "real property",Schedule "A'.'in the "As Rer-~rtecf:"column on the last page of this return. $275~00 .;;. $850.00 :/j"lfJ~~// .~o>J=-56'2;ZA::Q*'~s-.r (V) ," 'CO~.~!O\WE,U:TH OF PE~NSYLVANIA TRA..'iS?ER INHERITANCE TAX' RESID3~T DECEDE~T SCHEDULE "13"- ,PERSONAL PROPERTY I~STRUC:TIO:-IS:This Schedule must disclo'se all tangible and intangible personal property owned indi'vidually by the decedent,at the time of his death.Property owned by the decedent jointly wi th another or others mllst b~listed under Schedule "En.Inta;gible personal property,titled in the name of the decede~t,but payabl~at death to another or others,including but not limited to P.O~D.U.S.Savings Bonds and t~nta-.. tive t~ust accounts,must be listed,despite the fact that they are not of the admi~istered estate.. Tangible personal property should be listed first (e.g.jewelry,wearing apparel,household g_ods,'and furnishings,books,pain't'ings,automobiles,boats,etc.) Intangible personal property,such as bonds,treasury certificates,cash on hand and 1n bank, ,.'s~ocksJ 'mortgages,'notes,together with accrued interest or dividends,salaries or wages,insurance pay- alDIe till the estate or fiduciary,in ,said capacity,partnership iriterests,interest 1n anyund1str1but.ed estate of or income from any'property held 1n trust under the will or agreement of another,even though le-catec.outSid~of the State,at the time of death,should be listed in this 'schedule.' Item No. ITEM List and describe 'fully P~nnsylvaniaRailroad Company stock in the name of Michael Cappelli,Stock Cert,No! UNIT ESTI,MATED VALUE MARKEl'VALUE DEPARTMENT VALUA~iON (Do not write :.n, this space), 180604 -5 Shares M.adison Fund Inc.Stock in the,name of -,. 57.25 286.25 Michael Cappelli.Stock Cert.~p.251099 '- 3 Shares 1966 Cadillac Sedan in the'name of Michnel Cappelli 19E6 Volkswagon.1500 Sedes in the name of Michnel Cappelli Michael Cappelli and R.aymond Cappelli,tl a \Vaob.ington Distributing Company,located at 610 Jefferson Avenue,Washington,Penna.; in Ylhich dc'cedent had a fifty (50%)per cent interest at the time of his death per partner:- chip Agreement dated March 15.1961,between Michael Cappelli and Raymond Cappelli,his 23.25 ' 1.OOO~00 '~r"IS,- /:/00·,00/1 ,son.This value was determlnedby the $21,138.94 ?artnership accountant,as of J\pril 30.1967,. Insert this total opposite "Personal Property",Schedule "B"in, the "A3 Rep_rted"column un the last page'of this,return. x X 25.594.94 l'r'!\j()~\·:·~\r.IfI 1I!:1'1·:\~~YLP\I.\. .T1H\~i·',:n.I\I:r·:!I.IT.\XC'E '1'.\:'\SCHEDULE "e" TlnX~FEll~ (1:Did decedent.,wit.hin two years ofdeath,'make any transfer of any material part of'his estate,·without rC'CE iying :l valuable and adequl1 te consirlerll.tion therefor?(Answer yes or no)Yes (2:Did rleccdent,within two years of death,transfer propert.y from,himself to himself and another or othlrs (inolllding a spouse)in joint ownershi.p?(Answer yes or no)No (3:If .the '1.I1SWt~r ,,0 (1)or (::!)above is in the I1.ffirmative state: (a)'\!~e of decp.rlent .at time of transfer _ (b)State of decedent's heal th at time of making the transfer.(Note 1). (c)Callsc of decedent.'s dcath.(Note 1). (4)Did decedent,in his lifetime,make any transfer of property without receiving a valuable or adequate consideration therefor which was to tal,e effect in possession or enjoyment at or after his death? (AnEll'er yes or no)No (a)IVas there any possibility that t.he property transferred might return to transferer or his est.ate or be subject to his power of rlisposition?(Ans'wer yes ·or no)_ (b)What was the transferee's age ilt time of decedent's death? (5)Did iecedent in his lifetime make any transfer without receiving a val-u-a-b-I-e-an-d-ader!uate consideration ther:lfor under which transferor expressly or impliedly reserves for his life or any period which does not in fact end before his death:.. (a)The possession or enjoyment of or the right to income from tht'p'roperty transferred? (Answer yes .or no)no . ,:lJ)The right to de:,;ignate the persons who shall possess or enjoy the property transferred or income'therefrom?(Answer yes or no)no . (6)If t:le answer to (5)(b)above is in the'affirmative,state whether the right was reserved in dec.edent alon~'or 0 thers ..,.--_ (7)Did .ecedent in his·lifetime make a transfer,the consirleration.for which was transferee's promise to pay :.ncome to or for the IJenefit of care of trans'feror?(Answer yes or no)DO (8)Did clecerlent,at any time,transfer p'roperty,the beneficial enjoyment of which was subject to change, becHLse of :l reserverj'power to alter,amend,or r:evoke,or which .co1tld revert to decedent under terms of transfer or by operation of law?.(Answer yes or no)no. (9)If t.e <:nswer to un above is in the affirmative.was the power to.(11 ter;amend,or revoke the inter- est c·f the beneficiary ;'eserved in the decedent alone or the decedent and others? (Ans.er yes or no)__ KOT:;;1:The anSwers to these questions should be supporten by affidavit by the attewUng;physician as weI:'as ~copy of the death certificate. KOT:!:;:l:If answer to any of the above questions is yes,set forth below.a description of the prcperty tra~sfer~erl.,it's fair market vallie at date of ,death,dates of transfers and to whom tr·l1.nsferretl,with re1.l.tion""hip of transferees to 'decedent,if any.Submit copy of any trllst fleed or instrument,i.f tr·ms·- fers are claimect to be non-taxable,also submit detailed statement of facts on which said claim is based•. 1\OTE 3:List apjllicable prop'erty below 1n manner in which prOVided in Scherlules A,B,or E. ITE:'I UESCRIPTION All that certain troct of land situate in Hc.pewell TOYJnship,Washington County.Penna•. C~'ltD.ining155 acres and 34..perches..For full all.:l coraplete description reference is raade to de~d of Michael Cappelli and Nellie C.Cappelli. I lhis 'Nue,to Al"thur Luba and Kathryn Luba,his I ... wife,and d,1U~hter of the decedent,dated .September 15,1966 and of record in Deed BookI I112~5,p3ge 324. I ii MARlillT VALUE (EsUmated) ~•.5ac=7ii6 DEPT.VALUATION (lJl?l't.Only) Insp.rt ltd.;t,flt.:,j ()jlp()s.lt·~"Tr:Il1Sfp.rs",Sche<llllp."C"in the "As H.=>.port~rJ"f;'I]IlIllTi (,n Ute 1115t pag;e 0·1'this return. ,.... R.CC~3~, •f. C.~M~\b:~WF:~\LTH OF l'EKNSYLV,\NIA ·'T.~,\i'iS:TIt IXHEIUTANCE:TAX ". SCHEDULE "E" ,JOINTLY OWNED PROPERTY ,1:-;srn.C:;T 10:-;S:'This schenule lTl,ust disclose all property,real ann personal,owned by the rlecedent ,jointly \lith l"l1other or others,inciuding intangibles,standing in ,the name of the decedent and others.List !"eal estate first,us entireties,or joint'tenants,giving brief description,as indicated unner Schedule "..\",l}lus the date ann plac'e of record of instrument effecting vestitl.lre,but na not include entireties OJ'out of state real ~state,value in esta.te valuation column.Personal property shouln be l,isted as in Schedule "D",plus nate of,acq~lisi,tio'n,and the n~rne,address and relationship (if any)'of 'co-O'wners to' Ule ,ie::edent. Descri;:'tion of Property,Date of Acquisition,Name I ,unit ,\.qdress amI.Relationship of Co-Owners,Ilnd Place i Value of :tecore!.of Instrument,where Real Estate.! - -7,----A. percentage Share Estate Valuation, DEPART~ffiNT VALUATION CAUTION-Do not'Write tn 'This Space. Value of 'Value of Entire Decedent"s prdperty Interest, \"" *Pittsburgh National Bank,Certificate I' of Dep'::>sit 1\10.246 in the names of Michael I Cappeni or Rayn10nd M.Cappelli,his I sen,o:::>ened March 3,1967.' ,First Federal Savings and Loan ASEloci~tion of Washington,Pn.;L'l the nones of Michael Cappelli or Kathryn Luba, dat.:ghter,Acct.No.811666.openeci June 22,1960 in the su..'n of $4,241.40 ~'t !-Sl-;-uuu.OP , 2,120~7P , .'., '~~'/,§~" Mi.'Lebanon Federal Savings &Loan Ass.of Canonsburg,Pa.;Acct.No.X-1660 Michael Cappelli in Trust £or ~eUie C. Cappelli 12,671.94 Pt~tsburghNational BaI'lJ{Checking Acct.Nu.83-4793423 in the names of Michael Cappelli or Patricia Ann Cappelli, dau6hter in the total sum of.$3#932.75 opened August 21:,1963 1;966.38 ~2~r....,I-~~'T:-'t,Ji qS/.~:<' I.sert this total opposite "Jointly Owned Property",Schedule"E" ,\i.the"As lleported",column on the las,t page 'of this return. *NO-I'E:This sum represents the residue lor ba~ance de,ri~~d under "rtic1e of -- Agreement between Michael Cappell~et u~.and Raynp.ondM.C~ppelli et ,ux'!', -:0 Alpine Star Lodge !i 9,a non-prof~t corporation ofIthe City df Washington~: "Nashinr;;ton County"Pennsylvania~1ated J:uly 20.19~6,wherdn the said ! '.~lpine Lodge paid $125,000.,00 for t '10 tra~ts of land Ibeing LotiNo.17 as m?re fully ~escI·.ibed in Deed,Book 1225....age 2~1,and Tr1ct second1as more ful1f ' deSCI'lbec l:'~lJ..~ed Book 1184~page 0 7.I'- I[... I I Ii f' "-.,..Iii'"'COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF COUNTY COLLECTIONS HARRISBURG 17127 J November 6,1969 William R.Chaney,Chief Appraiser Inhe~itance Tax Division . Rooms 243-245,Washington Trust Building s.K..Corner of E.Beau &S•.Main Streets Washington,Pennsylvania 15301 Re:Estate of MicGae1 Cappelli File No.9408-77 County of Wasrington Dear Mr.Chaney: We are in receipt of a copy of the Court's Order and Decree handed down by the Court of Common Pleas of Washir,gton County, Orphans'Court Division,in the above estate. The inheritance tax appeal in this estate was taken from the decision of the Inheritance Tax Protest Board 'with reference to the valuation of three (3)assets identified as fellows: (1)Certificate of Deposit in the joint names of the decedent and his son,Raymo~d Cappelli, in the amount of $31,000.00. (2)Real estate in the 'Sec9nd Ward of the City of Washington haVing erected thereen'a WinkyDrive-in Restaurant known as i'lWinky'stt appraised at $139,000.00.. (3)Real estate in the Seventh Ward of the City of Washington on which an old bui1cing was erected in which the decedent condl.cted a beer distributorship valued at $35:800.00. \The Protest Board's decision that the CErtificate of Deposit was valued at one-half 0/2)or $15,500.00 ·was SUEtained and the appeal as ~this item was dismissed. ) I / iI.. As to the valuation of the two (2)parcels of real estate set forth in 2 and 3 above,the Court,on the basis of all the testimony, ,...., .. William R.Chaney,Ch~ef Appraiser Re:Estate of Michael Cappelli fo~nd the value of the first parcel to be $105,000.00 and the second pa=ce1 $19,000.00. No steps looking to a further appeal .wi11·be taken by the Conmonwea1th and accordingly,you .are hereby authorized to reduce the va:'uation of the two (2)items of·real estate mentioned to correspond with the vaiuation established by the Court.This correction will reduce the total valuation of all this decedent's real estate to $1~4,850.00 and will correspondingly reduce the total appraisement filed by your office on December 10,1968,to $183,303.96. Very truly yours, Robert L.Schrift,·Assistant Chief Inheritance Tax Division For:William S.Brandamore,Director Bureau of County Collections RLS]l1c cc:Edward V.Sciamanna,Esquire cc:Russell Marino,Register of Wills .... Wil.liam R.Chaney.,Chief Appraiser Inherite.'1.nce Tax Division.... .Room 244Washingto~Trust Building Beau and Main Streets Washington,Pennsylvania·15301· May 16,1969 '...37-/0 ~ ~·.3·-~9-~Y,0 .F"' .J Re:Estate of Michael.Cappelli File No.9408-77 County of Washington Dear Mr.Chaney: Enclosed herewith is a copy of a Protest filed in the subject decedent's e~tate. On May 16,1969,Mr.Richard L.\vitmer,Director of ·this Bureau,advised ThomaS J.Terputac,Esquire,of the action of the Protest Board with respect thereto.. . T··,. Accordingly,you are autborized to amend the record of tht$ estate to conform therewith. Very .trulyy~urs, 'Jos~ph F.Shamay,Chief ,Inheritance Tax Di\Ti~ion For:Richard L.Witmer,Director Burea~of County Collections JFS/ans Enclosure' cc:Russell Marino;Register of Wills I'~. .., May 16,116' ThClll&5 J.rerputac,Esqu1N 222 }la~h1ngton Trust Bu1ld1nl ~lashington,Penn3ylvania 15.301 l~e :?:ltate or MichAel Cappelli File No.9400-71 County of 'flash1ngtcm The Inheritance Ta.x Prot8~t Board of the PennsylwniA Department ot Rewnue met on the 9th day of J.~YJ 1<]69,aDd considered the Protest fUed in the above e,tate.The decieion of the Bo&rd tollow3 I The Protest fned January 28,1%9,in the above !rAtter i;herebj~)'l'Jtained in part as to the va.lue of the real estate J I,ots 21,22,2J,and the iiinky BuEding situated in the Jecond Ward of thc City of Hashington,lVashington County,Pemsylve.n1&being reduced to $'139,000.00 for transter inheritance tax purposes. 'i'he Prote;Jt L Denied aJ to the valuation or the realty J.ocatcd in the5eventh il'ard ot 3aid city.The subjoct realty wa.}correctly appraised at $35,800.00. The Protest is Suatained a3 to the realty transterred to the daughter ot the decedent,ao the transfer was not ::ade in con- tenp1Ation ot death. The Protest i;j ,lusta1ned in part &:J to the Pittabur01 Naticnal B&nlc Cert1t1cate ot Deposit No.246 being one-halt tax- able at the date ot death. The Protest 13 Denied &5 to the valuations ot the 1966 (,~1J J.ac Sedan and the J.966 Volk~"Wag • For:Warner M.De~ :jecretar,y ot Rewnue cc:Francis J.Gattord,Deputy Attorney General "William R.Chaney,Chief Appraiser "Russell Marino,Register ot Wills .'. ,. " ,'" .. ,1. " 0:> U'"1 r-..J ::c:..0-•. 0 .::r W _J......... c,...} c::>-\ U- c::::>r-e. .' '. .~ I fo t",•\-• ,. •j '1-"'·-r'. F.....~rr..ll.RI-~-66 .'1'. COMMONWEALTH OF PENNSYLVANIA O.l"fICIAL RECEIPT Tra.nsfer Inheritance and Estate Tax1m' ~~RESIDENT DECEDENTSh File No 94-08-74 II~ ,_~.,---"Pa.}li'l'$HTNGTCll\TOfficeHLGISTEftOFWILL:J,. ~s .Tuly 26,~,..,._19~ 909979No nrrtP. WASHINGTON County,ss:Received from __---.JNliJ.!e~l,bl,bl.;jJ·eSL.1C,da;!,,!P2!Plle~l=,l...li~_ (Executor,f'the estate of M I!:tJA]'.T.CAFPEIJ,I ~--_..__,. who died April 27 19~,the sum of THREE THOUSAND and no/IOO - - - - - - -Dollars, being TRANSFER INHERITANCE TAX and/or ESTATE TAX due the Commonwealth as follows: Appraisements Made and Filed Computation of Tax Real Estate 157.89 3,157.89 $-------- $3,000.00 $======== Amount of Estate Tax Assessed under the Act of May 7,1927. Total Tax on $5%$ Tax on $10'}'o $ Tax on $On Account 2%$ Tax on $15%$ Exemptions *$ Total Estate $ Total Tax $ Less Tax Previously Paid (if any)$ Balance $ Less live per centum of tax if paid within 3 months after date of death $ *As evidenced by Charitable Exemption Certificates issued by the Secretary of Revenue under Act of May 28,1956,P.L.1757,effective June 1,1957,as amended by Act No.381,approved July II,1957,and Act No.207.'1961,Section 302. SEA •Add interest at the rate of % from _ to -'-__ 37-10-6 TT\Tr.nMPTR'Tw. $,------ $. $,------ $ Valuation $. $. Total $. Valuation ®OOD ffiJD [K!J£[L $,------ $------- Total Total Gross Assets Less Debts and Expenses of Administration NOTE;To be delivered to taxpayer by Register of Wills Date Date Personal Property Clear Value of Estate Valuation of Life Estates or Annuities Date .19__$_-:~_ ________19__~$============= Estate 'Tax Assessments Date 19__$_ .19__~$====== ~. •NOTE:In'accepting the transler inheritance tax on luture estates prior to the death 01theliIetenantortenantforyears,as evidenced by this receipt,it is understood that the Com-monwealth shall'not be precluded or prevented from hereafter assessing additional inheritancetaxatthedeath01theliletenantortenantloryearswheneveritappearsthatsuchadditional tax may be legally due and collectible lor any reason whatsoever., FORM RCC-4-RI ,. TRANSFER INHERITANCE and/or ESTATE TAX.- RESIDENt'DECEDENTS.- RECEIPT 37 10 6Docket....~Page ...LI....jne,-_ Estate o'L-f__MI_C_HAE__L_C_AP_P_E_LL_I__ OFFICE OF REGISTER OF WILLS WASHING'ION,p_______..:..:...-'-"~__~_4 a. Date,--=J:...:::ul=yIL..-..:.,2~6-_19~ r I SIGNED AND SEALED AS PROVIDED BY SECTION 1201.ACT APRIL 9.1929.P.L.343 AS AMENDED BY ACT MAY 15.1945.P.t.528, JOSEPHINE 1-1.DOUQLAS Register of Wills 1201 (g).Act of April 9.1929.P.L.343.as amended.viz,-"To receive from Registers of Wills all duplicate re-ceipts for taxes paid to them by executors or adminis-trators and to charge the Registers receiving the moneywiththeamountreceiptedfar.The original of each such receipt shall be signed and sealed by the Register of Wills and transmitted to the executor or administrator.whereupon it shall be a proper voucher in the settlementoftheestate.In no event shall the executor or adminis-trator be entitled to a credit in bis account by theRegisterunlessthereceiptissosignedandsealedby the Register of Wills:' Fill in below name and address of person to whom tax receipt is delivered: I To ATTY.EDV,TARD V.SCIAMANNA 222 WASHINGTON TRUST BUILDING L WASHINGTON,PENNSYLVANIA 15301 IN THE COURT OF COMMON PLEAS OF WASBINGTON COUNTY,PENNA ORPHANS'COURT DIVISION C) I e IN RE: ESTATE OF MICHAEL CAPPELLI, c 2 Deceased.c> ):a:zz IIIDo i~BEFORE: ziIIIet~ ~APPEARANCES: II:I-alQ oJeto Q TIME::J., :I:/::01 ) ), )No.692 of 1969 ) ) ) ) HEARING 0 N AUDIT THE HONORABLE P.VINCENT MARINO,Judge of the said Court. THOMAS J.'E'ERPUTAC,ESQ.,of Washington, Pa.,representing the Accountant. Tuesday,September 15,1970,at 10:00 o'clock A.M.,EDST. adjudication by the Court and that there are no outstanding claims the t deceased.The Executrix is Nellie C.Cappelli and the attorney is in this estate are ready to be filed,and tha t there are no problems fc r Number 692 of 1969,the estate of Michael Cappe i, Thomas J.Terputac.Mr.Terputac informs us that all relevant pap~rs ~THE COURT: I-0:oII.bl0: I-0::JoU oJCoii:II.o the,-haveknowledge of.Is there anyone else~in Court interested in this decedent IS estate? (NO RESPONSE) THE COURT:The audit of this account is ordered closed by the Court. (AUDIT CLOSED) .:1'"• .' I..... \. ." 1...... \~'. "." ·_~~~P···her.""~-_. •'I,'.'"'0 'c-"':of ~r ......-... -:...........0,",,: >.' r- LrJ 0 (..')<:(-.l 0..:::-.l('y f'><.0-,--,:::<.)~'~ ~_.C'-«,..-,--,~ c: ~.. ,--~~ <.- ((,j;-. ?J ~:,:~.F'- " IN THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY,PENNA ORPHANS'COURT DIVISION IN RE: ESTATE OF -:~MICHAEL CAPPELLI,:-.I>~Deceased. Li'" ) ) ) ) ) ) ) No.692 of 1969 ..coI- ~ f BEFORE: IIl-II C HEARING ON APPEAL FROM ASSESSMENT THE HONORABLE P.VINCENT MARINO, President Judge of the s aid Court. .. t.c APPEARANCES: :I..I'"00 lCll:I&.l-ll: CII.I&.ll: I--lI: 5U...TIME:<uii:IL. () CHARLES C.KELLER,ESQ.,of Washingto Penna.,representing the Commonwealth of Pennsylvania. THOMAS J.TERPUTAC,ESQ.,of Washingt n, Penna.,representing the Appellant. Wednesday,July 16,1969)at 10:00 o'clock A.M.)EDST. • WITNESS JULIAN FINE ~J.C.McCLEERY:;....>~NELLIE C.CAPPELLI:0:..l:t RA YMOND CAPPELLI l-e2i G.P.AMANATI If.. ~ lfilI:I&ll-ll:oQ.I&l II: l-ll: ::loU .J« u ii:II.o I N D E X Direct 6 23 42 46 73 Cross 16 32 45 63 85 EXHIBIT,S APPELLANT'S EXHIBITS: 1 -Xerox copy of the Lease between Michael Cappelli,Lessor,and Jiffy Steak Company,Lessee,admitted into evidence on page 72. Photograph of Cappelli's Distribut:ing Company building,admitted into evidence on page 72. Photograph of Cappelli's Distributing Company building,admitted into evidence on page 72. Photograph of Cappelli's Distributing Company building,admitted into evidence on page 72. Photograph of Winky's,admitted into evidence on page 72. Photograph of Winky's,admitted into evidence on page 72. Photograph of Winky's,admitted into evidence on page 72. Photograph of Winky's,admitted into evidence on page 72. ,Xerox copy of Deed between J.Harold Chapman and Mary Jean Chapman,his wife,and Michael Cappelli and Raymond M.Cappell. dated November 30,1965,admitted into evidence on page 72. Xerox copies of two cancelled checks:one to the 0 rder of J.Harol Chapman in the amount of $11,000.00,dated December 14,1965, signed by Michael Cappelli;one to the order of WeHner Real Estat in the amount of $500.00,dated October 20,1965,signed by Micha 1 Cappelli.Page two of this exhibit shows the endors ements on the back of these checks.Both are admitted into evidence on page 72. r.... . 9 (d) Xerox copy of an Agr'eement between Michael Cappelli and Nellie C.Cappelli,his wife,and Raymond M.Cappelli,and Gabriella O. Cappelli,his wife,Seller,and Alpine Star Lodge #9,Buyer,date July 20,1966,admitted into evidence on page 72 . Xerox copy of two Certificates of Deposit;one to the credit of Michael Cappelli or Raymond M.Cappelli in the amount of $30,00 , dated September 2,1966,signed by Jos.A.Chesnos;one to the credit of Michael Cappelli or Raymond M.Cappelli in the amount EXHIBITS (Continued) $31,000.00,dated March 3,1967,signed by Jos.A.Chesnos, and credit stubs for both.Admitted into evidence on page 720 4 9 (e)Xerox copies of the back of the two checks in Exhibit 9 (d),showing endorsements of Raymond M.Cappelli,admitted into evidence on page 72'0 Xerox copies of various pages of Income Tax Returns for Raymond I and Gabriella Cappelli,adm itted into evidence on page 72 0 Xerox copy of a page from the Income Tax Return of Raymond Cappelli,admitted into evidence on page 72 0 MR.KELLER:May it please the Court~this is the time set for an appeal in the estate of Michael Cappelli,deceased,at Nnmbe~ 692 of 1969.This appeal is from the refusal of a protest by the ii I, Protest Board in Harrisburg~and is limited to three items in the Inheritance Tax Return as it affects this estate. The first property is a commercial property. The second is a commercial.And the third is a Certificate of 5 . ot-o t=oi:to!•oJ-:i 1:1 :J.. Deposit,the extent of taxability of which is in question . On behalf of the Commonwealth,I ask the Court to enter of record the assessment which was originally made by the local Inheritance Tax Office,the appraisement,and we would refer to that at its place of record downstairs in the Register's Office. There were some adjustments made on those ;:.. •THE COURT: Iic:II~figures,wasn It there? ()c.u~MR.KELLER:There were some adjustments made on those c:l () tt figures on the basis of the protest which was filed on behalf of the oJ.; tooE estate by counsel of the estate,and as amended,the appraisement (. down in the Register's Office represents the present position of the Commonwealth and we refer to it by reference and ask that it be made a matter of the record as the Commonwealth's original pres entation in this case . THE COURT:It is so ordered.Mr.Terputac? MR.TERPUTAC:Your Honor,the estate is prepared to proceed 6 relative to expert and other tes timOIlY regarding the three issues in this case.And for the purpose of clarification.may I state that the property on the westerly side of Jefferson Avenue we will refer to as Winky's where the Winkyfood sort of restaurant is located. I The easterly side of Jefferson Avenue,which.I think,is 610,we will refer to as the Distributing Company.And the third MR.TERPUTAC: ..THE COURT: c..:C JULIAN FINE IS CALLED AND SWORN. DIRECT EXAMINATION BY MR.TERPUTAC: ..c·.... I.':0.: :JII.. ~..-c.ii~C :I:l-I'-N IIIlI:IaI....lI:oll.IaI lI:....lI::lo ()o U' oJ~Qu iL II.o A item.w bich is in issue in this matter.is a Certificate of Deposit of Pittsburgh National Bank.of which we have Xerox copies and soforth and which we propose to introduce into evidence.Those are the three issues involved in the case. Very well . I will call for our first witness,Mr.Fine. What is your name ? Julian Fine. Q Where do you live? A 52 Morgan Avenue here in the City of Washington. Q What is your profession or occupation? A I'm a real estate broker specializing in real estate appraising. Q Mr.Keller.will you concede to qualifications or shall we go into qualifications? MR.KELLER:I will concede to his qualifications as an expert real estate appraiser in the vicinity of the City of Washington~Pa. Q With that understanding,Your Honor,we will proceed into the merits of the appraisal.At my request~Mr.Fine,did you make an appraisal~investigationand soforth into two properties of the estate of Michael Cappelli? Yes~I did. Now for the purpose of simplification~we will take them one at a time.You did make an investigation and appraisal of the property which we know as Winky's on the westerly side of Jefferson Avenue in the City of Washington,Pennsylvania. Yes. Were you familiar with that property before you made the appraisa ? Yes,I was. For <what period of time and why,Mr.Fine? Well,for the period of time from its construction.And why~havi g done numerous appraisals in the City of Washington~familiar with Jefferson Avenue,living here. Q Had you made any appraisals,Mr.Fine~in the Jefferson Avenue area where these properties are located prior to the instant appraisals? A Yes,I have. You were familiar with the construction of Winky's at the time it Julian Fine was built three or four years ago.is that right? A Yes.I was. Q When I asked you to make the appraisal.will you tell the Court wha, steps you took.Mr.Fine? 8 A :!.. 0(>oJ:-Q~..c:; :A;; i-~ ;:; 0(~ ~2.::..0eg oJ Q0( 0 g ::J.., • i'-.. a.::u A...::Q LU Q.::..I: ::J00 oJ0( 10i:L C A Q Normal steps in preparing a real estate appraisal.considering the three recognized approaches to value . Will you enumerate those approaches to us? The cost approach.considering the construction and maintenance and condition of the property;the income approach.considering the income and net return;and market data.which considers sales of property within the immediate area. Now Mr.Fine,as I understand it,what we are concerned with is the market value or the valuation as of the date of death,which is April 27,1967.Is that correct? That's right. Andyour testimony both on the Winky's and on the Distributing Company is limited solely to the date of death valuation.Is that correct? That is correct. Now will you.explain what influence or what information or investi- gation you gave to the first approach,the cost approach? A To the cost approach? Q Yes. A I considered the building size.1344 square feet;I considered the Julian Fine blacktopping on the lot;and I considered the land which fronts 150 front feet on Jefferson Avenue. Q Do you have the numbers of the lots and plan for the record,Mr. Fine,on the Winky property? A No,I don't have it. -=Q Would this be part of 21,22,23 and 25? -=~ii A The lot numbers ?. Li~Q The lot numbers where the location of Winky's is. 00I-~A They could very well be.I didn't mark those down.I have them J: ""-::-on the other property but not this one. -..- L ii..IIIC.. !::c -Q "..,. C\o (Mr.Keller made an inaudible remark to Mr.Terputac). Your Honor,let me amend that.I think Mr.Keller's suggestion is correct.I think that is part of 21,all of 22 and 23.What is the cr:II:~frontage of this property on Jefferson Avenue? a~... lI:A 150 feet. l-ll: :II3 Q How far does it go back·?...<~A It has a depth of 150 feet.ll.o Q So this is a 150 feet square property,is that right? A That's right. Q And what was built on it at the time?At the time of death,what was on the property;? A A drive-in restaurant known as Winky's.. Julian Fine Q And there was parking space there.was there not? A Als 0 parking.yes. Q Now regarding the income approach.Mr.Fine.will you tell us about that? 10 A I( i!:I(:>.J..;nzz ;,j~ ioto~Q :t1/1~~ The tenant is Jiffy Steak Company.A lease calling for $833.33 per month.it's a 15-year lease with two--five-year options;six percent :..of gross income over $167.000.00 a year would be due to the landlord~and the tenant pays all real estate taxes above $1800.O. This lease is dated January 4,1965 between Michael Cappelli, Less or~and Jiffy Steak Company,a corporation,is that right? Yes~that's right. Your Honor,as Estate Exhibit 1 or "A"~whatever you want to use~ I would like to have the Lease just referred to marked as part of the evidence. (Stenographer marks Appellant's Exhibit 1). THE COURT:Mark it as an exhibit. !Iia:III~oII. IIIa: toa::JoU .JI( ~Q I&-o I refer to A ppellantI s Exhibit 1.Is this the Lease to which I have referred? A Yes. Q Your Honor,would you care to look at that for a minute?Now referring to Appellant's Exhibit 1.the Lease in issue.at the time of death on April 27,1967,the Lease had about 13 years yet to run.Is that right,Mr.Fine? ulian Fine A Approximately 13 years. Q Did you take this into consideration in making your valuation for this estate? 11 A Q ~A iC.. .J ii Ql: l:&IL i:> !)~A :I: OIl C~Q -:J i Al-ll) D -'0(uo:J.., :z:..iI''NQ ,iii II:1&1I-a:oa.1&1II: I-a: :J8 A .J C uiLII.o I did. And what relevance does that have? It assures a stable income for the property. Does it have anything to do with the method of valuation that you em ployed in this ins tance ? That's right~it would effect the capitalization rate. In what way? In determining capitalization rate for the property~it would assum a beneficial lease to the property~it would make it attractive as to open market value. Will you briefly explain to the Court what factors in this lease~besIdes the time of period that it had to run~what factors did you take into consideration in arriving at your valuation? Well,as I explainedj I considered the gross clause~the gross leas claus e~the fact that the owner was liable for real estate taxes only up to $1800.00 a year~I co~sidered the annual expenses that would be accrued to the property owner. Q Now the third approach you considered was the market data appro h. Is that correct? A That's right. Q What~if any factors did you consider in that approach? Julian Fine 12 A The market data is normally the preferred method of determining ark~t value for any property because it shows what similar property is being sold for in the area.Fortunately,in the City of Washington ~e have an abaundance of sales that would indicate value of local prope ~ty . Q -~x Q...ID Q ..I~U C~A %..iI'" ow Q !1i0:11/...0:oa.III 0:A.... 0: :loU .J« uiLII.o Q Now as to the three approachesI cost approach~the income approaeh~ and the market data approach~which did you employ regarding the Winky's property or which did you stress more than any others? As I said~I considered all three approaches for this property.A I probably gave equal weight to market data and income.After all, this is investment property. So would you say that of the three factors you perhaps put a little m ore stress on income and market data? That's right. Now regarding Winky's.there is a two-fold problem,is there not. the value of the reversion and the value of the lease,is that corree ? This is true,specifically speaking of income.Of course~when ye· are considering the market value of the property~it's considering all factors. Now taking into account your familiarity with the property and you_ experience and professional qualifications~do you have an opinion regarding the value of the Winky's property as of the date of death. A I do. Q And will you tell us what that value is? A The value as of April 27,1967 was $100,000.00. Julian Fine Q Do you have any breakdown of that particular value? A $60,000.00 on land;$40,000.00 for improvements. Q Now referring briefly to the Distributing Company property,as of the date of death,were you familiar with this property,generally? 13 A :!Q <:-..:-~ ii Ac....0I-0... g 0:~ .." l Qii..aC A.. lC :I..,. to IfII Q...l-ll:CII. II. II: l-II: C Au oJ<uii:l&.() I was. Can you tell the Court briefly what the condition of that property wa at that time? At that time,the value here would be primarily in the lot.The building was in poor condition.It was merely a shell and would have limited utility and marketability. Will you tell us what the size of that lot was and its location? The size is 50 feet by 150 feet.The location is on the eastern side of Jefferson Avenue,located across the street from the A&P Store. What relevance,if any.does the fact that this was a 50 foot fronta e on Jefferson Avenue have,Mr.Fine? On Jefferson Avenue these days,owning just a 50 foot lot is not necessarily conducive to maximum or premium market value. The market is primarily interested in assemblage of lots for maximum utility. Q Are you inferring then that if there were two or more lots,the valuation of any particular one might 'be considerably higher? A It might be.There would be a premium put on the factor of assemblage. ine 1 Q Now you are familiar with the fact,are you no~,that considerable improvements have been made by Mr.Raymond Cappelli on the plant that sits on this property since his father's death? A Q ~A iC·..r iiQ!:·ii L·5 ~A II: III( ~Q J £ -II3 ..r~J3 :I., It That's right., IAndyouarefamiliarwiththebuildingasitnowstands,is that right? lam. Can you just generally tell us,has there been any appreciation in value since the date of death? There has. With permission of the Court,I have three photographs of the Distributing Company .building.I would like to have them marked as Appellant's Exhibits 2,3 and 4. (At the direction of Mr.Terputac,off-the-record discussion was not recorded by the stenographer). that the pictures were taken during the year 1968 and in agree for whatever benefit the Court can get from it, that the pictures can be admitted if it is clearly understo d -I:JL1/I:-I: :IJ.J ..rI( ~L LJ MR.KELLER:Your Honor,we would the course of improvement of the property. THE COURT: MR.KELLER: Very well. It is our understanding that no improvements had been started on the date of death. Julian Fine (Stenographer marks Appellant's Exhibits 2.3 and 4.) Q Mr.Fine.I show you what have been marked as Appellant's Exhibi s 15 2.3 and 4.Just briefly,explain those to the ,Court. depict ? What do the A ~ '!: C-..oJ-'"..iiL ,; 5 ~Q I:I) C = ~A I) 5 oJ!J5::>.., It riI:01 itj L 01 I:-I:::>j oJ oJI( d AL L J Q A They depict the pro perty in question.the subject property.showing partially as it had been on the day of death,with improvements starting to be added in the form of concrete block walls.But the portion of the building that was there as of April.'67 is also intact. What was the composition of the building at about the time of death, construction-wis e? Construction,it was constructed of concrete block.flat roof with tar paper roof.As I said.it was merely a shell and it was in poor condition. Now bas ed on your experience and professional qualifications and your investigation of this matter,did you reach an opinion regarding the value of the IDistributing Company property as we hav'e styled it? I did. And will you tell us what approaches.if any,you used? I considered all three approaches and in this case relied on market data for the final conclusion of value. Q In other words,as I understand your testimony,substantially you relied on the market data.is that right? A That's right. Q A Q A Q Julian Fine That was based on what factors~Mr.Fine? Comparable sales within the City of Washington. And what is your opinion as to the value on the date of death? As of that date~the market value was $20J 000.00. Will you tell us how much of that is attributed to land and how much :.6 :s :c~~A ; ~Q••CI to this building? I attributed no value to the building;the land value would be $20J 000 00 You may cross examine . .:CJ 2...g ~~CROSS EXAMINATION BY MR.KELLER: !:: "::Q Mr.Fine~do you know whether the rental paid by Winky's to the ;;r·co IIII~AIICIILI II Q l-II CI.. ; owners has exceeded the $833.00 per month? No~I don't know. If it appeared that the rental,by virtue of the percentage clause, did exceed the $833.00 per month,would that change your valuation I..~of the property based on the income approach? c A No,I don't think so~for th~reason we are talking about over-all market value,resale valueJand certainly the lease would be more valuable if the rental is a little higher. Q Just so I understand you,if it should appear that this was an excell nt business location and that by virtue of the percentage clause the income doubled,would you still say this would have no effect o.n . Julian Fine market val ue of the property? A We'd have to reanalyze what this meant in that return. Q In other words,you can see if there is a substantial additional rental under the percentage clause that it would have to be re-examined. A That's right. ~Q The term of the lease.as I understand it.is 15 years plus two-:c~~five-year options.Is that correct?-ii~A That's right. oto~Q Was there any increase in the rent over the term of the lease? i~A I don't believe so. ,; ~Q As I understand this lease.the landlord is responsible for taxes,.. !!II .I up to $1800.00.but the tenant is responsible for taxes thereafteJ;-: !!II::for utilities and for maintenance and repairs on the premises.Is ;:r- CI that correct? ci£:~A That's right.£:Ctc.~Q So that the only real expense of the landlord in this case is taxes l-I! :0f:up to $1800.00.-.. lii A And insurance.I believe the landlord---well.he'd have liability..c insurance to carry. Q All other insurance is carried by the tenants. A Yes. Q The liability insurance is really the only other annual expens e to the owner then thatyou were referring to when you originally testified that the three considerations you were referring to in 17 Julian Fine reaching your conclusion under the income approach with gross rental,the responsibility for taxes up to $1800.00 and other annual expenses to the owner. 13 think about it,I'm not sure whether the tenants or the owner pays A That's right.I have a copy of the Lease in front of me.Now that I ;I I .=~Q toa Ii.JA« Q~Q ri~~Q IC:.) L.CJ.::A t-IC: :::l 3Q .J-«:~A Lo Q ·A Q the fire insurance on that structure.At any rate.it would not effect the over-all value. Did you capitalize the income in order to compute your valuation on this basis ? I did . What net income did you use to capitalize.to make this computation? Net rental of $8500.00 . How did you arrive at that figure? $10.000.00 a year less $1500.00 expenses. Do you know what the current taxes on the property are? For 1967? Yes . $1300.00 a year. Why didn't you use $8700.00 then as the net? I put a factor of $200.00 in for insurance. In the course of capitalizing this,what method did you use,what table? A Pardon me.I didn't hear your last part. Q What table did you use in reaching your capitalization? Julian Fine A No table. Q What percentage did you use? A I used the nine percent capitalization rate.After deducting the net return for the land.I used nine percent on the net for the buildir g. 19 Q Ja•:J iii eiAl-ll: () 0..~Q l-a:' :loU oJ<§A I&.I&.o For my information,Mr.Fine.in reducing to present worth in Pennsylvania,which is essentially what you were doing here.aren' we limited to a six percent table? As far as a safe rate.yes.As far as the return.safe return on your money.but there is also a depreciation rate on the structure to be considered . What you are saying is that none the less.you used a nine percent table in this case.Excuse me,a nine percent capitalization factor. To the building. Did you attribute no investment value then to the land? Yes,I attributed seven percent to the land. I note thatyou have valued the building-here at $40.000.DO,is that correct? Yes.I was asked for a breakdown.And for purposes of that break- down,I attributed $40,000.00. Q When was this building built? ~A,1965.I believe. ~So it was less than two years old at the time of the death of the decedent here. That's right. Q Are you aware that in the Leas e the original costl not counting any improvements later added.called for was $501 000.00 ? A Q A ~Q-::-...>A~ Lito Q:0:c·~ (,,-A:0 JIII.. :iI Q ...- I..ii A...UI•C :;Q I.. C A :I:..I'-C\o Q ll:II:I&l A~II:a0..\IIll:Ql-ll::J0UI ..I<0; ii:...0 e A Q I am aware of that. For the improvements. I am aware of that and that also included signs.I believe. How many signs are there there? As far as I can recall.one large sign. What would·the cost of that sign be? A lot of money.But it doesn t really matter. $500.00 or less? No.,lid say more.It's a rather large sign. Would you say $1 1 000.00 or less? I donIt know. Welll it would not be a significant part of the building cost.would i ? No. Do you know whether any additions or improvements were added to the building between the date of original construction and the date of death here? I don't know.But I don't believe so. Would you tell us again why you have chosen the value of the im- provements here at least.substantially less than the original cost. less than two years earlier? A As I saidl I was asked to break it down.I am more concerned with well indicated that the value of this lot is $400.00 a foot,which Julian Fine the total market value which I consider to be $100,000.00. 2:.. It's fair y I brings it in at $60,000.00.Therefore,the remaining value to the building would be $40,000.00. Now you say the front foot value of this lot was probably $400.00. That's right. Are you acquainted with the sale of property from Michael Cappelli, the decedent in this case,to the Pittsburgh National Bank in August of 1964? lam. And do you know what the front foot value of that property was? $400.00 a foot. What was the size of that lot? 125 front feet,narrowing to 102 feet in the rearl 150 foot depth. The reason I used $400.00 a front foot was an assemblage factor as well as a corner factor here. Referring now to the other building in which the Distributorship was contained,do you know how old that building was? No,I could only guess that it would be 50 years or better.There w s tile block in there as well as concrete block. Q I note that you placed no value on the building whatsoever,Mr.Fin A Not on the over-all value.It would be meaningless,I believe,to a prospective purchaser. Q In the course of improvements,did they tear down the old building Julian Fine and start afresh? A I don't believe they did.I'm not sure whether that old tile block is still in there or not.I didn't go inside to look recently.At the time of the appraisal the old building was the one that was there. Q How long had that business been located there,do you know? ~A I'ye been here since 1958.It was there since then.=::i~Q As far as you know,has this been a successful business? Li~A I don't know.I suppose.I don't know. c·to'\,;>~.Q And it was operated out of this building at least fromthe period of JIu.. 31 time since 1958 . 1-' 5:: III A Yes.t;c 22 ..Q ~c A :to...,.. l\I Q What did they keep in the building? Beer,pop.It was a distributor. Did they have an office in there? lllIa:5 A Small.It's a very small office. olL.111~Q Did they have a place to park trucks? a:::> 8 A Yes,trucks could go in the building . ..I 0( U~Q Mr.Fine,doesn't the shabbiest garage have some value as a o building? A It depends where it's located.This lot has enough value that no value could be put on the building,number one.And number two,we could almost consider with the construction and the deman s for property on Jefferson Avenue that this building might have bee a detrim ent to the gro und .It would cost s omething to tear it down. Julian Fine 23 Q Would you concede to mel Mr.Finel that if the owners improved th property by retaining the building and building on it and adding to itl ; that it had some value to them? A NOI I wouldn't concede to that. Q My understanding is that you have valued the land here at $201 000.00. Yes. Yes. No further questions. And that would be $400.00 per front foot. Your Honorl we have no further questions ofTERPUTAC: ~A:c~i;Q iii~A ctI-~Q Q-:~MR . this witnes s . (witness excused) .:o i:..~ Cl.::.=: ~ "::.... 0:r·QJ.C.McCLEERY IS CALLED AND SWORN. r;c:~DIRECT EXAMINATION BY MR.TERPUTAC: cc \I:Q What is your name? II ~A J.C.McCleery... ~Q d .?~Where 0 you resIde. c A 67 Watson Avenue. Q Washingtonl Pa.? A Yes. Q What is your occupation or profession? A Real.estate brokerl specializing in appraising. Q How long haveyou been in business? J.C.McCleery 24 A Since 1946. Q Mr.Keller~shall we agree to concede to his qualifications? MR.KELLER:The Commonwealth concedes to the qualifications of Mr.McCleery as a real estate appraiser familiar with properties in the Washingto)n vicinity. Yes~sir. first before the appraisal? the date of death valuations,April 27~1967. As I understand it~the I had stopped at Winky's.I was familiar with the building and just Yes.I had made an appraisal of the land several years previous. Were you familiar with the Winky property which we will take valuations to which you are going to testify,Mr.McCleery.are Yes,sir. easterly side of Jefferson Avenue in the City of Washington2 And we will take these one at a time. Mr.McCleery,at my request,did you make an investigation for Jefferson Avenue and a Distributing Company property on the appraisal purpcs es of a property called Winky's on the west side of -: :::-..>Q~ iit. ... "l-V:0: :r CI~... .." l.Aiiil-UIC..Q l.C :I:...,.. N UIll:...Al-ll:a0-III Qa: I-a: :lI () Uo .J 0( u Aii:lL 0 in a general way. Q Wereyou familiar with the situation when Winky's was built ?_:.Do y tl know when that was? A I don't believe I have the date here.I believe it was 1963. Q 165. J.C,McCleery A '651 yes. Q Now what factors did you take in arriving at an appraisal for valuation purposes of the Winky propertYI Mr.McCleery? 25 A ·e ::::,. oJ>III.. :LIII a.Q., Ct-l:2 :IU'.. ~A l-e:QII:I-UI•a...< ~00 :Jo.." :I:..,.. "A ltI- 0:1&1 QI-0:0Q. 1&1 0: I-0:' :J0 Au .J ~ UiLlI.. 0 , We considered the three recognized approaches to value.The mar :et approach,the comparative sales approach in arriving at the value of the land,and the cost approach and the income approachl correl the two,actually the threel to come up with the final value. So it is your testimony that you gave some reliability to each one " of the factors l is that right? Yes. Did you consider the Leas.e ,which.has .b~en ref~rred to as Appellan rs. Exhibit 11 being the Leas e from Michael Cappelli to Jiffy Steak Company? Yes. What relevance has this Lease,Mr.McCleery,with regard to your valuation? Principally,in arriving at my capitalization rate a'nd my income approach,I considered the quality of the Leasel amount of rent paid,and they were the basis of my income approacb. Q Were you familiar with the costs to the owner on this Leas:e? A Yes.,, Q What were thosel briefly? A You mean as in the Lease? Q Yes. J.C.McCleer A The building was not to exceed $501 000.00 in cost. Q Did you give some reliability to that factor in your appraisal? A Yes l sir. Q How about the actual out-of-pocket expenses on this Lease to the owner of the land? 26 :!A<:-JI:-•-iiII.-0I-0- Ci-: 3= ..:5:.QII I-~e c:.. !:c:A 3~,. l'Q IIIII..~IIC1lIIII AIt l-It C Ql: < u Aii:II.0 Q" You have the taxes up to $1800.00 which they have not reached that as yet;the liability and fire insurance to protect his interests; and general expenses that he could have amounts tOI what I value around $400.00.The taxes being $1391.15,for a total expenses to the owner of approximately $1791.00. And this was a factor which you considered in making your valuatio is this correct? Yes,sir. Now are you familiar with the size of the actual lot on Jefferson Avenue? Yes. Will you please tell us that? 150 by 150. What factors did you take into consideration on the cost approachl first of alll Mr.McCleery? A We considered the reproduction cost of the building and because of the type of building it waS I we depreciated it 25%,for the simpl reason it's a single-purpose building. Q What do you mean by that? A J.C.McCleery It's a trademark building.It's a "building that only someone---only Winky's would use.And other drive-in restaurants would want I , their own ~rademarks.It's what we call a special use bUilding. 27 -: ::>.I )-QQ;;;: Uto ;;;:c-l- t.:; :IIu•:t I-L Itl-ll' C :;;A to: C :z:l-I'-N U1ll:III Ql-ll: 0ll.III ll: l-ll: :Jo 0U .J~u AiLlI..0 Q It could be us ed by another,but it would be very unlikelYI particularly someone of the quality of the Lease of- --the financial backing of the Winky's. For example,if McDonald's or Carroll's would want to utilize this real estate for a restaurant buildingl it would be your opinion necessarily that they would practically have to either reconstruct the whole thing or tear it down and use their own mode of design. Is that right? That's right.They probably wouldn't tear it down completely. They will use part of the facilities but it would be a complete remodeling. And alsol as I understand your testimonYI to look at the value here you must consider that not onlyis it a:restaurant but it's Winky's Restaurantl is that right? That's right. Now what factors did you take into consideration or have we enumerated all of them on the income approach? A N01 sir.I also considered the paving. Q What was that construction of? A Concrete work.I should say the asphalt paving and the concrete paving and the value of the land. McCleer 1 Q What method did you use in arriving at the value of the land? A In arriving at the value of land,the most accurate approach and the one used when comparables are available is the market value. Although you can use a land residual method as what the land will :;:8 earn.It's a recognized approach where comparables aren't availab~e. But we have had considerable activity in real estate on Jefferson Avenue.It's almost an established fact of $400.00 a front foot. I have land that's been prepared and ready for use.There's been a few higher sales and some lower.But this is in a lot that is large enough to put a drive-in business of some kind which is the ones that the demand is for the properties on Jefferson Avenue. What value did you attribute to the land in this case ? $60,000. Now regarding the third approach or what I call the market data approach,or market situation,you gave some consideration to that factor,did you not? Yes. And what were the factors that you took into consideration with that approach? The other sales on Jefferson Avenue. J This is basically the method that is used in this type of situation where there are enough sales available,is that right? A That is correct.I have been in on some of the sales and appraise either before or after the sale. Q A ..- ~Q..UI C :;;A c..:c Q :tl-I'-no J.C.McCleery I Now based on your experience and qualifications and your appraisar in this matter~do you have an opinion regarding the value as of date of death of the Winky's property? Yes~sir. What is that? As I said previously~I put my principal weight on the income and market data approach"giving that $102~500.00. $1021 500.00? Yes • For the Winky's property~counting everything? Yes. Now brieflYI let us refer to the Distributing Company property~ Mr.McCleery.Were you familiar with the building that was locat :::l 29 IIIII:~on that lot at the time of death of Mr.Cappelli? II:oD.~A Yes. ~II::>s:Q How were you familiar with it? oJ< ~A I have fraternized it a few times.I have talked to Mr.Cappelli. lI.o I did previous appraisal work for him and I have to be familiar wit as much astivity.as much work as I have done~Pm pretty familia with~I think~most of the commercial properties on Jefferson Ave Q And what was the size of the Distributing Company lot? A 50 by 150. Q And at the time of death"what was the composition or constructio J.C.McCleery of that building? A It was frame,tile,concrete block.It was a very poor building. It had been there for many years,aslong as I can remember.And Mr.Cappelli talked several times of replacing it and never got to it. 30 Q :!...:c:-oJ i;A......Li..Q... 0t-I!l... Q 'C~ ..=., i:At-o IQ oJ'C ij ~ :;)., ~ '..... ...; !,:: ...I:: ~5 .J t-o: :l0 Qv ..J:!., Ai:L., Q A At the time of his death,he and his son were running a Distributing Company in there,is that right? Yes . Now what relevance,if any,does the fact that this lot fronted 50 feet on the easterly side of Jefferson Avenue,what effect does that have? As I said previously,the demand for property on Jefferson Avenue is for larger tracts of 100 to 150 feet or larger.Jefferson Avenue is zoned community business and this permits the drive-in type restaurantsJ service stationsJ banksJ and this is what the demand is and they have to have a larger lot.So this lot,I feelJ is not as valuable by being only 50 feet. Now what approaches did you use in its appraisal? I just used the market data approach. And what factors did you take in that approach? Considering the sales I have already mentioned of both the smaller properties and the larger onesJ the assemblage in some cases of the larger tractJ and there are a number of properties that have be n on the market since the date of death and before that that have not sold for the $400..00 a front foot that the larger properties or-------+----------, J.C.McCleery assemblages have brought. Q What consideration if any did you give to the value of the building on the date of death? I II 31 I gave it no value whatsoever"considered it a liability to the property. Why do you say that? It was not the highest and best use for the land.In other words"a good building~he could have op::rated his business more effeciently~ would no doubt have drawn more customers. Now based on your qualifications and experience and your appraisal in this matter of the Distributing Company building,do you have an opinion regarding its value as of date of death? Yes~sir. What was that? $1 7~500.00. And how did you,basically,how did you arrive at that figure? The facts that I have just quoted~the value.which amounts to $350.00 a front foot.and it was depreciated by the old building"an the fact that it was only a 50 foot lot. Your Honor.we have four small photographs and I would like---of the Winky building,and I would like to have these marked as Appellant's Exhibits.Mr.Keller has no objection. THE COURT:They may be marked. (Stenographer marks Appellant's Exhibits 5.6,7 and 8). Q I show you Appellant's Exhibits 5,6,7 and 8 and ask you what the~ depict? A The four sides of the Winky property,including the parking lot, the sign and t he restaurant. Q Which of the exhibits shows the Winky's as you look at it from ~Jefferson Avenue? 0(:-..I~A Five and also seven. i:i L;:oQ Y 0oumayexamlne. o...o •-::: .=II c::..! CI ~CROSS EXAMINATION BY MR.KELLER: ! CI:»~Q Referring to the Distributing Company property,Mr.McCleery,t=,. II 32 IiI:IIl-I: () C.III: l:A =-c'\.';Q \.iiIIC A I note that you agree with Mr.Fine that the building has no value all.Is that correct? Yes,sir. Do you know what the assessment.the real property assessment on that property is ? I think I have it in the file.I don It particularly pay much attentio to either city or county assessments when making an appraisal. Q If I told you tha t the land itself assessed at $1200.00 and the build :lg, that is the warehouse and office was assessed at $4,750.00,woul you disagree with that? J.C.McCleery Q And what you are basically telling us is that this building which was assessed at $4740.00 had no value. A Yes,sir. Q Do you know whether the property owner had filed any tax assessment appeal within a reasonable time prior to his death? 33 ::A::>..>QQ. Ut. ;;:c·~ l'A:0: :III,. 3!Q..- !:II..III C•~c A %..".C'a Q No~sir. Do you know whether any tax appeal has been filed since the date of his death? No,sir. Isn't it true that the front foot value along Jeffers.on Avenue at that particular place where the Distributing Company property is,rang between four and five hundred dollars per fr'Ont foot? Providing you have more than 50 feet. Are you saying that there are no sales within a reasonable time of IIIa:~the date of death of 50 foot lots along there at four to five hundred ll:oG-III ll:dollars per front foot? l-ll:::>~A There could possibly be one~to add to an assemblage,but as an...<uii:individual sale,I don't know of any. II.o Q Talking now about the Winky building,I got the impression from your testimony that you had relied primarily in appraising the building on the income approach. A Yes. Q That would be because this is a unique type of building and using the other methods don't really have much significance in appraisi g J.C..McCleery this property,do they? A Well,it's an investment property and the amount of return is what governs the selling price of the property. Q And what return,what angle return did you use in capitalizing to reach your valuation on the income basis? 3L;- ..-t.o..u~Q.. :I..~Q 11'1lIlI.l-It C0..~A l-It :J3Q....< IJii:II..(lI Gross of $10,000 and the net income to the total property of $8209.0 . What percentage did you capitalize to that? I allotted to the land eight percent as a fair return to the $60,000.00 value of the land,which was $4800.00 a year,which leaves the income to the building of $3409.00,which I capitalized at eight percent,giving me a value of $42,500.00 for the building. What was the value that you gave to the land? $60,000.00. I noticed that you referred to the original cost of the bu ilding as not to exceed $50,000.00.Is that correct? Yes. If I told you that the Lease provided for an approximate cost of $50,000.00 rather than a cost not to exceed $50,000.00,would that have any bearing on your idea of the original value of the building? A No"sir. Q Let's assume for the moment that the building did cost $50,000.00 as is indicated in the Lease.How dOYou justify placing the value of $34,090.00 on it? Q I did not put that figure on it,sir. J.C.McCleer Q All right~what value did you put on the building? A Which approach areyou speaking of? Q .In your valuation of the building.what value did you place on the building? 35 MR.TERPUTAC:On the Winky building. ~A 0(:; ~Q iL ·•~~A Q~Q t=2A~Q a .I-: l) Ci:::t... •r·a r;c..~.IICII.. II Q ~II .. l.iiII' C $42,500.00. Can you reach this figure by capitalizing $34,090.00 at 80%over th4 13 years? At -8%. How did you reach your $34,090.00? By capitalizing $3409.00,which was the amount of the income allott d to the building and capitalizing---I used the capitalization rate of 8%in 1967 in arriving at my capitalization rate;in 1967 we were still using four percent as a safe rate.We added two percent to allow return of capital and two percent on a risk rate. Basically,Mr.McCleery,isn't this the question we are asking in trying to determine the value of this property or the lease-hold on it?Aren't we asking this question -what would someone be willi g to pay now in order to get a gross return of $10~000.00 on this Lease for a period of 13 years?Isn't that basically the question we are asking? A If I understand,our appraisal was of 1967. Q Yes,sir. THE COURT:You said now.He say. J.C.McCleery it's of 1967. Q Excuse me.Your Honor.I will rephrase my question.Aren't we basically asking the question,what would someone have paid on the date of death to get a gross income of at least $10.000.00 per year for a period of 13 years with options of 2 five-year options on 36 top of it?Isn't that the basic question? No.I think the basic ques tion is the market value of the piece of real estate..oI-~Q Mr.McCleery.that I agree with you is the basic question.But in using the income approach and in capitalizing this property. :I..r-l'loQ II:a:110; l-ll:aa.~A l-ll::::II 3Q... <" ui&:I&.o A aren It we asking the question that I proposed to you? This would be the thoughts of some investors.But I don't feel all investors. My ;.next question.aren't we limited in Pennsylvania to using six percent for this purpose? 11m sorry,I don't understand the question. Well,I'll withdraw it theo.No,I won't withdraw the question,I will leave it on the record and leave the answer as it is. There is certainly no limit of 6%on capitalization rate.There may be an interest rate of 6%.but there's ce~tainly none on capitalizatio1.. Q Might I explain it to you this way:basically you are trying to find the pres ent value of that lease hold. A Yes. Q Would you agree or would you disagree that in Pennsylvania in J.C.McCleery ,. computing present values we are limited to 6%table? 37 A Q A Q ==:::>..>Q Ao YCo 6:c·~Co'•:I'".. ~ ..: ~AIItoU'C..Q c.:c :z:I-r-NA viII:~QII:0-Q.. !If II:A ~II: :I0 Qv ..I~v ii:Il.0 e A Q A Q A Q No,sir. Does that mean you disagree with me? If that's a rule and how ~ou are using it,I'm not familiar with it. I noticed that you have made no reference to the value of the re- I version and here I am speaking about the income approach.You ha 'e spoken only about the value of the lease.Now isn't it true,Mr. McCleery,that after you have computed the value of th:dease and even at the expiration of the lease valuable for investment purpos s, this property has a residual value,doesn't it? I'm not sure that I got your question. We are trying to ascertain what an investor might be willing to pay for this under the income approach. Yes. When you have computed the value of the lease. Yes,sir. At the end of the lease period,the property still has a residual value,doesn't it? .The land does,yes.The land does. So does the building,doesn't it? Not necessarily.You've got the special type building again. Are you saying that the building has no residual value? At the end of the leas e it would ha\e very little. What do you mean by very little?This is a $50,000 building to sta t J.C.McCleery 38 with. A Yes.And a large portion of that cost is in the special design,that it's depreciated almos t the minute it's up as far as another owner is concerned.McDonald IS or some of the others would come inl this would .all have to be changed. Yes,it would be a slight residual. residual value~to this property at the end of the lease hold which Well,let's take,for example,some of the other improvements. That has to be maintained by the tenants.So that would have a residual value at How about the concrete and the blacktopping? So you would be willing to concede that there will be at least some the end of the lease,wouldIl;'t it? 4o...~. :&: :ru4 31 A..- (. ii Q..u c l. C an investor would take into consideration in deciding whether or not to purchase this investment. is proper eross examination.It's irrelevant. McCleery.Your Honor,we object.We don't think this THE COURT:The objection is over- Ina:......Il:oII..... II: t-Il::IIoU' ..IC U ii:...o MR.TERPUTAC:Just a minutel Mr. ruled. A Now you were talking about the building and now you are talking about the pro perty. Q This is correct.I am taking the property as a whole and I am asking you whether you would agree then that a purchaser would be justified in ascertaining whether he were going to invest in this J.C.McCleery lease in considering a residual value for the total property after the lease is over. A There would be a residual value.although most investors do not look at it as having.on a property of this type.as having a residua at the end of that period because commercial operations can changE; 39 -:: <>.. ~~ i:'iCo.0I-0:;:..-:Q~ ..:!: II...g.e A; !:c:Q 2~,.A(" .-II..l-IICa.....Qll: l-ll: C Au oJ<u Qii:...0 as we saw Main Street change here.You saw service stations that are now used for other purposes.So 'you get a change in this'type of commercial land.ItIS continually changing;it's part of their merchandising methods. Maybe we can summarize this.Mr.McCleery.Are you saying tha there is no residual value to this property at the end of the lease? No,sir. Or areyou saying that there is some? There will be a residual.I'm not a prophet,I can't say how much; things change too much. There would be some residual value. There should be. Do you know whether this property is presently or has since the beginning of its operation,produced rental under the percentage clause? A No,sir.it has not. Q You say it has not? A Yes. Q Can you tell us what the gross volume of business was in 1966? J.C.McCleery I A I had that in my file.I don't seem to be able to locate it but when I was told that it had not gone over and they had paid any on it,I did not consider the percentage lease. Q If it should turn out that the gross volume either has,since the date of death,or that the pros peets for it exceeding the $167,000.00 figure were good at the date of death,would this change your incom view of this property? 40 MR.TERPUTAC:Just a minute.I objec to that,Your Honor.I don't think it's proper cross examination. As I understand it,when you were informed that they had not yet paid anything under the percentage arrangement,you did not consid ~r THE COURT:The objection is sustair ed. "IIIIIIl-ll:Cll. :t A l-ll: :Jau...<uii:IL. ()o any rental potential from the percentage clause in making your computation under the income approach.Is that correct? That is correct.When I talked to the manager there,all he said that their business was not increasing,so I felt that it had possibly reached its peak and in this type of an operation,a percentage leas e is very indefinite and difficult to,unless you have several years of it,to realize it's going to be stable.Because there may be things that cause it to go up quite a bit and down quite a bit. Q You didn't obtain any projections from the Winky's people as to what their anticipated revenue was? A No,sir.I do know from other drive-in restaurants they expect J.C.McCleer 41 that they will reach their high point in about two years. THE COURT: II You mean from the time of opening? A From the time of opening.it takes about two years.You have a flurry right at first and then it will drop down some and come up. company that has very similar operation. Is this the policy of the Jiffy people who own Winky's ? I don't know their policy.I do happen to be familiar with another the notice of the time of this hearing came to me rather recently and it became necessary for me to work throug ~Q-:::-.. ~A Lic. oI-~Q:r CI•; ..:to ii~UIC.. toC :I..r- l'o r.ll:... l-ll:aa. '"It: l-ll: :Jo(JI ..I< U' ii:I&.o No further questions. MR.TERPUTAC: any questions? THE COURT: MR.TERPUTAC: McCleery.Thank you. (witness excused). MR.KELLER: Does Your Honor have No . That's all.Mr. If it please the Court.. Harrisburg to obtain authority to use an appraiser.and the authority to do that jU3 t came through and I have approached Mr.Terputac to ask that at the conclusion of his case that this matter be continued for a reasonabl period of time so that my appraiser can complete his appraisement of the property.And Mr.Terputac has agreed to that.So at the conclusion of his case we will ask the Court to grant us that continuance for a reasonable period of time. THE COURT: Mr.Terputac? MR.TERPUTAC: Is you r cas e concluded. Not yet.Your Honor.We have two witnesses yet.the Executrix and her s on.But we agree.subject to Your Honor's approval.that it's all right if Mr.Keller needs more time. Yes.I'd like to put ·o..o· i0( 3:..•i:..! II..::.. a:J." THE COURT: with your witnesses . MR.TERPUTAC: my two witness es on now . All right.Continue DIRECT EXAMINATION BY MR.TERPUTAC: rifi NELLIE "C.CAPPELLI IS CALLED AND SWORN.l-ec.c.ue l-e:>Col· ;Q What is your name? lii~A Mrs.N"ellie Cappelli. Q And where do you reside? A 335 Crescent Drive. Q Washington.Pa.? A Yes. Q And you are the widow of Michael Cappelli who died April 27.1967. Nellie Cappelli A That is correct. Q And are you the Executrix of his estate under his will? A lam. Q You are familiar with the Distributing Company property to which we have referred and to the Winkyls to which we have referred. 43 ~...:c~~A ii~Q al-tt~%•;A ..- I. ii..•e 1: - Q.. l.C :z:..r- l'I III0:~Aa:0D..~Q I-a: j 0u oJ<Ui&:I&.0 A Q Is that right? Correct. And who was the owner of both of those properties when Mr.Cappe i died? Well,Winkyls,Mr.Cappelli.And the business,Raymond and my ~us- band. Is it true that your son,Ray mond Cappelli,and your 'husbanq, Michael,were partners in the Distributing Company Business for some years until Mr.Cappelli died,is that right? That is correct. And you are familiar generally with the Lease that was entered into between your husband and the Jiffy's Steak Company on the Winky Building,is that correct? That I S right. As I understand it,Mrs.Cappelli,is it true that your husband handled all business matters either by hims elf or with your son and that you had relatively nothing to do with any property or business matters?Is that right? A That's right. Nellie Cappelli Q You were~however,familiar with the properties and you knew generally what was being done.Is that right? A That's right. Q Now will you tell us what is your opinion as to the value of the Distributing Company pro perty on the easterly side of Jefferson 44 ::::>~AQ..:;;: ~Q 3cl-e2 :I..4 A31 l-t.:QitI-eI:C A...cua Q::J, X...,...AIII en; II:QIlrI-0:0a..III A0: l-ll:: ::l0 Qu ..I C u Aii:...0 Q Avenue?What was the value of that at about the time of death? Fourteen or fifteen thousand dollars. Now are you~in giving your opinion,are you considering the building that was located on it at that time and the land? That's right. At that time what kind of business was conducted there? A beer distributing. Beer and pop distributing business. Yes. Who ran the business ? My husband and my son. And your son Raymond? That's right. Now regarding the Winky property,the Leas e was entered into in 1965.Is that right? A That's right. Q Is that also the year in which the Jiffy's Steak people built the Winky building? A I think.I really don't know.I can't remember. Nellie Cappelli 45 Q And what is your opinion as to the value of .the Winky property and building at the time of your husband's death? A $100~OOO.OO. Q About $100.00.00~is that right? A That1s right. -;;::-=Q Y .ou may examlne. -=>...:t-ea-y to ...ol-I.'~CROSS EXAMINATION BY MR.KELLER: ru. 3 Q One question.With regard to the Distributing Company property• the assessment? on that property is ? If I can recall~I think one time they tried to assess highetr.J:han he And do you know whether or not he had filed any tax appeal against You mean now?MR.TERPUTAC: My husband took care of all of that. What it was on the date of death. No~I don't. Mrs.Cappelli.are you aware what the real estate tax assessment ..: !:II... IIIeE•(.. E A :Il-I'- COo VIll:III Ql-ll:0a..IIIa:A....a: :JoCo Quo oJ 0( uii:II.0 A thought it was going to be arid he appealed it but I think he was too late in appealing.He,I guess.read the tax form wrong or some- thing like that.I can remember that. Q Do you remember when this happened? A That was back in probably '63 or something like that. fC Q Do you know what property it was on?Was it on more than one property? A No.just on the distributing property. Q So far as you know.the appeal was never perfected. A As far as I know. I have no further questions of this witness. (At the direction of the Court.off-the-record discussion was And he never raised the subject again after this time in 1963. Thank you.Mrs.Cappelli.MR.TERPUTAC: not recorded by the stenographer)• Not as I know of. ..:c. iil-ll'1:.. l: E ThatI saIl. (witness excused). DIRECT EXAMINATION BY MR.TERPUTAC: RAYMOND CAPPELLI IS CALLED AND SWORN. CllIII:IIIl-II:oG-III II: l-II::>o·u .J 0( uE Qo What is your name? A Raymond Cappelli. Q What is your address ? A 351 Crescent Drive.Washington. Q What is your business? A I'm an operator of the Wholesale Beer Distributor. Q Where is it located? A 610 Jefferson Avenue,Washington. Q This is the ·company we have been referring to in this case,the Distributing Company Business. A Q :! <>~A~~Q.ot-o:0: !:c r~Q ItC0-IL.a:: t-a::~Au ..I< uii:"IL.0- Q Yes,it is. At the time ofyour father's death.you and your father were partners in this bus iness,is that right? Yes.it is. Now you were generally familiar with the Winky property because you and your dad had been in business for some time.Is that right? That is correct. And you are familiar with the Lease which is Appellant's Exhibit 1 that was entered into between your father and the Jiffy Steak Company. Yes.I am. And based on your knowledge and soforth.doyou have an opinion regarding the value of the Winky property as of the date of death? Dad and I always figured that Winky property at that time was alwa s worth in the vicinity of $100.000.00. Now the Distributing Company is where you presently conduct the business in your own name.Is that correct? A Yes. Q This is a ,pop and beer distributing business with a couple of truck and soforth. A Yes. Raymond Cappelli Q Now who was the owner of that business at the time of your dad's death? ~8 A Q A ~Q 0(:-.J~II- fA-II~Q II~A t=0C Iege~Q::: 0 0 :;).. 0:~A r;j, ~QIIcIIIIIAII I-!! fQ ;; ~AII.II. C Q A 'Q The owner of the business was my father,Michael,and myself. And who was the owner of the property? My father,Michael. What was the frontage on Jefferson Avenue of the Distributing Company business? 50 foot. Was that inconvenient? Very much so.We couldn't get our trucks in and out and there was no place to park. What was the structure or composition of the Distributing Company building when your dad died? Terra cotta tile.brick front,and some repair wood in the back. What was its general condition? It was at that time in very poor condition. Since that time have you made substantial improvements? Yes,I have. At your own expense.is that right? Yes. What is your opfuion as to the value of the Distributing Company property and building at the time dad died? A We always figured.the way it was and everything.we couldn't have gotten more than $15,000.00 for it. Q Now Mr ~Cappelli,with reference to the Certificate of Deposit which is the third issue,the two properties being the other two in this cas e,will you tell us the background generally of this and specifically let's start when your father bought the Washington Company land.When was that? 49 objection to the question for the reason that it seems to we begin on this background,I am going to raise an me that the sole question here is whether,at the time thi ~A:::i::-•-; II.-oI-o- II.; ~ He bought the land? MR.KELLER:Your Honor,before .. l, note was taken out,there was --- MR.TERPUTAC: MR.KELLER: Certificate,Mr.KelleI . Excuse me.When the ;:,. t",. II 101l-II CIIIIII II: I-It Cl: 4 Uii:...o certificate was taken out,whether the legal effect of that act was to create a joint ownership between the two of them,whether thee mnney came from the one or came fro j:n the other or came from the two joints,we think the issue is whether or not a gift was created at that time.And evidence which Mr.Terputac proposes to introduce whict is not completely relevant to that narrOw issue,we are going to object to.I don't want to unfairly limit him,but I am concerned about going too far back in the history. THE COURT:The issue is a narrow one.There is no doubt about it.But the background of Raymond Cappelli the whole thing,it is imperative that the Court have that. And I think that we should give considerabl,e lee way to thl type of ;testimony that we will receive with respect to the background of the whole situation.Beca'!se it is a narrov 50 question that wehave to decide and it's only from an appraisal as to that narrow issue when we make our decision. .of the background that we can come to a proper conclusio-<::>'">CIa:a:1.1c.MR.KELLER:Your Honor"it is my I-~IIII-.1/' C..~c :t:..,.. N understanding of the law in this that there is,in essence, a presumption based upon the instrument itself,that it is jointly owned.The wording on the instrument,for exam le, and what Mr.Terputac is trying to do here is rebut that presumption by evidence of some other arrangement or . some other source of the money and we have no objection to his going into background,so long as it doesn't stray we will overrule the objection to this particular question vi0:: 1&1II-0:: ()o 11.. IIfa: f-a: :JoU ..I~ u ii:II.o too far afield. THE COURT:We agree with that,bu at this time.What was the question? Q I believe,Your 'Honor,that I propounded the question regarding when the Washington Company land and building were bought by his father,Michael Cappelli,this is sort of the beginning of this serie of events. THE COURT:All right.We don 't Ravmond Caopelli need to go into detail in those matters.Just historical. Q That is correct.Now when was that,Mr.Cappelli? A I believe right after he sold the property to the Pittsburgh National Bank,which was,I think,late '65. Q You mean early '65. ~A He sold the property to the bank but then in late '65 he purchased th·s:::; ~Washington Company property.;;:;;: Ii; D.Q Now how much did he pay for that?:Icl-~A He paid $75,000.00 for that. :I III 4 3:Q All right.Then you and your father bought some other land,house ~!:It and soforth,is that right? ~II:C oJ A That is correct.cua~Q And from whom did you buy this? :cl-I'- N A We bought this from,I believe the person's name was J.Harold u) II: ~Chapman. oII. 1&I a:Q Now this was bought on November 30,1965 for $11,500.00.Is that~a: :Iou right? .J<~A '1 hat is correct.k.o 1:·1 THE COURT:To make it a little mor ~ inclusive,where was this property and does it have to do with the original one thatyou are talking about? ~Now where is this property located? ~It was adjacent in the rear to the portion of the Washington Compan~ that we had purchased.This was an outlet right beside an alley Raymond Cappelli that we needed to make this other property complete. Q Now whose money was the $11~500.00? A It was both of ours;it came from the Distributing Company. Q Okay.So the $11~500.00 was paid for by two checks which we will offer into evidence as Distributing Company check Number E-3587 ~dated October 20,1965~for $500.00.Is that right? ~:>..~A Correct. Wt:Q And check Number E-3698 dated December 14,1965 for $11,000.DC •:;:c·~i Is that correct? :IIII•:Ii A Correct. l-I,;it Q All right.Now at that time you and your father were 50%partners l-UIa...in this Distributing Company Business.~u g A That's correct.... x:~,.... N Q When had you and your father entered into this business or this iiiII:~association? II:oII.~A I worked with my father all my life and then in,I believe it was 19E 1 I-0::>8 in A pril we became partners . ...I 0( uii:Q And this partnership continued and the work in the business continu~d II.o until his death in 1967.Is that right? A That's correct. Q After you bought the Chapman property,what was done with it for a time? A It was rented. Q And what was done with the rental money? 52 A Q A Q A ..:toiil-e. C toc =A :Il-I'- ('lo Q u::0:...ti;AaD. III~Qa:::J()uo -IC~U~Ao Q A r~nnelli It was split between the two of us. And finallYJ it was sold.Is that right? This is correct. And you and your fa ther sold it to whom? Alpine Star Lodge. That is the so-called Alpine Club which owns that large piece of land and building on Jefferson Avenue in WashingtonJ right? This is correct. Now do your income tax returns,and §>pecifically the one for 1966J a copy of which we will offer into 'evidence,show that this income from this property was returned by you for Federal Income Tax purposes? It does. That shows $380.00.Is that right? That is correct. Now this property was soldJ the Chapman property,to Alpine Star Lodge #9 on August 31,1966 for how much? $47,000.00. Now what all did that include? That included that portion of land jointly owned by my father and myself. 5~ Q And the garage,barn and insulbrick building. A And two-car garage and house. Q All right.Now how was this money divided and why?Now J YourI ono-, Raymond Cappelli we are getting to the issue now.This is the background.we are now getting to the issue of where this money came from. 54 proceeds of the sale of the Chapman property.$47.000.aD • Q ::: ~•g... Q II.Q:;;c..I:2 :IIII4~Q THE COURT: of the--- Chapman property money. THE COURT: That is correct.Your Honor. THE COURT: How is this money divided and why? You are speaking now The purchase price.th All right. ~t.:it A Iiia..< u5:J... :z::l-I' WI Q iiiII:1&1~II:00.. 1&1 AII: ~a::J0 Qu oJ 0(u Aii:II.0 Q A Q A Q A It was divided.I got $30.000.00 of it;dad got $17.000.00.I had given dad money when he purchased the first tract of land of Washington Com pany and in return he repaid me in this manner. So.of the proceeds,the net proceeds of this sale.dad got $17,000 00 and you got $30.000.00. Right. And this thing was closed on about August 31.1966.is that right? This is correct. Where were you on that day? I was in ,Alaska hunting. Hunting in Alaska. Yes. Had you signed all the papers before you left for Alaska? I had signed all the papers_a week prior to leaving. Raymond Cappelli 55 Q A Q A Q ~A::~:.Q :0::0:IIIa. icl-e:2 :ICI'..3l l-e.:~I-UIjj...Q0( ua :J... :z::....I'-NI A So your father closed this out with the Alpine Star Lodge..is that ri~ht ? This is correct. Now what was done with your $30..OOO.OO? It was put into a savings certificate..a Certificate of Deposit. A Certificate of Deposit.is that right? That is correct. (At the direction of Mr.Terputac..off-the-record discussion was not recorded by the stenographer). (Stenographer marks Appellant's Exhibits 9(a)..9(b)..9(c)..9(d). 9(e).9(£)..9(g). Now I refer you first to Appellant's Exhibit 9(a)and this is the Deed from Mr.and Mrs.Chapman to Raymond M.Cappelli and Michael Cappelli.Is that correct? That is correct. And this ,shows the purchare [rice of how much? $11..500.00. And this is actually a Xerox copy of the Deed for that property. That is correct. MR.KELLER:If it please the Court.. we will stipulate that the instrumentswhich have been marked are what they purport to be..to save the time.I don't think it's necessary. Q We will shorten it. Raymond Cappelli THE COURT:All right. Q Now the checks for this property were one for $500.00 and one for $11,000.00 and this is Exhibit 9(b).Is that right? A Q :! =c:-.I>~~A-Q...~Q g <~ ..= !::AII"...go ~.Q l C A ;:,.Qco ellII AIIIl-II CIIIII.QIt I-It C Au ..J< u Qii:.... 01 A Q A Q A Q Correct. Now Exhibit 9(c)is an Agreement between your dad and your mothe and you and your wife to s ell all of this property to Alpine Star Lodge Number 9.Is that correct? ThatIS correct. And the pu rchase price for the property which you had an interest was $47,000.00. That's correct. The other property had an additional sum to it.Is that correct? That I S correct. But you had no interest in that other property. No. Now the first Certificate of Deposit is in what amount of money? $30,000.00. Dated? September 2,1966. Now who actually got that Certificate of Deposit? My father. What is its number? 188. Pittsburgh National Bank.How did that come about"very briefly? Raymond Cappelli A I was away hunting and I told him to buy the Certificates while I was gone. Q They are in the names of Michael Cappelli or Raymond M.Cappelli And how was that? 57 A ~ =2:-.I~Q ~ ':A :0:e,t>. t Q;;; :IUI.. 3i..(,; it..v.:a...A<§a~Q :l:l-I'-N 11'-Il:III A..Il:0B-IIIIl:Q..Il: ::l0 Au ..I« u Qii:II.0 A Q A Q A Q Well.we were partners in business.He was my father and what haveyou.That's just the way we did it. Whose money was it? It was my money. Now this item that one:says "Credit'l on it~Certificates of Deposit~ that is the stub that goes with the Certificate of Deposit.Is that correct? That 'is correct. It says."To be initialed by persons signing.II Whose initial is that? Joe Chesnos . And he is an officer at Pittsburgh National Bank. Correct. Now was that Certificate renewed? Yes~it was.It was renewed March 3.1967. Did you renew it yours elf ? Yes~I did. What was the condition of your dad Is health at that time? He was in the hospital recuperating from a heart attack at that time. Did you want to change the nam es on the Certificate ? 5f. .A Not at that time.We were too close and I didn't want to do anythin to excite him or dis rupt him. Q What is the number of this certificate of Depos it? A 246. Q And how is it that it's $31,000.00 instead of $30,000.OO? ~A-::.::--I>III;;: ;;: III a.Q2Cl-e2 :z:cr. 43:A I took the $818.22 interest I got and added the balance and made it $31,000.00. During these years.what did you do with the income from the Cer- tificates of Deposit based on this $30.000.OO? We just kept letting them accumulate and add a little bit of money to make it a round number. Your Honor.for the reason that it is not relevant to the Did you return that in your Federal Income Tax Return? This is objected to.MR.KELLER: Your Honor.that all of this testimony about the history iii0:IIIt-o:o0..III0: t-o::JoU ..I~ uii:...o issue of ownership of the note. THE COURT: MR.KELLER: The objection is overru -=d. May the record reflect, has been taken subject to our objection? THE COURT:The record will!.so sho . Now Exhibi1s9(f)comprise copies of the appropriate pages of your Income Tax Returns fo;,these years and basically they show the income from this series of Certificates of Deposit dealing with the original $30,000.00.Is that right? Ra mond Ca elli A That I s correct. Q And they show that you returned this money,the income from this in your Income Tax Return as your income. A That's correct. I159 THE COURT: years? The first one--- THE COURT: will ask the question. How much and for what~ Wait a minute.Couns el First of all,the part of Exhibit 9(f)refers to the Oakland Avenue taxes for $380.00.Is that the property we are talking about? Yes,that's where the money came from.That's the rent that I received. So that the rent or royalty that you received when the so-called Chapman property was leased was $380.00 and you included that as part of your income.Is that right? .That's correct. That was just your share of the rental;your dad's share went in his return. That's correct. Will you locate::that page that shows where the income was returne , lYIr.Cappelli? A Yes. Q That's the income THE COURT:That would be under interest~wouldn't it? I Q The interest from the Certificate of Deposit. A It's not on this paper.That yellow folder,my mother hasJ~:~tmay.b in there. ~Q<:i>Q..:0:...~A•cl-e2 :I Ul.. ~Q I show you Exhibit 9(g)and ask you if the interest from this certificate is indicated thereon? Yes~the interest from the first certificate of $30~000.00 which is was $818.22/on my Income Tax Return for that year. This is for 1966. identified in that Return?Let me see it a minute. You have $789.87 and $818.22. Right. Pittsburgh National,_Savings~'"you have two figures here. How is it How does it identifyTHECOURT: the interest as being from this certificate? That's right. Which was filed in '67.Is that right? l-e i AIiia ~Q u Ci::A :I:...,... WI ,tilI:iiil-ll:olLiii lI: l-ll: ::loU .JC uii:...o A Right.This represents the interest from the $31~000.OO~which you will note in that other exhibit,whatever number it is~and this represents the one from the first one~because we've got a higher interest rate the first time than we did the second time. MR.KELLER:This couldn't be from 1966 then. ('aooelli 61 THE COURT:Why do you put both on one year? A It's only a six-month certificate.One came due in March and one came due in September. MR.KELLER:But one of them wasn't .' note wasn't taken out until March 3.,1967.So this has the---the '67 Return but for the year '66.We call our straighten this out,it is my understanding the second Your Honor,just to The year 1967,but:dor Wait a minute now. Then this is a '67 Retu n. THE COURT: MR.KELLER: MR.TERPUTAC: ·MR.KELLER: Return or 167. Returns the years that they are for.We call that a '66 This is a 1967 Return. purchased until 1967. But for '66. .But I didn't receive the interest until 167. ~::>;.I>AQ-Yc:. Col-I:;;; :I CII.. 3 l-t; it AI-!!:e c ..I 4 Ua::J... :J:l-I'-C'llI en; Ir.1&1I-a:0II.1&1a: I-a: :l0U .J< uii:I&.0 to be a return for the year 1967 if it reports interest from the second note. A Yes,he's right. MR.TERPUTAC:Yes.,he's right. A '67,right. Raymond Cappelli (Continued examination by Mr.Terputac): Q Therefore~this item shows two things~the interest from both cer- tificates. A Correct. Q Being the one that expired and being the new one that was gotten in ::March of '67 and then which expired also in '67. ::>~A Correct.~:0: :0:II"II Q So the interest which you got~these two payments were actually 2"cI-~obtained in 1967. xI: ;A Correct. .,:~(At the direction of the Court~off-the-record discussion was not ti Ci...recorded by the stenographer). <u:o:J.,~Q Mr.Cappel~i~the two interest items that you have shown us~was r- l'I iii that for all of the certificate or just half of the certificate? II:w...~A For the entire amount. wII:~Q Now when the second one was taken out~that is Number 246 on ou~March of '67.your dad was ill at the time and in the hospital. ui&:~A Right.•Q But you still took it out in both names. A Yes. Q So when he died in April 27.'67~the Certificate of Deposit which was outstanding and payable was Number 246 in both names. A Correct. elli E3 , Q Now when the proceeds of that were paid and the incomel you retur ed that all as your incomel did you? A This is correct. Q Now when both Certificates of Deposit were endorsedl did you endo se them alone? IIIII:5CROSS EXAMINATION BY MR.KELLER: oll..11.I~Q As a matter of fact.when you collected the interest on the second II:':>ou note.your father-was deadl wasn't he? .J< U~A The second note.yes.he was. o• ...c·~l'~A :III..;Q %..,.... Q Yes.I endorsed both of them alone. When dad was living and the first one was still outstandingl he didn't endorse them.did he? No.he did not. That is Number 188. Right. You may examine.Mr.Keller. And as the second name on that note.under any iriterpretationl that note at that point belonged to you.didn It it? A I imagine so.yes. Q And so therefore.you properly reported the income from that note in your Income Tax for that year. A Yes.sir. Raymond Cappelli THE COURT:As a survivor. 64 Q Whether as the survivor or for what purpose,it was your note at that time. A Right. at the expiration of the six months,your father was dead at that That is our position.SimilarlYI when you signed that second note =: ~~Q :;;: "\Ia 2" CI-~Q %u:...~ THE COURT: ship. Yes,sir.That is our position. THE COURT: He got that by survivor Yes,I understand. rti0:~A 0:oQ.~Q I-0: :JoU .J ~uii:lI.o A A Q point,wasn't he? Yes,he was. So you were signing as the owner of the note by whatever method you became the owner of it. That's right. Mr.Cappelli,when you came home from Alaska and found that your father had taken this Certificate of Deposit out in both names, did you register any objection? No. In doing thisl he was acting for you,wasn't he? Yes,he was. And when you took the second note out,using the same funds plus the interest rounded off,you took the second note out in the same names,did you not? Raymond Cappelli I A Yes~I did. Q I think you testified that the reason you did not change it at the time of the taking out of the second note was because your father wa ill and you did not wish to disturb him.Is that correct? 65 A ~Q ~.Il>-CI.. Qit:.A :0:Cl-e<; l-e.:itA l-v:C... 4§a:::J... J:I-....N criII:III~lroa.IIIll: l-ll: :l..0 U ..J~ U~II.o .Q A Q That's correct. Mr.Cappelli~if this money was yours,why should it disturb your father if you claimed the money in your own name? Well,if I may do a little bit of explaining of our family affairs~I think I can answer this. All right. Number one,in the Italian class of people,the father is like the father hen,he rules all the chickens.And we are very close-knit family.We never ask what one did or what the other one did;we always assumed that there was a purpose in everything.So I felt that,at this time~that rather than do anything to hurt my father, feeling that well,you know,he I s in the hospital,right away he thin s I I m leaving this world,he's going to get everything he can get.I didn't want anyone leaving this world with this thought in mind. And this is my reasoning behind it . You did it then for sentimental reasons. Very much so. And yet it is true,Mr.Cappelli,that your father did divide the mo ley when you sold the property to the Alpine Club,a definite division was made and $30,000.00 was given to you and he retained $17~000 00. ..J ("",nnolli " A Ttrat's correct. Q So at least as to some things between you and your father you did maintain separate ownership and without any joint activity at all. A In some things. iQ I would,like to go back~Mr.Cappelli~to your appraisal of the value .:a~Q !!a ~A uo~Q of the two real estate properties.First of all.as I understand it. you valued the distributorship property at $15~000.00. Yes. Were you aware what the real estate assessment on that property Wi:.s? No • So far as you know.no appeal had.ever been entered on that. Yes.there was. When? When did this occur? relief as to the appraisal'of it. I taken.But I don't remember the dates.And we did get some the first time we were too late and then there was another appeal cu EQo i,.. a A The exact date~I don't know.But I went with dad to the City and ri-IIII~IICII 10II I-a: C~ A Before dad'~death.The exac,t year.I don't know. ~Would it have been before 1967? A I think it would have to have been before '67. I~In 1967---strike that out.Can you produce for us a record of that assessment appeal as to the date and the action that was taken in relation to that appeal? Ra A I believe I can. Q Mr.Terputac,would you be willing to produce that and make it a part of the record of this hearing? .e MR.TERPUTA C: supplies it to me. Yes,if Mr.Cappelli $5940.00 on that property.Is that correct? We would ask the Court then to permit that to be done. No further appeal was ever made of the present assessment of We will.THE COURT: :III ~A If that's what it is,that's the only appeals that I know about. In other words,as of the date of death,you and your father,at leas on the record,had not disagreed with that assessment. We disagreed with it,but we couldn't do anything about it. Mr.Cappelli,can you tell us what the gross receipts from the cria:IIIIt:oQ.. :tA l-ll::>ou oJcUii:'"o Winky's lease have been for the years 1966,'67 and '68? I have no idea.We never received a summary sheet from them, as far as,you know,what they did per year.I mean I know what our rentals,if that's what you're referring to,what we got in renta from them. Q Mr.Cappelli,haven't you ever audited their books on this? .rl Never did. Q Don't you have a right to do that under the lease in order to ascertain whether or not they have exceeded the percentage base for additional rental? 'Ravmond Caooelli I A I believe we have but 11m not certain in that respect.They were supposed to give us figures but we never received them. Q Quite conceivably the gross might have been in excess of $167.000.)0 a year.couldnI tit? A -: ::::; i:Q;;:.. IIIII 2- Cl-t::2 :IIIf43: I-~A tiia...~ UIa ~... :t:........NQ fti0:1&I I-0:o0.1&III: I-0:::>ou .J 4( uii:II.o I'm not qualified to say whether it was or wasn't because I don't ha"e any figures available. "What I'm really saying.Mr.Cappelli.is that we don't have any evidence that the rental.that the gross business was in excess and you don't have any evidence that it was less than $167.000.00. Isn't that right? Well.the only evidence I have is what we reported on our Income Tax which we received in rent;that's the only evidence that I have that it didn It exceed that amount. Your Honor.it appears to me that in order to make a proper assessment of the value of this property.based on the income approach.these figures are essential.And I would therefore.at t is time.make a request to counsel for the estate that the gross figurE for the three years.1966.'67 and '68.be obtained from Winky's and submitted Eo that our expert can compute the fair value of this lease hold based on what the income figures have been. THE COURT:It's not a problem for your experts to face.The burden here is on the Appella t. And they have given their idea of the value of this proper y and the factors that were involved in coming to that Ravmond Caooelli adjudication.I can't see where it's going to harm the Commonwealth to let the matter remain where it stands. MR.KELLER:Your Honor,if it should appear that the income,the gross income from Winky's is steadily rising,so that an investor might take into account an increased rental,we think that bears materially on the investment value of this property which we think is the primary basis for value.And since we are going to ha ve to put an expert on to justify the appraisal or at least to state the basis of the appraisal which the Commonwealth has made.particularly in view of the fact that our original appraiser in this is deceased. Mr.Sam Mazza.we believe that this would be of materia help to us in making such an appraisal. Commonwealth should concern itself with that matter. It's a matter which is in the discretion of the Appellant.. The burden of proof is on the Appellant and I can't see uilI: IIIl-ll:o0- III lI: l-ll::loU .JC U~...o THE COURT:I can't see where the where the Appellant has to make available to the Commor- wealth figures that it might desire to have.If the Comm n- wealth appraisers desire to investigate this matter and can come to some agreement with the parties concerned, that is their affair . .MR.KELLER:I suppose what I am real y Raymond Cappelli saying.Your Honor.is that we believe it is possible that the appraisers for the estate have relied on erroneou~ 7) • income facts. THE COURT: MR.KELLER: You may argue that. And we would like somE I1rII:1&1l-II:o0..1&1II: l-II::loU ...I<uii:...o basis on which to make that argument.And we think that in the first place.Your Honor.it occurs to us that the Cappelli's certainly should have these figures annualllr; that they don't have them is somewhat surprising to me. I don't think that it is asking too much to ask them to get it and to produce it in Court.for the minor inconveniencE involved.It is our position that it would be of material assistance to the Commonwealth in either .confirming or disproving the appraisement placed on it by the expert for the estate.And it would be of substantial benefit to the appraiser whom it has been necessary for the Commonwealth to retain in making his appraisal.We therefore make that request. THE COURT:Well.the Court has no way of determining whether or not the Appellant can properly demand such figures from the tenant.And we think that is part of the Appellant's case.not the Commo[l- wealth's case.Furthermore.the Appellant's testimony has indicat'~and they are relying on their own testimonv. 'Ravmond Caooelli that the matter of the excess that might be available would not be a material element in fixing the value of this property.And they have stated that it would not be a material element.Although one of the appraisers has stated that it was his understanding that the landlord had not received any amount in rental above the fixed rental. And he stated that he relied on that.But he further statec that he didn't think that the income in that respect was a material factor in determining his full appraisal of the property.Under those circumstancesl we think it is a matter for the Appellant to look after.We don't think it's going to make that much difference. 71 MR.KELLER:All right then.We would note our exception to the ruling of tpe Court. THE COURT: MR.KELLER: Exce ption not ed. I have no further questions of this witnessl Your Honor. THE COURT:The witness is excusec (witness excused).The continued hearing in this matter will be fixed for ThursdaYI August 141 19691 at 10:00 o'cloc1 A.M. MR.KELLER:Your Honorl may I ask for another date?I'm going to be out of the state for a period during thaa e two weeks. THE COURT:If you are going to be away at that timel we will accommodate by fixing another date if you will let us know when you will return. MR.KELLER:Your Honorl I will be back in the office on the 25th of August.It is possible that we could have this readYI that we could have our testimony ready during the week of July 28. If the Court has any time available. MR.TERPUTAC:How about August 21 or 281 Mr. o..o-Kellerl if that is suitable to the Judge.I don't want to delay it either but these summer vacations. MR.KELLER: I will be here the 28th. THE COURT: I will be away the 21st1 but We will set the continued hearing at ;;,. e-,ThursdaYI August 281 at 10:00 A.M. MR.TERPUTAC:Maybe I should just offer our exhibits in evidencel Your Honor.Mr.Kellerl any objection? IiIIIIl-II CII10II l-II Cl.... c..:ii:...c MR.KELLER: THE COURT: No. All of the Appellant's Exhibits as numbered are received in evidence and made part of this record. (Hearing Continued) G.P.Amanati (On Friday,August 29,1969,at 1:30 o'clock P.M.,the hearing continued): 73 MR.KELLER:If it please the Court,this is the time set for the taking of additional testimony on behalf of the Commonwealth in the matter of the Inheritance Tax Appeal in the case of the Cappelli estate.If the Court is prepared,we w ill call our first witness. =:THE COURT:You may call your witness.:;:-::>.J>-(10 i :2IIII 2Cl-i G.P.AMANATI IS CALLED AND SWORN. x~- ;DIRECT EXAMINATION BY MR.KELLER: ..,: ~Q Will you please state your name?...l/lIC;orA G.P.Amanati.~u gQ Where do you live?.., :t~~A 74 East Prospect Avenue,Washington,Pa. uia:~Q And what is your business?a:o0-~A Real estate broker and appraiser. I-a: ;:)8 Q Will the counsel for the estate admit the qualifications of Mr.Amana i .J-< ~for the purposes of testifying to an appraisal of esta te property in thi l&.o case? MR.TERPUTAC:We will. Q Mr.Amanati,did you make an appraisal of two properties formerly owned by Michael Cappelli in the City of Washington? ..;Yes. Q Did you do that at my request? G.P.Amanati A Yes. Q Did you make an examination of the property? A Yes.sir. Q Were you in Court and did you hear the testimony of the two other expert appraisers who testified for the estate in this case 7 74 ::A.-::>..I ~Q ;;: \;ICo :a:cl-e A;c Jlot.. ~Q I-!:II:l-II'c 4A l:c :E:l-I'-NQ iiiII: III I-0:: ()< 0-IIIa:AI-.a::J 0 Qu ..I< u ii: I&. 0 e A Q Yes.sir . Were your findings with regard to the physical aspects of the pro pert approximately the same as that found by those witnesses 7 Yes.sir. In the cours e of appraising this property.what method of appraisal did you use 7 I used all three approaches to appraisals;cost approach.income approach and the market data approach. I'm referring first of all to the property which we have described as the Winky's property.And does your answer apply to that proper :17 Yes.sir. .Now as I recall it.Mr.Amanati.that was a property 150 by 150 with a Winky's r:.es.taurant-type establishmeht on it.Is that correct 7 Yes.sir. Would you describe briefly the three different appraisal methods whi h you have said you used on this property? A The cost approach is the base by which you use the value of the land. based on comparable sales.plus the cost of the structure upon land.The income approach is based upon.capitalizing the net inco e G.P.Amanati of the property;and the market data approach is a method used by which you use comparable sales of similar types of properties. Q Referring particularly to the building.did you rely es pecially or did you use one particular method? . !75 e·A gQ 0(:-....~A·i:i~Q IIto~A i 0(3=Q ,: II Ai:to! II .I Q< II II A:ll., -=-to•Q IiI::•AtoI::•C.IIr:Q~r: ::t0Ct oJ-: \.I Ai:I-c· Q Yes.sir. Which method was that? Cost. What value did you place on the building? $50.000.00. Where did you get this figure? In the leas e . Do you recall what the lease said? Not to exceed $50.000.00 in value. That was the original construction value some three years ago. Yes. In your examination of the building and as an appraiser.did you find this to be a reasonable figure for the value of the building? Yes.sir. With regard to the value of the land,did you use one particular met od of appraisal in reaching the value of the land? A Yes.sir. Q What was that? A Com parable sales. Q What figure did you place on the land? A Q A Q A ~Q-::i. >Q 6: Uc:.A...Co..I.Q;;; :JII.. :I A..- !:QIIt-IlC ;A !:c:: :IIl-I'-l'O Q IT.It.......It C0.ILla:....a: :J0 ACJI....~U'ii:QII.0 A .P.Amanati $400.00 a front foot or $60,000.00 for value of the land. Was this based on a review of comparable sales in the area? Yes,sir. Now did you use the income approach in appraising this property? Yes,sir. Did you rely on anyone of these three systems primarily in the total a ppraisal of the Winky pro perty ? Yes,sir . Which one? The income approach . Would you tell us why? Because it's an income-producing property and it has a long-term lease and it has the characteristics of an annuity. Why is the income-producing approach in your judgment---strike th In your judgment,is that a more reliable basis of appraising the property than either of the other two in this type of case?· Yes,sir. Why? Because it's a long-term lease,has a good tenant,it has the characteristics of an annuity,and you have to capitalize the income in which it's producing. 73 Q Are you saying that this property has primary value to an investor- type purchas e ? A Yes. Q That is what you would compute the value of the property on.what th value would be to such an investor-type purchase? A Yes. 77 Q As I recall.the remaining term on this lease was about 13 years at t:1e time of the death of Mr.Cappelli.Is that correct? ~A-:~~Q ~~.A..Cl-e :2 Q :II"•31 A l-I,; ~Q ITC 4 A to:c ~Q :z:.....(II ai II: IIIli:A () 0- III~Qrr:>o U A .J< U ii:II.o That 1S correct. What was the original term? 15 years . Were there any options? Yes.two five-year options. Did you use those in your computation? Now in computing your value for the lease-hold.did you use net incom e or the gross income? Net income. What net income did you use? I used net income of $8.028.00.The gross income was $10,000.00 a year.I deducted from that fixed charges,which was taxes.fire insurance.liability insurance.I also deducted operating expenses which is maintenance and repairs and also management,which gave me a total expenditure of $1972.00,leaving a net income to be capitalized of $8.028.00. Q I d like to break these figures down since the net which you have use is somewhat different than that and less than that used by the other G.P.Amanati apprais ers .How much did you allow for taxes? A I allowed $1204.00 for taxes. Q Did you check the taxes? A Yes l sirl 1965 taxes. Q All right.What did you allow for fire insurance? 78 ~A 0(:-..J~Q Li~AoI- ~Q :J \I ;A I':~Ql-v:c_A... t.::~Q ui 0::~QlI:'oll.~A l-ll::>8Q ..J0( ~A...o $371.00. Did you check that? Yes l I checked it with the agent. Liability insurance.what did you allow for that? $97.00.and checked that with the agent. Now for the operating expenses.how much did you allow? I allowed one percent on maintenance and repairs . That would be---- $100.00 per year. How rr.uch did you allow for management? Two percent for management or $200.00 a year. Why did you allow that last figure? You always allow management fee in there because any investor who buys property will normally have someone else take care of the rentals and they must pay them a fee;on this type of a rental which is probably in checks sent directly to the ownerl chances are that you probably would not have that in there.But neverthelessl we still have to allow a management fee. Q YO,u figure that the $1972.00 deduction from the gross income is a G.P.Amanati hard figure,do you? A Yes,sir. Q Now how did you capitalize this slightly more than $8,000.OO?What 79 ::::;;-.I:.g;;:;;: ~II :;; Cl-e2 :III'.. 3: I-!:It l-ll:e E ,.i<ua ::J... :c...,... N cni II:..,. I-cr:0G- IIItt: l-tt: :l0U ..I< uiLlI. 0 period of time did you use and would you describe for us how you did it? A The net income was capitalized over the remaining term of the lease.' It was capitalized by the inward table,which is a factor used in appraising income properties,and I used the six percent rate.And that factor for 13 years was 9.384,which made the net income worth $75,335.00.What I have done there is brought this back to its present worth.This is what we call in the appraisal profession the present worth of future benefits.In other words,a buyer would go in there and know how much money it was producing that he would pa this much in a lump sum today in order to receive $8.000.00 a yea for the remaining 13 years plus the value of the reversion.of the land and building. Q Now you have mentioned this reversion..Does the property have value to a purchaser beyond the lease hold or lease income value? A Yes.sir. Q Is that what you are referring to as the reversion value? A Yes.Because at the end of the 13 year period,the leas e will termi ate and the owner still has the property.And again we use a factor in tables called the reversionary factors.We compute it on the basis of what that property should be worth 13 years hence,unencumbere by a leas e at that time. G.P.Amanati Q Mr.Amanati,a practical matter,at the end of the 13 year lease, this property might be used for either a more valuable or a less valuable purpose.might it not? aD A Q :!:A.. 1:>oJ:-.,....i:iL.. 0..10.. 01:~ .:OJ Qc..0ii AoJ:!:~IJ :l., ...Q.. ac::LI..c:: 0LLI Ac::..c:::JC•.I-:•i:~ 0 Yes.sir. Why do you use the table then? We 11,because we can't speculate as to whether or not it's going to ce used for a better use or the value of the land and building will be greater or less.:;projecting 13 years.we us e the tables in the book. I have the book with me.And we project that,that this property at that time ought to be worth "X"number of dollars. Is this an accepted practice in the appraisal business? Qh.definitely.'l'1is is the procedure to be followed in long-term leas e with a triple A tenant or a real good tenant. Now what value did you capitalize in order to reach the reversionary value? You capitalize;--you don't capitalize it,you discount it,the reversion is discounted at $60.000.00,which is a value of the land.$50.000.0, which is the value of the building,and then the reversion factor for 13 years is .4688,and this is at 6%.gives a value of the land and building at the end of the 13 year period of $51,568.00. Q Now Mr.Amanati,would you add together the value of the reversion together with the value of the property as an income producing entity for us? A The total value is $126.903.00,and it was rounded off to $126.900.O. (i.P.Amanati Q Is that your value as to Winky's property as of the date of death in th'~ case? A Yes. Q 'turning now to the other property which we have described as the warehouse or distributorship pro perty,did you examine that propert. F1 JU•:I A ~t; it Qt-v:E ~A ~a:J... :t:I-r-l\IIQ IIilI:10Il-ll:olL10I lI:A l-ll::JoU oJ~gQ...o physically? Yes. Did you find it to be as des cribed by the other two expert appraisers in prior testimony? Yes. What appraisal approaches did you use on that property? On that property I used comparable sales for the land value and I use j the cost approach on the building.This is on the old existing buildin!. You,I note,did not use the income approach.Is that because there was no leas e hold here? Yes.And it has been operated by the owner as a warehouse for dis- tribution of beverages. What value did you place on the land? On the land,it was a lot 50 by 150 and I put a value of $350.00 a front foot or $17,500.00 on the land.The reason I reduced that from Winky's is because it does not have the plottage increments Winky's was 150 feet and this has only 50 feet.So the utility of the 50 foot lot is not as great as that of 150 lot,so therefore,I down- graded the value per front foot at $350.00 per front foot. .""G.-P.Amanati i Q Is this consistent with value of other property and comparable sales in the area? 82 A Q A ...-:~:.llIo..;;; IIII 2" Cto~2 %rt'.. ~Q ~c.:~AIIIa ..I< !:!a ::J... :I:l-I'-WI Cli Q 0:: III~0::oQ, III 0::~A0:: :lo~Qcu~Ao Q Yes,sir. Wm t method did you use in appraising the building? On the building it was an old building,and I used the cost approach. I used $10.00 per square foot new,and I depreciated that building 80%and carne down to a value of $2.00 a square foot.And the reason that I depr.eciat ed so heavily was because of fixed physical an functional obsoles cence. How many sqaure feet are there in that building? That building contained 3.772 square feet at $2.00 a square foot.w hi is depreciated value of the building,was $7544.00.for a total value of $25,044.00,and I rounded it off to $25.000.00. Is that your appraisal of the warehouse property in the Cappelli estate? Yes. That is as of the date of death. Correct. Mr.Amanati.I note that some of the other testimony in this case was ·>to'~the effect that the building did not have any value at all and I notice that you have placed a value on the building.Why? A Because the building was useable,it had utility,it had been used at the time as a warehouse.and it had value.,although it might have been in bad condition.They did put a new building up.But never- Q IA ~... 0(;. .J~QI)--Eit- Ao0I-t.J:i:A:ECIo-:: :I Q .,: t-O; l-ITec ::ii A !::c Q :I:l-I'-N A cniII:........0:- 0a.w0: I-0:;) 0U .J« u ii:QII.0 theless.the building still had value to it as it existed and could have been sold in the condition it was in prior to rebuilding the building. Were there any assets in the building.any items affixed to the realty in the building which had particular value? Yes.They had a cooling system in there which I think the cooling sys tern is still in the building now in the new structure . Did they place a completely new structure on it or did they remodel and improve and add to the old? I think they put a new structure up. Mr.Amanati.are you familiar with the technique of appraising property or buildings based on the use of the assessment figures? Yes.sir. When is that usually done? Normally.that would be done when nothing else available .can be found in which to draw some comparison.And.of course.it's shak grounds on assessment.I've seen it done and it can be done if the assessments are correct. Do I understand you to say that you use that when you don It have a better system available? 83 A Right. Q I note that the warehouse building was assessed for $4740.00.In your judgment.is that the basis on which the original state appraisa of $15.800.00 was reached on the warehouse and office property? G.P.Amanati MR.TERPUTAC:Just a minute;Your Honor.. I object to that.I don't see what relevance it has and I don't see the way he has to determine that. THE COURT:The latter part is correct. He would have no way of determining that.The objection is sustained. I would assume that. 30%. appraisal by the Commonwealth? I move to strike that las tMR.TERPUTAC: answer from the record as irrelevant.He has no way to Cross examine. Have you computed and can you say..does the $4740.00 assessment Does that.as the appraiser having worked on this.does this explain Yes.All you have to do is divide 30 into that and come out with What is the ratio between,the prescribed ratio between real estate... 15.000 bucks. bear a 30%relationship to the $15,800.00 originally stated as the to you where the original appraisal came from? between market value and assessed value in Washington County? ::--:::-~Q... IIIa..-eI-~A :ICJ ;Q l-e.:itl-v: e·c..... u gA., :z:l-I'-N riII:::.-Q II:0Cl.11/a: I-a: :JSA oJ«~~II.0 e· determine that. MR.KELLER:If it pleas e the Court --- THE COURT:No,we won't strike it.The witness says that he assumes that because of the testimony G.P.Amanati which he has already given.The ratio bears that percentage. So anyone would be liable to make the same assumption.But 8~ the testimony is given for what it is worth.It's still an assumt=j- tion.We won't strike it.Exception noted. :: <:-~CROSS EXAMINATION BY MR.TERPUTAC: Q~ ~Q Mr.Amanati.when did you make the appraisals on these two proper ies? :i: C'~'A July 28.1969.:i, 2II;Q Was this made at Mr.Keller's request after you were notified that ..' ~there would be an assessment hearing?..III~A I don't understand your question .•l.~Q Well.Mr.Keller asked you to do the appraisals for the state.is :III-~that right ? II: ffiA That's correct.l-ll:aa.:g Q And you did in July of this year.this last month. l-ll:~A Y\)0 es • ..1'c ~Q This was for the purpose of this assessment hearing to give the state I&.o your valuations on the property.right? A Yes. Q Did you do any of thes e valuations prior to that time? A No.I didn't do any.I helped.They asked me fOr some advice once in awhile as people do stop you on the street and I try to advise them. not knowing all the facts.I do try to help them out. G.P.Amanati 036 Q So you have no concise knowledge of why your valuations now are les than the original state valuations. A No.I never did.fhe state valuations before. Q You didn"t do them so you don't know how they were reached. A No.sir. Sam Mazza.one of the appraisers for the Commonwealth. Mr.Mazza is now deceased and is unavailable to testify. the record.I would like it to show if it does not already show that the original appraisal on this estate was made by Mr. If it please Your Honor.forMR.KELLER::!...:c:-~ ii......i:i......o..e... o0( 3: Otherwise.he would have been here in Court. THE COURT:We will permit the explanation on the record.But the question here comprehends the proble :;of whether or not this ·individual had any part in fixing those Ii~appraisements.And he has stated that he did not. I: ClL:!Q Is that right.Mr.Amanati? toI: ~A That's correct.CJ..-: !!Q Very well.Now in arriving at your valuations.both on Winky's andL. L.o the Distributing Company.you used all three approaches on both. A No.sir. Q Okay.Did you us e all thre e approaches to one degree or the other on Winky's? A Yes. Q On the other I take it you only used the cost approach. G.P.Amanati A And comparable sales. Q Yes.Now let us refer for a few minutes to the Winky valuation. You have given a cost value on the building at $50,000.00 taken from the lease.Is that right? 87 e A ~Q-::-oJ>AQ.. ~a.." Cl-e2 :IV'43: I-~QII:I-IIIa...< UI Oi :;)A." r....,... (If"Q lil-a:11/ I-a: 0II.IIIa: I-a: :J0 Au -I<u ii:Q... 0 Yes. Do you know if $50,000.00 went into the structure? I would assume from looking at the building and all the work was don in concrete paving,the lights,the signs and all,and I think that $50,000.00 was probably expended for the building of that structure and improving the lot. Did you happen to check any of the records to determine if $50,000.a was actually spent? .No,sir. The $50,000.00 I assume counts all the paving,counts that huge sign that is down there,and anything else that might possibly be attached to the realty.Is that right? Yes. Now for the land you used comparable sales mainly.And you arrive at $400.00 a front foot for $60,000.00. A Yes. Q Now for the reversion---strike that.You then used the income approach primarily on Winky's because you say it's more reliable and there's a good tenant and it's like an annuity and this is what investors want.Am I paraphrasing you correctly? A Yes. Q Now in arriving at your net income of $8~028.OO~which was to be capitalized~you too~that by giving the deductions from the $10,000.0 which you related on direct testimony.Is that right? Yes. And where did you secure the information on management and operation expenses? I didn't secure that anywhere because I allocated---and this is the judgment of the appraiser---I allocated one percent for maintenance and repairs because,according to the terms of the lease~they were to maintain the building.And this was a new structure and maintenance and repairs would not have been too great.On manage- ment,I always put management in and this is a proper procedure wh capitalizing income thatyou must consider management because an investor who buys a piece of property may not desire to handle the rentals and may not desire to handle the maintenance and repairs. So therefore~he has to pay a broker to collect,the rents and manage be property and this must be included as an item of deduction. Q Do you recall when Mr.Fine testified he gave a capitalization rate of 9%to the building and 7%to the land? A Yes.And Mr.Fine did not use the same procedure in arriving at value as I did. Q 'It's within the discretion of the appraiser to use different procedure • I take it? ·A Not necessarily.There are different procedures to be used.It depends upon the type of the property that you are appraising.the type of an income tha tyou are appraising.the type of a leas e that you I 1-' l- ii:l-IIE.. ~c.., :I:...'"N cnia::Ill'~Qo0-IIIlI: l-ll: :JO' U .J0( ij ii:u.o Q _=\ (~. are appraising.w ill then determine the type of an appraisal you are going to do.Whenever you use a land residual or a building residual as was used by Mr.Fine.I don't know which one of the two he used. there are certain factors that are normally unknown.And this is the procedure to be used.But where you have a long-term lease. with a good tenant.that has the characteristics of an annuity,and we talk about an annuity as being an income screen that has quantity. quality and durability.the property is assumed to have assured annual income and periodical payments paid either annually or monthly.stems from a long-term lease involving contract rent. This is the characteristics of an annuity. We appreciate the education.Mr.Amanati.I don It think I asked you that.but it's all very interesting.Really.what we are getting to on Winky's is this -isn't it true that this is a single purpose buildi ~? Is it not? Yes. This is not only a restaurant.this is Winky's Restaurant. That's correct. And after 15 years if Winky's Restaurant is no longer there.it just isn't worth much of anything now.isn't that true? Well es.In the ca .rate that G.P..Amanati 9) was used in the factor of 9.384 is included in the inward tables.the depreciation on the building over the 13 year period plus the return of your capital.this is incorporated and built into this factor which I multiplied the net income. Q Mr.Amanati.let's talk for a minute about the reversionary value ...t; ~Iiia..< UI Q ~ ." :z:..r-N lti lI: 11/...lI:o0.. 11/ lI:.... lI::>ou .J<uii:II.o Q which you gave to be how much? $51.568.00. Now the reversionary value here is going to be very little becaus e this is a special type of building.is it not? No.I don't agree with you.We are talking about the reversion of the land and the building.Thirteen years hence.property values on Jefferson Avenue could go up much greater than it is now.It could go down just as well.But we have to use a reversion because 13 years we cannot speculate and we use tables in this book here which is accepted by the American Institute of Realty Appraisers and those tables are used to compute a reversion on long-term leases.Becau e an investor is buying income and at the termination of that leas e he is also getting back his property.which has value. But an investor'is looking at the fa~t that there is a special type of building and that in 15 or 13 years the area might change considerab y in commercial use. A Very much so.It could either go up or it could go down.So my value of $51.568.00 is even less than the value of the land alone todalY. Q Does the $51.568.00 include the reversion for land and building? A Oh,yes. G.P.Amanati 91 Q Now let's refer for a minute to the Distributing Company.This pres nts some rather unusual problems because this lot fronts 50 feet only on Jefferson Avenue.Is that right? A :!Q..:c~:-I:l..-ilL Yes. This was,at the time of Mr.Cappelli's death,an old shell of a building,according to the testimony of the two appellant appraisers. Would you agree to that? a liA Yes .. l.I~Q Now one reason that this is not conducive to good market value was ..::~at-III C ; no parking to any extent and number two,poor access.Are thes e things true? L~A Yes. :I..~Q Now you still say that the building has a value of $7,544.00? u:: l:iA Yes.l-ll:a~Q Now somebody buying this,if they would buy it,would they not be .....a:::> ()o interested in the kind of building you have there?U' .J ~u A YES.And they'd pay much more money.ii:...o Q And if they were,maybe they would want to tear it down since it's an oldI useless building.They don't want to pay for a building that is no good. A Well now you're speculating and we don't speculate in the appraisal business. Q You really attempt to guess as much as you canl is that right? G.P.Amanati 9~ A No#we don't guessl and neither do we speculate.All we do is we look at the building and look at the land and come up with a value.T*s building was being used as a warehouse.It had utility and therefore it had value.Now if someone went in there to buy it at that time would have probably paid $7500.00 for probably the land and th e building and if they wanted to rehabilitate the entire structurel all well and good.They may have left the entire structure stay as it is and do some remodeling.There's many factors that enter the o.. ~ t= !AIE:..••..Q<i•:l., picturel but we look at it as it is and we don't guess and speculate. .And we are basing value or supposed to on the date of death valuation That's correct. You were familiar with the fact that that was a dilapidated old buildin at that time? ~A It was an old building. IiI::=Q How:old was itl Mr.Amanati? I:01 Co~A I don't kmw. l-I:;) ~Q Maybe over 50 years old? .I 0( ~A I wouldn't have the least idea. LCo Q And if it's built out of:concrete block and frame and soforthl it didn' have much value when he diedl did it? A I don't agree with you.I have appraised buildings over 100 years old that are in better shape than som e of the new buildings you buy today. Q Mr.Amanatil I'm not talking about the Empire State Building.I'm G.P;Amanati talking about this building built out of frame and concrete block. A I'm talking about the same building you Ire talking about. 93 I I Q I wasn't sure. Now you say that the value of the building based on 80%depreciation was $7 J 544.00 And you still insist that is correct. gA Yes.Bear in mind I depreciate at 80%. «:i~.Q I have no further questionsJ Your Honor. ;:MR.KELLER:I have no further questions J Your Honor.This- completes the testimony which the Commonwealth is prepared to offer and I know of no further stipulations or evidence which we would propose in this matter.Do you have any further testimonYJ Terputac? TERPUTAC:Your HonorJ we have no further testimony.This closes our caseJ based on this - I thought I might refer Your Honor to a recent case dealing with capitalizationJ where the Supreme Court upheld the use of an 8%rateJ WinneJ Inc.tax assessment case,434 Pa.J 59.I don't know if it's particularly relevant to thisJ but theCourt goes into capitalization of net income and perhaps will lend a little light in resolving that aspect of the Winky problem. I recall during-the testimony Mr.Keller was disturbed about anythi over 6%.I don't think he will insist upon that at this time. MR.KELLER:We are willing to leave that for the consideration of the Court.It has been traditional in Pennsylvania,and the Supre Court has repeatedly insisted upon the use of 6%in reducing to pres Mr.Amanati 91 worth.I have not read the case which Mr.Terputac is referring to and do not know its applicability and will not comment on it at this ti e. THE COURT:It's a matter of argument.I wanted to ask Mr. I Amanati one question. and the other the income approach and your comparable sales. Mr.Amanati,you have given the various methods of arriving at a You call one method the cost approachfigureforcertainproperty. ~.aI-a ~EXA MINATION BY THE COURT: :;c>..J~Q.ij L Now whether you put more weight in one method of valuation than the ..:(". iTI-..C ; toC :II..,....A other,doesnIt detract from the fact that what you are eventually trying to do is to fix a fair value,a fair market value of that piece of property.Isn't that true? Yes,sir. v: II:~Q So that when you say you depend more on a certain approach,you II:aa..ll.Ia::are still thinking eventually and finally of the fair market value. I-a:: ::II3 A All three arrive at the same conclusion. ..J!<~.~Yes,but you state you place more weight in a particular instance lI.o on the cost approach and in another instance you place more weight on your income approach,and in another on comparable sales. But the eventual thing that you are seeking to determine is the fair price of that property.Isn't that so? A That is correct. Q And the figure that you have given now here is what you have determined is the fair price of the property. A That's correct,sir. Q Do counsel have any other questions? 5 MR.TERPUTAC: MR.KELLER: That's all,'Your Honor. I have none. (Proceedings Closed). =!:z0(>.J...J!ZZ...:l, i:> ~Transcript completed -September 5,1969 ::t~0( ~ ...lJi:...~I hereby certify that the proceedings and evidence are containe ..J0(~fully and accurately in the notes taken by me on the hearing of theahove c::>-, ~cause,and that this copy is a correct transcript of the same..... IN iiia5 C toIl1. '.11.:1:...a ::>toou ..J-c The forego:ir:g record of the proceedings upon the hearing of the 'U,,;;:... <>above cause is hereby approved and directed to be filed. Date: .t..l " ..;."t 0'.1'...."..;i ·".il" •.-...44.-L' :01." ~..'._.t.."..,~';:':;"; I '.-\.'0 "'.~,0;.j: ..j 'j ."••.' 'l,~1._ ....'"".I.L Q::--.l j'':...c... .J '.l .I W r,,':'~..'~J j(.L ~Tf'.~.~l J ~---=r- ;~':c:~ ci~ L"'-l 0::, d.:~li',I,..no ."\'J'f.' I ". .~.'. Jo'.