Dorrance, Death & Taxes

In Delaware County Orphans Court at Media, Pa. last week was tried the Commonwealth of Pennsylvania's suit to collect $31,465,200 inheritance taxes from the estate of the late Dr. John Thompson Dorrance, founder and 94% owner of Campbell Soup Co. The Commonwealth, which appraises the estate at $200,000,000. contends that Dr. Dorrance's real home was his estate Woodcrest, at Radnor, Delaware County, which he acquired in 1925. The doctor's widow, Mrs. Ethel Mallinckrodt Dorrance, his brothers Dr. George Morris and Arthur C. (respectively chairman of the board and president of the Campbell company) and his lawyers insist that his only permanent residence from 1910 was at Pomona Farms, Burlington County, N. J., not far from the great soup factory at Camden; that he bought Woodcrest to afford his five children social & educational advantages. Executors of the estate had already begun to pay $12,000,000 tax to the State of New Jersey on an appraisal there of $114,850,733. Federal taxes of $9,500,000 were paid.

In cross-examination of Mrs. Dorrance counsel for the Commonwealth tried hard to establish that household expenditures at Woodcrest far exceeded those at Pomona Farms.

Q.--Isn't it true that the gas & electric light bills in one month at Cinnaminson [Pomona Farms] amounted to only $7?

Mrs. Dorrance--Is it? That's splendid!

There are richer men than was Dr. Dorrance; more valuable organizations than Campbell Soup Co. But few companies so big were ever completely owned by one man. Many an investment banker's mouth watered at the thought of selling such a fat goose to the public. None ever succeeded in talking business with Founder Dorrance (excepting Lehman Bros., which sold a few shares of preferred stock, later retired). In his will Dr. Dorrance admonished his executors not to sell Campbell Soup stock but if "after the greatest deliberation" a sale is ever found necessary, to sell all in one block. So self-sufficient was the one-man company that no one guessed its richness until Dr. Dorrance's death.

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