Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1899-06-29
SEEKING AN INJUNCTION
The Petition Of The Equitable Guarantees
and Trust Co. That Collector DOnahoo
Be RESTRAINED BY THE COURT
From Collecting Taxes Levied
-. by the Adams Tax Law.
THE RULE RETuRNABLE ON JULY s

Guarantee and Trust Co., Chancellor
Nicholson has issued rule on Tax
Collector John p. Donahoe Of the
Northern district, returnable July 9th,
to show cause why a preliminary in
junction should not issue restraining |
him from proceeding against the COM
pany to collect taxes levied under the |
Adams law for the taxation of invest,
ments. The injunction bill was filed |
Tuesday by Willard Salisbury, repre-
senting the company.
The bill recites that the company has
in many cases been appointed trustee
or fiduciary BY deed. by appointment
Of the Chancellor, and in the wills OF
decedents, and has been appointed
guardian in many cases in the Orphans
ceived moneys and securities and has
made investments with them. 1t has
also made investments in its own name,
holding the same as part of its assets.
Taking up the cause of complaint, the
bill relates that John p. Donahoe, the
tax collector for the Northern district,
has made demands upon the company for
the payment of certain taxes claimed
to be due from it individually and in
| its various fiduciary capacities, which
| he claims have been legally assessed
| against it for the year 1898, pursuant
| to the provisions of pretended law OF
| the State, claimed to have been en-
acted by the General Assembly, May
Goth, 1897, under the title of AN Act
to Equalize Taxation for State and
County Purposes, y and a pretended
amendment thereto, claimed to have
been approved by the governor on May
| 25th, 1893. From Domaine, the COM
| rany says it has received between 80
and 100 bills for alleged taxes.
| The company expresses the belief
that such claims are without due
authority Of law and that the acts re-
ferred to are unconstitutional and void,
and for such reason has declined and
refused to pay the same, whereupon
threats have been made of collection
by legal process. t# u
Further the orator, that is, the COM
pany, AYERS that should it pay the sums
claimed it might or would be subjected
to exceptions to the accounts which it
may file hereafter in any of its
tiduciary capacities, and to suits
brought against it to recover any
amounts paid by it as such alleged
taxes, and the orator has already
been notified that actions will be in
stituted by some benefciaries if it
shall diminish the funds in its hands
as fiduciary by the payment of the sum
claimed by the respondent; and in case
of suits, by the company, after pay
ment, to recover the money from the
collector, the costs, fees and expenses
necessarily incurred would amount to
more than the sums claimed as taxes,
and would cause damage and injury to
those for whom it is acting in a
, fiduciary capacity.
, The bill of complaint sets forth
argument to show that tho acts are
, unconstitutional; that of 1898, because
its title does not include or refer to the
} most important provision contained
] therein, which diyerts from the State
3 i and county treasures into the city
!, treasury one-half of the sums collected
. in Wilmington. 1t is alleged also that
the provision was inserted for the pur.
' pose of securing its passage by obtain
, | ing votes which would not otherwise
. have been obtained, for its passage in
, the Legislature. The act is held to
, violate the Constitution in that it is
, not uniform upon the same class OF
. SUBJECTS within the territorial limits OIL
the authorities levying the tax, as il
applied one-haIf of the taxes collected
in Wilmington to municipal purposes,
!. | whereas other municipalities must Fay
three fourths to county purposes. 0
j 1t is claimed further that by act o.
4 1897 taxes were not uniformly laid upor
4 the same class of subjects but some o.
/ the same class were expressly exempted
!. and others were omitted from tn,
I operations of the act; millions O.
< dollars of property, securities and in
a vestments of some citizens being ex
empted or omitted, and other property
q securities and Investments of similai
3 class and character, were subjected tt
/. excessive double and duplicate raxa
v tion. The purpose of the act as shown
in its preamble was to levy taxes upoi
a all income producing personalit.
x whether the same be situated in thi
n State or elsewhere, manifestly i'm
II possible and unconstitutional object
q since the local securities held by non
i. residents could not be reached for tn
purposes of taxation.
1t is averred that the assessment
under the act of 1897 was not made il
:. accordance with the provisions of tina
act. ---
a The two acts of 1897 and 1898 ar
y declared to be in terms so vague, un
i certain and unconstitutional in othe
i, respects and throughout so lacking II
the essential provisions for fair AM
reasonable administration of their pro
i, visions as to be- void and inoperativ
>, and incapable of being legally enforced
= The Chancellor is asked for in
i structions as to the payment or non
n payment of the sums claimed from it
n that the respondent may be restraine
by injunction from proceeding t
N enforce the payment by the company G
i. any sums due from it under the alege
i. acts and that the respondent may
: restrained and enjoined by q pre-
n liminary injunction until the furthe
~ order of the Chancellor, from enforcin
= the collection Of any of tho sum
claimed from tho company, under thos
acts.
2, Deputy Attorney General Peter 1
= John II. Rodney, representing tn
n county, and Henry G. Conrad, repre-
N senting the city, held conference tt
4 day to consider the matter of defenc
IL to the suit brought by tho Equitabl
az company. AS this is Il test case, bot
NJ Collectors Douahoe and Diclsey are il
~ volyed, and tho State, county and cit
- are interested in that the money co
lectod here goes to them The count
has already received about $4,000, til
% city wants the $4,000, its share who
A. has been held back on account of til
is threatened litigation, and the State
e. interested in securing S4, 900, its sharl
IN which also remains in tho possession I
% tho collectors.
ly The object Of corporation by IL
three attorneys is to expedite tt
securing of "a decision on the question