The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-28
AUDITORS ARE ANXIOUS
MANY INQUIRIES RECEIVED BY AT
TORNEY GENERAL TAYLOR.
He Prepares a Written Opinion Relat-
ing to school Fund Mortgage
QuestiOns.

In answer to inquiries received from
nearly every county auditor in the State
Attorney General Taylor has prepared the
following important opinion which practi-
cally settles the questions that have arisen
In reference to the school fund mortgages:
Much of the difficulty over school fund
mortgages arises because of the absolute
failure of the auditors to promptly collect
% The interest upon school fund mort
cages, and 90 The taxes upon the land.
Section $751; r. g., 1894. being section
of the act of 1886 (Acts 1885, p. 1860 makes
1t the positive duty Of the auditor in case
of default of principal or interest OF any
school fund loan to at once proceed to in
force the collection of such principal or
interest, as the case may be and any audi
tor who shall fail or refuse to comply with
the requirements of this section shall be
deemed guilty of misdemeanor and upon
conviction shall be fined in any sum not ex-
ceeding one thousand dollars.
1.-THE law also is mandatory upon the
auditor to collect the taxes on property.
This duty is especially emphasized In the
case of z. & II. H. r. r. Co. VS.. West.
treas, 139 Ind, p. 254. On Page 262 our Su-
preme Court says:
50 The law does not contemplate delin-
ouencies extending through number OF
years, but it is required by Sections lS3, 1Sa
ct sea-, that the delinquencies of any year
shall be enforced by sale of the property
In February Of the next year. Delays in
the performance of official duties were not
contemplated, and, as We have said. every
feature of the act is ruled by purpose to
induce early payments or to enforce col
lections without delays.
These two sections, if followed by coun-
ty auditors, will render of little force the
question of whether or not taxes upon prop
erty mortgaged to the school fund are re-
leased by sale of such property under
school fund loans. No more than one year S
fnxr In ont ~ dol
such property, If the auditors do their
duty.
''You ask what the law is respecting such
taxes upon property mortgaged to the
school fund, where the property has been
bought in at school fund SALE
RELEASE FROM TAXES.
81. If the property has been bought in
tor for the State-and then is sold again
by the county auditor. all such property
is released from taxes accruing up to the
date of such sale by the State through the
county auditor. This / think is the effect
ca the language of the case of Groom,
Auditor, VS.. State. "a Indiana, p. 255; also
Hamilton, Auditor, VS.. State. Indiana.
p. 12S.
p If such property is offered for sale
and bid in by the mortgagorS or their as
vested of the taxes due thereon. This is
tie substance of the decision in City OF
Iogansport VS.. Mcconnell, 121 Indiana, D
416 On Page 419 the court says: There car
be no doubt that 1T the duty of the
appellants as mortgagors to keep down the
taxes. Having failed to do what they were
bound to do, they are not in position tC
profit by their purchase AS to them the
taxes were lien, which II was their duty
to have discharged, and nothing has beer
done which relieves them from that duty
The taxes were levied by the city in the
exercise of governmental functions, and the
taxes levied by them are in force an(
dignity equal to those levied by the State
or county In this case the purchaser OF
the property at school fund mortgage sale
vas the original mortgagor. He subse
quently sold the property to one Leonard
Who assumed the mortgage: but the origi
nal mortgagor, however, bid in the prop
erty at the auditors sale, and the deed wa.
executed by the auditor to such origina
mortgagor.
"In this case, on Page 49, the court ad
mits that there is some confusion in the
decision upon the subject of the effect
upon tax liens Of a sale on school FUND
mortgage Citing the Hamilton case, the
Groom case, the Stockwell case and the
Jones case If the purchase was made by
the mOrtgagor. or anybody in his interest
the taxes would not be released. This case
would be met by the case of the City OF
Logansport, supra.
PROPERTY BID IN.
20. If the property is bid in by g
stranger at a school fund mortgage sale, Is
the property freed from taxes then due
1t is the duty of the auditor to see tina,
the property sells for the total amount due
including principal interest, damages and
costs. If anybody bids less than this, the
auditor must bid in the property. If q
stranger, therefore, bids the full amount OF
principal, interest, damages and costs, II
is my judgment that he bids it in free and
discharged of the taxes. This, however
is not entirely clear. and the statute 1.
silent upon the subject, and there is no de-
cision either of the Supreme Court APP
pellate Court that covers this particular
class of cases. In the Stockwell case, 10
Indiana, Page i, the court decides that
deed for taxes is junior to a school fund
mortgage, and hence deed on schoo
fund mortgage would, of necessity, super
sede a deed for taxes. This is where thu
purchaser has no connection whatever
with the original mortgage to the schoo
fund. Arguing from this case, it would
seem that the Supreme Court would de
eide that If there was no collision, and thu
purchaser dealt at arms length in buying
| the property he would buy 1t free OF th'
taxes, and If the county auditor has dom
| his duty there would not be but one year.
delinquent taxes upon the property, ant
nobody could be seriously harmed.
~. While the property is In the posses
| sion of the state, as purchaser at such ia,
SALE of course the taxes would not be run
ming upon the property. The State, pre-
sumably, will derive enough benefit out o
| the property to equal the taxes that woul'
| accrue upon such property If 1t were owne'
| by private individuals; and, further, prop
erty that goes through the hands of tn
State-the original mother and owner of al
property-ought to be freed from taxes jus
| like an individual who acquires propert.
ovlfv daad
| claims of every sort and character he ma.
| hold against the said property. Now, 70
| a suggestion. Before the auditor release
any property from taxes 1 would advis
| him to be very sure that the purchaser a
| tax sale was not acting in collision will
/ a.. or his N -