Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1901-09-12
,ocument Written by Judge Il. M
Fee in Important Case,
MANNING VS.. SPRY, TREASURER
Text of the Opinion Which Gives the
Decision in the Case of the Plaintiff
First Case of the Kind in the
West.
IFrom Tuesdays Daily.l

IEr0m tuesdays Dally.J
The case of Calvin Manning, guar
dian of John Schwabkey, VS.. John ii.
Spry, treasurer of Wapello county,
which was decided in favor of the
plaintiff by Judge T.. M. Fee, few
days ago, is, as has been mentioned
previously, the first case of the kind,
so far as is known in legal circles in
this county, that has ever been tried
outside of the state of New York,
where statute covers the issue. For
this reason the decision was looked
for with much interest by lawyers all
over Iowa. Judge Fee has rendered
his decision in favor of the plaintiff
and has filed his decision in the case.
Because of it's Importance it is given
today in full. The attorneys in the
case were Mitchell & Hunter and S.
E. Adler for the plaintin and A. W..
Enoch for the defendant.
The Case.
These case. as stated in the Courier
a few days ago, was brought by Mi.
Manning to avoid paying taxes on
notes securing the loan OF pen
sion money belonging to his ward,
John Schwabkey. These taxes had
been levied by Mr.. Spry in his official
capacity as treasurer.
The Opinion.
Judge Fees opinion in the case
filed with the decision, is as follows:
The case after argument at the
March term of the district court of Wa
pello county in 1901, was submitted to
one by agreement of the parties fol
my decision in vacation, on the de
murrer of the defendant to the petit
ton of the plaintiff.
The question raised by the demurrer
is not free from doubt, but after ma
ture reflection, l believe both under the
state and federal law, the notes sought
to be taxed are exempt from taxation
Pension money, by the laws OF Iowa
is exempt from taxation, then certain
ly the spirit of the law will exempt the
-promissory note that is the very, the
actual, evidence of, or Representative
of the pension money. To say thu
money is not taxable, but that the Ger
) tificate of deposit or promissory note
sthe evidence of the pension is taxable
lis distinction without difference.
The notes would be exempt from eX
Secution. They could not be taken TO
and debt however just; even for tn
food that sustains the soldier or thu
icothing that covers and protects him
VI that case it insures solely to tn
benefit of the pensioner. Why shout
dot be exempt from taxatio., as we'll
think in the spirit of the law 1t is, /
not in the letter of the law.
/ cannot say the money Is exempt
but note, the evidence of money is moi
4. 1t is a guarantee given to the soldie
to keep him from want and perhap
the almshouse in his old age and unde
the laws of Iowa cannot be legally ta1
ed away from him.
Section 4747 of the federal statute
says the money shall 'inure wholly t
the benefit of such pensioner." There
fore under that section of the feders
= law / think the notes in question ar
. Exempt. They will not "inure who'll
20 the benefit of such pensioner" if tn
pension or The notes that actually rel
resents and is in legal effect the pei
sion, can be taxed away from him b
the state law. The Unite
States government did 81 NJ
give this bounty; this gratituity to III
manned crippled, or health RUNE
soldier to enable him to az st til
state by taxation, or in collie ing re
5enue. 1t is given solely as bount
or gratuity and wholly for the benet
,of the pensioner.
Again, this money had never reac
ed the pensioner. 1t was placed
the, ,hanlrs of the nan that had bee
appointed guardian of the soldier
I iowa but the money or fund had new
passed to the soldier and from the CO
troll of the u. S. government, ar
therefore the notes are exempt fro
taxation by the state. United Stat
VS., Hall, U. s. R. S43
/ might enlarge upon this subje
but enough has been said to give n
view of the letter and spirit of tt
law to sustain my ruling.
The demurrer is overruled.
Sept. 6. 1901.
IT M Fee Judge