The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-24
Supreme Court Asked by Attorneys
on Both Sides to Hasten COnsid-
Grafton of Case.
SETTLEMENT BY JAN. 1, 1908
OPINION MAY BE HANDED DOWN
BY THAT TIME.
Eighty Thousand Taxpayers Inter-
ested and $40. 200. 900 i'm Property
InvOIved--History of Case.

If a motion that has been forwarded to
the United States Supreme Court by At
torney General w. l.. Taylor is passed upon
favorably by that tribunal the famous
mortgage deduction law case will probably
be finally settled before the first of the
year. Attorney General Taylor retires from
office in January and he is exceedingly
anxious to have the case disposed of dur
ing his term, and to that end he has for
warded motion to the Supreme Court that
the case be advanced TO an immediate hear
ing, so that ii can be argued within few
weeks. r. o. Hawkins and Horace Z.
Smith, the attorneys on the other side.
Joined with the attorney general In the
motion, and it is thought that the Supreme
Court will grant it.
More than $4,000 taxpayers are directly in
terested in this case, and 1t is one of the
most important that has ever been tried in
the State of Indiana. Taxable property to
the amount of over 100000 is involved
and taxes amounting almost to 100000 an
nually.
The suit is one to test the constitution
atty of the mortgage deduction law which
was passed by the Indiana General Assem-
bly, Of 1892 Under this law a mortgageor
was allowed a deduction of 500 from the as
sessed value of the property, providing that
this exemption did not exceed one-half the
assessed value. over $4,000 taxpayers have
filed applications for exemptions under this
law, and the amount asked for averages
about $500 In some of the counties of the
State the exemption was allowed until the
question of the constitutionality of the law
was raised.
he &c lad y mi
auditor, VS.. Martha Lewis eft al. Mr.. Smith,
the auditor of Marion county, took the
position that the law was unconstitutional
and about eighteen months ago he insti-
tuted test suit. The case was first tried
before Judge Henry Clay Allen, of the
Circuit Court who found for Mr. Smith.
Attorney General Taylor is deeply inter-
ested in the case, and decided to fight 1t
out to the end. When he found that the
defendants were unable to bear the cost of
an appeal he took ii himself. In the In
diana Supreme Court the constitutionality
of the law was assailed and the court up
held the law, finding for the defendants,
represented by the attorney general. At
| torneys Hawkins and Smith then took an
appeal to the United States Supreme Court
for Auditor Smith, and the case has been
before that tribunal for about two months.
| III speedy action Is obtained the attorney
! general is of opinion that the case can be
| disposed of before he retires from office.
STRONG POINT RAISED.
Attorney General Taylor contends that
| If the mortgage exemption law is not con-
stitutional then the law permitting tax
| payer to deduct the amount of his debts
| from his credits is also unconstitutional.
Under this law, which dates back TO the
adoption of the State Constitution,
| fifty years ago, and which has been up
held by the courts, a taxpayer who owes
any amount may deduct that sum from
| any money which may be owing him.
| There is no limit to the deduction and one
man alone in Marion county takes deduc-
| ton of over $4,000. This man is twice a
| millionaire and the attorney general holds
| that If the rich man is entitled TO eXemp-
| tons from taxation on his debts, when
/ these debts amount to fortune, the poor
| man who owes few hundred dollars on
the home he is struggling TO pay for is
| equally entitled to exemption.
| The attorney general had a curiosity to
| know the amount of exemptions taken UNI
| der this law and had the state statistician
make an investigation, which revealed that
| the sum is practically equal to that in
| volved in the mortgage exemption law
| question-S40, 000, 900. The number of tax
| payers concerned, however, is far less, it
| is the rich man, who Is l0aning and borrow
vantage of the law. Attorney General Tay-
| lor says that IL is far easier for the mill
lionaire of Marion county TO get deduc-
| ton of $4,000 from his taxable property
! than 1t is for a poor man to get one of 500
on the mortgage on his home. The rich
man has only to go before the board of re-
| view and claim the deduction and ii is
made without question being raised. The
| poor man is turned down cold, and unless
| some one interests himself in the cause suf-
| ficiently to fight the case to the last court
| of appeal he is compelled to pay taxes on
| every dollar of the assessed value of his
home, although he may not have that home
| more than half paid for.
| If the mortgage deduction law is held
| unconstitutional, then the law allowing de-
| auctions for debts from credits will be at
| tackled. Consequently the decision on the
| case now before the United States Supreme
| Court really involves over 100000 Of tax
| able property and almost s., 100000 In taxes.
| The number of taxpayers affected is close
! to the hundred-thousand mark, over
| $4,000 are involved in the mortgage exemp-
ton case Indeed, the attorney general is
of the opinion that close to 100000 applica-
| tions will be filed next year under the
| 10