Omaha daily bee., 1905-09-15
INDIAN TRUST FUND TAXABLE
hSn'y Derived from Sale Of nsss Land,
Subject to Assessment
SUCH IS DECISION or JUDGE MUNGER
solution of the Question Put
UP 60 Federal Court By
the ThurstOn County
Litigation.

Indian trust and hsirship funds held on
deposit to their credit are subject TO
taxation, as any other funds"
Such lie the gist OF an important decision
handed down by Judge Munger in the
United States circuit court, Thursday
morning In the case OF the United States.
against the county OF Thurston, state OF
Nebraska.
An effort had been made by the county
treasurer and tax oficials Of Thurston
county to assess, for taxation some $4,000
Indian heirship funds belonging to the
Winnebago and Omaha tribes of Indians
that had been realized from the sale OF
Indian lands formerly belonging to these
Indians and located in Thurston county.
This fund was on deposit to the credit Of
the Indians in the Security National bank
Of Sioux City, subject to check by the
Indians under certain restrictions and
rules made by the secretary OF the interior
in order to protect the Indians against
their general improvidence and shiftless-
ness, and was made payable to them in
sums of $40 per month each, or in greater
sum II the prudential considerations would
warrant
United States District Attorney Baxter
on behalf of the United States enjoined the
collection of this tax by the Thurston
county authorities on the ground that the
fund was a trust fund and not subject to
taxation any more than the lands would
be. The Thurston county oficials, rep
resented by County Attorney w. (. Whit
comb, Thomas L. Sloan, Of that county and
Attorney Corbett of Sioux City, demurred
to the bill and injunction applied for by
the United States authorities and this de-
murrer was argued during the present
week.
Gist of Opinion.
In handing down his memoranda opinion
in the case, Judge Munger. in the lengthy
course OF It says:
Upon the granting by congress to the In
dian OF the fee title to land without any
conditions, such land unQuestionably would
be subject to taxation the same as land the
title to which belonged to any other citizen;
or, in other words, the property of an In
dian who has become a citizen Of the
mentioned is subject to taxation under the
laws of the state the same as like property
held in like manner by any citizen Of the
state.
II was not the intention Of congress that
the secretary of the interior, as condition
OF giving his approval, should provide that
the United States should retain the fund
derived from the sale OF these lands. Under
the regulations Of the secretary Of the In
credit OF the United States, but to the
credit OF the Indian. II any trust relation
exists between the United states ana the
Indians as to the fund It is by virtue OF q
private contract made by the Indian and
not by virtue of any act of congress.
/ am clearly of the opinion that the
United States has not such beneficial in
terest in the fund In question as to ex-
empt such fund from taxation by the
state; hence the demurrer Is sustained ana
the bill is dismissed for want of equity.
The decision is one of the most important
recently given in reference to Indian AFFAIRS
In the west and will be widespread in its
influence and Importance. In Nebraska
alone It involves the possibility Of the tax
alton for state purposes of over ;16O,ooo of
Indian funds.