Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-07-04
UNCLE SAINTS
NOT TRYING TO
ESCAPE TAXES
Wiling to Pay Share for Houses
Built Here, But Sees no
Lawful Way.

In federal court at Peoria Wed
nesday afternoon a preliminary In
junction restraining the tax col
lector Of Rock Island county from
selling houses of the United States
government in this city was IS
sued. The county did not contest
the case. DeVore n. Simonson of
Curtis & Simonson appeared for the
corporation The matter of making
the restraining order permanent
will come up probably in the fail.
Mr.. Simonson, who has repre-
scented the U. S. government in the
case from the beginning. is anxious
to remove the impression, held IN
some quarters, that the governments
is wilfully trying to evade paying
taxes. This, he points out is dis
proved by the fact that through
,&he housing corporation, it al
ready has entered into agree
ments to turn into the city
and school treasures a sum of
money equal to the ordinary
amount of the tax and that 1t mas
agreed to meet the cost of improve
ments made by special assessment
and is in fact, doing some paving IN
the projects on this side OF the
river without cent of expense to
the municipalities
About three-fourths of all taxes
collected go to city and schools.
There are four or five other bodles
which levy taxes in this state but
the amount in each instance is
small and in some cases it is prac-
ticalfy out of the question to under
take to make contracts. For in
stance, to enter into agreement
with the state for its share prob
ably would require a special act of
Athe legislature Therefore, the cor
pexation has felt that it was lot
justified in. carrying the matter pc
yond city and schools.
Contract Fails to Fit Laws.
The trouble arose in the nrst
place because of a hastily drawn
form of contract for the transfer of
the building sites. This was drafted
by a New York attorney and while
it served very well in that state il
did not fit Illinois laws so well. IN
stead Of requiring the former own
it pro-rated them. Then the point
was raised that the federal govern
ment cannot pay taxes to any SUD
ordinate unit, such as city, county
Or state, and it was discovered that
the state of Illinois at any early
date enacted law specifically ex-
empting property from taxation
whenever it was taken over by the
United States. So it was evident
that there was no way for the
federal government to lawfully pay
the 1918 taxes. The sum involved in
this city was small because the tax
was levied against unimproVe6
property. So while there is less
than $4,000 at stake there is d
question of law which cannot be
overlooked or set aside. Inasmuch
as the county had begun proceed
ings for the sale of the property
for taxes the sum due last year
could not be included in the con-
tract for contributing to city and
schools because there was a posi-
,51lity that the government might
lose the suit and thus be placed in
position where it would have to
duplicate its payments.
Under the state law unpaid taxes
constitute a lien against property
when transferred in the ordinary
way. It was contended in this case
on behalf Of the government ana
held by the court that the lien was
iuvaIidated by the transfer to the
United States and furthermore that
the proper way to collect was not
through tax sales but by action in
the United States court Of claims
go Miles for sSc.