The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1921-02-23
JUDGE fLEM D. SAMPSON
/ 0. KS LIQUOR TAX
Ruling On 50.Cent Levy is Di.
rectIy Opposite to Judge
Exams Decision

OF Whlcn would add 2O,OOO,OOO
to Kentucky's road funds, was held
constitutional by Judge Flem D.
Sampson of the Court of Appeals.
This decision was rendered in the
case of E. H. Taylor, Jr., Sons &
Company, Frankfort, distillers,
against State Auditor John ]. Craig
and others, in which Judge Robert
L. Stout, Franklin Circuit Court,
had granted the distillers an injunc-
tion to restrain collection of the
tax, of which the company holds
some 100000 for the benefit of the
owners of the whisky.
Judge Sampson dissolved the in
junction, and his opinion held the
exact contrary to Judge Evans in a
similar suit in the United States
District Court.
May Affect Supreme Court Ruling
Judge SIMPSONS ruling may have
q determining effect on the conclu-
tiOns of the United States Supreme
Court, which has the Federal case
under submission, as it is the con-
struction given a Kentucky Statute
by the Kentucky court.
Judge SIMPSONS declaration that
people, who pay taxes under void
statute, have an adequate remedy
at law, supports the contention of
Attorney Gen. Charles |. Dawson
in the Federal case that the petit
TONERS are not entitled to an in
junction.
The second vital point is the ma
ture of the tax. In this. too, the
Attorney Generals contention is
sustained. Judge Sampson regards
the tax as an occupation tax, not
alone on storing whisky 'as distin-
Single excise on the continuous pro-
cess of distilling and aging whisky
for the market. AS such, he de-
clares 1t is a legitimate exercise of
legislative powers and is not dis
criminatory.
Tax Not COnfiscatOry
He holds that it is not confisca-
tory and says that, from the proof
before him the owners have been
able to pass the tax on to the con-
sumers, while whisky outside the
State has been raised in price. He
says:
"As the distiller and warehouse
men passed the tax on to the con-
sumer and demanded and obtained
in addition to the tax the same
price for their goods, which pre-
vailed before the tax law was en-
acted, these millions of tax money
now in depositaries subject to the
order of the court belong either to
the State as excise or to consumers
OF whisky, who paid the tax, and
in no event to the distillers and
ware housemen, who have already
received full price for their goods
and only collected the funds now in
litigation as taxes and not as part
OF the price of goods sold. 1t follows
that neither the money nor proper
ty Of the distillers and warehouse
men are either taken or threatened
in the litigation"
Judge Sampson announced that
under the decision in the case of
Craig. Auditor, against the Security
Producing & Refining Company,
when taxes are paid under a void
or unenforceable statute and when
payment is made directly to the
Auditor or directly into the State
treasury. the person paying such
taxes by applying to the Auditor
within two years from the date of
payment may have such taxes re-
funded.
The Attorney General insists that
under this opinion, which was hand
ed down after the trial before Judge
Evans, the warehousemen should
pay the taxes to the State, and il
the litigation results in their favor,
they can collect the money back.
In his opinion Judge Sampson
goes on to say that this would not
result In a multiplicity of suits. be-
cause one suit could be filed and II
the court held against the State, 1t
would be the duty OF the Auditor
then to refund their money to all
the others, which plan has been fol-
lowed as the result of the Security |
Producing & Refining Company.
The Vance act, which became eff !
fective last March. levied a tax Of
so cents the gallon for the benefit
-