Smyrna times., 1926-05-26
DELAWARE CHANCE To GET
S1,5OO,OOO REFUND OF TAXES
WERE PAID BACK IN SIXTIES.
DECLARED UNCONSTITUTIONAL
Endorsed by the Claims Committee of
Senate - Senator Bayard Will
Look After Delaware Interest

Delaware has $1,5OO,OOO at stake in
pending joint resolution providing
that the state may sue the United
States in an effort to establish that an
ad valorem tax levied by the Federal
government in 1866, 1867 and 1868
was unconstitutional, says the Wash
ington correspondent to the Every
Evening. Under the levy, about $780,
OUO,OOO was collected from citizens
corporations and partnerships in the
various states. Citizens or corpora
tlons or partnerships in Delaware paid
into the Federal treasury approx
mately $1,50O,0OO. Some two hundred
articles Of personal property, both
manufactured products and war ma
terials, were subject to the tax alleged
TO have been unconstitutionally i'm
posed. Endorsed by a unanimous re-
port from the claims committee of the
Senate, whose subcommittee previ-
ously had all united in favor of the
resolution, the proposed legislation is
believed to occupy position of van
tage. Senator Bayard of Delaware, a
member of the claims committee. and
of the subcommittee to which the
resolution was referred, is convinced
that the proposition is in line with the
dictates of right and justice, and is
supporting it.
Tax Declared to Be Unconstitutional
The ground of the contention that
the tax was unconstitutional is that
it was levied directly and not appor-
toned among the states, according to
the provisions of the Constitution. /
Forty-five of the states, all except
Oklahoma and the Dakotas, have an
interest in the matter, though in pre-
vious attempts to pass this proposed |
legislation it was said that the south !
was chiefly concerned, on account of |!
the tax upon cotton. As a matter of |
fact, if the money should be refunded, |
a much larger sum would 60 to the |
northern states than to the southern |
state. It is provided in the resolution
that the United States consents that 1
suits may be brought in the United |
States Supreme Court by any state
which has passed, or may within four
years pass, an act directing institu-
ton Of suit for these taxes provided
that the state shall before suit is filed,
make provision for the repayment Of
any money collected to the original
or their legal representa-
lives where their payment and owner
ship have been properly established,
and also that provision shall be made
for escheat to the state after a period
IF two years from the time when col
lection shall have been made BY the
state, where the right of the original
.axpayer has not been shown. There
i further provision that the United
States shall contest the claims solely
lpon the ground of the legality Of the
AK, all other defenses being waived.
The statute of limitation is thus bar
ed from being pleaded.
Supreme Court Could Pass on Legality
The resolution is intended not only
o permit the Supreme Court not only
o pass on the legality of this tax, but
IlsO to render judgment for each state
or the amounts collected in that l
tate. The records are said to show
he amount paid, in the published re-
'ort of the commissioner of internal !
evenue, so apparently it would not be {
ifficult to determine the sums due the {
Individual taxpayers. Senator Steph- I
ms of Mississippi is author of the {
esolution. {