The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-01-13
MILLIONS At
STAKE IN TAX
REFUND SUITS
10000 in Marion County
to Be Affected by Ruling
in Hancock County.
UPHELD BY u. S. COURT
Atkins Fight to Halt Return
of Money Is Lost in
Federal Tribunal.

S0Ni ~ ~ lSNltNtts
Verdicts in seven suits to be tried
in Hancock circuit court Jan. "a will
determine whether Marion county
tax officials must refund to 10000
taxpayers approximately 100000
in excess taxes collected under hor-
izontaI tax assessments in 1919, 1920
and 1921.
Action of the United States circuit
court Of appeals in Chicago Satur-
day, in unfolding Judge Robert c.
Baltzell of United States district
court here, in dismissing suit Of the
E. c. Atkins Company against Harry
Dunn. county auditor. and other
county officials to enjoin the refunds,
places the refunds solely on ques-
ton of validity of the claims of in
dividuaIs, according to attorneys in
volved in the cases.
The seven Hancock county cases
will serve as test cases, attorneys
said.
Millions at Stake
The sum involved in Marion
county is 100000, collected in ex-
cess taxes under increases ordered
by the state tax board. In the
state, as a whole, ninety-two couT-
ties were affected and total in ex-
cess Of $45,000,0O0 is involved, it was
estimated.
The sustaining of Judge B1 ltzell's
action by the circuit court of ap-
pealS throws the Atkins suit out of
court unless the plaintiff Is able to
obtain a writ of certiorari, a petition
for review of the case, from the
United rates supreme court. APP
peal OF the decision TO the supreme
court is impossible, it was said
The tax refund muddle grows out
OF horizontal tax assessment in
creases ordered in ninety-two coun-
ties of the state in 1919, 1920 and
1921 by the state tax board. The
increases were declared unconstitu-
tional by the Indiana supreme court
after collection of taxes.
Atkins Files Suit
Marion county tax officials we're
collected on the horizontal increase,
when the Atkins company filed suit.
The company charged the refund
would be unconstitutional and con-
fiscatory to large taxpayers.
The complaint charged the At
kins company and 500 other cor
porations paying taxes on two-f1fths
the assessed property in Center
township were not affected by the
horizontal increases and would not
participate in refunds 1t charged
the corporations would be taxed to
raise money to make refunds to
others.
The complaint set out the hori-
5ontal increases were made to bring
the other three fifthS of assessed
property in the township to a level
with the assessments of corpora
tionS, assessed originally or on GER
LITIGATION by the tax board.
Four taxpayers filed an interVen-
ing petition II the Atkins suit, at
lacking jurisdiction of federal court.
Judge Baltzeu on Nov. 3, 1927, up
held the intervening petition and
dismissed action for want of juris-
diction. The United States circuit
court Of appeals reversed Judge
Baltzelrs decision.
Dismissal Motion Upheld
On Feb. 81, 1929, Judge Baltzell
upheld new motion for dismissal
Of the suit by the intervening Pc
titioners, discussing action for want
of equity. 1t is this decision the
United States circuit court of ap-
peals now has upheld.
Seven suits were filed in superior
court here by individual property
owners, demanding refunds. These
suits were venued to Hancock county
and have been set for trial jan o.
Attorneys involved said today
that, regardless of the outcome of
the cases in Hancock circuit court.
they would be carried to the Indi-
ana supreme court.
Validity of the claims is the only
legal point in question and the suits
are expected to serve as test suits
for all claims for refunds.
Would Require Refunds
UNFOLDING of their validity would
require refunds by the taxing Off
Gals.
Claims would be required from all
taxpayers who paid taxes under
the increase. Attorneys today said
that the $1,000 900 involved in Mar
ion county probably would shrink
to $4,000 900 because of removals
from the city. changes of title of
property, and failure of residents to
file claims.
Hundreds Of claims already have
been fled with County Auditor
Harry Dunn.
Raising Of funds to make the tax
refunds would create a serious prob
lem throughout the state, officials
said TODAY