Rensselaer Union, Volume 8, Number 42, Rensselaer, Jasper County, 6 July 1876 — Must Pay His Taxes. [ARTICLE]

Must Pay His Taxes.

D. H. Mitchem., of Leavenworth, Kan., had $19,350 to his credit in a bank in that city on the 28th of February. On that day, to avoid paying tax on it, he drew the money in the shape of U. 8. legal-tender notes from the bank, on his check, placed the notes in an envelope, sealed it up, and , deposited it in the vault of the bank as a special deposit, for safe-keeping. Three days afterward he withdrew the package and redeposited the notes as an ordinary credit. The .... JJouaty., heard of the transaction, and added $9,000 to his assessment as a penalty, and he is taxed on the increased amount. He filed a bill in equity against the Commissioners to restrain the collection ,of the tax, alleging, that, as his bank balance had been converted into U. S. notes which are not taxable, and were held in that form on the day his property was to be listed, he could not be taxed on them. The Superior Court of Kansas. dismissed the bill, for the reason that a court of justice sitting as a court of equity will not lend its aid for the accomplishment of any such purpose as escaping taxatioh. The case went to the U. 8. Supreme Court, and that tribunal affirms the decision of the court below. It says: “United States notes are exempt from taxation by or under State or municipal authority, but a court of equity will not knowingly use its extraordinary powers to promote any such scheme as the plaintiff devised to escape his proportionate share of the burdens of taxation.”—St. Louie Republican.