21 S.E. 393 | N.C. | 1895
Whether a distiller incurs liability to forfeiture by failure to pay taxes to the Government, by carrying on the business without bond or with intent to defraud the Government, or by conducting a licensed business contrary to law or to the regulations prescribed by the Government, it seems to be settled that in none of these instances does the sale of the premises, on which the distillery is located, under a decree (456) of a Circuit Court of the United States in a proceeding in rem, pass the title of a mortgagee under a mortgage previously made, who has not permitted or connived at the illicit distillery. U.S. v.Stowell,
The section clearly indicates that the interest of an innocent mortgagee or other person having a lien on the lot or tract of land on which the distillery is situated, would not otherwise be included in a forfeiture for acts of the owner only.
The Court in the same opinion subsequently construe section 3258 (making it a criminal offense to have "in possession any still, etc., set up") and section 3205 (in reference to sales of land for taxes) in connection with section 3281, to mean that the sale in either case passes to the purchaser only the right, title and interest of the offender. The law does not impute to a mortgagee, without any proof whatever, a guilty participation in the fraud of a mortgagor and declare his interest forfeited because the collector may have failed to secure the assent of all holders of liens, as he is required by law to do, before permitting the distiller to begin operations on the land. Where this precautionary requirement of the statute has not for any reason been complied with, and where at the same time there has been a connivance at or a less formal assent to the operations of the distiller on the part of the holder of the lien, it would seem to have been the purpose of Congress that the rights of the Government should be protected by the proceeding in equity, provided for in section 3208 of the Revised Statutes, whereby all persons, other than distillers, whose interests have been subjected by their conduct to forfeiture, might be concluded by the decree of (458) condemnation. Whatever may be the rule where proceedings in rem are instituted against a vessel, the proceeding applicable to seizures of land for violation of the Internal Revenue laws is embodied in the statutes, and the Supreme Court of the United States have declared the intent of Congress to have been as we have already stated. The question presented is one of construction only, and we have been anticipated, *248 in passing upon it, by the Court that is the final arbiter in all controversies as to the meaning of the acts of Congress.
If the authorities cited did not warrant us in holding that there was no error in the instructions given or the rulings made by the court below (as to the effect of the judgment in rem) of which plaintiff can justly complain, we might add that, upon reasoning which by analogy supports that view of the law, it has been repeatedly held that sales of land, under the acts providing for the confiscation of property for participation in the Rebellion, passed only the right, title and interest of the offender for his life and not that acquired by any person under a mortgage executed "previously to his offense." U.S. v. Dunnington,
For the reasons given we hold that the judgment of the court below must be
Affirmed.
Cited: S. v. Jones,
(460)