The Washington times., 1894-12-24
COnstitutiOnaIity of the Income
Tax Statute to Be Tested.
NEW WORKERS AGGRESSIVE
They Want to EniOin Commissioner
of Internal Revenue Miller.
Moore and SchIey, Prominent Wall Street
Brokers' Enter Suit through shellabarger
and Wilson-They Request Pending tha
Suit the Government Re Not Permitted
to Attempt the Collection of the Tax.

The New York opponents or the income tax
are making their last stand. 1t is now a gght~
in the courts to enjoin the collection. The at
tack is upon the constitutionality OF the law.
The New Workers have taken the aggressive
and are not waiting for the tax collector, 10
appear at their doors. They have not even
aimed their blow al the law il operation at
their homes. but have come to Washington
and struck at the inc.pient preparations of
Secretary Carlisle to begin collection with the
opening of the new year Suit Tor h'in!unc-
tion against Joseph S. Miller Commissioner
OF Internal Revenue. was begun here Satur-
day.
The complainant is John G. Moore, of the
New York banking firm of Moore & Schiey,
AMI the attorneys are ShelIaba-ger q Wilson.
1t is understood that thisis only one OF num-
erous similar suits to ba insdtut ID. and if
promises amount to anything there must be
an increase in the working force OF the De-
partment of Justice to att nd 10 the business
that lies ahead OF il in connection with this
law When rayment OF the tax Is demand
the New Workers Will refuse and the fight will
be carried through all the courts. This Is but
the beginning Of litigation which wifi'hs ma !e'
int arminaale if only TO bring true the pro-
phecies made when the Law was under debate.
In the bill fled Yesterday MIR. Moore asserts
that his incomes very much more than eco
a year and a large part OF II comes from cor
poraiioas. Upon this. he says, Commissioner
Miller is preparing 10 collect 4 lax of per
cent as authorized by the new tariff law.
and unless restrained will DO an in ury TO Mr..
Moore for which here will be no remedy.
This injury in part lies in the collection of
q double tax. In the first place, the govern
ment proposes to collect this tax upon all tho
money OF corporations fn~rS1lAoi 'Ms.u aLoDE2
holds stock, and then 10 collect it again upon
the same money when tutned orer- 10 Mr..
Moore rs dividends. ,.
Again. ihetax is unjust because it discrim-
mates against peIs, rs whose income IS over
5000 a year, in favor OF those whose in
come is less. This denies Mr.. Moore md all
having incomes over $4,000 equal protection
of the law
Mr.. Moore further says that the law rro-
vides for the taxation Of citizens OF o:her
countries who muy Da TSsirt's'r5 HTt4ga tisBrvz4
States permanently Or temperarily. and that,
too. upon incomes derived wholly from
sources not within the jurisdiction OF the
Unite States.
Moreover. no exemption IS made in the ACT
from taxation OF the incomes of corporations
within tha United States, o which there arc
many, " hich. although carried on Tor profit,
are created and ~. ra;cI by The several States
I rs government instruments i: the promot on
OF the police and other public functions,
which corp rati0ns arr not subject 10 taxa
ZION. tt l. also SHOWN that assessin snts are
TO he made ugon the Income the comp!alE-
ant aud others that IN / .RSeR eagHet AZ s. g..5
c-iyed prior TO the tin Iffe'p 'pfJTf'lurs U!'ft'A
act took effect. Congress, it IS alleged, l $
no constitutional authority to impose such
taxes as these, and the act, therefore, is IN
vald.
Is the complainant has 70 redress except
theoretically by long litigation, which makes
the rene Y unavailable. lie asks that Com
missioner Miller he restrained during pen
deny OF the suit from even making prepara-
tions to collect the tax, and upon Il iinal
hearing the Commissioner and all assistants
be perpetualiy enjoiHsd. mama N''"'H'''
The case will come up for hearing before
Judge Cox or judge HagRGr Probably This
week. ---------~ ---- -