The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1894-05-25
Declared Unconstitutional by
the Supreme Court,
THE VOTE STANDING 5 TO 4,
Its Validity Was Upheld by Jackson,
White, Harlan and Brown.
THE OTHERS WERE ALL AGAINST IT.

Which Crowded Into the supreme Court-
Room to Hear the Decision Read by
CHIEF Justice Fullcr-Tcxt of tho De-
cision--Taxes That Have Been Paid wal
he Refunded to the Payer.
WASHINGTON, May 21.-The income
tax law, which has received large share
OF public attention since the beginning
of the first regular session Of the Fifty
third congress, is thing of the past.
After being twice heard in the United
States supreme court, it was finally de-
cided yesterday by that court to be in
valid and unconstitutional. There were
four dissenting opinions given. One each
by Justices Harlan, Brown, jackson and
White, showing that the court had stood
five to four against the law.
Who Changcdf
Inasmuch as one of these dissenting
opinions was handed down by Justice
jackson, and as he was absent at the
first hearing, when the court divided
evenly on the question of sustaining the
law on all points except those as to the
tax on incomes from rents and bonds, it
follows that one of the members of the
court who at first pronounced for the
law, except on those two points, changed
his attitude after the second argument.
There is very little question that Justice
Shiras is the member who revised his
views of the law. He, however, made
no announcement either yesterday or
when the first opinion was delivered, as
to his position.
While the opinion of the chief justice
was largely review of the general as
poets of the questions involved, he based
the action of the court upon the argu-
ment that the provisions of the law re-
garding
The Tax Upon Rents and Bonds
were so essential factor of it as to rem
der all other parts of it dependent upon
them, and that in accordance with the
we'll known rule of law bearing on this
question, the law, as whole, must be
declared invalid.
The opinions of Justices Harlan and
and White were couched in language 80
vigorous and so emphatic i'll their ar
raignment of the majority as to cause
very general comment. Both justices
indicated their belief that the ruling
opinion was revolutionary, and intimat-
ed that serious consequences might en-
sue. Justice Harlan suggested the ne
cessity for amending the constitution in
view of the opinion.
The Cases.
1t should probably lie stated that while
the cases in which these opinions were
delivered are uniformly characterized as
the income tax cases they are known on
the court docket as the cases of Charles
Pollock versus the Farmers Loan and
Trust company, and Lewis H. Hyde ver-
sus the Continental Trust company of
New York, both appealed from the cir.
cult court of the United States for the
southern district of New York.
The chief justice announced the fol
lowing conclusions:
|
ready announced that taxes on real es.
tate being undisputable direct taxes
taxes on the rents or income of real es
tate are equally direct taxes.
"Second-We are of the opinion tina,
taxes on personal property or on the in
come of personal property are likewise
direct taxes.
"Third-The tax imposed by sections
~ to 81, inclusive, OF the act of 1894, 80
far as it falls on the income of real es
tate and Of personal property, being 9
direct tax within the meaning of the
constitution and therefore unconstitu
tional and void because not apportioned
according to representation, all those
sections constituting one entire scheme
of taxation are necessarily invalid.
"The DEGREES herein entered in this
court will be vacated; the decrees below
will be reserved and the cases remanded
with instructions to grant the relief
prayed. Opinions will also he read by
Justices Jackson, White, Harlan ane
Brown"
The interest attaching to all proceed
ings in connection with the income taz
case was again manifested yesterday
morning, when the supreme court room
was crowded under the belief that the
final Judgment of the court In the in
come tax cases would be announced
This interest was heightened by I
knowledge of the report circulated JUS
a few moments before the court con
vened that Associate Justice jackson
had returned to Washington and woult
sit on the bench while the opinion wa
being delivered.
!, This was altogether surprise, and hi
coming had been so skillfully concealst
that his appearance was necessary Il
convince some people Of its truth. HI
!, did not go home as stated, but spent tn
week in Philadelphia in consultation
with physician.
When the justices took their seats
was observed that the chief had an un
usually large bundle of manuscript il
his hands, but nothing was thought 0
this as score or more of opinions wer
expected. But Immediately there was
sensation, for ignoring an almost who'll.
! unbroken rule which reserves the an
nOuncement of opinions by the chic
justice to the last, Justice Fuller plunge
+ at once into the income tax cases. II
read his opinion in full, occupying abou
an hours time, and spoke with an carr
sstnsss that manifested the depth OF feel
ing expressed In the opening sentences Z
his opinion.
How the Vote Stood.
Upon the question of the general III
constitutionality of the law tho court