The Wichita daily eagle., 1894-12-23
WILL TEST THE TAX
Slit BEGUN WHICH WILL SETTLE
INCOME TAX LAW.
Complainant Moore Alleges unJust
Discrimination and, as TO Foreign
ers, Taxation Without hepf'Seh-
tation-Prays That Ccmmissioher
Miller be Erjoincd.

washington, Dec. 22-The first steps
have been taken in the Dlstrlct Oh Coi-
umbia supreme court to test the con-
stiturionality of the income tax law
Today Jeromiah Wilson, consel for the
New York banking firm OF Moore G.
SchIeyo, applied to Judge Cole OF the
equity branch of the supreme court OF
the District of Columbia for an order
restraining John S. Miller, commls-
sioner OF internal revenues, from as
sessing and collecting a tax upon MS
income The court will probably TX an
early day Tor the hearing.
Mr.. Moore's complaint in detail sets
his case under six heads and his pray
ers under four. He represents:
First-That ne is citizen OF the
United States and Of the state Of New
York. residing and doing business IN
the city of New York and brings TINS
suit in his own right.
Second-That the defendant. Joseph
s. Miller, is also d citizen OF the
United States, occupying and dischaIg-
ing the duties of the Office of commls-
sioner of internal revenue, and as such
is sued.
Third-That the complainant is a
shareholder in divers corporations, Or
ganized, existing and doing business IN
of their respective acts OF incorporation
and which said corporations have nee
earnings from which they pay dIVl-
dends to the complainant and also TO
the other stockholders, from which net
earnings there will be paid the COM
plainant during 1894 divers sums OF
money as such dividends.
HAS A FLING AT GROVER.
Fourth-That independent of and in
addition to these dividends the COM
plainant has an income derived from
the gains and profits of his business
and embraced within sections p and
28 of an act of congress entitled AN
act to reduce taxation, TO provide Tor
the government and other purposes,
the present tariff act (Which became a
law without the approval of the presi-
dent of the United States), largely in
excess of the sum of $4,000 per annum
and upon which income, including the
dividends before mentioned, the de-
fendant, commissioner OF internal reVe-
nue., has threatened to, and unless re-
strained, Will proceed TO assess the
sum of two per cent on the amount OF
your complainantS income in excess
Of 81, coo per annum.
F'ifth-The complainant further
shows by reference to section 90 Of said
act Of congress that these corporations
are also required to pay a tax of two
per cent on their net earnings, with
out regard to any dividends paid out OF
said net earnings, and by sections q
and % of said act the complainant is
required to pay a like tax on the said
moneys so paid to him as dividends,
thereby wrongfully duplicating the
tax on the complainant and by refer
ence to section "a of the act the COM
plainant shows to the court that that
taxation is unjust and unequl in that
it discriminates against the complain
ant, for the purpose of taxation, be-
tween persons who are citizens of the
United States and wholly exempts
such persons from taxation as afore-
said who have an income to any
amount UP TO and not in excess OF the
sum of $4,000 per annum and thereby
your complainant and all others in the
same condition is denied the equal pro-
lection of the law.
Further, by reference to sections 2,
and 2S it is shown to the court thai
there is associated with the taxation ot
citizens of the United States and sub
jected to the proposed taxation and
not seperable therefrom the provision:
that the persons who are aliens but
who reside in the United Staes whether
permanently or only temporarily shall
likewise be subjected to the payment
of the income tax, although such in
come is derived wholly from rents, in
!erest, dividends, salaries or from an!
profession, trade, employment or No
cation carried on elsewhere than in tn,
United States, thus undertaking, ,un
lawfully and without authority, to ia,
the incomes of citizens of foreign
countries alien to the United State
which have in the United States a TEN
pOrary residence for temporary pur
poses, although such incomes are de
rived wholly from sources not within
the jurisdiction of the United States.
No exemption is made from taxation
of the incomes of corporations With
the United States of which there ar
many, which, although carried on 70
profit are created and operated by tn
several states as government institu
Tions in the promotion of the police an
other public functions, which corpora
tiors are not subject TO taxation by III
United States. II is also shown tha
assessments are to be made upon III
income of the complainant and other
that have been earned and receive
pricr to the time the provisions of tn
act took effect and that the said take
are not within the constitutional juri:
diction of congress to impose.
WOULD HAVE NO REMEDY.
SiXth-It is alleged that the con
sioner is taking steps to make an asse:
ment against the complainant undt
the act. and collect not only for II
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