Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1895-04-11
INCoxR TAN LAW HIT HARD.

IfeNlOubly FuDllsieu- Court Evenly
Divided Upon the Question of the Com
nationality OF the Law Itself-Justice
Field Delivers Dissenting Opinion.
WASHINGTON, April s-Chief Justice
Fuller to-day announced the decision of
the Court in the income tax cases. He
began by stating the exceptions to the law
US made by counsel for appellant as
follows
!. That the act imposes direct tax in
respect of the real estate rents, issues and
profits rs well as Of the income and profits
of personal property and, not being ap.
portioned Is in violation of section 2 of
article |, of the constitution.
2. That the law il not imposing a direct
tax is nevertheless unconstitutional in
that IT'S provisions ure not uniform through
the United States and do not operate with
the same force and effect upon the subject
pi the tax wherever found. and in that 1t
provides exemptions in favor of indi-
vidnals and co'partnerships while denying
all exemptions to corporations having
similar income derived from like property
and values, and provides for other exemp-
lions and inequalities in violation of sec
ton of article Of the constitution.
3. That the act provides no exemption
OF the tax upon incomes derived from tho
stocks and bonds Of States of the United
| states and countries and municipalities
therein, which stocks and bonds are not
| proper subjects for the taxing power of
| Congress. The income from these securi-
lies n the United States amounts to over
| S6jUOO per annum on which the
total annual income tax would
| be 81 100000. He then took up the
constitutional points involved, dwell
| ing upon the fact that the constitution re-
| qulrtd the superintendent of direct taxes
and uniformity in excuses and imports.
| He also dw0lt upon the question of repre-
/ AT tuy ar 1,
Il foremost one when the constitution was
adopted. lie then took up the question of
the tax on rents and in so doing discussed at
considerable length the question of direcu
taxes as considered AZ the time OF the
framing of the constitution. The trainers
of the constitution were. he said we'll
yersed in the forms of government of the
colonies and of the European countries
and were well versed in the literature OF
the period including works on political
economy and well calculated to pass intel
ligently on this question.
TAX on RENTS UNCONSTITUTIONAL.
The Court at O'Clock had reached this
conclusion:
The Court can find no difference be.
tween u tax on land itself and a tax on
rents or income derived from land. The
Court therefore, is of the opinion that a
TAX on rents or landed Investments is a
direct tax and unconstitutional.
ALSO TIE TAX oS BONDS.
The Court next decided that the tax was
unconstitutional so far as it related TO In.
comes from state, county or municipal
bonds.
COURT EQUALLY DIVIDED.
1t was next ruled that the fact that this
law was pronounced unconstitutional in
these two particulars did not invalidate
the law as a whole. II was announced
that in this latter conclusion the Court was
equally divided and, therefore, rendered
no opinion.
The lower court having ruled in favor of
the law by divided court. the law would
stand except as to rent and State, county
ana municipal bonds, and on these two
points 1t was directed that the Judgment
i below be reversed.
JUSTICE FIELD DIssESTs
J Justice Field is now reading a dissentiny
opinion, but his voice is so low what he IA
| saying cannot he heard.
Justice Field quutgd various Supreme
Court decisions, and Sought TO show thai
: while the question had been before the
: Court, 1t had only been considered rs an
d, plying TO the question at issue in the mar.
ticular cases. Coming down 10 the nresent
tariff act, he SAID that the law was passed
III time oil profound peace, and il was To
be taken as evidence that Congress- had
sought in this matter to form precedent
: ana departure from established lines
y and it, therefore, became important 10
: inquire into the circumstances with Soma
D attention to detail, and for the n,Irnosc
OF comparison he went back to the
enactment of an income tax during
the civil war. He quoted from the decisio,,
d in the Springer case, giving a history of
o the case and devoting much attention 10 IL
as he said it was upon this case that tbt
defence had apparently relied upon TIL,
q more generally than upon any other ure
Il cedent. 1t is, he said, conceded in all 'the
cases from llylton to Springer, that Ia e,
OIL land are direct taxes, while in some al
p them it is determined that taxes on rent,
:, derived from lands are indirect taxes. wa,
u there he asked, any distinction between /
: tax on the land and the income derived
from the land?
T. What, in other words, was the land blu,
e the profit on it. The name Of the tax 4
II unimportant and the Court had been una
'r BILE to see any distinction He closed thi,
y part of the opinion by saving that tn,
le Court hac reached the conclusion thut III,
tax on rents was involved
S. The Chief Justice then took I'M tn,
T. question Of taxation of municipal Stat,
N bonds. The decision was also adverse IL
S, this part OF the law as repugnant to tn,
IN constitution.
j. On the other points, the Court wa
g divided, and therefor no opinion could b,
given. "