The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-04-10
THE OPINION.
Chief Justice Fuller Reads the De-
cisiOn Of the Court.

WASHINGTON, D. c., April S.-The
courts opinion was as follows:
In Charles Pollock the Farmers Loan &
Trust Co. ct al. 1t is established: ...
l. That by the constitution federal taxation
is divided into two great classes direct taxes
and duties, imports and excuses.
2. The imposition of direct taxes is governed
eyal states, according to numbers and the i'm
position Of duties, impost and excuses by the rule
of uniformity throughout the United States.
The courts conclusions after reviewing the
historical and other phases of the question We're
follows:
g. The principle that taxation and represen-
tation together intended to be and was pre-
served in the constitution by the establishment
of the rule of apportionment among the several
states so that such apportonment should be ac-
cording to numbers in each state.
T. That states that surrendered their power to
levy imposts and regulate commerce to the
general government and gave it the concurrent
lection afforded by the rules prescribed, and that
the compromises of the constitution cannot be
disturbed by legislative action.
5. That these conclusions result from the text
Of the constitution and are supported by the his
torical evidence furnished by the circumstances
surrounding the framing ana adoption of that in
strument and the views Of those who framed and
adopted them
the time of the adoption of the constitution was
that direct taxes would not be levied upon the
general government except under the pressure of
practice down to August Is, 1884 If the power
to do is to be exercised an ordinary and
usual Of supply that fact furnishes an ad-
ditional reason for crcumspection in disposing
of the present case.
Z. That
TAXES ON REAL ESTATE
belong to the class of direct taxes, and that the
taxes the rent income of real estate, which
is the incident of its ownership, belong to the
same class.
s. That by previous decision of this court
has this question been adjudicated to the con-
trary Of the conclusions now announced o
9. That much of the act of Aug Is, 1894. as
attempts to impose tax upon the rent or income
Of real estate without apportionment is invalid
The court is further of opinion that the act OF
Aug, is. 1894, is invalid far it attempts to
levy tax upon the income derived from mu-
nicpal bonds. AS municipal corporation is the
representative of the state and one of the
mentalties of the state government, the property
and revenues of municipal corporations are not
subjects of federal taxation, nor is the income
derived from state. county and municipal Sc
curities since taxation on the interest therefrom
operates the power to borrow before it is ex-
ercised and has a sensible influence the con-
tract, and therefore such a tax is tax on the
power of the states and their instrument alties
TO borrow money, and consequently repugnant to
the constitution.
Upon each of the other petitions argued at the
First-Whether the void provisions as to rents
and incomes from real estate nvalidates the
second-Whether to the income from per
sonal property, as such, the act is unconstitu-
tional laying direct taxation
Third-Whether any part of the tax if not
considered direct tax, is invalid for want of
uniformity either of the grounds suggested.
The justices who heard the arguments are
equally divided and therefore no opinion is ex-
pressed.
The result of that, the decree of the circuit
court is reversed and the case remanded with
directions enter a decree in favor of COM
| planant in respect only Of the voluntary pay
| ment Of the tax on rents and incomes Of its
| real estate, and that which it holds in trust
| and on the income from the municipal bonds
owned or so held by 1t.
The announcement of the foregoing conclusions
| of the court was preceded by a
REVIEW OF MANY OPINIONS
| Of the supreme court from the time Of Chief
| Justice Marshall down to the celebrated Springer
| case brought by ex-Representative Springer, Of
Illinois, and by exhaustive review of the
| nature of direct and indirect taxation, in the
| course of which the chief Justice reviewed the
debates leading up to the framing of the federal
constitution. In conclusion, the chief justice
| stated that this opinion upon the Pollock case
| covered the two other cases.
| The delivery of the opinion consumed just one
hour Chief Justice Fuller began at 1905 and
! concluded at 1:05. He was followed by Justice
Field who read the first dissenting opinion,
| speaking in a low tone, that contrasted notice
ahiy with the loud delivery of the chief justice
The decision applies to three cases. the first of
| which was brought into courts Of the District of
| Columbia by John C. Moore to enjoin the COM
missioner Of internal revenue from the collection
| Of the income tax while the other two were
! those of Charles Pollock the Farmers Loan
| and Trust Company, and Lewis H. Hyde vs.. the
| Continental Trust Company.