The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-04-09
THE COURTS DECISION
II Renders Part Of the InComs Tax
Invalid.
THE OPINIONS ARE DIVIDED
Altogether the Law Is Considered
CONSTITUTIONAL. But In spots IL
Is Not a Measure to Stand
Severe Legal Test.

WASHINGTON, April ss- Chief Justice
Fuller has begun 10 read the supreme
court decision in the income tax case.
The opinion of Chief Justice Fuller as
read the first hour was historical. The
court at / o'clock had reached this con-
clusion.
The court can find no difference be-
tween a tax on land itself and tax on
rents or income derived from land. The
court, therefore, is of the opinion that the
tax on rents or landed investments is d.
rect taxation, and unconstitutional.
Chief Justice Fuller began by stating
the exception to law as made by counsel
for appellant, as follows:
THAT the tax imposes direct tax in
respect to real estate, rents, issues and
profits, as well as income and profits of
personal property, and not being appor-
toned, is in violation of section 2, article
of the constitution.
2.-That the law, if not imposing a di.
rect tax, is nevertheless unconstitutional,
in that its provisions are not uniform
throughout the United States, and do not
operate with the same force and effect
upon the subject of the tax. wherever
found, or in that it provides exemptions
in favor OF individuals and copartner-
ships, while denying all exemptions to
corporations having a similar income de-
rived from like property values, and pre-
vides for other exemptions and inequal-
tiles IN violation of section 8, article i, of
the constitution. The court next decided
the tax was unconstitutional as far as ii
related TO incomes from state, county, or
municipal bonds. 1t was ruled that the
fact that the law was pronounced uncon-
stitutionai in those two particulars did
not invalidate the law as a whole. 1t was
announced in this latter conclusion the
court was evenly divided. and therefore
rendered no opinion. The lower court
having ruled in favor of the law by a
divided court, the law would stand ex.
cept as to rent. and state, county and
municipal bonds, and on these two points
IL was directed judgment be now re-
versed.
3-The act provides no exemption of q
tax upon incomes derived from stocks of
the states. United States, counties aud
municipalities therein, which stocks and
bonds are not proper subjects for the tax.
ing power of congress. The income from
these securities in the United States
amounts to over s65, 000, 900, 900 per annum
upon which the total annual income tax
would be 81, 300, 100000.
He then took up the constitutions
points involved, dwelling upon the fac
that the constitution required the appor
tionment of direct tax and uniformity o.
excuses and imports. He also dwelt upon
the question of representation and taxa
ton, which was, he said, the foremost on,
when the constitution was adopted. he
then took up the question of tax upoi
rents, and in SO doing discussed ut con
siderable length the question of direc
taxes as considered at the time of the
framing of the constitution.
The trainers of the constitution were
he said, well versed in the government oil
colonies and European countries and wer,
well versed in the literature of the period
including works on political economy
and well calculated to pass intelligent,
upon matters of this kind. He quote,
various supreme court decisions to show
that while the income question had beer
before the court, the question had onl,
beer considered as applying to the point
at issue in the particular cases.
Coming down to the present tariff nc,
he said the law was passed in time o.
profound peace, and 10 was to be taken a.
an evidence that congress had sought il
this matter to form n precedent and cs
tablish departure from establishe,
lines and, therefore, il became importan
to inquire into the circumstances will
some attention to detail and for the pur
pose of comparison he went back to tn
enactment of the income tax during tn
civil war.
He quoted from the decision in tn
Springer case, giving the history of IN
case and devoting much attention to 1t
as he said the defense had APPARENT.