The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-05-21
THE FINAL ACTION
Income Tax Law Declared to Be Un-
constitutional and Is Killed.
ALL THE JUDGES PRESENT
Chief Justice Fuller Gives Lengthy
Opinion-knocked Out In Toto
-Taxeo Will Be Refunded
Wilson Expected it.

washington, May 20.-The Income
tax law which has received so large a
share of the public attention since the
beginning OF the FIRST regular session
Of the Fifty-third congress. IL q thing
OF the past After being twice heard
in the United States supreme court It
was finally decided to-day, being in
valid and unconstitutional. There were
four dissenting opinions delivered.
There Is very little question that Jus
tice Shiras Is the justice who changed
his views on these points. While the
opinion or the chief justice was largely
a review of the general aspects of the
questions involved. he based the opin-
ion of the court to-day upon the argu-
ment that the provisions of the law re-
garding tax on rents and bonds were
so essentially factor of IL as to rem
der all other parts OF It dependent on
them, and In accordance with a we'll
known rule OF law bearing on this ques-
ton. the law as whole must be de-
clared invalid. The opinions of Jus
tees Harlan and White were concluded
in language so vigorous and were SO
emphatic in their arraignment of the
majority as to cause very general COM
ment Justice Harlan suggested the
necessity for amending the constitu-
ton in view of the opinion.
There was an unusual throng about
the supreme court room for informa-
ton of the final disposition of the in
come tax cases. The justices were at
the capitol early and the consultation
began at IL promptly. continuing until
a few minutes before IL.
All the members of the court were
present. including Justice Jackson.
whose presence caused a great deal of
speculation and was the basis for a
deal OF gossip as to the possibility OF
some sort of surprise for the public.
The Justices against the law were
Chief Justice Fuller Justices Gray.
Field. Brewer and Shiras; for the law.
Justices Harlan. White. Brown and
Jackson.
Immediately upon the convening of
the supreme court Chief Justice Fuller
to-day read the income tax opinion.
The fact that he read IL was generally
accepted as conclusive that the law
would be knocked out in toto. which
proved to be the case.
The conclusions of the court were as
follows:
First-we adhere to the opinion al
ready announced that taxes on real es-
tate being indisputably a direct tax,
taxes on rents or incomes from real es-
tate are equally direct taxes.
Second We are OF the opinion that
taxes on personal property or on the
income of personal property are like
wise direct taxes.
Third-The tax imposed by sections
27 TO 81, inclusive. OF the act of 1894.
so far as II falls upon the income OF
real estate and on personal property,
being a direct tax within the meaning
OF the constitution. and, therefore, un-
and void, because not
according to representa-
ton. all these sections constituting the
entire scheme OF taxation are necessar-
lily invalid. The DEGREES below will be
reversed. and the cases remanded with
instructions to grant the relief prayed.
Sections q TO 81 OF the tariff act OF
1894, referred to In the conclusions OF
the court in the opinions. are sections
of the act relating to the income tax.
so that the entire income tax is de-
ciared void specifically.
At the outset of his opinion Chief
Justice Fuller said:
Whenever this court is required to
pass upon the validity Of an act of
as tested by fundamental law
enacted by the people. the duty i'm
posed demands in its discharge the
deliberation and care, and in
vokes the deepest sense of responsible
lty. and this is especially so when the
question involves the exercise OF great
power. and brings into
as vitality affected by the
decision that complex system of gov
ernment SO sagaciously framed to Sc
cure and perpetuate an indestructible
union composed of indestructible
states. We have. therefore, an anxious
desire to omit nothing that might In
any degree tend TO elucidate the ques-
tons submitted. and aided by the fur
ther able arguments embodying the
fruits OF elaborate research. carefully
these cases with the re-
suit that, while our former concIus-
ions remain unchanged. their scope
their logical consequences.
"Our previous decision was confined
TO the consideration OF the validity of
md on the income from mum
ClDhI DOuuE. An@ QaCctlOns lnuH
limited, was whether such tax
alton was direct or not. in
he meaning OF the constitution. and
the court went no further as TO the tax
IN incomes than TO hold IL fell within
he same class as the source whence
he income was derived: that Is. that
/ tax upon realty and a tax upon re-
,eipts therefrom were alike direct.
while as 20 the income from municipal
ponds. that could not be taxed. because
1f the want OF power to tax the source,
md no reference was made to the ma
.ure OF the tax as being direct or in
iirect- We are now permitted to broad
m the field of inquiry and determine
70 which OF the two great classes the
AK upon a persons income. whether
derived from rents or products. or oths
srwise. OF real estate or from bonds.
stocks or other forms OF personal prop
srty. belongs; and we are unable 10
conclude that enforced substraction
rom the Weld OF the oWnera OF real es-