New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-04-11
TO FIGHT THE TAX IN COURT
DIRECTORS OF THE ILLINOIS CENTRAL
RAILROAD DEFENDANTS.
sr.IT BROrCur By A MASSACHUSETTS, STOCK
HOLDER To RESTRAIN THE COMPANY FROM
PAYING THE TAN AND TO HAVE 1T

HOLDER To RESTRAIN THE COMPANY FROM
PAYING THE TAN AND TO HAVE 1T
DECLARED UNCONSTITUTIONAL"
Another suit has been begun in the Circuit Court
of the United States. Southern District OF New
York, to test the constitutonallty OF the income
tax 1t is an action brought by Charles Allen of
Greenfield. Mass against the Illinois Cenral Kan
road Company. Mr.. Allen is a stakeholder in the
company and is represented by the firm OF seward
Guthrie. Morawetz & Steele and Joseph H. Choa'e
the counsel who appeared in "A recent ACTON
in behalf of stockholders against trust collpahi'S
of this city 10 test the constituonality OF the In
come Tax law and TO restrain the companies from
paying the tax. one of the chief grounds of the
complaint is that the $500 exemption Is unconst-
tuiional The complaint is somewhat similar 10
that in the actions brought by stockholders of the
trust companies Among other things the com
plainant gives the following as reasons for bring
ing the suit:
That The provisions Of the income tax are uncon-
stitutionaL null and void in that the income tax II
collectible upon it's income and profits is direct
tax in respect OF the railway properly, nNtufeS ana
appurtenances operated and owned by the dcicnd-
ant company by being imposed upon the income
and profits thereof, the same being real estate
and is likewise a direct tax in respect OF It's per-
sonal property by being imposed upon the income
and profts thereof. which direct taxes are not IN
and by said act apportioned among the several
States. required by Section : OF Aruc.e OF
the Constitution OF the United states. mat j
the income tax so Incorporated, be held not 10 DC
a direct tax then its provisions arc nevertheless
unconstitutional null and void in tina, they ar"
not uniform throughout the United states. az re-
ouircd in and by Section of Article OF the 'oH-
stitution OF the United States.
The complainant further AYERS that tho said in
come tax is not uniform To property. class OF
subject. in that corporations organized under the
1.pic nd
of any kind and all the exemptions granted and
allowed 10 individuals similarly situated. and that
the income tax is not uniform in that the Complain
ant has an annual income. and. as NJ IS ihiofh'''
and verify believes numerous holders 81 sai1 shdfcs
of stock in the defendant company and other cor
porations have annual incomes, Of less than N'"'
including the interest and dividends received upon
shares.
The complainant further AYERS that in accordance
with the corporate powers granted TO H. IN" d"irh-
dant company holds large number OF ea-eS "l
her lines of railroad forming branches "i OF con
nections with its own road, and which lines arc
operated by said COMPANY ny ne ,rS ~ WIN
company shall pay all taxes imposed upon lu'
anies claim that the defendant company is. there-
fore under obligation TO pay tho income taN q, T.,
So paid by it. The defendant company thre% 81.
and is about 10 voluntarily pay IN hH~ii an ~
rentals and thus 70 misapply and wasic j.. iu''-.
although the said act of t"nrIt1a IuIl ~.
tional and void both because tho stmc arc US
Of rDal estat. ana the tax * not imposed ~''"'H :
~ Inc constitutional rule Of app1ruountul ana
also for the other reasons set forth In M bili.
Tho complainant further AYERS that TIC N"lhh'.t Y
compliance with The provisions o. s@lh income '.N
viii expose the defendant company 70 mnitpc.,|
If suits bv and on behalf Of IT'S nun'rou. Sifr',
holders and that such numerous sums VII ""l ;.
bic injury to the business Of thc company
and involve il in great and irre2arahlc dainstc.
any IT, ZINES mentioned In tho complaint as do
= i,,,s arc those of the directors of the Illinois
central Railroad COMPANY VINO 1r' S,ry {.-' ~
ard
r TN fac"h Aetor Jorn ". Auchincloss stephen
1V9''IR Cruger Walther Luttgcn John = AItge.l.
BENJAMIN + Aver. John G. yelling J'hh w N'""'
and Charles NJ Beach.