New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-09
THE INCOME TAX SUITS.
ARGUMENTS CONTINUED BEFORE THE
SUPREME COURT.

SUPREME COURT.
GREAT INTEREST TAKEN IN THE PROCEEDINGS
W p GUTHRIE AID CLARENCE A. SEWARD
DENY TIE CoNsTfTt TIoNALrTY Of THE
Law ASSISTANT ATTORNEY GEN
ERAL WHITNEY orENs FOR
TIE GOVERNMENT
weshinr,on March s-The argument IN the In
come Tax cases was continued in the supreme
rour. ~ the United states to-day in the presence
Of an audience which moro than eXhaus'eh inc ~
con,modations provided. and Included 'afge nun"
her OF attorneys and members Of Congress 'h'''-
es,ed I'm the outcome of tho case Among 'h'W
uere Senator Morrill, 81 Vermont. aud senator
sou,ro 81 Washington. Representatives M'Mi"'h'
- Tennessee tho author - the law. paz"iL ~
PENNSYLVANIA. cannon. - Illinois; cooper OF VS.
consin. Crav ford. - North Carolina. Nh"'''i ~
Alabama. Woodland. Of North carolina. nun ~
~, oht,. Ok VeprescntatIyes COMBS ~ N"H or"'
Hrooksnr Of Indiana; Payson. ~ INnof' h'H''
% Nev-liampsh,re. Rutt"rworth. OF OHIO. HnI''n
-, K,nsas. English Of california. and Springer. ~
Illinois IY- Secretary boutwell, also listened. TO-
e4,bor with a liberal sprinkl.ng - nno'ri" a'i''
nos and the whole l,si 81 counsel IN th" case
" T. Guthrie concluded his opening 'rs 'm"ni 10
opposition 20 the law. and was followed Pos clarence
\ seward upon the same SID" tn" n"N' speaker
vas Assistan. Attornc, General Whiin"'. who hal
mo-, concluded lis argument When the court al
ourn"d until MONDAY
MIR Guthrie had reached Yesterday thaf i'f' or
bis address relating To- the orcc' - N" Nth Anon e.
men, f. ne Constitution and he said 'ha' b" might
we'll refrain from pressing h's argument "n ma
,oiuf I'm ew ~ the adm. sslon of 20" Attorney
General In ne brief that "a" Nth Amen !m"u' does
require uniformity in the imposition - taxes
DO Won thnk tho requirement st..l In fore" sine"
the adoption OF the NiNth Am"nim"nt"' asked
Justice cray
We do" replied Guthrie. ~ l. modified by 'h"
NTVth amendment. but the making % voters - ,he
negro race adds their number to the total among
whom the tax must he divided
Recurring 20 the question o. illegal exceptions
made by the law. Mr.. Guthrie said that the ire
,nendous figures which he quoted Yesterday w'r"
contained in the census reports and ""r" there
fore official The reports % the State Of New YORK
showed that the mutual insurance associations IN
that state alone possessed accumulatons amounting
10 over 500 % 90 all Of which was exempt unhrr
the law Justice Brown had asked yesterday II
Congress did have tn" power 30 exempt IN"
n,oner-y Of religious charitable and ducational In
.,itu,ions and Mr. Guthre had responded that
counsel not pressing that point IN argument
They had no objection 20 urge to such exceptions
Discussing this point further to-day. he said mat
they seriously doubted the power Of congress 10
esemp, these institutions. In the decade from lS''
10 1870 Congress had steadily refused 10 make an
exception in favor Of them.
MIR Guthrie asserted that Congress could not '"-
lcct one class ~ corporations In the states Tor TAX
alton and exempt others from the same tax N"''h'r
couid i, tax in the view OF himself and associate
counsel the naked franchise. the right To 90 bus'-
ness which the States grant their citizens.
In concluding Mr.. Guthrie said tina, there was
no plea here to limit restrict tho taxing power
Of Congress we recognize he said. 'that II
must exercised without restraint except c"nstl-
tu,onal limitations. Let Congress amend this act
no
.a,Iazing their application and Will more Will
inglv contribute TO the National welfar" than our
clients even u 1t takes all of their property.
The next speaker WAS Clarence a. Seward VINO
also antagonzcd the consti'utionality of tho ia"
Quoting the provisions OF the Constitution relating
10 tho IMPOSITION of taxes Mr. Seward said u was
row about to be ludicially determined whether the
words In the Constitution. direct tax and direct
taxes" within the intent Of that instrument ana
Of those who made II the fundamental law or IN"
land. meant land tax only or other taxes. and II
other taxes what ones? Direct taxes" he as
serted had universally been construed to be a
tax only lands but on incomes as well.
within any Interpretation Of the Constitution In
support Of this contention he cited judicial deci-
sions in Europe and America; photographers agree
In thus defining the term. and the Information
gathered by the State Department shows that an
income tax is described in the laws Of the coun-
tries imposing 1t a direct tax.
Whence is the origin" asked Mr. Seward. "of
ton he said that It due TO incorrect use
OF Alexander Hamilton's remark TO the charac-
ter Of taxation. He said that 1T presumed
that certain taxes were direct taxes he did not
give to that presumption his approval but IT was
always quoted as Hamilton says or Hamilton
thinks" The suggestion or presumption was twice
rejected by the court to which II was first made
And yet. said Mr.. Seward. the decision OF me
court In the Springer rested wholly upon that
presumption OF Hamilton. There IL tradition
the .Ts protssson saS he INA, G ,ps, when
dciaI decision settled question. he responded
with some hrmness that in this country nothing
was settled until II was settled right. Upon That
modification Of the decision In the Springer case
Mr. Seward then devoted himself to consldera-
ton OF the constitutional provisions and the nteh.
tax were understood to mean what they meant
in England. whence they came to this country
taxes upon land or incomes. bearing directly
upon the person: The words Income tax" do not
occur in the debates Of the philadelphia conven.
ton. Therefore the only light that could be
thrown upon the meaning OF the words Dire,
customs OF the people at that time. And TINS
meaning was the same that obtained In England.
whence the words found their way to this country.
This portion OF the argument was most ex,
features The history OF income taxes assessed by
the several States was given by Mr. Seward; ana
he said they were known and described as direct
taxes.
Mr.. Seward closed at 2.50, and the other side OF
enta,ion by l.. D. Whitney. Assistant Attorneyo
cases coming from New-York and that arising
in the District OF Columbia, and said that one
OF the New-York cases-Pollock agt. the Farmers
Loan and Trust Company-mght present a uess,1ns
az ds s. IS% s. sS made the point
Nav York municipal bonds not subject 10