New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-05-07
PRICE THREE CENTS
INCOME TAX UP AGAIN.
THE ARGUMENTS IN THE REHEARIN0
BEGUN BY MR. GUTHRIE.

MAKING A FULL COURT To PASS trcN ih6
LAw-AssrsrANT ATTORNEY GENERAL
WHITNEY TIE FIRST SPEAKER
ON THE GOVERNMENT sIDE
Washington, May 6.-The reargument Of the
income tax cases began in the Supreme Court OF
the United States to-day in the presence Of an
assemblage that, in the occasion Of the origt-
nal argument. more than exhausted the ac-
commodatons Of the small chamber in which IL
was heard. For the first time since last Novem-
ber there full complement Of justices on
the bench, and all nine Of the large leather-cov-
cred armchairs behind the desk that separated
the court from the spectators were occupied.
Justice Jackson, the youngest member Of the
court save one, was at the extreme right OF the
Chief Justice. and'was naturally the observed OF
all observers. He took active interest in the
proceedings. and there apparently nothing
to warrant the expectation that he might not Be-
able to undergo the fatigue of the hearing.
Among those present In the courtroom were
Joseph II. Choate ex-Secretary 3. II. Bristow.
Clarence A. Seward. William d. Guthrie, David
Wilcox j. NJ. Wilson. Samuel Shellabarger. At
torney- General Olney and his assistants Messrs.
Whitney, Dickinson and Conrad; Representative
McMlllin, the author of the Income Tax law;
Senator Mitchell, Of Oregon: John A. Kasson. Of
way home from a visit TO New-York; ex-Post-
master-General Don NJ. Dickinson. Richard Wat
son Glider, and many ladies who have from the
first manifested unusual interest In the case.
The beginning Of the argument was preceded
by the announcement Of opinions in several
cases. none Of them. with possibly single ex-
ception OF general interest or importance. This
occupied forty minutes that 1t was well on
toward o'clock when Mr.. Guthrie opened the
argument for the petitioners Messrs Hyde ana
Pollock who seek TO enton the directors OK
the Farmers Loan and Trust and the Continental
Trust Companies OF New-York from paying the
tax on the dividends declared on the stock Of
these corporations. and In so doing attack the
constitutonallty OF the law. The chief justice
said:
In these cases appellants made application for
a rehearing 20 those propositions upon wh'cn
the court was equally divided. wnereupon me
Attorney General presented a suggestion that u
any rehearng were granted II should embrace
the whole case. Treating this suggestion as
amounting In Itself 20 application for a re.
hearing and not desiring 10 restrict the scope OF
the argument we set down both applications TO
be heard to-day before eul bench. which the
anticipated presence Of our brother Jackson,
happly realized. enabled us 10 do. No further
argument will be desired. We were Obliged, now
ever, 20 limit the number OF counse. 10 two on
each side. but as 10 the time we await the sug-
Attorney General Olney yielded to Mr.. Choats.
who said he believed five hours would be SUI
Hcient FOR their side.
The Chief Justice announced that the Coure
would grant so much. counsel for the Govern
ment Of course TO occupy the same amount Of
time II they desired.
J. NJ Wilson, OF counsel for John q. Moore
who sued in the courts OF the District Of Column
bia for an injunction restraining Internal
Revenue Commissioner Miller from executing the
laws asked and obtained permission TO file IN
additional brief in that case. which has not yet
been decided by the Supreme Court Of the United
States.
MR.. GUTHRIE OPENS THE ARGUMENT.
In submitting the petition for a rehearins.
Mr. Guthrie said appellants invited the
criticism Of many opponents OF the income
tax. who saw in the opinion a decision
In favor in part at least OF those who
denied the legality OF the act Counsel felt that
great constitutional controversy ought not to be
permitted to transform Itself into test OF
shrewdness. 1t their duty TO bring about as
speedily as possible final end TO all these contro-
verses that must ensue II the decision continues
10 stand as that OF a divided court. There was
doubt not much TO whether Congress had
power to tax but as TO its method OF taxation.
The decision In this case should settle finally ana
forever the greatest constitutional question ever
brought before the Court and counsel took 1t upon
themselves to see that the decision should not be
undetermined He invited the most rigid inves;iga-
ton, the closest scrutiny the fullest reasoning
and the most copious extracts from precedens
and citations.
The rule Of precedents. he said and stare deciss
presupposed original mistake and closed the door
nd ruth he
come into existence as the novel and original cre-
alton OF the convention at Philadelphia. Ii
the product and result Of the experience OF ages.
The trainers were not reckless experimenters but
practical publcists. They preferred. far as cir
cumstances permitted, TO walk in the old paths. 70
follow methods which experience had tested. Yet
1t seemed TO be now contended that the provisions
as 10 direct taxes were inserted blindly In the
dark without any definite notion Of their import,
as an experiment. a mere compromise In name,
equally to satisfy and to deceive. The effort To-
day was to have this Court hold that the men-
bers OF that Observation-Disclosures Franklin,
Hamilton and Morris-did understand the
terms they used, and deliberately hazarded the
destinIes Of the Nation in comforting the power oe
taxation the most essential attribute OF sover-
eighty. without which they realized the new ma
ton could not exist. II that were true. the Con-
stituton ought to have been regarded as a curse
instead Of a blessing A written Constitution -
conceived should perish.
RESTRICTING THE POWER OF TAXATION.
In granting to the Federal Congress the power
to lay taxes for the common defence and general
welfare Of the United States. the trainers OF the
Constitution Mr.. Guthrie contended. deemed II
essential to impose limitations and restrtctichs
upon the method OF the exercise OF that power
They had suffered for generations from the cper-
ations Of unequal tax laws and had fought the
great struggle Of the Revolution To maintain the
principle that taxation should be according 10
representation. Their work was TO forge guar.
antees for themselves and for posterity which