The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1895-05-08
Joe Choate Replies to the
Attorney Generals Ar
gument On the In
come TaM
MAINTAINS THE POSITIOEIS%UNSOUND
All Taxes on Personal Property
Should Be Direct, He Claims
History Of the Tax.

Immediately upon the assembling Of the
Supreme Court of the United States at
noon today, the chamber being filled with
spectators drawn there by the announce
ment that he was to speak. MIR. Jos. II.
Choate resumed the closing argument in
the Income Tax cases. Among those who
were present for the time was Mr.. Otto
Gresham, son of the Secretary of State
prominent railroad attorney of Chicago
There remained to Mr.. Choate about
two hours of the five allotted for the
presentation of his side of the case, and
he entered upon his task in excellent
form for the work He had just begun
when the Court rose yesterday to speak
of the claim by himself and associates
as to what had been decided by tho
Court in it's judgment of April 8, upon
the subject of the tax on rents.
Prior to ther eSumption OF proceedings
Mr.. Samuel Sheelbarger, counse! for Jonn
G.. Moore in his suit for an Injunction
against Internal Revenue Commissioner
to make brief oral argument at the
close, of Mr.. ,Choate's remarks. to Pc
forInity but the Chief Justice stated that
it would be impossibel to grant the appI-
's''fols Mr. R. CHoATE;s FIRST sNAG.
Mr., Choate, in opening. said that ne
would not proceed on the line laid down
yesterday, but devote himself to the con-
terday by the Attorney General in his
address. He wanted to know. said MT
for rentals lasted. Was it one year, or
five, or ten? Did it follow the money
after its Investment e a + IN neT be Iors rnsipfs IS
from rents at the time they come into
the possession of the owner. and Mr,
Choate said he would not be SO foolish s
as to claim that rent money after the
year it was received could not Pc maze
mi fnH
"a suggestion made by the Assistant
Acknowledgement. Mr.; Whitney Mr.;
Ghoate said, was worth nouGe, ,Io, ~ y 1eaS Ma5
received the year before. In answer TO
that the speaker said It was wei SET
iy could not be done indirectly. The
issue could not e evaded by showing. tn
time bach back tba year fbs dnd ma nNne gf i it's
ceipt. e,r,,,,rr u,r,
Another suggestion or, argument mage
rect s 'it tax cannot be assessed by appor-
tionment without resulting in equality:
Well said MI Gh4ste. Pate as ths ftv eoues 9v
agreed upon as a part OF the compact
on which the Constitution rests
thaf this Construction of the Constitu-
ton, if maintained. would seriously m
pair the resources and power OF the Gov
C0VERNMFlNTsS SPOSTTION UNSOUND
..E,;g,ras OF viii not lie. it has been said, "
remarked Mr.. Choate, but 1t was equal-
ly well known that they would convey
entirely different meanings according as
they might be handled" Upon that
point, said Mr.. Choate, "their brief
filed in the case presented some state
ments and figures which demonstrates
the unsoundness of the Attorney-Gener-
ais claim. The rights of citizens thaI
document stated cannot be affected by
exaggeration of the Importance to the
government of the questions now in
yolved.' The only previous income tax
known in the country's history arose
from the necessities of the Civil War
UP to the close of 1866 it is compted that
the government had expended for war
purposes more than $4,000, 100000, yet
only $126, ,S45 came from this income
tax
INCOME TIA XOF LITTLE VALUE.
This shows how Insignificant part
that tax played in supplying the coun-
try's requirements at the time of it's
greatest necessity What saved the
country was its high financial credit and
the patriotic attachment of its citizens
to the system of government guaranteed
by is Constitution. Those resources, 1t
is earnestly submitted, will be most
surely preserved by faithful admlnlstra-
ton of it's fundamental law; not by eff
forts to fritter away the bulWarks or
private rights and private property
which were established thereby as condl-
tions of the country's existence.
And finally the Attorney General de-
elared that the real estate owners and
bondholders were shirking the payment
of their just proportion of the expendf-
lures of the government, which, if this
law were made effective, they would
be compelled to pay.
Mr.. Choate said he did not appear
here as advocate for, these classes, but
he deemed it to be his duty to say that !,
the assertion was unfounded. In th@
time of stress and war;. when young men
gave of their blood and yielded up their
Ewes in defence of their country, the
and generously of their substance to sus-
tain the Government, and provide the
means whereby the conflict was carried
forward to a successful issue.
Mr. Choate then addressed himself d.
rectly to the discussion of the matters
left in dispute by the decision of the
court in the light of the declarations in
that decision. The first related to the
tax. on personal property, and his cons
tention was that the corpus of personal
property was entitled to the same pro-
lection as real estate, and that a tax
ON the income derived therefrom was a
direct tax as much as tax on rents.
the frank avowal of the Attorney.Gen-
eral that it was logically so. Mr.. Choate
then went into the history of the ques-
ton, and quoted from the decision OF
tention, that personal property. was sub
iect only to direct tax levied and cola
fected by the rule of apportionment
Justice Harlan asked If counsel assert
ed that of all personal property?
Mr. Choate responded that 1t did not
apply to all personal property.
ri the close of Mr.. Choate's address
the court adjourned until the goth.
HUGH j. GRANTS HONEYMOON.