The Dalles daily chronicle. [volume] (The Dalles, Or.) 1890-1948, 1895-04-09
Income Tax Decision Ready
at Last.
DELIVERED IN THE SUPREME COURT
Rents and Bonds Exempted From TAX
ation--FieIds White and Harlan
Read Dissenting Opinions.
at Last.

WASHINGTON, April S.-Chief Justice
Fuller began this morning to read the
decision of the supreme court in the in
come tax case. He. began by stating the
exceptions to the law as made by counsel
for the appellant as follows:
First-That the act imposes direct
tax in the respect of real estate, rents,
issues and profits as well as of incomes
and profits of personal property, and
not being apportioned as in violation of
section 2, article 1 of the constitution.
Second-That the law, if not imposing
direct tax, is, nevertheless, unconstitu-
tional, in that its provisions are not uni
form throughout the United States, and
do not operate with the same force and
effect upon the subject of tax, wherever
found, and in that it provides exemp-
tions in favor of individuals and CO.
partnerships, while denying all exemp-
tlons to corporations, having a similar
income derived from like property values,
and provides for other exemptions and
inequalities, in violation of section 8,
article of the constitution.
Third-That the act provides no ex-
emption of tax upon incomes derived
from stocks and bonds of the states of
the United States, and counties and
municipalities therein, which stocks
? and bonds are no proper subject for the
taxing power OF congress. The income
from these securities in the United
States amounts to over $4,000, 900 per
annum, on which the total annual in
come tax would be 81 100000.
He then took up constitutional points
involved, dwelling upon the fact that the
constitution required the apportionment
of direct taxes and uniformity in excuses
and imports. He also dwelt upon the
question of representation and taxation
which was, he said, the foremost one
when the constitution was adopted.
He then took up the question of tax on
rents, and in so doing discussed at a con-
siderable length the question of direct
taxes as considered at the time of the
framing of the constitution. The franz
ers of the constitution were, he said,
well versed in the government of the
colonies, and European countries, and
were well versed in the literature of the
period, including works on political
economy, and well calculated to pass in
telligently on matter of this kind. He
quoted various supreme court decisions
and sought to show that while the In.
come tax question had been before the
court, the question only had been con
sidered as applying to the point at issue
in particular cases.
Coming down to the present tariff act
he said the law was passed in time oi
profound peace, and it was to be taken
as evidence that congress had sought in
this matter to form precedent and es.
tablish departure from the established
lines, and it, therefore, became import.
ant to enquire into the circumstances
with some attention to details, and fol
the purpose OF comparison he went back
to the enacment of the income tax dur.
ing the civil war. He quoted from 9
decision In the Springer case, giving the
history of the case and devoting much
attention to it, as he said the defense hac
apparently relied upon this more gener.
ally than upon any other precedent. L
is, he said, conceded in all cases. from
Hylton to Springer, that taxes on lanG
are direct taxes, but in some of them i
was determined that taxes on rents de
rived from land are direct taxes, while
in some of them it was determined tina
Highest of all IN Leavening Powe