The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-13
Attorney -GcneraI OIney's Argument
Before the Supreme Court in He
half of the Government.
EXEMPTION AND UNIFORMITY
ALSO QUESTIONS DISCUSSED BY
LAWYERS FOR 10TH SIDES.
Mr.. Carriers Speech for Trust Conn
pany. and Mr.. Choate in the Role
of the Soothing Mercury.

WASHINGTON, March 1.-THE proceed
ings in the income tax cases in the SUI
preme Court to-day. opened with the argu-
ment by Encouragement Olney on behalf
Of the government for the validity of the
tax. The court room inside the bar was
crowded when the court came in at noon
and there was no time when the limited
capacity of the room was sufficient TO ac-
commodate the auaience Mr.. Olney began
by saying that the chief interest OF the
government in the present litigation was
limited to the constitutional questions which
the several plaintiffs allege to be involved.
Whether they are really involved he would
not attempt to determine. An examination
of the pfaintiffs' bills and briefs and
arguments seemed to him to show that
many of the alleged objections to the valid
ity of the income tax are simply perfunctory
in character.
There are taken pro forma, by way of
precaution" Mr.. Olney SAID, because Of
the possibility of a point developing in
some unexpected connection, and just as a
good equity pleader, be his knowledge of
his case of the pertinent remedies ever so
thorough, never fails to wind up with the
general prayer for other and further relief
No time need be spent in discussing the
aVeTIuefilS lldL The .slCOtilt ldA ltW 10 Ill III
vason of vested right or takes property
without due process of law. These PROPOSE
tons are pure generalities and If there is
anything in them, it is because they COM
prehend others which are the only real sub
jects of probable discussion. Again, sup
pose 1T to be true that the income tax law
undertakes to ascertain the incomes of citi-
zens by methods which are not only dis
agreeable, but are arrangements of personal
rights. The consequences is not that the law
is void, but that the holly denounced in
quisitorial methods cannot be resorted to.
The like considerations apply to the objec-
ton that the law Is to be pronounced void
because of taxing the agencies ard instru-
mentalities of the governments of the sew
eral States. 1t has not yet been definitely
admitted that the income of State and
municipal securities is not taxable by the
United States when assessed as part of the
total income of the owners under a law
assessing incomes generally and not DIS
o,hnrn ~ i,xe cnaracter snt s,,nnose The
contrary The result IS not that the law is
bad in toto, but that it is bad only as to
THE TWO MAIN POINTS.
IF am right in these Observable Mr..
Olney continued, '.the constitutional con-
tention of the plaintiffs SINNERS down to
two points. One is that am income tax is
q direct tax and must be imposed according
to the rule of apportionment and the other
Constitution with regard to uniformity
He declared that whether an income tax is
what the Constitution describes as 'di-
rect tax is a question that has been COM
pletely concluded by repeated adjudicatiJns
as any question can be. 1t is not direct
tax within the meaning of the Constitution
unless five concurring judgments of this
anotr pont oase by fe G
said no land tax is aimed at or attempted
by the statute; there is no lien on land
m craf nd ftga rtaCIn aud
tenor of the statute show the contemplated
subject of taxation to be personal property
and to be nothing else.
Mr.. Olney devoted considerable time to the
WANING Of the word uniform" as applied
declaring that the word had a territorial
application and no other. The power to tax,
he said. is for practical use and is necessarily
human life. These are never the same
for any two persons and as applied
are infinitely diversified. Regard be-
ing paid to them, nothing is more
by courts and jurists, than that absolute
equality of taxation is impossible-is, as
characterized in an opinion of this court,
only "a baseless dream"
this Union Mr. oiney said, has ever
cept some portions of the community from
a burden that was imposed on others. The
versally exercised Nevertheless, the power 1ssr
to exempt has bounds. 1t cannot be used
without regard to the end in view, nor to
crafty mere whim or caprice. The rules
of uniformity places no restriction on any
division of the community into classes for
taxable purposes which the Legislature may
deem wise. 1t merely declares that the
classes being formed. the members of each
shall be. on the same footing and shall be
taxed alike or be exempted alike without
arbitrary determinations in Individual cases.
Uniformity between members of a class
IT is quite beside the Issue to argue In this
or any other case that Congress has mis-
noint CONGRESS IS the sole and tInal 'n as,l
thority and it's decision once made controls
every other department of the government.
QUESTION OF EXEMPTION.
'"rhe statute makes no exemption in
favor of class that is not based on some
obvious line of public policy-and the class
being established one uniform rule is APP
plicabe to its members. Take for example
the principal classification of all-the grand
division by which the entire population of
the country is separated into people with
incomes of over $1,000 who are taxable. 1t
IS manifest that in this distinction Con-
gress was preceding en- definite views of
Ing a great public object. 1t was seeking
10 adjust the load of taxation to the Shout
ders of the community in ~.e manner that
would make IL most easily borne and most
lightly felt, Take another illustration-that
of business corporations. Their net incomes
are taxed at the standard rate of per
cent, but undiminished by the standard
deduction of 5000. The result may be that
man in business a member of corpor
alton Is taxable at little higher rate than
man in the same business by himself or
as a co-partner Here. it Is claimed, is a
distinction without difference. 1t is COM
mon knowledge that corporations are so sue
cessful an agency for the conduct of bust
ness and the accumulat ton of wealth that a
large section of the community views them
with intense disfavor maliciouSly and
cunningly devised inventions for making
Awarded