The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1895-04-12

real or personal, Was u Olrect TAX. out III usGht
lie That the constitution had different
meaning. and that IL was TO he mp
piled 10 this case In that view IL became
necessary 10 inquire what were direct
taxes at the time the constitution was adopted.
The tfty-three members OF the constitutional
convention were men OF great sagacity
alive TO the duties and responsibilities OF their
trust They had before them the example OF
Great Britain ana the constitutions Of the
several states which they had, In many cases.
helped TO frame Many OF them were well
versed in the literature OF the times.
pecially on the subject OF political economy
The chief justice then made extensive quo
tations from the history OF the debates in the
convention on the subject OF taxation The
inference from them he said was that the gen.
eral distinction between direct and Indirect
taxation was well understood by the members
of the convention and that the expectation
was that direct tax would be the last resort
of congress.
What the constitution intended 10 prevent"
said the chief justice. was that no tax should
be laid on the residents OF any state by the
representatives OF other states" The exercise
of the power TO levy direct taxes was TO be re-
stricted TO extraordinary occasions.
In conclusion, therefore, upon this point, the
chief justice announced that the court were OF
the opinion that that part OF the law imposing
taxes upon rents obtained from real estate
was invalid
State and Municipal Bonds Exempt
Next in order the opinion considered the third
objection 10 the law That IL imposed tax
upon the incomes derived from investments in
STATE and municipal bonds, and was therefore
invalid
Chief Justice Fuller reasserted the general
principle that the tax on government bonds
held to be a tax on contracts and
prejudicial To the public interest 1t was
therefore obvious that such tax on the power
1t H..
was prejudical TO public policy and therefore
unconstitutional
Held and White Read Opinions.
Justices Field and White read indie
pendent opinions, the former holding
the law wholly invalid.
should Be Declared Null and Void.
Justice Field devoted some time TO review
of the provisions regarding rents, and de-
nounced the principle sought to be established
by the income tax law. Many OF his conclusions
in conformity with those expressed
by the chief justice He also attacked the law
on account of its lack of uniformity, and dwelt
upon it's exemptions and the many discrimna-
lions found therein In conclusion Justice
Field announced his opinion that the whole
law OF 1894 should be declared TO be null and
void
Thinks the Law All Right.
Justice White prefaced his dissenting opin-
ion with the statement that the custom OF rem
dering long dissents In court OF last resort
was more honOred in the breach than in
the observance Their only effect to
weaken the efficiency OF the opinion of the
court. Justice White said he should not speak
but for the fact that the court had overruled
and set aside established precedents
and the settled and uniform doc
trine OF the supreme court down TO the present
time He regretted that at this late day this
court should thus overthrow and nullify an
act of congress, supported and affirmed 10y
all text writer's and by every decision
of the supreme court of the United States.
Effect of the Decision.
WASHINGTON, April 9-The effect of
the supreme court decision on the in
come tax law SO far rs the treasury de-
partment officials can determine
afte- IA hurried estimate made Mon
day afternoon will be "A reduc-
ton of about one-half in the revenue
originally estimated a. obtainable
from that source. thus making the an
nual revenue To be expected about
SIS, 00O, 600. The original estimate of
$4,000, 600 per year WAS based on
the assumption that the law would be
held to be constitutional in all It's pro-
visions
VIII Accept the Decision.
Attorney General Oney said the
government would not ask for re-
hearing, but would accept the de-
cision as rendered. He was not sur
prised at that portion OF il excepting
municipal and state bonds from taxa
ton. but expressed the hope that the
question of rents might be brought
before the court in some other shape.
when he entertained the strong belief
that the present attitude of the court
would be revised.
further Attack on Income Tax.
WAsHINGTON, April l0.-Attacks will
be made both on those portions that
were sustained by tie vote and on
some fresh points, not passed upon in
the particular cases decided Monday.
Attorney j. VI. Wilson. who repre-
scented John &. Moore in the court of
appeals in the recent cases, said Tues
day morning that further proceedings
will be taken Immediately.