The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-05-09
THE INCOME TAX.
r.sanh Choate's Argument
AGAINST the 0dious Law.
,ec,s,oN EXPECTED MAY 20.
,usrssiee of Exempfing Insurance
companies and OF Taxing stock
Held by small Investors.

~-.h.rr,ou city. May s.-Mr. Choate
go his argument In the income
80 IN me supreme court at p. m.
,se court adjourned until Monday
SIT ,. -. . ~,
-, nrossahIy for the last time this term.
= ~pnder its decision in pending cases.
80 conclusions upon the income tax
-. vii he announced at that time.
=, choate contended that OF the vast
- ,xpenicd in the civil war, a very
81 proportion had been derived from
=. snrpn1e tax, which was in operation
: mai time Taking up the thread OF his
xruztlye argument Ar. Choate de-
S.,sa the question Of taxation mad been
= az the most prominent in the minds
| = sae trainers Of the constitution. The
~vr,eers Of that body were the repregen-
..,tvss OF men who knew all about the
..Ssfson. for they had studied here "a
ssssr ancestors rad in England. under the
y.asagensts. the Stuarts and Tudors.
=, choate then proceeded on the basis
ss.i the court had decided that lands were
: b free from direct taxes. and that
| Acre was TO be no difference for tax pur-
s~ss e,ween the body OF the land and ifs
rssesds. He then entered upon the dis
ssssior OF the undecided questions, CON
rza.ng that there were the same reasons
~ sxsmpting incomes that existed for
| nrupting bonds and real estate.
juslce Harlan asked Mr.. choare II he
~nt By general tax on personal prop
RI a tax on all personal property Of
| xry kind Not ALL" Mr.. Ch0ate re-
81 because / admit the right OF ex-
ntton."
lsslsce Harian-"Does tax law that
ssches only a part OF the personal prop
M come under that headY
Mr. Choate-'In New York there Is
! sa body OF citizens exempt-inmates of
ynsment houses-nearly one-half OF the
equation. yet I call that "A general as
xssment, not excepting the exemption.
kh tax that cannot ne shifted and a
az that cannot be avoided. But the
ssesiion whether tax on real estate can
| b shifted. ! viii leave to political econ
snsss with whom | have no relation. and
hope never 10 have relation"
| NJ Choate looked at the attorney gem
sal when he spoke of political economists.
snd there was laughter. "A rare demon
grafton In the supreme court.
Justice Harlan asked II he counsel
sould call tax on the income OF tonds
4 direct tax that would have TO he ap-
/ portioned. and upon receiving an ailrma-
I've answer. asked II the same were true
u tax on banking.
Mr. Choate answered: This IL bus
hsss and this court has over and over
again decided that congress can tax bus
hens"
Ii discussing the principle OF stare de-
eiss which he defined az the rule OF
nssfng by a former decision whether
rSss or wrong. he said he was con-
gained to believe that two OF the JUS
tkss had only consented to he former de-
aions in Difference TO that principle.
Your honors are sworn TO obey the
mlstltution as "A primal law. Every act
scongrees stands I'm tho light OF IL or
at fall Must not every decision Of this
mrt that r. found 10 he I'm conflict with
10 constitution by the light Of the latest
sstience and the most complete informa-
ton also fair
Then Mr.. Choate continued: Regard
ms the statement that former income
taxes will have 70 be paid back II the
court reverses the Springer rule, | sub
nj that with such consequences az that
yoBr honors have nothing 10 do. That is
set an argument addressed TO a question
Of law or constitutionaiity a moral argu-
gent the attorney general calls IT,
call Il an immoral one. The idea OF the
attorney general standing up here for the
ration and asking that because the gov
srument has collected much money IL
legally IN the past II must go on collecting
money Illegally"
Mr. Choate next considered the excep-
tons made IN the income tax law. and In
doing so made special reference TO the
mutual insurance companies az going 70
show the magnitude Of the opera tons of
those companles. lie could. he said. men
tan one such company whose accumulated
property amounted 20 s2oi, ooo. coo An ex-
emption such as this was beyond the
bounds 81 reason.
no YOU know" he exclaimed. what
thls .oncern is that Is given the vast adj
vantage implied In this exemption II
foes under the reputable name OF a
moneyed CORPORA ton. II VS. a moncyed
monster. II lives upon money. II swal-
icws money: 4 digests money; II breeds
money. n lays golden eggs by the bucket
OIL every day and then weaves golden
eoiss about them 10 warm and WITTY
hen. II has as many arms as there are
states IN the Union. and which II Is con-
sanity putting out IN all directions for
ne purpose Of rakng IN money. Nor are
r. operations confined 10 the bounds OF
rs country atone II extends 70 other
sssons-aiways rsking In money"
having obtained 50 much money. he
M. the company rcinveSted ~ by form
* trust companies. organizing banks,
Nleing and reoreauizing railroads and
b, Il controlled congress and directed
Visitation. as Rad been confessed by the
s'ornsy general.
Referring 20 the exceptions or Incomes or
less than st0.o he said that provision Of
re law would exclude the vast majority
ne incomes ~ the whole country. II
vcaM exempt q per cent. Of the trades
Nsn ~ tho country. and 2 majority OF the
Professional men II was an arbitrary
Nas aimed n corpora lions. In hitting
Which me trainers - the law well knew
Aty were striking a. the main source or
'acagne ~ thousands 81 widows and or
pans whose incomes Individually small
ssre derived fron' corporate Investments.
NitA this Mr Cho8te closed the part Of
~ discourse directed 20 the question OF
hck - uniformity. and took up The last
PRESTON under consideration. via;
Whether 'he entire Law was rendered IN
fAha by ~ decision declaring part OF x
b. 81
Does - follow ~ asks~i. that be-
@use ne law has heen left mutiiated II
seotsd ~ iesj buried 80 And no answered
@st = 3lf To-, Instrument hal been leet
70 hong un'nterrs4 II its present crnd'-
Nah Il shcckS ne seuslonittes. lie said
ne rule v1s that when pRmS ~ = law
spoa which Other carts. or tho whole ~ Il.
stre dependent are declared invalid the
seGeDden' pats must also share the same
tsis. snt Ne ,y,rfenaei that ny tho foFme-
see-ston ~ .ho court. me income TAX law
lad heea robbed - is body and substance.
FROM Al A>KA'> >oiIfJ DIES.