The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-04-07
INCOME TAX VOID.
So Far as 1t Levies Tribute on
Rents and Bonds.
THE SUPREME COURT DIVIDED.
Uncertain just What the Decision VIII
Belt VIII Probably Reduce the
Prospective Revenue.

Chicago, April s-A special to the Trf-
bune from Washington City says the
United States supreme court in the In
come tax case, has reversed the decision
of the lower court, but the income tax
Law as whole Is upheld by divided
court Under the decision. II is said. all
incomes derived from rents are exempted
from taxation by the Federal government
and all incomes derived from state or mu-
nicipai bonds are similarly exempted In
other respects the income tax law stands
as II was last August, but the result OF
the consultation In the supreme court
shows very concIusiyely that the law can
easily be picked TO pieces provided suits
are brought TO contest each particular
point as IL comes UP. The court was even
iy divided. Justice jackson was too i'll TO
take part Chief Justice Fuller and Jus
tees Field, Gray and Brewer were OPP
posed 10 the law, and Justices Harlan.
Brown, Shiras and White voted 10 sus-
tain the law. There Is an expression
among the members of the court that a
decision will be rendered Monday In open
court, but there is bare possibility that
the court may again split Up into irrecon-
cilable sections and hold up the decision.
Washington City, April e-The attention
OF members Of the cabinet was called to-
day 30 dispatch from Chicago regarding
the Tribune's publication OF the supreme
court decision on the income tax. but they
declined to express an opinion thereon,
on the ground that it would be manifestly
improper 10 discuss any opinion OF the
court, at least until IL had been officially
promulgated from another but entirely
authentic source.
IL is learned that. whatever the decision
of the court may be, the president Will not
call an extra session OF congress, and.
even should the decision declare the law
wholly unconstitutional. the president will
adhere 10 his determination not 10 call
congress together and will SO announce in
public.
All efforts 10 secure from members of
the supreme court either authoritative
confirmation or denial OF the Chicago Tri-
bunes publication prove unavailfng. Sem
ator Voorhees,. chairman of the finance
committee when told of the publication
today, said: 1T may be that portion Of
the law may not be sustained. l consider
there is possibility of such a result, but
I do not know a thing. ! do not believe
any one outside of the court knows a
thing about IL. But, suppose IL should be
true that the portion of the law regarding
rents and municipal bonds should prove
TO be, in the opinion OF the court, uncon-
stitutionaI, the law viii not be materially
impaired. 1t will still afford immense
revenue. The estimates made are entirely
too low on the revenue which would be
derived from the law as whole. In
stead OF its raising from s15.0oa.oo0 to 800
100000 II will add $50. 600 600. SIS. 90. ooo or
even si0o. 900 600 to the revenue"
Senator Harris, of the finance commit
tee, declined 10 discuss the question, as
did Senator Jones of Arkansas.
Senator PETER expressed the opinion
that II incomes from rents and bonds
should be eliminated the efficiency of the
law would be materially crippled. 'Leav-
ing out of consideration the question Of
the tax on bonds" he said, trent Is the
most important one. when we consider
that one-third of the farmers In the coun-
try are renters; that SO per cent. of the