The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-04-09

WA'HISOroS, b. c., April S.-Thc
Observation-Disclosures OF tho United
States supreme court in the income tax
was rendered to-day by Chief Justice
Fuller. Tho court knocked OH. tho law
so Tar as It taxed income derived IRON
rents and also from state, couuty and
municipal bonds. by a tic vote Of the
court the law va, sustained in other
respects. The courts opinion, after re.
viewing the historical phases OF tho
question, was az follows:
lin Charles Pollock r,. tho Farmers
Loan and Irus, Company, ct. all 1t Is
established:
!. That by the constitution federal
taxation 10 divided into two great
cIasse.: Direct taxos aud duties, i'm.
posts and e~xci,ci.
:. Tho imposition OF special taxe, Is
governed by rule OF apportionment.
among tho several states. according to
numbers, and the imposition OF duties,
impos;s aud excuses by the rulo OF uni.
iorinltY throughout the United States.
). That tho principle that taxation
aud representation 20 together was iu-
tended 10 DO and vas preserved in the
constitution BY the establishment OF the
rule OF apportionment among the sew
crll states 80 that such apportiorment
should be according 10 numberiin each
state.
1. That the states surrendered their
power to levy imposts aud TO regulate
commerce to the general government,
and gave it the concurrent power TO
levy direct taxes in reliance on the pro.
lection afforded by the rules prescribed,
and that the compromises OF the consti-
tuition cannot be disturbed by legisla.
tive action. y
.. Tha. these conclusions result from
the text OF the constitution aud are sup.
ported BY the historical evidence fur
nished by the circumstances surround.
ing the framing and adoption OF that in
strumen,, and the views OF those who
framed and adoptedi il.
8. That the understanding and e1pec-
t1tion az the time OF the adoption OF the
constitution was that direct taxes would
not be levied upon the general govern.
nent except under the pressure OF e1-
traordlnary exigency, and such has been
the practice down to August Is, 1891. If
the power to do so is 10 be eIerci.et az
m ordinary aud usual means oil supply.
that fact furnishes an additional reason
for circumspoction is disposins OF the
present case.
!. That taIe, on real estate belong to
the class direct taxes aud tina. the taxes
on the rem or income OF real estate.
which is the incident OF its ownership,
belong 10 the same class.
S. That By no previous decision OF
this court has this question been adiu-
dicated to the contrary OF the conclu-
sions now announced.
o. That so much OF the act oil August
Is, 1894, ~ attempts 10 impose a tax
upon the rem or income Of real estate
without apportionment is invalid.
The court is further OF opinion tina.
the act OF August Is, 1894. is invalid so
FAR as il attempts 20 levy a tax upon the
income derived IRON municipal bonds.
As municipal corporation ia the repre-
sentative OF the state and one Of the in
strunentalities OF stale government,
the property and revenues OF municipal
corporations are no. the subjects OF
federal taxation, nor is the income de-
rived from state. county and municipal
securities, since taxation or the Interest
thereirom operates on the power 10
borrow before it is exercised, and has 4
sensible influence On the contract, and
power OF the states and their instru.
men,alities TO borrow money, aud con
sequently r%epuguant TO the coustitu.
ton.
TIE oEDEE-
Upon each OF :he other petitions ar
gued at the bar, 10 wit: First. whether
the void provisions az to rents and in.
comes from real estate iuva!idates the
whole act; second, whether as to the
income from personal property as such
the act is unconstitutional as laying d.
rec: taxes; third, whether any part Of
the ta1, ii not considered as a direct tax.
10 valid for wan. OF uniformity OF either
Of the grounds sucgested-the justices
who heard the arguments are equally
divided. and therefore no opinion Is ex-
pressed.
The result ia that tho decree OF the
circuit court is reversed and the case re-
manded with directions 70 enter 4 de-
cree in favor OF complainant in respect
only OF the voluntary payment oil the
tax on rent, and income OF its real
estate and that which it holds in trust
and on tho income from the municipal
bonds owned or go held b. 1t.
Tho announcement OF the foregoing
conclusions OF the court was preceded
by n review OF many opinions OF the
supreme court from the time oil Chief
Justice Marshall down 10 the celebrated
Springer case brought by ex-Repreaent-
alive Springer, OF Illinois, and by an
exhaustive review OF the nature OF d.
rect and indirect taxation, in the course
OF which the chief justice reviewed tho
debates leading up TO the framing OF the
federal constitution. In conclusion the
chief justice stated that this opinion
upon the Pollock case covered the two
other cases.
JUSTICE FIELD DIsSESTs.
Tho delivery OF tho opinion consumed
lust n hour. Chioi Justice Fulle, be.
gan Il, l2:Oj and concluded n. l:O5. He
was followed by Justice Field who read
the frat dissenting opinion. speaking
in a low tone. tina. contrasted no,'cea.
bly, with tho loud delivery OF the chief
justice.
Justice Fields opinion was largely
devoted to a review OF tho provisions
regarding rents. and was a vigorous de.
nunciation OF the principle sought TO be