The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-03-14
Choate Resumes His Argument
to the Supreme Court
THE RIGHT TO TAX MONEY
Why the President Refused to Sign
the Bill
Millionalres Can Put Their Coin In Savings
Banks and Escape Taxation
Other Objections

Washington, March 13.-At the opening
of the session of the Supreme Court Mr..
Choate resumed his argument about the
constitutionality OF the income tax. The
inevitable income of all accumulated prop
erty, whether the rent of land or the in
terest on lands is he claimed, necessarily
he subject of direct taxation and of no
other. He hoped to establish this fact
and to show that such tax was subject to
the rule of apportionment.
Whatever else was not included in the
term direct tax, certainly real estate was
included. There had been universal as
sent to this proposition and he would take
this as the basis of his first step. He con-
troverted the proposition that this idea
was to apply only to unimproved land,
but contended that the application was to
all property designated as real estate. He
followed this argument with the assertion
that the income from the rent OF
real estate was indstinguishable from the
tax on real estate itself and combatted
the position of the Attorney General that
the income from rent after it enters the
pocket is money and is to be considered
as SUCH For that matter any tax on land
was i'll substance and effect tax on its
rental. Returning to the position OF the
Attorney General, that the proceeds were
not rentals but money in the pocket, he
declared it was a distinction without a diff
ference, and was a fiction which had been
stamped upon by the court with all its
might and quoted precedents to sustain
their disposition.
Further more he controverted the right
to tax money in the pocket" as a taxa
ton on personal property.
Mr.. Choate cOntended that in exchange
for tho cIIrrpnAar hv no tato Of ho
power to collect duties, imposts and
excise, the general government had nee
essarily conceded the protection of all
men in their equality before the law, and
the rule of uniformity must be observed.
This rule had been observed without ex-
ception by Congress in all tariff acts.
Justice White had asked if the observ-
ance of this rule would not destroy all
specific duties. Mr.. Choate thought not,
and he also disSented from a suggestion
that difference was made in taxing men
OF different degrees of wealth. He declared
that the construction put upon the word
'uniformity' by the opposition counsel
Russia.
Such a construction would involve di-
rect violation of the Constitution. Mr.
Carter had declared that there was no
help for it if a mistake had been made in
the law, but Mr.. Choate contended that
the court was here for the purpose of prof
fering help in such cases.
''No wonder" he said, ''the President
after ten days deliberation, could refuse
to put his name to the bill. No wonder
the President and the Secretary of the
Treasury refused to indorse it. -
DO YOU" asked Justice Harlan, dis
pute the validity of any exemption?'
Mr.. Choate replied that he did not, but
without explaining his reply took up the
denial by the law of any exemption to
corporations, contending for uniformity
in the treatment OF corporations and in
dividual persons.
Mr.. Choate characterized as capri
cious' the exemption of the property of
schools, churches and similar institutions,
as we'll as the savings banks, loan assoc
Citations and mutual insurance companies,
and said that far harsher term would
be justified.
WAS it just, for instance, to tax the
people of Colorado and Nebraska for the
support of Trinity Church or Columbia
College of New York;"
Referring to the other exceptions, he
said that Mr.. Vanderbilt or Mr.. Aston
could put all his money into savings
bank and thereby escape taxation under
the law.
"Why," he exclaimed, sit looks as if
there were job in it,
Mr. Choate quoted from official records
done by the mutual companies, declaring
there were no institutions in the land
which were more noted grabbers and
horders of money than these mutual COM
panies.
At o'clock Mr.. Choate reached his
peroration. He did not believe, he said
any member of the court had ever sat in
a case or any of them would live long
enough to hear case OF more vital i'm
portance to the people of the country
The question involved was whether we
could rely upon the guaranty given us by
the fathers of the constitution and under
which the nation had SO far in its history
pIospered. 1t was one of the utmost i'm
portance to the future welfare of the
country that the court should see if it
has the power to decide such questions,
and if it finds that it has, it should exer-
else it to put stop to such legislation as
this. Nothing now remains but for the
court to decide upon the validity of the
income tax.