Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-03-14
THE INCOME TAX CASES
Nj. Ohoate Finishes His Argument Against
the Laws Oonstitutionality.
The Conjunction of the Word "Unl-
NEUTRALITY-SUSPICIOUS. of Some
Corporations.

In closing the arguments on the income
tax case in the United States Supreme
Court yesterday Mr.. Choate commended that
in exchange for the surrender by the states
of the power to collect duties. imposts and
excuses the general government had neces-
sarily conceded the protection of all men
in their equality before the land, and the
rule of uniformity must be observed.
Furthermore, he asserted that this rule
had been observed without exception by
Congress in all tariff acts. Mr.. Justice
White here asked II the observance Of this
rule would not destroy all specific duties.
Mr.. Choate thought not, and he also dis
sented from a suggestion that a difference
was made in taxing men Of different de-
grees of wealth. There had never been a
personal distinction in tariff acts. The
fact that persons coming into the country
should be allowed to bring their personal
effects with them was merely an excep-
ton which proved the rule.
Construction of .sUnifOrmity."
He declared that the construction put
upon the word uniformity" by the oppo-
sition counsel was worthy of Jacobin
club or Gar of Russia who proposed to
reign without restraint. Such construc-
the Constitution.
He then referred to what he designated
as the breaches of the rule of uniformity
made by the income law, taking up first
excess Of $1,000. Had we. he asked, come
to the point where there was to be one
law for the rich and another for the poor?
He declared the law to be a deliberate
voted for it at the really rich. No won
der, he said, the President, after ten days
elaboration, had refused to put his name
to the bill. No wonder the President and
n fhA Trnn e.
iEdorse it.
DO you." asked Justice Harlan, dis
pute the validity of any exemption" Mr..
Choate replied he did not, but, without ex-
planning his reply, took up the denial by
the law Of any exemption to corporations,
ccntend1ng for uniformity in the treatment
or corporations and individual persons.
Justice Brown made an inquiry as to the
policy of the provision for domestic ex-
penses In the $1,000 exemption, but Mr.
Choate contended that in this respect the
law was alike in its application to indi-
viduals and corporations in that 1t made
deductions for expenses in the business of
beth. Justice Brown replied, however that
ne understood the provision in the law for
the deduction of the net expenses of the
corporation was to stand in lieu of the
$4OOO exemption for domestic expenses.
In the Nature of u Penalty.
Continuing his argument Mr. Choate said
the refusal to make the exemption in the
case of corporations was in the nature Of
penalty which was not levied on others,
and 1t was entering upon a policy which
Congress should have refrained from, He
characterized as ''capricious" the exemp-
tlon OF the property of schools, churches,
as well as the savings banks, loan asso-
cations and mutual insurance companies.
and similar institutions, and said that a
Tar harsher term would be justified. Was
IT Just, for instance, to tax the people of
Colorado and Nebraska for the support
T4l,, LII
New York? But let the educational and
religious institutions CO." he said: I'VE do
not dwell upon the policy as to them. Be
besn she r Are just
Referring to the other exemptions he
said that Mr.. Vanderbilt or Mr. Astor
could put all his money into a savings
bank and thus escape taxation under the
law. Why" he exclaimed, cit looks as
| If there were job in it. Is it capricious?
Is it arbitrary? Is it wicked? Is that the
way to protect the poor man? Had some
crafty representative Of the mutual in
surance companies of New York come to
Washington and pulled the wool over the
eyes of the Senate committee which in
serted the exemption of these companies p
II so he ought to nave had an immense fee
for his success.
Mr.. Choate quoted from official records
to show the enormous extent of the bust
Ing that there were no institutions in the
land which were more noted grabbers for
and hoarders of money than these mutual
companies.
Mr.. ChOate's PerOrntion.
1t was 3 o'clock when Mr.. Choate after
having spoken three hours yesterday and
forty minutes ths day before, reached his
peroration. He had, he said, felt a re-
sponsibility in this case such as he had
| never felt in any other case and never ex-
pected to feel again, and he did not be-
naN-a hat maj har of ho MT
excepting the venerable Justice Field, whose
experience as a member Of the court ex-