St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-24
AS TO CONsTITUTI0NALITY.
The Supreme Court Will Now
Be Asked to Give
Opinion.
SOME IMPORTANT RULINGS
Regarding the Application of
the Law to Incomes Of
Corporations.

WASHINGTON, Jan. 23.-The petition
of John q. Moore for mandamus against
Commissioner of Internal Revenue Mill
Ter 10 prevent the collection of the in
come tax was Overruied this morning by
Judge Hagner, in the district equity
court The case will now be taken in
appeal to the United States supreme
court, in order to test the constitutions
lily Of theincome tax law.
Judge Hagner declared at the outset
that the objections that the tax is I'M
wise and restricts thrift and industry,
that its operation must necessarily be
inQuisit0rial, ETC., were not under the
jurisdiction of the court The alleged
duplication of the tax could not be
claimed to be possible except as to divi-
dends declared during the calendar
year 1894, and it was presumed that the
treasury officials would enforce the pro-
vision in such way as to prevent a
harsh construction OF the law and that
an arrangement by the corporations to
pay the tax before July. 1895. would be
accepted as relieving the shareholders.
FeXati0us as duplication may be, 1t is
not possible practically to avoid 1t.
That some property holders are for
tunate enough to have possessions eX-
ceeding in value the excepted amount is
no ground for invalidating the law
under which the taxes are levied. The
court then dis cussed the constitution
ality of the point raised by the CON-
plalnant that aliens residing i'll the
United States, whether permanently or
temporarily, are subjected to its pro-
visions.
The provision was not new in income
tax laws. and authorities were quoted
to show that it was clear that alien resi-
dents of country may be rightfully
subjected to the taxation to which its
own citizens are sub jected. On the
next point raised the court said:
From Thorough examination OF the
act, the court is of the opinion that eX-
emption of the incomes of such corpora
tons as are created, owned and
operated by the several states as in
strumentaities and agencies of the
government of such states is effectively
made in the act since no such corpora
tons can be included in the description
of those required to make returns OF in
come.
The statute does not i'll words or by
necessary implication include such cor
porations, and congress having no
power to tax them it is to be presumed
that congress did not intend to include
them. The objection that the tax is to
be levied upon an income received prior
to the time the law went into effect is
dismissed and the court says no
authority was quoted in support of the
contention and the court has been
unable to discover any if.they exist.
As to the allegation that 10 adequate
remedy exists by which to recover taxes
if paid to the collector the court de-
clares that such a remedy does in fact
exist, even though there be no special
statute under which to proceed. In
stances are cited where income taxes
have been recovered where illegally
collected
The contention OF the defendants that
the courts are without authority TO
grant injunctlons i'll cases of such char
acter is sustained.
A decree therefore issued dismissing
the bill with costs.