The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1895-05-13
TO A FULL BENCH.
LxWYERS EEGIN ARG UMENT AGAIN
ON THE INCOME TAX Law.
The Court Room Crowded-Justice Howell
jackson Personalities the Arguments
1t Was Left to the Court tn Decide.


presence of an assemblage of law and laity,
that, as on the occasion of the original
argument, more than eXhaust ted the accom-
modatons of the small chamber in which
ii was heard.
For the first time since last November
there was complement of justices
on the bench, and all nine of the large
leather-covered arm chairs behind the desk
that separates the court from the specta-
tors were occupied. Mr. Justice Jackson,
the youngest member of the court save one
was at the extreme right of the chief JUS
tice and was naturally the observed Of all
Observers He took an active interest in the
proceedings, and there was apparently
nothing to warrant the expectation that he
might not be able to undergo the fatigue
of the hearing.
The beginning of the argument was pre-
ceded by the announcement of opinions in
several cases. none of them, with possibly
n single exception, of general interest or
Importance. This occupied forty minutes,
so that it was well on toward ] o'clock
when Mr.. W. D. Guthrie opened the argu-
ment for the petitioners, Messrs. Hyde *
Pollock, who seek to enjon the directors of
the Farmers Loan and Trust Company,
and Continent Trust Company, of New
York, from paying the tax on the dividends
declared on the stock of those corporations
and in so doing attack the constitutionality
of the law.
The chief justice said:
"In these cases appellants made applica-
ton for rehcaring as to those propositions
upon which the court was equally divided,
whereupon the attorney general presented Il
suggestion that if any rehearing We're
granted it should embrace the whole case
Treating this suggestion as amounting in
itself to application for a rehearing and
not desiring To restrict the scope Of the ar
gument, we set down both applications to
be heard today before d full bench, Which
the ANTICIPATED presence of our Brother
Jackson, happily realized, enabled us to do.
No further argument will be desired We
We're obliged, however to limit the number
of counsel to two on each side, but as to
the time we await the suggestions Of the
counsel
Attorney General Olney yielded to Mr..
Choate, who said that he believed i've hours
would be sufficient for their side of the
case"
The chief justice announced that the court
would grant so much, counsel FOR the gov
eminent of course, to occupy the same
amount of time if they desired
}. NJ. Wilson, of counsel for John G.
Moore, who sued in the courts ii the Dis
trict of Columbia for an injunction restrain
ing the internal revenue commissioners Mr..
Miller, from executing the law. asked per-
mission to file additional brief in that
supreme court.
The second Days Hearing.
Washington, May THE second days
proceedings of the relrgumcnt Of the in
come tax cases began in the supreme court
of the United States at noon today, in the
presence of greatly reduced audience of
spectators lawyers as well the public
in general. Among the spectators VINO to-
day attracted attention was Colonel William
Jay one of the counsel for the opponents
of the law, the grandson of Chief Justice
Jay, who was member Of the court when
the INST decision Of the court was mace
on the subject of direct taEes-the cele-
brated Hylton case Of 1794-a!thoush he
did not take part in the decision.
whitney Resumes.
Assistant Attorney General Whitney re-
sumed his argument il support of the con-
stitutionality of the law under considera-
ton. Mr.. Whitney argued that there was
no settled definition of the word duty in
the Jurisprudence of this country and that
the court was left TO the definition given
10 the term in the decisions in previous
cases for guidance in determining its mean
ing.
Attorney General OIney's Argument.
Mr.. Whitney finished at = o'clock and
was followed by Attorney General Olney,
who closed the case for the government
in support Of the law.
After recapitulating the arguments adj
v2rCeC on behalf of the United States at
the former hearing, he again contendcd
that. judged by the language of the law
itself, it did not create tax which was
necessarily to be deemed u tax on real
estate.
In conclusion Mr.. Oiney said:
1T is impossible, therefore, l submit
to suffer ourselves to be beguiled with the
Altterin% JUNCTION that under this NV con
stitrtional doctrine the federal government
does not sustain serious impairment in
one Of the most important attributes
of sovereignty. Theoretically, it's
taxing power may be unaffected. Practical
~ it is cut up by the roots to a very
large share of the wealth of the country,
as TO all income and as to the great mass
of all personal property. Such a result it
it must be. Will, / firmly believe when
fully comprehended by the American peo-
pie, he universally deprecated as a great
public calamity. They have come to take
pride in the United States as a representa-
tive Of an individual nationality, as a po-
htical sovereign equal in authority to any
other on the face of the globe, adequate TO
all emergencies foreign or domestic and
having at its command for Offense and de-
Tense and for all governmental purposes
all the resources Of the nation. II Will be an
unWclcOme awakening for them to discov.
er that this thing Of their faith and their
pride is but a manned and cripped creation
after all, invested with but q fraction of the
most important OF governmental powers
and weakest exactly where it's strength
should be the greatest Nor viii it lessen
or mitigate their surprise TO learn that a
constitution, which has long been lauded
to the skies as the elimination and crown
ing glory of a peoples taxation war, is
now found to l-c contrived that, while
accumulated wealth shirks and escapes It's
due share of the public burdens under
cover of its provisions, the less fortunate
members of society whom the government
reaches through what they eat and drink
and wear and all other things they must
have and must buy, are without consti-
tutional protection and in the matter of
taxation are practically at the mercy of
conditions"
Chief Justice Fuller questioned the attOr-
ney general to his opinion on when
rents were taxable and lie answered that
1t was after they had been received and
were in his actual possession. Continuing
on that suggestion the attorney general
said:
ut is intimated that logically speaking,
II tax on real estate is direct tax, is
a tax on personal property; and that if
tax on rents is tax on real estate so is
tax on interest and dividends q tax on
the capital producing it, That theological
process is without flaw l am willing to
admit, and concede further that if the step
already l.,