The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-09
CHoATE ON THE INCOME TAX.
HE DEvoTEs HIS TINE To ATTY.
GEN. OLNEY's QUESTIONS.

paired Under the Construction OF
the Constitution Set Up ny the OPP
pOncnts of the Income Tax Law.
The Court AdIOurns.
Washington, May s.-AlmOst Immediate
ly upon the assembling OF the supreme
court Of the United States at noon to-day,
the chamber being filled with spectators
drawn there by the announcement that
he was to speak, Joseph II. Choate re-
sumed the closing argument in the in
came tax cases.
There remained 70 NIr. Choate about
two hours of the five allotted for the pre-
sentation of his side of the case and he en-
tered upon his task in excellent form for
the work. He had just begun when the
court rose yesterday to speak of the
claim by himself and his associates as 10
what had been decided by the court in it's
judgment of April S, upon the subject Of
She tax on rents.
Prior to the resumption OF the proceed
ings, Samuel Shallabarger of the counsel
for John G. Moore in his suit for an In
junction against Internal Revenue Com
missioner Miller. in the district courts,
asked leave to make a brief oral argument
at the close Of Mr.. Choate's remarks, 10
be largely devoted to the question of uni
formity, but the chief justice stated that
it would be impossible to grant the appli-
cation at this time
Mr. Choate, in opening, said that he
would not proceed on the line laid down
yesterday, but would devote himself to
the consideration of certain questions ask
ed yesterday by the Attorney General in
his address.
The Attorney General had consented,
of hnr
tion of the constitution set up by the
contestants of the tax were maintained 1t
would seriously impair the resources and
power of the government in times of
emergency.
" Figures will not lie,' it has been said"
remarked Mr. Choate, but II was equally
well known that they would convey en-
tirely different meanings. according as
they might be handled. Upon that point,
said Mr.. Choate, their brief filed In the
case presented some statements and ng-
ures which demonstrated the unsoundness
of the Attorney Generals claim. The
right of citizens" that document stated,
cannot be affected by eXaggeration of
the Importance to the government of the
questions now involved. The only pre-
vious income tax known in the country's
history arose from the necessities Of the
civil war. Up to the close of 1866, ii is
computed that the government had ex
pended for war purposes more than
1908, 0,000 yet only Sl26, 082, ,S45 came from
this income tax. This shows how insig-
nificant a part that tax played in supply
ing the country's requirements at the
| time of its greatest necessity. What saved
the country was its high financial credit
and the patriotic attachment of its citi-
zens to the system of government guar
anteed by Its constitution. Those re-
sources, 1t is earnestly submitted, will be
most surely preserved by faithful admin
istration of its fundamental laws; not by
efforts to fritter away the bulwarks of
private rights and private property which
were established thereby as conditions of
the country's existence"
Mr.. Choate addressed himself directly
to the discussion of the matters left III
dispute by the decision of the court, in
the light of the declarations in that de-
cision. The first related to the tax on
personal property, and his contention
was that the corpus of personal property
was entitled to the same protect tion as
real estate, and that a tax on the income
derived therefrom was a direct tax as
much as a tax on rents. And in this po-
sition he was aided by the frank avowai
of the attorney general that it was log
Mr.. Choate then went into the history
of the question and quoted from the Aprn
decision Of the court to sustain his con-
tenion that personal property was sub
ject only to a direct tax levied and col
lected by the rule of apportionment.
Turning then TO the decision of the
court. Mr.. Choate referred to the doctrine
of Stare Decisis. To observe this doctrine
without modification. he said, would raise
the judiciary above the concurrent
! branches of the government the legisla-
enforce a rule in respect to itself that it
enforced against the legislature.
Justice Brown-But suppose, Mr.. Choate,
that congress has acted for 100 years upon
the decisions of this court. Is not that
case for the observance of the doctrine
| Of Stare Decisis2
Mr. Choate-I think not and propose, a
| little later, to show that congress has act
ed wrongly in respect of those decisions,
and without full knowledge Of their effect
Touc hing upon the suggestion of COUNSEL
that If the present income tax be over
tbrowIs demand might be made for re-
fund of the income tax of war times, Mr.
Choate asked what kind of political NOR
ality was involved in the suggestion of
the Attorney General that because
the government had in the past
Illegally collected taxes, II must be per-
mitted to go on in the future Illegally col
lecting other taxes. But your honors
need have no fear on that score The for
mer income tax was paid willingly and
if any of them or their descendants should
demand It's return they would be the sub
jects of general shame and general con-
tempt. And, further, there is nothing in
to warrant the belief that If all who had
paid the tax should altogether demand its
return, they would ever get dollar of 1t
back: No, that suggestion can be safely
dismissed"
Mr. Choate turned to the points made
with respect of lack of uniformity and of
Illegal and unjust exceptions.
The exception of incomes of $1,000 and
less from the operation of the law, Mr.
CnOate SdlQ, was even less defenStDle or
eScusable than that in relation to mutual
insurance companies. Its object was to
make the law applicable only to a very
small proportion OF the people largely
residing in a few of the states, the old
seaboard states who gave up 50 much in
the compromise that resulted in the adop-
tion Of the constitution.
Mr. Choate said there remained then
but one other question to be considered:
Did the unconstitutional features of the
law, already SO declared by the court in
validate the rest of the law?
1--WE say that 1t does; that this mangled
and mutilated corpse has been too long
unburied. Too long has it shocked the
sensibilities. of the people Of the United
taken out Of its operation the
incomes derived from real es-
tate and state and municipal bonds
when il had, as he believed it would in
response to the prayer of the complain
ants, taken away the income from per-
sonal property. what will be left?" he
asked I'VE will be left--the bone. sinew
brawn and brain of the land. Laughter)
INSTEAD Of being a tax on land owners
and bondhoiders, Il becomes a tax only
upon the labor Of the land.
In conclusion Mr.. Choate said I'VE
may not go into the breasts and bosoms
of legislators to discover their motives