The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-04-09
The Supreme Courts Decision in
the Income Tax Case.
DISSENTING OPINIONS FILED.
The Law is Declared Invalid Taxing
Real Estate or Rents Therefrom.
Also MuncipaI and State
Bonds. The Effect of the
Decision. New Orders.
By Southern Assoeiato. Press.


presence Of n crowded courtroom, the
spectators lobby being througed to it's
utmost capacity. Shortly after noon
Chief Justice Fuller said, amidst an
almost painful stiffness: al am charged
with the duty of announcing the
opinion and Judgment of the court III
the case of Charles Pollock versus tho
Farmers Loan and Trust Com pany Ell
al."
Ihe opinion began with tho consti-
tutlonality of direct taxes by the Fed.
eral government, which tho court held
allowable only when great pressure Of
extraordinary eXigency occurs, and
then when taxation is proportionate to
representation. TnXes on real estate
belong to the class OF direct taxes, aud
the taxes on the rent or income of real
estate, which is the incident of its own.
ersbip. belong to the same class. Ac-
cordlngly this feature of the tax was
declared unconstitutional.
The court was further of the opinion
that the action of August 10. 1891, is
Invalid 80 far us 1t attempts to lew Il
tax upon the income derived from
municipal bonds. AS q municipal cor.
poration is the representative Of the
State and one Of the Observation-Disclosures
OF the state Government, tho property
and revenues of municipal corporntions
are not the subjects Of Federal taxa.
ton, nor is the Income derived from
State, county and municipal securities.
since taxation ou the interest therefrom
operates on the power TO borrow be
fore 1t is exercised and has a influence
on the contract, and, therefore. such n
tax is tax on the power OF the States
and their lnstrumentalities to borrow
money, and consequently repugnaut to
The Constitution.
Upon each of the other questions
argued at the bar, to wit:
Il Whether the void provisions as TO
rents anu income from real estate III.
valilates the whole net?
Whether as to the income from
personal property as such, the act is
Unconstitutional rs laying direct taxes?
) Whether any part of the tax, if
not considered as II direct tax is invalid
for want OF uniformity on either of the
grounds suggested? The Justices who
heard the argument are equally divided
and therefore no opinion is expressed
The result is that the decree of the
Circuit Court Is reversed and the
cause remanded. with directions to en-
ter decree In favor of complainant in
respect only of the voluntary pnymcnt
OF the tax on the rents or income of its
real estate and that which it holds in
trust, aud on the income from the
municipal bonds owned or SO held by it.
Justices Field and White read lnde
pendent dissenting opinions
At 30 the court concluded the read
ing OF opinions. whereupon the ques-
tioD OF the constitutionaIity of taxntion
of income from States and munlcipnl
bonds the court was unanimously IN
the negative.
Upon the question of taxation and
rents the court stood as follows;
Affirming the .aw-Justices Harlan
aud White. Against the Law-Chief
Jastice Fuller, Justices Field GRAY.
Brewer, Brown and ShirGs.
Upon tho general question Of the
consiitutiomality OF the law the court
is said TO be divided AS follows: For
the Lnw-jnstices Harlan, Brewer.
Brown aud White. Against the Law
Chiei Justice Fuller, Justices Field,
Gray and Shiras.
The President was informed of the
income tax decision shortly after II
was rendered by the Supreme Court.
and at 30 lie summoned Secretary
Carlisle to tue executive MANSION and
the two discussed the matter for some
time.
Other members Of the Cabinet
dropped In later, among them the At.
torney General. The decision was
disappointment. but the administration
will at once issue instructions to col
lectors of internal renue to conform to
the emasculated law. Secretary Car.
llsIe followed his we'll defined custom
not to discuss the matter for publlcs.
ton.
Attorney General Olney said the
government would not ask for re.
hearing, but would accept the decision
as rendered. He was not surprised at
that portion of 1t excepting municipal
and State bonds from taxation, but ex-
pressed the hope that the question of
rents might be brought before the
court III some other shape, when he
entertained the strong belief that the
present attitude of the court would be
revised.
la the Treasury department, AS
sis,ant Secretary Curtis declared that
the condition of the Treasury was good
and the revenues would meet current
eXpeQsee,