The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-24
Petition of John G. Moore for a MAN.
to Prevent Collection OverruIed.
TURPIE IN HIS BEST ROLE
NICARAGUAN CANAL SCHEME SCORED
BY THE INvECTIvE HURLER.
Senator Morgan Also Criticised-FaiI-
ure of the Paris Agreement to Pro-
tect SenIs-Mr. DinEIey's Bill.

WASHINGTON, Jan. 23.-The petition of
John G. Moore for mandamus against
Commissioner of Internal Revenue Miller
to prevent the collection of the income tax
was overruled this morning by Judge Hag-
ner in the District Equity. Court The case
will now be taken on appeal to the United
State Supreme Court in order to test the
constitutionality of the income tax law.
Judge Hagner declared at the outset that
the objections that the tax is unwise and
restricts thrift and industry; that its opera
ton must necessarily be inquistorial, etc.
were not under the Jurisdiction of the
court. The alleged duplication of the tax
could not be claimed to be possible, ex-
cept as to dividends declared during the
calendar year 1894, and it was presumed
that the treasury officials would enforce
the provision in such way as to prevent
harsh construction of the law, and that an
arrangement by the corporations to pay
the tax before July. 1895, would be accept
ed relieving the share holders. Vex-
atious duplication may be, it is not pos
sible practically to avoid it. That some
property holders are fortunate enough to
have possessions exceeding in value the
excepted amount is no ground for invalidat-
ing the law under which the taxes are
levied.
Lie court Iueu ulScuSSeu tue
atty of the point raised by the complain
ant that aliens residing in the United
States. whether permanently temporarily.
are subjected to it's provisions. The pro-
vision was not new in income laws and
authorities We're quoted to show that it
was clear that alien residents of a coun-
try may be rightfully subjected to the
taxation to which its own citizens are sub
jected.
On the next point raised, the court said:
From a thorough examination of the act
the court Is of the opinion that exemption
of the incomes of such corporations as are
created, owned and operated by the sew
eral States as instrumentalities and agencies
of the government of such States is eff
fectively made in the act since such
corporations can be included in the descrip-
ton of those required to make returns of
income. The statute does not in words or
corporations 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 on an income received prior to
the time the law went into effect is dis
was quoted in support of the contention
and the court has been unable to discover
any IL they exist.
AS to the allegation that no adequate
remedy exists by which to recover taxes
if paid to the collector, the court declares
that such a remedy does in fact exist, even
though there be no special statute under
which to proceed. Instances are cited
where income taxes have been recovered
where illegally collected. The contention
of the defendants that the courts are with
out authority to grant injunctions in cases
of such character is sustained. decree
was therefore issued dismissing the bill
with costs.