The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1895-04-10
MADE BIG HOLES.
Supreme Court Makes Changes
in the Income Tax Law.
Landlords and Bondholders Need Not Pay
Tax on Rents and Interest on Sc
curltIes - How the Court
Stands.

CHICAGO, April 6..-The Tribune this
morning publishes Washington spe-
cial over five columns in length giving
what purports to be an authentic out
line of the coming supreme court de-
cision with reference to the income tax
law, and the debates Of the justices in
the case. The special says;
Rends the Law.
THE United States supreme court hns sno:
the income tax law full OF holes. The do
cision has been completed and put into type,
and only awaits formal ratification at the con-
sultatiou to be held nj noon to-day. The de-
cision OF the lower court is reversed, but the
income tax as whole Is upheld but only by q
divided court
1.-Two important portions Of the law, how
over, have been decided to be unconstitutional,
and they are so serious as to affect materially
not only the revenues OF the government. but
the estimation in which the income tax will be
held by the people.
The Important Changes.
Under the decision to be handed down by
the court, probably next Monday, but possibly
later, all incomes derived from rents are
exempted from taxation by the federal gov
ernment and all incomes derived from state
And municipal bonds are similarly ex-
empted. In other respects the income tax
law stands as II was passed last August but
the result OF the consultations In the supreme
court shows very conclusively thst the law
can easily be picked to pieces piecemeal, pro-
vided suits are brought to contest each par
ticular point as 1t comes up.
Landlords and Bondholders Exempt.
THE landlords Of the country will pay no
income tax. The owners Of bonds Of almost
any kind, either federal state, county or
municipal, will also be free, while the business
man, the manufacturer and the salaried en-
ploye will, for the present, ut least be COM
pelled TO contribute to the treasury Of the
United States governments per cent. OF all in
comes in excess OF $1,000 per annum.
''the holes made in tue income tax law are
so fatal as to necessitate either its repeal or
its material amendment, lis the people Of the
country will hardly care to see the large capi-
talists and trust companies absolutely pro-
tected while the poor men, comparatively
speaking are forcedto contribute to run the
national government.
The entire income tax law as passed by
10th houses OF congress and approved by the
president of the United States has been
trembling in the balance for two weeks and
Lon W.l Lc construed as constitutional
,,....lte o.,,y because the suprome court of the
| I-u,ica Sinle,. while uusettinr two portions OF
inc law. i, evenly divided on the general
i'm. I.ie Of the copstitutionaiity oI the whcle
eu,...li.out.
,,a.,i,,, "a CoDs.ilutjoo.Iitv.
,,.,. ,,,,,o,, :, -
v, nv o,.',..ta,,tia,-Ii+,, ~ y
,,,,1,,,ns y, ,,.,n ,o,,rS
-, ,.,,,,,.r ,,', a1o,I, tir,dod 0ni,,
! ,'a, .',g.i.,s nc,.i t,,o .,s,n,rcntu Mr. Inc,
t'.o I'm, 1n,n,,ioo II, IN nnnaIr N court
,'nc roie Ciscloscd the fact that Chief
Justice eullo. and Justice, Field, Gray and
( Brewer were opDJ,ed to the law In toto They
believed il WAS uncons titut tional US passed by
congress. nd that 1t WAS q direct tax which
| according TO the constitution must be levied
! 5mong the states according to the population
ns returned IN the ten,IS.
, Justices EarIau. jrown, Shiras and White
! yo1ed to sustain Uht law as a whole They be-
, l.eved and supported tLelr opinions By con-
vincing argument that while particular por-
tions OF the law were clearly unconstitutional,
the general effect OF an income tax could not
lie considered US opposed to the principles laid
down In the constitution
Iieid Sternly Against tho Law.
1.-The most vigorous opponent Of the law
throughout wns Mr.. Justice Field, who would
consent to no compromise; who believed the
law unconstitutional from beginning to end,
, and who supported his opinions In all the con
sultations in the most vigorous and able
Ts L. AA,lal 10 SI,a y