The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-13

Incorporated if but recognizes existing
social facts and conditions which it would
Mr. Olney closed as follows: eft would
certainly be a mistake to infer that this
great array of counsel this elaborate argu-
mentation, and the numerous and volumi-
nous treatise, miscalled by the name of
brief. have any tendency to indicate any
thing extraordinary unique either in the
facts before the court or the rules of law
these M prove IS e the immense
pecuniary stake that is being played for.
IL d Is SO large , 1nat counsel ices ana costs
|. sequence. 1t is large and SO stimulates
the efforts of counsel that no rules or prin-
ciple that stands in the way, however well
settled, and however long and universally
acquiesced in, is suffered to pass uncIal-
ienged. 1t is matter of congratulation, in
deed. that the existence of the Constitution
is not impeached and that are not treat
ed to logical demonstration that, for all
taxable purposes we are still under the
old articles of confederation. Seriously
speaking, however, 1 venture to suggest
midable demonstration is bound to be with
out effect distinct ground. In it's
a call on the judicial department of the
government to supplant the political in the
exercise Use Of the taxing power; to substi-
| respect of the subjects of taxation. the plan
of taxation. and all the distinctions and
DETERMINATIONS by which taxation is sought
to be equitably adjusted to the resources
and caprices of those who have it to bear.
Such an effort, however, weightily supported
can. l believe, have but one result. 1t is
inevitably predestined to failure unless this
court shall for the first time in it's history
arate the judicial from the legislative power
and the scrupulous observance of which is
absolutely essential to the integrity of our
| constitutional system
Touching the question of exemptions, he
said 1T was necessary to make them as, for
instance, the wages of the laborer and the
incomes of the lower middle classes. What
| then have you left but the incomes of those
| who have all that is necessary to supply
1 the wants of life and a surplus beSideS?'
he asked. There is source of taxation
| which no wise statesman should leave un-
| without affecting the comfort or welfare
| of any human being Why. for instance.
/ should not Mr. Edmunds pay tax on a
1 fee of 5000. the same as the Vermont man
| who owns a 5000 farm? No, the income tax
/ of the burden of the tax on one should be
/ levied on the rich and not on the poor, just
not live on his capital but would devote its
| income to that purpose. Furthermore the
/ capacity to collect as well as that to levy
1 tax had in mind. If, for instance, the
| limit in the income tax law had been placed
at $4,000, instead of $4,000 it might. be that
| in Texas there would be no one with suffi-
| cient income to make the law applicable to
| him. and thus Texas would remain alto
/ gether untaxed under the law
/ At this point, Justice Gray interrupted
i Mr.. Carter to ask if he did not believe the
Of the and had meant tba in
/ all other taxes should be regarded as direct,
| and to hold to the idea then SO prevalent
/
! Mr. Carter replied that such construction
| would put limit on the Constitution 81. by
| within the duty of the court. The trainers
/ of the Constitution evidently proceeded on
| the theory that they had disposed of duties
/ while all other taxes provided must neces-
sarily follow the rule of apportionment He
] did not believe they would have been
4 caught in such predicament:
/ Discussing the question of the meaning
| of the word Uniformity as used in the
/ Constitution, Mr. Carter said it was known
| that the trainers had In mind territorial RAJ
m naoti General i uniformity. Nor could he
i find an injunction of uniformity IN the
word tax as others protested to 90. MI
| Carter was discussing the question or
| classification when interrupted by Justice
| White with an inquiry as to how ne would
courts to the effect that attempts at classi.
| fication were in fact not cassifications, put
ter. there IS an evasion / grant that it is
an exercise of arbitrary power, but Wnen
do not ae Constitute an arbitrary proceeding
| the act is legitimate. Congress in such a
case is seeking to establish its own pohe e;yt
it is guilty of no evasion and 1t does not
| become necessary for the courts to inter-
| fere with regard to the asseveration that
| the subject of taxation in the case of State
| and municipal bonds was not in the power
| of Congress, he maintained that the ques-
/ ton had never been determined and was
i In closing Mr. Carter said he was not
| among those who wouiI circumscribe the
| powers of the court to sit in judgment on
the acts of Congress- but the power ,svi, OF the
he hoped the day would never come when
it could be said the court had reached the
limit For that matter, however, he was of
the opinion that the limit had already been
transgressed when the. court. finds itself
general question Of taxing power Of the he
| country's lawmakers. Nothing could be
eminent nth than an attempt on the part of
the court to review the action of Congress
| to legislate with respect to taxation was
| involved. No one would question the right
| of 100000 of people of this country to set
votes, ana If left to themselves there would
| probably be a peaceable solution, but it.. in
| the very hour of their triumph they find
| an obstacle in their way in the shape of
Judgment in a lawsuit. they are liable, Il
| ends over the Constitution and the court.
Mr.. Choate begins His Address.
| Mr. Choate followed Mr.. Carter, speak
ing for the appellants. His is the closing
| argument in the case, and as he began only
| forty minutes before the court adjourned
for the day he had only fairly opened when
the hour for adjournment arrived After
| Jupiter had Numbered all around the sky
and had leveled everything by his thun-
derbolts Mr.. Choate began. Mercury
came out from his hiding place and looked
around to how much damage had been
| done. but ne knew IT was only stage
thunder and was enabled to reassure the
gods and men, He came as Mercury did
to bring calm and assurance, and he would
| not attempt to vie with Mr.. Carter. He
| declared that he had never before heard
the argument used by Mr.. Carter that the
popular wrath might in any event sweep
the Supreme Court away. He was likewise
surprised to hear than Congress was to
be sole judge of the powers confded to it by
| the Constitution. AS for himself, he be-
| leved there were private rights of prop
| erty to be considered, and he believed that
this court delegatd to pass on such
| questions here involved without
asking the consent of the Encouragement
| or any one else. He declared that the
income tax was communistic. and said it
was defended here upon principles
! munstic socialistic and populistic had
| ever been addressed to popular assem-
| blage, and he had been astonished that
the Encouragement had made plea for
its liberation the ground that it was di-
rected only at the rich.
Mr.. Choate said that il the law was en-
forced New York, New Jersey, Massachu-
sets and Pennsylvania would pay nine
| tenths, yes, nineteen twenteths of the tax.
This, he declared, was sufficient evidence
of inequality. He controverted the position
that there was no help for this state of af-
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