The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-05-09

the question of taxation had been one OF
the most prominent in the minds OF the
trainers of the constitution. The members
of that body were the representatives OF
men who knew all about the question. for
they had studied here as their ancestors
had in England under the Plantagenets,
the Stuarts and Tudors. Mr.. Choate then
proceeded on the basis that the court had
decided that lands were to be free from al-
rect taxes and that there was to be no dt-
ference for tax purposes between the body
of the land and its proceeds. He then en-
tered upon the discussion OF the undecided
questions, contending there were the same
reasons for exempting incomes that ex-
isted for exempting bonds and real estate.
Justice Harlan asked Mr.. Choate if he
meant by general tax on person property
a tax on all personal property Of every
kind.
Not all, " Mr. Choate replied, because
I admit the right of exemption"
Justice Harlan-Does a tax law that
reaches only part of personal property
come under that head?
Mr.. Choate-In New York there is
vast body OF citizens exempt, inmates of
tenement-houses, nearly half of the popu-
lation; yet ! call that a general assess
ment, not excepting the exemption. 1t is
a tax that cannot be avoided. But the
question whether tax on real estate can
be shifted l will leave TO political econ
omists, with whom have no relation and
hope never to have relation.
Mr.. Choate looked at the Attorney
General when he spoke OF political econ
omists, and there was laughter, rare
demonstration in the Supreme Court. JUS
tice Harlan asked if the counsel would
call q tax on the income o., bonds direct
tax that would have to be apportioned,
and, upon receiving an affirmative answer,
asked if the same were true of tax on
banking.
Mr.. Choate answered, "This is bust
ness, and this court has over and over
again decided that Congress can tax bust
ness"
In discussing the principle of stare decisis,
which he defined as the rule of standing by
a former decision, whether right or wrong,
he said he was constrained to believe two
of the Justices had only consented to the
former decisions il difference to that prin-
ciple.
Your Honors are sworn to obey the
constitution as the primal law. Every act
Of Congress stands in the light OF it or
must fall. Must not every decision of this
court that is bound to be in conflict with
the constitution by the light Of the latest
evidence and the most complete informa-
ton also stand or fall?'
Then Mr.. Choate continued: Regard
%ha 1,o+f i,,o = ac
will have to be paid back if the court re-
verses the Springer rule, submit that with
such consequences as that your Honors
have nothing to do. That is not an argu-
ment addressed to a question of law or
constitutionality. a moral argument, the
Acknowledgement calls it. l call it an i'm
moral one; the idea of the Attorney-Gen-
eral standing up here for the Nation and
asking that because the Government has
collected much money Illegally in the past
it must go on collecting money illegally"
Mr.. Choate next considered the excep-
tons made in the income-tax law and in
doing so made especial reference to the
mutual insurance companies. As going to
show the magnitude of the operations of
those companies, he could, he said, men
ton one such company whose accumu-
lated property amounted to $204, 600 900.
An exemption such as this was beyond the
bounds of reason.
do you know" he exclaimed, what
this concern is that is given the vast ad-
vantage implied in this exemption2 1t goes
under the reputable name OF a moneyed
corporation. 1t is a moneyed monster. 1t
lives upon money. 1t swallows money; it
digests money; it breeds money. 1t lays
golden eggs by the bucketful every day
and then weaves golden coins about them
to warm and vivify them. It has as many
arms as there are States in the Union and
which it is constantly putting out in all
directions for the purpose OF raking in
with. Nor are its operations confined to
the bounds of this country alone. 1t ex-
tends to England and to the European
countries and is always raking in money"
Having obtained so much money, he
said, the company reinvested it by form
ing trust companies, organizing banks,
building and recognizing railroads and
floating Government loans. Not only this,
but it controlled Congress and directed
legislation, as had been confessed by the
Acknowledgement.
Referring to the exceptions of incomes
OF less than $4,000 he said that provision
OF the law would exclude the vast majority
OF the incomes of the whole country, it
would exempt ninety-nine one-hundredths
of the tradesmen Of the country and ma
iority of the professional men. 1t was an
arbitrary blow aimed at corporations, in
hitting which the trainers OF the law well
knew that they were striking at the main
source of the income of thousands of wild
ows and orphans, whose incomes, individ-
ually small, were derived from corporation
investments.
With this Mr.. Choate closed the part OF
his discourse directed to the question of
the lack of uniformity and took up the last
question under consideration, viz !:
Whether the entire law was rendered in
valid by the decision declaring parts of it
to be so.
''Does it follow" he asked, ''that because
the law has been left mutilated it should
remain buried 2' and he answered it did,
The instrument had been left too long IN
inferred. In its present condition it shocks