The Wilmington daily Republican., 1895-04-12
INCOME TAX ARGUMENT
The Government Will Uphold the
Justice of the Measure.
ORIGIN OF THE DIRECT TAX CLAUSE

AH-lstant Attorney General whitney De-
cIares That 1t Was Placed In the Consti-
tuition In tho Interest of Slavery, and
Should be Wiped Out
WASHINGTON, April ls.-In an inter
view Assistant Attorney General Edward
Is. Whitney spoke us follows in connec-
'tlon with the recent decision OF the ST.
preme court In the income tax case Mr..
Whitney participated with Attorney Gen
eral Olney in the argument Of tho case on
behalf OF the government. He said:
THE government was not party to the
income taxes which have been decided. 1t
only received Informal permission to be
heard. 1t cannot, therefore, move for a
reargument. The decision, however, is
not to be regarded as final upon the rental
question. 1t can be brought up again Mt
tho next term OF court, in case where the
government is less at n disadvantage.
This rental question was not argued
with any approach TO fullness on the part
of the government. Merely one or two
out Of many arguments on this question
were even mentioned, and those cursorily.
The number of questions raised was SO
great, and these questions were so intrl-
cate, that 1t was impossible in tho very
aiilpcu biihc uiioNtu " aiShS ehohh hit'
The government was obliged to devote
itself almost exclusively to answering the
positions taken by the opponents Of the
law in their oral arguments.
1.-THE opening argument is always sup
posed to cover the points ON which appel
lants' counsel reply The government
counsel found their time insufficient even
to treat fairly the question Of the validity
of the law as u whole, and could spend but
n few moments on each of the other ques-
tions. The opponents Of the law asked no
special relief as to rentals in their bills of
complaint, and raised the question for the
first time in briefs filed week before the
argument. Nor did they bring 1t up in
the oral argument until it was raised by
Mr. Choate in his closing address, when
the government had no opportunity to
reply. This is an unusual course, putting
the other party at great disadvantage.
Doubtless, however, 1t was not Mr. Choates
intention to take any unfair advantage,
but the Importance OF pressing this point
was an afterthought, He made however,
q very eloquent and powerful address
"Tho stories in the newspapers as to
plans Of awaiting changes in the person
mel of the court, and as to hopes of intlu-
encing individual judges, are inventions
of the reporters or their informants. 1t is
believed that at the present stage of the
litigation the judges minds are open to
conviction upon rehearing. Reversals on
a rehearing are not common, but are not
unknown. The government will rely on
the belief that every Justice will carefully
listen and weigh the arguments which
will be presented
81 do not desire to discuss the law of the
decision even If it would be proper for mo
to do SO. From an economic point Of view
it appears peculiar. Most of the econo-
mists agree that an income tax, taken as
q whole, is a direct tax, as is a tax on all
the land of country at valuation. / be-
lieve, however, that all or almost all econ
omists would agree that tax on rents
collected by landlords from their tenants
is indirect, because it can be shifted by the
landlord on the shoulders of the tenants.
Yet the tax on rents now stands as indi-
rect. The present decision therefore, If 1t
stands, clearly implies that economic def
nitions are of no value in constituting this
part of the federal constitution. To this
extent it agrees entirely with the argument
OF the government.
'If the income tax should eventually be
declared void the remedy of the people is
very plain. II they desire such tax they
can secure the passage OF constitutional
amendment wlping out the direct tax
clause Of the constitution. This clause,
now SO important practically, has outlived
its original reason. Its adoption was
mainly procured by persons who desired
to protect the institution of slavery. They
were afraid that the anti.slavery move
ment would take the form of prohibitory
taxation. either by Il poll tax or by land
tax Cfor slaves were usually considered to
be real estate). This clause, originally in
tended to protect the slavery of the black
by the white now effects the oppression
of the comparatively poor as compared
with the rich.
"In. common with the great majority Of
my countrymen, believe the income tax
to be wise, just and fair tax. Our pre-
viouN system of taxation, by import duties
and Internal revenue excuses, bore i'm
mcnsely harder on the poor than on the
rich, and this can be righted by an income
tax Such tax cannot be advantageously
levied by separate states for many rea-
sons. 1t must be IA national tax or not be
effective. l believe, therefore, that ultl-
mately We shall have national income
tax law, whatever may be the final decis-
ion of the court about this law"