The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-04-09

| depositors or policy holders Every
| corporation is carried on. however. foI
| the benefit of its members. whether
stockholders, depositors or policy hold
ers. If il is carried on for the benefit
| Of its shareholders every dollar of in
| come is taxed; if il is carried on for the
| benefit Of its policy holders or deposit
| ors, who are but another class OF share
| holders, il is wholly exempted.
| AS TO MUTUAL SAVINGS BANKS
| Under income tax laws prior TO 1876
| these institutions were specifically
| taxed Under the new law certain in
| stitutionS of this class are exempt. pro-
vided that shareholders do not par
| ticipate in the profits and interests and
| dividends are only paid to the depoSi-
| tors. The limit is fixed 10 property and
incomes thus eXempted-it may be
| 500, 600 or 81. o0o. 0eo, 600
AS TO BUILDING AND LOAN ASSO-
CATIONS.
1.-THE property Of these institutions is
exempted from taxation TO the extent
of millions. They are in no sense bene-
VIOLENT or charitable institutions and
are conducted solely for the pecuniary
profit of their members. Their assets
exceed the capital stock of the national
banks Of the country. The aggregate
amount of saving to these associa tions
by reason of their exemption is over
$500 900 year.
This inherent limitation upon the
taxing power forbids the imposition OF
taxes which are unequal in their opera
ton upon similar Kinds Of property. and
necessarily strikes down the gross and
arbitrary distinctions in the income tax
law as passed by congress. The law,
as We have seen. distinguishes in the
taxation between corporations by eN-
empting the property of some OF them
from taxation and levying the tax on
the property of others when the corpor-
ationationss do not materially differ
from one another in the character OF
! their business or in the protection re-
quired by the government.
RESULTS THE SAME.
thrilling differences in their modes
of business. but not in their results. are
made the ground occasion of the great
est possible differences in the amount
of taxes levied upon them, showing
that the action of the legislative power
upon them has been arbitrary and
caDricious and some times merely fanci-
full
There was another position taken in
the argument on this case which is not
the least surprising 10 me of the many
advanced by the upholders of the law.
and that is, that if this court shall de-
clare that the exemptions from taxa
ton, extended TO the various corpora
ton fire, life. and marine insurance
companies, AMI to mutual savings banks
building and loan associations, violate
the requirement of uniformity and there
fore the tax as to such corporations and
be enforced and that the law will stand
as though the exemption had never been
inserted. The abrogation or repeal of
the unconstitutional provision does not
permit TO create and give force to any
enactment or part of an enactment
which congress has not sanctioned and
promulgated.
1.-The law of 1894 says there shall be
assessed, levied and collected, except as
herein otherwise provided" two per
centum of thea mount. II the excep-
tons are stricken out, there is nothing
to be assessed and collected except
what congress has otherwise afiirma-
tiVey ordered Nothing less can have
the force of law. This court is impo-
tent to pass any law on the subject.
1t has not the legislative power.
AS TO JUDGES SALARIES.
''The law of congress is also invalid
in that il authorizes tax upon the
salaries of the judges of the courts or
the United States, against the declara-
ton of the institution that their COM
pensation shall not be diminished dur
ing their continuance in office.
in conclusion Justice Field said: