The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-11
Action begun ut New York by Charles
Allen Against the Illinois
Central Railroad Company.
SCOPE OF THE AyERMENTs
HOW THE LAW WILL NE CoNsTRu ED
by REVENUE OFFICERS.
Mr.. Voorhees, ON the Reorganization
of the senate Finance Committee
-Countcrfeit Postage stamps.

NEW YORK, April 10.--Another suit to
test the. constitutonality of the income tax
has been instituted in the Circuit Court
here. 1t is an action in equity brought by
Charles Allen, OF Greenfield, Mass. against
the Illinois Central Railroad Company. The
counsel for the complainant are Joseph A.
Choate. Clarence A. Seward, William Guth-
rie. David Wilcox and Charles Steele.
In his bill OF complaint, the complainant,
after setting forth the organization OF the
railroad company, the amount of PERSONAL
property held by 1T and other matters In
relation thereto, declares that he is in
formed that the company intends to pay
under the provisions Of the income tax law
a tax of 2 per cent. on all its net profits and
income for the year 1894 The bill then AYERS 4
that the income tax law is unconstitutional
in that If said tax is collectable on the
company's income and profits, it is direct
tax in respect to the railway property
fixtures and appurtenances operated and
owned by the defendant company by being
imposed upon the income and profits there
of, the same being real estate, and is like
wise direct tax in respect to its personal
property by being imposed upon the income
and profits thereof, which direct taxes are
not apportioned among the several States
as required by the Constitution OF tho
United States. 1t is further averred that IL
the income tax be held not to be a direct
aa shsn n m t bes are not
form throughout the United States, as re-
gna BY the the M sn Tine o az
length. after which the bill declares that
the exemption of insurance companies saw
ings banks and institutions constructed on
the mutual plan, etc, Is sunconstitutioal IN
that these exemptions operate to arbitrarily
free said companies from the payment oc
their just proportion of taxation The bill
further sets forth that the tax is uncon-
stitutional for the reason that it impairs
vested property rights; that all persons or
corporations taxed may be deprived or their
that ali persons or e corporatons taxed may
be compelled to produce and disclose their
private books and papers In order 70 make
them liable for a penalty, or to forfeit their
property. all Of which is against the express
terms of the Constitution. The complainant
strained from voluntarily complying with
the income tax law. and that he be granted
such other relief as the court may deem
meet
General Algcr's Views.
NEW YORK, April 1o.-General Russell
A. Alger, EX-GOVERNOR of Michigan, Is at
the Holland House. General Alger arrived
from the Orient on La Touraine. which has
been making a, two months cruise in Med
iterranean waters Mrs. Alger was with
him, and when she landed she received
telegram saying that her father was i'll I'm
Detroit and immediately started West.
General Alger was compelled to remain in
81 have just been reading in the papers the
account of the Supreme Courts action on
s he 9se osye sas not ed n ms pe and
the Interpretation placed upon the law by
the Supreme Court makes 1t more of an
been opposed to an income tax law. / can
remember when 1t was In operation after
1t is a tax on the brain and patriotism OF
the country, and can be sadly abused IN
many ways. A very rich man may hide his
fncp w
inflated income to get good credit.
Jere NJ. Wilson's Plan.
WASHINGTON. April 10.--Jere M. Will
son. counsel for Mr.. John c.. Moore. OF
New York city, in his income tax suit
when asked to-day regarding his intention
to again test the law said: 1T will be es-
sentially the old issue over again. except
that it will be presented to full BENCH
and the decision, therefore, will be decisive
one way or the other. The purpose of the
new suit will not be so much to raise new
for final adjudication. There is no doubt
that the law will be passed on finally ana
decisively sooner or later
Judge Wilson'S purpose is to advance the
new case through its preliminary stages
in the lower courts, while the Supreme
Court is short of full bench. BY the time
the case IS ready for argument In the SUI
preme Court II Is expected hiatus that Justice &c
permit him to return to the bench or that
his successor will have qualihed
Constituting the LAW.
WASHINGTON. April 1o.-The income tar
officials expect to complete their supple-
mental regulations tomorrow. All OF the
main points to be covered have been prac-
tically agreed upon, and tonight the Conn
missioner expects to put them In proper
form There seems to be no question that
all taxes whether State, county or mu-
nicipal or whether on personal or real
pronerty. except such as are intended to di-
rectly benefit the property taxed, such as
to,ta hla