The daily morning journal and courier., 1895-03-09
FIGHTING THE INCOME TAX.
CONTINUATION OF 4RG UMENT IN
 THE SUPREME COURT.

THE SUPREME COURT.
 The Court Room Was Crowded to Almost
 Its Limit by Spectators-Even the Chief
 Justic. Took Such an Interest in the Pro
 ceedings That He Questioned the Law
 yers.
 Washington, March S.-The continua-
 tion of the argument in the income tax
 cases before the supreme court of the
 United States to-day was marked by
 the presence of a crowd of spectators
 that thronged the chamber to almost
 the full limit of it's accommodations.
 Mr. Guthrie, for the appellants in the New York cases, continued his argu-
 ment against the law. He had reached | yesterday that part of his address re-
 lating to the effect of the fifth amend
 ment to the constitution, and he said that he might well refrain from press ing his argument on that point, in view of the admission of the attorney gen eral in his brief that the fifth amend ment does require uniformity in the inn
 position of taxes.
 "Do you think the requirement still in force since the adoption of the four teenth amendment" asked Justice Gray
 We do" replied Mr, Guthrie. Tt is modiefied by the fourteenth amend ment, but the making of voters of the negro race adds their number to the total among whom the tax must be di- vided."
 Recurring to the question of illegal exceptions made by the law, MT. Guth- rie stated that the tremendous figures which he quoted yesterday were con tained in the census reports and were therefore official. The reports of the state of New York showed that the Mu- tual Insurance associations in that state alone possessed accumulations amount
 ing to over nine hundred millions of dollars, all of which were exempt under the law.
 Justice Brown had asked yesterday if congress did not have the power to exempt the property of religious, char itable and educational institutions, and MT. Guthrie had responded that counsel were not pressing that point in argu- ment-they had no objection to urge to such exceptions Discussing this point further to-day, he said they seriously doubted the power of congress to eX- empt these institutions. In the decade from 1860 to 1870 congress had steadily refused to make an exception in favor of them. "They are state institutions" he said, subject to its laws, and open
 ng their doors generally to residents of their respective states only. In the natter of exempting educational insti- tutions Texas and Nebraska andother western or southern states which have no great universities with immense ac- | eumulations of endowment funds, may | very well and properly object to law | which imposes an additional burden up- | on them in order that these institutions | of Massachusetts, Connecticut or New | York may go free"
 MT. Guthrie asserted that congress | could not select one class of corpora | tions in the states for taxation and | exempt others from the same tax. Neither could it tax, in the view of | himself and associate counsel the na tional franhcise or the right to do busi ness which the states grant to their citizens.
 In concluding MT. Guthrie said that thet was no plea here to limit or re- strict the taxing power of congress. We recognize" he said that it must be exercised without restraint. except | limitations. Let congress amend this act, apportioning direct taxes among the states and equalizing their application and none will more contribute to the national welfare than our clients. even if it takes all of the property
 The next speaker was MT. Clarence A. Seward, who also antagonized the of the law.
 Quoting the provisions of the con ;titution relating to the imposition of axes, MT. Seward said it was now about to be judicially determined whether the words in the constitution direct tax and direct taxes" within he intent of that instrument and of hose who made it the fundamental aw of the land, meant land tax only, ,r other taxes; and if other taxes, what ,nes. Direct taxes" he asserted, had been construed to be a aX not only on lands, but incomes IS well, within any interpretation of he constitution. In support of this MT Seward cited judicial de- isions in Europe and America lexi- ographers agree in thus defining the erm; and the information gathered by he state department shows that an Income tax is described in the laws of he countries imposing it as direct | ax. These come from many countries where the income tax prevailed, in luding England, which has imposed it ! ( ince 1434 and Austria, which had had | on it's statute books for the entire  "Whence is their origin" asked MT. eward, "of the doubt of this sub act?" Answering the question, he said 1t 'as due to the incorrect use of Alexan- CT Hamilton's remark as to the char cter of taxation. He had said that "it as presumed" that certain taxes were irect taxes; he did not give to that pre- F Imption his approval but it was all s avs quoted as Hamilton says" of Hamilton thinks" The suggestion or u resumption was twice rejected by the F 1urt to which it was first made. And lu ct, said MT Seward, the decision of |.