Waterbury evening Democrat., 1895-04-11
WAR ON THE INCOME TAX
Railroad Stockholder Does Not Want His Dividends Taxed.
ANOTHER TEST SUIT IS BROUGHT.

Senator Hill Announces That He Will Re-
 new His Fight Against the Law as Soon as ConE<ess Assemblies Again - Judge
 Wilson Has Another Suit on Hand.
 NEW YORK, April lI.-Anothcr suit to test the conStitutionality of tho income tax law has been instituted in tho circuit court of the United States hero. It is an action in equity brought by Charles Allen of Grccnfield Mass. against the Illinois Central Railroad company ct al The counsel of tho complainant are Joseph H. Choate, Clarence \. Seward William D. Guthrie, David Wilcox and Charles Steclo.
 In his bill of complaint tho complain ant, after setting forth the organization of tho railroad company. tho amount of personal property held by it and other matters in relation thereto. declares that | he is informed that the company intends | to pay, under the provisions of the income tax law, a tax of ? PCT cent on all its net | profits and income for the year 1894. Tho bill then ayers that tho income tax | law is unconstitutional in that if said tax is collectible upon the company's income and profits it is direct tax in respect of the railway property, fixtures and ap- performances operated and Ownod by tho defendant company by being imposed upon the income and profits thereof. the same being real estate, and is likewise direct tax in respect of its personal prop | erty by being imposed upon the income and profits thereof, which direct taxes are not apportioncd among the several states, as required by tho constitution. Points Against the Law. It Is further avcrrcd that if tho income l tax l,o hold not to bo direct tax, then its l provisions arc ncvcrt hcless unconstitution- al in that they arc not uniform through out the United States, as required by the | constitution,
 The nonuniformity of the law is then pointed out at length. after which the bill declares that the exemption of mutual insurance companies. building and loan associations. savings banks, institutions constructed on tho mutual plan. etc. is | unconstitutional in that these exemptions operate to arbitrarily free said companies from tho payment of their just proportion | of taxation.
 Tho bill further scts forth that tho tax | is unconstitutional for the reason that it impairs vested property rights; that all l persons or corporations taxed may be de- | priVcd of their property without duo proc cSs of law, and that all persons or cor 1 porations taxed may bc compelled to pro ducc and disclose their private books and papers in order to make them liable for a penalty or tn forfeit their property, all of which Is against tho express terms of the constitution.
 Tho complainant therefore prays that tho defendants bo restrained from volun- tarily complying with the income tax law. and that ho be granted such other relief Rs the court may dCcm meot-
 Judge Wilson's Plan of Attack.
 WAsHINGToN, April l'.-Jcro Nj. Will son, counsel for Mir. John c. Moore oi New York city in his income tax suit, when asked rrgarding his intention tC | again test tho law, said:
 T It will bc essentially the old issue ovcl again except that it will be presented to a full bench, and the decision therefore will be decisive one way or the other The pur pose of the new suit will not be so much 10 raise new questions as to present tho samc questions for final adiudication Thcro is no doubt that tho law will b, passed on finally and dccisivcly sooner ol lator.''
 JudSc Wilson's purpose is to advanc, tho new case through Its preliminary stages in the lower courts while the su prcme court Is short full hcnch By tn, timc tho caSc Is ready for argument in tn, supreme court 1t is CxprCtCd thAt JuStiC, Jackson will tr sufficiently recovered tC permit him to return to tn" rench or tha his sucrrsSor will have qualified
 The income tax officials expect to com plcto their supplemental regulations tn day. All of the main points to be covered haVC been practically agreed upon. anC tonight the commissioner expects to pu them in proper form. There seems to b. no question that all taxes. whether state county or municipal or whether on per sonal or real property, except such as ar, intended to directly benefit the propert! taxed. such as street improvement taxes may be deducted from the income to b, returned.
 AS to rents from mixed property sucl as a furnished hotel. the commissione , will no doubt hold that the owner mus himself separate the taxable from th ] nontaxable and state the proportion O the rents derived from each. In making returns taxpayers will be required to spec ify in detail what the exemptions are including the amount of rents received and on what particular property.
 Senator Hill. in an interview here, said As soon as the 1lfty-fourth congress con vencS intend to offer bill in the senat to repeal the tax. I believe that the ac | tion of the supreme court has practicall emasculated the measure and has left 6 little in 1t to commend itself to the Amer ican people that congress will in short or der repeal the obnoxious measure iron l the statute books"