The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-09
FLAWS IN THE INCOME TAX LAW
Continued from First Page.)

Continued from First Page.)
Of last resort was more honored in the
breach thar in the observance. Their
only effect was to weaken the efficacy of
i1e opinion of the court. Justice White
SAID he should not speak to-day but for
the fact that the court had overruled and
4 SCI aside established precedents, and the
settled and uniform doctrine of the SUI
n fIeme court down to the present time. He
4 regretted that at this late day this court
4 should thus overthrow and nullify an act
4 81 congress, supported and affirmed by all
text writers and by every decision of the
4 Supreme court of the United States.
When the fathers constructed our form
Il o. government they gave il, not limited
put unlimited power TO levy taxes, with
1lt one exceptiOn-that of taxing exports.
me assertion that the constitutional pow
er Of congress was, limited was, he
4 thought, the fundamental error in the
Isasonlng of the majority of this court
me great question before the court was,
the income tax a direct tax That
question was practically decided 100 years
ago; and he did not deem 1t necessary
2 enter into an elaborate review Of
\ cases that had been decided.
In briefly reviewing the cases presented
. the court, he observed that the argu-
MentS made and the citations used IN TINS
case were the same as those brought
elt IN the Hyton case and now TINS
court was asked to again take up the
question adjudicated by unanimous
ourt 100 years ago,
Justice Harlan was of the opinion that
tax on gains, profits. and income de-
tlFed from rent of lands was not di-
H ecu tax, and that under numerous de-
elslons of this court the income derived
from municipal bonds was not the SUD
lect of specific taxation in any form by
me United States. In ether matters ne
was IN accord with Justice White.
At 2;95 o'clock the court concluded the
reading of the opinions.
Upon the question of the constitution
alty of the taxation of incomes from state
and municipal bonds the court was unani-
mously in the negative.
!. upon the question of taxation OF rents,
ue court stood as follows:
Anrmtng-Justices Harlan and Whlte.
Against the Law-Chief Justice Fuller,
SSps5tlees Field. Gray, Brewer, Brown ana
Upon the general question of the con-
sututionality of the law the court is said
70 De divided as follows:
pTror the Law-Justices Harlan, Brewer,
Brown and White.
Against the Law-Chief Justice Fuller,
justices Field. Gray and Shiras.
Inc President was informed of the in
ZONE tax decision shortly after 1t was
IIendered by the supreme court, and at
Ii.gJ o'clock he summoned Secretary Car
.sle TO the executive mansion, and the
Two discussed the matter for some time.
Dlher members of the cabinet dropped IN
Later, among them the Attorney General.
me decision was q disappointment, but
We administration will at once issue IN
sofuctions to collectors of internal revenue
70 conform to the ernasculated law.
Secretary Carlisle followed his well de-
nhed custom not to discuss the matter for
publication.
Attorney General Olney said the govern
-neht would not ask for a rehearing, but
mould accept the decision as rendered. He
c "as not surprised at that portion OF 1t eX-
tspung municipal and state bonds from
oSal-@edt9!on, but expressed the hope that the
ffb1 ~ Of rents might be brought before
Gu court in some other shape, when he
~ entteftalned the strong belief that the pres
e4t attitude of the court would be revised
sdidn me treasury department Assistant
ditidaetary Curtis declared that the con-
Ron r.,ion OF the treasury was good and the
eyrrelues amply sufficient to meet current
tbs oitInmissioner Miller and the officials oil
toriIl,g ONE tax division held a conference
H. tsht OF several hours duration, al
orjnti lleasury, discussing the bearing Of tbs
cbinao5nl on the present income tax ma.
necagsgg ln operation, and changing 1t when
Tbessairy to meet the changed conditions
lcstiee Instructions viii be ready for pub.
on tomorrow or next day.