Birmingham age-herald., 1895-04-16
TRIES A KNOCKOUT BLOW The Income Tax Law AssaiIed at
 Every Point BY A CHICAGO LAWYER In Behalf of His Clients, Corporation of the
 Lake City,
"T IS NOT A UNIFORM TAX,
And the Changes Are Rung From Dimuen- do to Crescendo of the Legal Gamut. Restraining Order Issued-His Hopes
 Are in the Full Bench.

C01cdRO, Apr1l 10.-JuuSe OHoWdileF Ol the United States court this morning en- joined Seige Cooper & Co. from making any return to the internal revenue col lected under the provisions of the income tax law. The restraining order was granted on bill filed by Gerzon Siegel, : one of the New York stockholders in the defendant corporation. The bill attacks the law, and under the order granted this morning, the government will be com pelled to take part in the proceedings to defend the operation of the new law.
 When the attorney for MT. Siegel pre- sented the bill to Judge Showalter, the latter asked for an explanation for the ap- plication. This is the last day for the re- turn of the income tax to the collector of thermal revenue" said the attorney. My client protsets against his firm mak ing any payment of the income tax or any report. He maintains that the bill in it's entirety is unconstitutional. All we ask is for an order restraining the firm of Siegel, Cooper & Go. from making it's return today. If not granted the firm would be liable to an imposition of 5000 fine for failing to make the return"
 Judge Showalter took the application, and after reading it made the restraining order. A bond of $4000 will be filed to- day.
 By the issuance of the order of the court the firm escapes the payment Of the fine, should the supreme court. to which the question will be carried. decide against the complainant.
 MT. Seigel in his bill raises all of the questions that are involved in the in- come tax dispute, including those decided by the supreme court of the United States last week. The grounds of the unconstitutionality of the act are set forth in the following order:
 ''The provisions of the income tax are unconstitutional, null and void, and if collectible upon the defendants income or profits it is direct tax. in respect to real estate and in respect to its personal property, by levying an impost upon the profits and income thereof, which direct taxes are not in and by said act appor- tioned among the several states, as re- quired by the constitution Of the United States.
 sIf not direct tax the tax is not uni form as required by the constitution. The profits of many corporations amount to less than $4000, and said tax is imposed upon such corporations, although in dividuals carrying on ands transacting similar business under like conditions, and having like property values and quantities and incomes. are exempted by the act from the power of said tax.
 The tax is not uniform, because your orator has an annual income, and, as he is informed, numerous holders of stock in corporations likewise have annual in comes of less than $4000, and the effect of such payment would be to lessen and di- minish the dividends of such stockhod- CTS and compel them to bear and pay the tax, although other parties of the same class, similarly situated, whose in come is less than the $4000, are exempted.
 Tt is not uniform. in that it is inn posed upon l per cent of the population of the United States, and the other 90 y4A mt al al oh fbaxy hold among themselves the greater part of all property, real and personal, in the United States.
 Tt is not uniform, in that a tax of 2 per cent is imposed on all incomes ac- Quired by gift or inheritance, while no similar tax is imposed on real estate acquired under conditions similar thereto.
 Tt is not uniform tax, in that it ex empts from it's operations all mutual in wealth is s1.200.000. GOO. and imposes the tax upon all other insurance companies. It exempts building and loan associa- tions, whose aggregate holdings are $62S- O00, 900, and such as certainly are pri- vate in their nature. Savings banks op- erated on the mutual plan are cx- empted from the operation of the tax. whose aggregate deposits are $l,I4S,000,- 900, while all other savings banks are taxed.
 '''Ihe income ldX iS iOl uiilOi Ill., pS cause 1t varies according as the property belongs to an individual or to more than one individual. 'HThe tax is unconstitutional, in that it imposes a tax upon property rights es- tablished prior to the passage of the saia act, and it deprives persons of their property without due process of law"
 MT. SiegePs attorney said that it was intended to test the entire act before the supreme court :,
 That part of the act which remains iI! force" said he, lis due to a divided court. and is the opinion of the court bei low. Had the opinion of the court below entire act the division of the supreme court would have caused the law to fail. By bringing the matter up again we may get an opinion from the supreme court :" As General Black the United States district attorney, is out of the city and will not return for some days, no action will be taken in calling up the issue for hearing until next Monday.