The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-05-21

A Little Chapter In History.

In our opinion, the conclusion reached
yesterday respecting the income tax Is
one that ought to heighten the respect
of American citizens for the supreme
court Of the United States. The court
listened with it's wonted patience to
the argument involving the validity OF
this tax and. having once heard the
case. II went over all the ground
second time. in order that It's findings
might be the ultimate decree OF fun
bench. There always was serious ques-
ton as to the constitutionality OF the
income tax; 1t was imposed during the
period of the war of the rebellion, but
the exigencies of the government were
recognized by a loyal people at that
time-they recognized the tax as war
measure, and let 1t go at that.
Mr.. Wilson's committee knew that
there was question as to the constitu-
tionality of this tax when he made 1t
a part Of his bill: he probably thought
that nobody would fight. On grounds
not relating especially to the constitu-
tional issue, the Standard earnestly OPP
posed the income tax at the time when
the Wilson bill was pending. Those
grounds need not be gone over again;
the income tax is a bad tax. unfair In
its operation: and that 1t Is completely
knocked out on constitutional grounds
is a good thing.
A tax on real estate Is a direct tax;
the court holds that tax on incomes
from real estate is likewise direct
tax. That the tax on real estate Is a
direct tax has always been held by the
supreme court. CThe Standard refers
those whom this question interests to
the discussion of 1t in Pomeroy's
constitutional Law and to the au-
thorities there quoted)
The court had before IL the first SEN
tence In the third section of article
first of the constitution. which reads:
Representatives and direct taxes shall
be apportioned among the several
states which may be included within
this union according to their respect
i've numbers" which means OF course
that representatives and direct taxes
shall be apportioned according to pop.
ulation. The article OF the constitution
from which we have quoted concerns
the organization of the congress-tht
words land direct taxes" seem out OF
place there. In fact. they are essential
ly out of place. they are there in wit
ness of one OF the compromises which
the trainers of our constitution had e
make.
In the convention It had been agreed
that the states, large or small, rich OF
poor, should have equal representation
In the senate. Each member of tn,
house was to have a vote. and tn,
small states were bent on getting {
generous share In the membership. TIL
large states resisted equality OF rep
resentation for all states. Then tn
slave came into view; the slave-hold
ing states insisted on a representatio,
according TO the number OF inhabi
tants, whether bond or free: the othe
states contended for the representation
of free persons only. During the con
troversy over this matter the conven
ton was in imminent risk of going Z
pieces. Finally. those famous word
"all other persons" found their wa
into the constitution.
It was agreed that three-fifths of tn
number OF slaves be added to the mum
Der Of free persons as the basis of rer
resentation. AS an offset. II was agree
that direct taxes OF the federal gov
eminent should be levied on the sam
basis, thus exempting two-thirds OF I'll
slaves, "all other persons" namel,
from a direct tax which their owne
must pay. With this agreed upon. III
work of framing the constitution wa
saved from wreck. AS far as the ia
was concerned. the compromise nevs
amounted to much: direct tax was a
most never fevied-not more than thrs
times, we believe. In the first sevent
years of the government. But II
other end Of the compromise was /,
account-it gave TO the South fro
twenty-five TO thirty more congress
men tina could have had seats und'
an enumeration confined 20 free pc
sons
Not 70 digress too far. however. o,
day has brought the supreme court
the place where. for the first time.
was called upon to say whether Il
income tax Is a direct tax. All a
textbooks on political economy ella
this tax as direct But the text-bool
have nothing 20 do with Il
supreme court of the United State
There was a time when. in an incide
tai way. some of the members OF q
supreme court ranked the income Z