The Wichita daily eagle., 1895-05-21
DECLARED NO LAW
INCOME TAX Law RECEIVES THE
STROKE OF MERCY.

INCOME TAX LAW RECEIVES THE
STROKE OF MERCY.
Supreme Court by a Vote of Five to Four
Declares the Law Unconstitutional
Justice jackson Hands in One of the
-Four Dissenting OpInions--Judge Shiras
Believed to be the One Who Changed
His vote--Law AnnuIled in Toto--Opin-
ions Of Justices Harlan and White Al
most Attacks on the Ma aiority.
Washington, May 20-The income
tax law which has received so large a
share of the public attention since the
beginning of the first regular session
Of the Fifty-third congress, is a thing
of the past. After being twice heard in
the United States supreme court, it
was finally decided today, by the court,
to be invalid and unconstitutional.
There were four dissenting opinions de-
Hvered in these cases today, one each
by justices Harlan, Brown, Jackson
and White, showing that the court had
stood 5to 4 against the law. Inasmuch
as one of these dissenting opinions was
handed down by Justice Jackson, and
as he was absent at the first hearing
when the court divided evenly on the
question of sustaining the law on all
points except those as to the tax on in
comes from rents and bonds. it follows
that one of the members of the court
who al first pronounced for the law, ex-
cept on those two points, changed his
attitude after the second argument.
There is very little question that JUS
tice Shiras is the justice who changed
his views on those points. He made
no announcement either today or when
the first opinion was delivered, as to
his opinion. While the opinion of the
justice was largely a review of the
general aspects Of the questions in
volved, he based the opinion Of the
court today upon the argument that
the provisions OF the law regarding the
tax on rents and bonds were so es-
sentially factor of it as to render all
other parts of it dependent on them
and in accordance with the well know
rule of law bearing on this question. the
law as a whole must be declared in
valid.
MINORITY OPINIONS.
The opinions of Justices Harlan and
White Were concluded in language so
vigorous and were so empha tic in their
arrignment Of the majority as to cause
very general comment. Both justices
indicated their belief that the ruling
opinion was revolutionary and init
mated that serious consequences might
enSue. Justice Harlan suggested the
necessity for amendig the constitution
in view Of the opinion.
The court room was packed during
the entire three hours when the opin-
ions were being delivered
The unexpected event of the day was
the appearance of Justice jackson
He had announced after casting his
vote last Saturday week that he would
return on the following Monday to
Tennessee, but il appears that instead
he went to Philadelphia to consult a
specialist on internal diseases. He left
the bench Immediately after delivering
his opinion today and 1t is understood
will now proceed south. He delivered
his opinion from notes.
1t should probably be stated that
while the cases in which these opinions
were delivered are uniformly cahacter-
lied as the income tax cases. they are
known on the court docket as the
cases of Charles Pollock VS. the Farm
ers' Loan and Trust comapny and
Louis H Hyde VS.. the Continental
Trust company of New York, both ap-
pealed from the circuit court of the
United States for the southern district
of New York
DECISIONS SUMMARIZED.
Immediately on the convening OF the
supreme court Chief Justice Fuller to-
day read the income tax opinion. The
fact that he read it was generally ac-
cepted as conclusive that the law
would be knocked out in toto.
Tho conclusion of The cOuTf
follows:
First-We adhere 10 the opinion al
ready announced that taxes on real es-
tate being indisputably direct taxes so
the taxes on the rents or incomes of
real estate are equally direct taxes.
Second-We are of the opinion that
taxes on personal property or on the in
come of personal property are likewise
direct taxes.
Third-The tax imposed by sections
81 TO 81 inclusive, OF the act of 1894, so
far as it falls on the income of real
estate and on personal property. being
direct tax within the meaning of the
constitution. is therefore unconstitu-
tional and not apportioned according
to representation. and all those sec
tions. containing one entire scheme of
taxation, are necessarily invalid.
DEGREES hereinbefore entered in this
court will be vacated.
DEGREES below will be reversed and
cases remanded with instructions to
grant the relief prayed.
Sections % 10 81 of the tariff act Of
1894 referred to in the conclusions Of
the court in its opinion. are all of the
sections of the act relating to the IN
come tax law and are declared void
specifically.
The vote resulted in five against the
constitutionai;ty Of the law to four for
the law. Those against the law were
Chief Justice Fuller and Justices Field.
Gray. Brewer and Shiras. For the
law, Justices Harlan, White, Brown
and Jackson.
DIRECT TAXATION PROHIBITED
On the point Of the prohibition of di-