The record-union., 1895-03-14
Conclusion of the Argument Oh
Its COnstitutiOnality.
DESTRUCTIVE FIRES IN KANSAS CITY
AND NEW YORK.
and Workshop of ElectrI-
clan Tesla Utterly Destroyed. Caus-
ing Serious Loss to the Great In
ventor-Three Hundred Thousand
Dollars Worth of Property Burned
In Kansas City.
) Special to the REcoRD-UN1ox.

WASHIN GTON, March 13.-At the OPEN
ing of the session of the Supreme Court
Mr.. Choate resumed his argument about
the cons.itutionality of the income tax.
The inevitable income of all accumulated
property, whether the rent of land or the
interest on land, is, he claimed, neces-
sarily the subject of direct taxation, and
of no other. He hoped to establish this
fact, and to further show that such tax
was subject to the rule of ap-
portionment. Whatever else was not in
cluded in the direct tax, certainly real
estate was included. There had been
universal assent to this proposition, and
he would take this as the basis of his first
step.
He controverted the proposition that
this case was to apply only to improved
land, but contended that the application
was to all property designated as real
estate. He followed this argument, with
the assertion that the income from the
rent of real estate was indistinguishab Die
from the tax on real estate itself, and
combated the position OF the Attorney
General that the income from rent after
1t enters the pocket is money, and is to be
considered as such. For that matter, any
tax on land was on the substance, and in
eject a tax Oh ltS rental.
Returning to the position of the Attor-
ney-General that the proceeds were not
rentals, but money in the pocket, he de-
clared that it was a distinction without a
difference, and was a fiction which had
been stamped upon by the court with all
its might, and quoted precedents to sus-
tain their disposition. Furthermore, he
controverted the right to tax money sin
the pocket as taxation on personal
property.
Mr.. Choate contended that in exchange
for the surrender by States of the power
to collect duties, imposts and excise, the
General Government had necessarily con-
ceded the protection of all men in their
equality before the law, and the rule of
uniformity must be observed. This rule
had been observed without exception by
Congress in all Tariff Acts
Justice White here asked if the observ-
ance of this rule would not destroy all
specific duties.
Choate thought not. and he also dis
sented from suggestion that a difference
was made IN taxing men OF different de-
grees OF wealth. He declared that the
construction put upon the word "uni-
formlty" by the opposition counsel was
mostly of Jacobin Club or Car of
Russia, who proposed to resign without
restraint. Such construction would in
volve direct violation of the Constitu-
40 help for 1t if mistake had been made
IN the law, but Choste contended that the
court was here for the purpose of proffer-
ing help IN such cases. NO wonder"
he said, 'the President after ten days
dellberatlon, could refuse to put his name
TO the bill. No wonder the President
and Secretary of the Treasury refused to
indorSe it.'
"Do you," asked Justice Harlan, ''dis-
pute the validity of any exemption?"
Mr.. Choate replied that he did not, but
without explaining his reply, took up
the denial by the law of any exemption
to corporations, contending for uni
formity tn the treatment of corporations
and individual persons. Mr.. Choate
characterized as "capricious" the ex-
emptlon OF the property of schools
churches and similar institutions, as we'll
as the savings banks, loan associations
and mutual insurance companies, and
said that far harsher term would be
justified. "Is it just, for instance. to tax
the people of Colorado and Nebraska for
the support of Trinity Church or Column
bia College of New York ?''
referring to the other exceptions, he
said that Mr.. Vanderbilt or Mr., Astor
could put all their money into a savings
bank, and thereby escape taxation under
the law. why" he exclaimed, sit
looks as If there were a job in it,"
Mr.. Choate quoted from official records
to show the enormous extent of the busi-
ness done by the mutual companies, de-
claring that there were no institutions in
the land which were more noted grabbers
for and hoarders of money than these
mutual companies.
At O'Clock Mr.. Choate reached his
peroration. He did not believe, he said,
any member of the court hadi ever sat in a
case, or that any of them would ever live
long enough to hear case of more vital
consequence to the people of the country,
The question involved was whether we
could rely upon the guarantee given us
by the fathers of the Constitution, and
under which the nation had so far, in its
history, prospered. 1t was one OF the
utmost Importance to the future welfare
of the country that the court should see if
it has the power to decide such questions,
and if it finds that it has it should exer-
else 1t 10 put a stop to such legislation as
this. Nothing now remains but for the
court to determine the validity of the in
come tax.