Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1895-05-09
Il o. ?

questions. contending that there were
the same reasons for ,cNemptlng in
and real estate.
In discussing the nature OF the direct
tax Mr. Chonte contended that there
has never been suggestion Of diff
ference between n tax on the body OF
real estate and the income from real
estate In the matter OF direction.
Further on Justice Harlan asked Mr..
Choate II he meant by q general tax
on personal property, a tax on all per-
sunal Ihoperty OF every kind,
mot Rll;" Mr. ChnntN replied. "bc-
cause / admit the right ~ exemption"
Justice Harlan; Does a tax law that
reaches only part OF personal pro-
perty come under that headinE2
Mr. Choate. In New York there is n
vast body OF personal property and the
government levles on the general body
Of citizens, except inmates Of tenement
houses, nearly onc-half OF ;he popula-
tlon; yet | call that general assess-
ment. Not excepting the exemption It
In tax that can not ID shifted and n
tax that can not be avoided, But the
question whether n tax ,pn real estate
can be shifted will TO political econ-
omsts with whom ! have no relations
and hope never to have relations
Mr. Choate looked at the attorney
general when he spoke OF political
economists and there was laughter,
rare demonstration In the supreme
court.
Justice Harlan asked n the counsel
would call tax on the Income OF bonds
direct tax that would have to be APP
portioned and upon receiving an
affirmative reply asked II the same was
true OF tax on banking,
Mr. Croate-That Is a business ana
this court has over and over again de-
cided that congress can tax business.
In discussing tho principle OF stare
decisis," which he defined AS the
highest rule Of standing by n former
decision whether right or wrong he
said that he was constrained to believe
| that two OF the justices had only con-
scented to the former decisions In de-
| ference to that principle
Your honors are sworn to obey the
| constitution rs the primal law. Every
act of congress stands In the Hight OF
| II or must fall. Must not every deula-
ion or this court that IS round to be In
| conflict with the constitution by the
! light OF the latest evidence and the
most complete Information also fnll1
Then Mr., Choate continued: RE
! Enrdlng the statement that former In
come taxes will have TO be paid back
] u tue COURT IfNtlNtN lilt springer Tultt
there is no Springer rule. / submit
that with such consequences AS TINT
your honors have nothing to do. II is
| not an argument addressed 10 u queH-
tlon of law or constitutionnltY a
moral argument, the attorney general
calls Il, call It an immoral one. The
idea of the attorney general standing
up here for the nation ana asking that
| because the government has collected
| l1I.pgaf1N In
must go on collecting money Illegally.
But II Will not be asked TO give back
dollar OF It,"
Mr.. Choate next considered the ox-
emptlons made IN the Income tax law
and In doing so made especial reference
to the mutual insurance companies 10
show the magnitude OF the operations
OF these companies. He could. he said
mention one company whose accumu-
lated property amounted TO $40, 600 900
An exemption such as this was beyond
all bounds OF reason.
do you know" he exclaimed. "whai
this concern If that is given the vast
advantage implied In this exemption
II goes under the reputable name OF
monled corporation. II Is a monlod
monster. II lives upon money II swal
lows money; II dlgests money. II breeds
money. II lays golden eggs by the
bucketful every day and then wenves
golden coins about them to warm ant
willy thom. II has as many arms N
there are states In the union and which
II Is constantly putting out In All dir
ections for the purpose OF raklng II
money. Nor are It's operations confined
extends to England and TO the Euro
pean countries and Is always raidni
In money"
Having obtained so much money, h,
said. the company relnvested II b.
forming trust companies. organizing
banks. building and reorganizing rail
, roads and floating government bonds
, Not only this, but II controlled con
, gress and directed legislation. as has
been confessed by the attorney general
Referring TO the exemptions Of In
4 comes Of less than 5000. he said tina
provision Of the law would eNclud
: the vast majority OF the incomes o
: the entire company. II would eremp
, nlnety-nine one-hundredths OF IN
. tradesmen Of the country and ma
I inrity OF tho professional men. Wit
/ this Mr. Choate closed that part a
his discourse directed 10 the questio
. Of lack OF uniformity ana took Mp IN
= last question under confederation, Va
A whether the entire law was rendero
= invalid by the decision declaring part
= Of II TO be so.
. Does Il follow" he asked, that b.
I cause the law has been left mutllatc
\ It should remain buried2' and b
I answered that It did. The instrumer
= had been left too long uninterred. ]
! It's present condition II shocks III
: sensibnlties. He said the rule wa
e that when parts Of a law upon while
!. other parts. or the whole Of II wei
/. dependent are declared invalid. III
s dependent parts must also share N
same fate and he contended that by u
g former decision Of the court the Il
I come tax law had been robbed OF 4
8 body substance
e Mr.. choate shipped abruptly. and
Il ? o'clock the court announced an IN
a mediate adjournment unt.i u 0'eioc
d Monday. May 20.