The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-04-11
Suit 10 Have Such Revenue De-
clared Untaxable.
NEW INCOME TAX REGULATIONS
Report That the Olympia and Mon-
terey are Going Ia Nicaragua.
80 That England. When She Goes 10
Collect Her Bill. VIII fse IonffS,nted
ny the Guns OF the Monroe Doctrine
England Surprised at Cleyeland's
UnfriendlineSs.

New York. Apra ia--Another sait "a
contest the oonstitaYssonalay OF The In
come TAX has been anStiafte.t in the cir
cult court here. It IS an action an eQNssy
hrclght by Charles Allen. OF GreeDsiSid.
Mass, againsl the Illinois Central Ra%-
road Company et al. Ia hss hlil a COM
plain; the complainant. after setsing soE4a
the organization of che railroad company.
the amount ~ personal property held by
II and other matters in relation Sheretsi.
declares that he IS informed that the
company intends ii pay under me pro
visions Of the income TAX law a tax ~
per cent. On all 4ts net profits and Anooena
for the year 1851
The nlll then AYERS tha. the incone. tax
lsw IS Unconstitutional in eAaf " said
tax Is coaieclihie upon the complny's in
come and presits Il Is a direct TAX IN re-
spect % the railway property. dNtAires
and Sppurtenances operated and owned
by the defendant company ny hssns fm-
posed upon the income and profits there
OF. ne same being rial eSsAte. and Ike
wise a a!r>ct tax In resaS.~e q 6s per-
Soasl property. ny be!ng imposed upon
the income and profits, which direct taxes
are not appor soned among ghe sevefal
states as required by the constitution
of the Cns;ed E,A,es.
The non-unsflrmaty OF the law IS then
poinsed out al length. after which the
surance companies, savings banks and In
se9tutions conStrucled on the mutual
plan, etc. is unconstitutional In that
these exemptions operate 70 arbitrarily
free SAID companies from the payment
of their Just proportion OF Ha&atAsn- The
bill further sets Forth that the TAX Is un-
constitutional for the reason that Il tin-
pairs vested property rights. The con-
plainant therefore prays that the de-
PENDANTS be restrained from voluntarily
complying with the income tax Law. and
that he he granted such other relief as
the court may deem meet
Washington city. April i0.--Interna-
tional revenue officials are busy unravei-
ing the intricacies involved in the SUI
preme court Income tax decision. Tho
words Income" and rent as used In
paragraph Z of the courts conclusions
will he held TO he synonymous. and there
fore exemptions on account OF rent Will
be accepted only when they are actual
returns received by tho landlords for tho
use of his property. Insurance. taxes
and ordinary repairs of rented property
viii probably be permitted 10 be deducted
from incomes before making returns.
Aside from tho exemption Of interest on
state and municipal bonds. these are be-
lieved to be nearly all the changes af-
fected by the supreme court decision.
Commissioner Miller hopes TO have the
supplemental regulations ready tomorrow.
There seems 10 be no question that all
taxes. whether State, county or nainicl-
Ial.or whether on personal or real prop
erty. except such as are intended 10 d.
rectly benefit the pTuperty taxed, such
street Improvement taxes. may he de-
Quoted from the income tax to be re-
turned. As 10 rents from mixed prop
orty. such as furnished hotei. tho COM
missioner will doubt hold that tho
owner must himself separate the taxable
from the non~taxable. and state the pro-
portion or the rents derived from each.
In making returns, taxpayers viii DO
obliged 10 state In detail what she ex-
cnpfions .are, including the amount "
rents received and on mhat gar9icular
property.