The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-05-09

Washington. May S.-The rehearing
of the income tax case in the supreme
court was concluded at o'clock to-
day, and the nine justices took the
question of the acts constitutionality
in whole. or in part. under considera-
ton. On the 2Cth of this month. the
court will meet. probably for the last
time this term. to render its decisions
in pending cases, and it is expected it's
conclusions upon the income tax case
will be announced at that time.
Justice jackson Interested.
Mr.. Joseph H. Choate. of New York.
finished the closing argument, which
he began yesterday. speaking until
o'clock, and receiving the closest at
tention from the justices and a crowd
of spectators 1t has been generally re-
marked that interest in the hearing
had been much less intense than at
| the first argument. Justice Jackson was
one of the most attentive of the nine
men on the bench throughout the near
| ing and seems to have borne the strain
WELL idering the condition of his
health.
Mr.. Choare first took up for examina-
ton the argument of the Attorney gem
| eral that if the descision in regard to
/ rentals was to stand, there should be
no limit to the time the exemption
/ had pleaded that with such a ruling in
force. it might be impossible 70 ever
| tax the proceeds derived from rents,
| however. they might be invested. Mr..
/ Choate said in reply that it was suffi-
Gent that the law left no such ques-
/ ton open. The provision was for tax
! ing rents at the moment of their re-
! ceipt, and he, for one. should not be
SO foolhardy as to claim that when the
rent money should be invested it should
not be subject to the original ruling in
court in this case.
Mn. Choate contended that OF the vast
sum expended in the civil war. a
very small proportion had been de-
rived from the income tax. which was
in operation at that time.
Taking up the thread of his afirma-
tive argument, Mr.. ChOate declared the
question of taxation had been one OF
the most prominent in the minds of the
trainers Of the constitution. The men,
berS of that body were the representa-
tives of men who knew all about the
question, for they had studied it here
as their ancestors had in England IN
der the Planta genetS, the StUaTtS
and Tudors.
Harlan Interrupts.
Mr.. Choate then proceeded on the
basis that the court had decided that
lands were to be free from direct taxes,
and that there was to be no difference
for tax purposes between the BODY III
the land an5 its proceeds. He then
entered upon the discussion Of the I'M
decided questions. contending there
were the same reasons for eXemptins
incomes that existed for exempting
bonds and real estate.
Justice Harrison asked Mr.. Choate If
he meant by general tax on personal
property a tax on all personal property
Of every kind.
Not ALL" Mr. Choate replied. be
cause / admit the right of exemption"
Justice Harlan-doeS tax law that
reaches only a part of personal pro-
perty come under that heading?
Mr.. Choate-In New York there is q
vast body of citizens exenpt-inmates
Of tenement houses, nearly one-half of
the population, yet I call that a general
assessment, not excepting the exemp-
ton 1t is a tax that cannot be
shifted and a tax that cannot be
avoided. But the question whether n
tax on real estate can be shifted, ]
VIII leave TO political economists. with
whom have no relations and hope
never to have relation.
Then They Laughed.
Mr.. Choate looked at the attorney
general when he spoke of poll
teal economists, and there was
laughter, a rare demonstra ton in tho
supreme court.
Justice Harlan asked if the Counsel
would call tax on the income of
bonds a direct tax that would have to
be apportioned, and upon receiving an
Affirmative answer asked if the same
were true of a tax on banking
Mr.. Choate answered: THAT is a
business and this court has over and
over again decided that Congress can
tax a business.
In discussing the principle of stare
dcisis, which he defined as the rule of
standing by a former decision,
whether right or wrong he said he
was constrained to believe two of the
justices had only consented to the
former decisions in Difference to that
principle.
Your honors are sworn to obey the
constitution as the primal law. Ev-
cry act of Congress stands in the light
of it or must fall.
Must not every decision of this
court that is found to be in conflict
with the constitution by the light Of
the latest evidence and the most COM
plete information also stand or fall?
Then Mr.. Choate continued. Re
garding the statement that former in
come taxes will have to be paid back
If the court reverses the Springer
rule; submit that with consequences
your honors have nothing to do. That
is not an argument addressed to a
question of law or consHtutionality.
A moral argument the attorney-gen-
eral calls it. I call it an immoral one;
the idea of the attornev-geleral stand
ing up here for the nation and asking
that because the government has col
lected much money illegally in the
past it must so on collecting money
illegally
Exceptions Made.
Mr.. Choate next considered the ex-
ceptions made in the income tax law.
and in doing so made special reference
to the mutual insurance companies as
going to show the magnitude of the
operations of those companies. He