The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-08

appellants. he appeared especially for
cases against the Farmers and Continental
Trust Companies of New York, from the
peals for the Southern district of New
York Ar. Guthrie devoted himself to an
made by the he counsel l'eife for the appellants
ana q had not concluded when the court, at
o'clock, adjourned for the day.
Mr.. Guthrie stated that they would de-
pend principally on showing that the pres
ent income tax law is unconstitutional be-
at length from the provisions of the law
TO show that the tax is not uniform con-
the Constitution to levy a tax, daty, excise
or import which was variable or lacking
m uniformity IS to individuals or corpora,
tons. because 1t was the fundsmentel
rule that burdens in these respects should
be equal upon all alike. Mr.. Guthrie said
tie two cases against the trust companies
we're very similar, but that he would de-
vote himself principally to the Pollock case.
Inc interests involved were greater tnan @
ducts an immense business. its business IS
one which might be carried on as well by
pany, in which case it would be exempt
under the law from the income tax He
sSs SAD that Mr. Pollock Was ar hsa Of m
mnsn during the past ssoo year. subject g tne
represents rents of real estate and about
s69,6O0 investments in municipal bonds,
which latter investment could not, he
claimed, be taxed under a former decision
of the Supreme Court.
Mr.. Guthrie asserted that the provision
$1,000 would cause it to fall on less than
per cent. of the population of the United
ae aso ha the aS
was not uniform as regards corporations,
of which favored class were exempted.
and building associations, as well as part
nerships and religious and benevolent
lastueions of ehmrches AS benevoiet coneerns
etc, counsel would haye nothing to say,
as as there was % enough s IN 1ne n f
interest of shareholders, though called by
another name, to afford sufficient text for
AS illustrative Of the effect of the opera
ton OF the law, Mr.. Guthrie pointed out
ing ing an m income neon go Of 5000 would pay $50 tax
willis cooperation would h be IL, required es scad 20
doing a business amounting to $4,000 year,
which would be required to pay no tax
persons would be compelled to pay $500. In
q word. he said. the application OF the
Ths aw o,noratian woru Vas oniy an aggregaton
of individuals and in most corporations a
part at least of the. stock was owned by
Referring to the exemption made in the
interests of mutual insurance companies,
he asserted that in the United States there
were 1900 such companies and that of
these 1.6oo were doing business on the
alone the wording of the act exempting
such companies would relieve thousand
million dollars worth Of property 1s0m its
company would secure the benefit OF an
exemption on its income amounting to
on the stock plan, would have to pay its
income tax This advantage was given in
the law. he, asserted, simply because some n
mutual company Mr. Guthrie dwelt or tho
exemption in the. interest of the building
and loan associations. who were, he .. said, I'd,
relieved of the annual payment of S60Q,O00
aId whose assets, it has been asserted,
of all the national banks. All that men
would have to DO to evade the re; operaitloIns
Mr.. Guthrie argued that If the present law
should be held to be constitutional, Con-
the imports of individuals and of so per
cent. on those of corporations or if the
could as easily reverse the processes and
favor the corporations. The principle
Ge the at a said He s0ag
say Thus far shalt thou go and no further
II the power to discriminate exists the
power to destroy also exists He argued
that even the mutual companies and other
favored classes would not be secure, for
they and the benevolent associations might
become powerful under the favoritism
shown that Cong gresS would next turn on
them. He declared, therefore, that the
power of Congress to make exemptions
should be restricted
Taking up the provisions of the Constitu-
ton requiring uniformity in levyng imports,
taxes, etc, he refuted the argument that
the word uniformity was meant to have
geographical application to prevent dis
crnination in favor of one State as against
another, but contended that it was meant
to secure equality of taxation.
The present arrangement fer the con-
tinuation of the argument is for Mr.. Seward
to follow Mr.. Guthrie behalf of the
appellants and for Attorney-general Whit
ney to speak next for the government, to
be, followed by ex-senator Edmunds, who
will represent Mr.. Moore in his suit for
an injunction against Commission OF
Internal Revenue Miller Mr.. j. G.. Carter
will follow for the trust companies and
Joseph H. Choate will close for Pollock
and Hyde, but this order of procedure
lis argument at L O'Clock tomorrow.