The times. [volume] (Richmond, Va.) 1890-1903, 1895-05-07
The INCOME TAX CASES AGAIN
Rearsument Begun Before Full Compile
melt Of Justices on The Bench.
Mr.. GUTHRIE OPENS The ARGUMENT.
He Contends That Direct Taxes Include
Personal Property-Two Arguipents to
be Heard on Each side-Distiu-
guished Personages Present.

the Supreme Court Of the United states
to-day i'm the presence OF an assemblage
of law and laity that. as on the occa-
sion Of the original argument. more than
exhausted the accommodations OF the
small chamber in which II vas heard.
For the first time since last November
there was full C., implement Of justices
on the bench. and all nine of tho large
lcather-coverod arm-chairs behind the
cosk that separated the court from the
spectators were occupied. Mr.. Justice
jackson. the youngest member Of the
court save one was at tho extreme right
of the chief Justice. ani was naturally
the ol served Of all observers. lie took
an active interest i'm the proceedings.
and there was apparently nothing 10
warrant the expectation that be might
not be able TO undergo the fatigue OIL
the hearing.
SOME or THOSE rRFsTSr.
Among those present in the courtroom
were the various counsel engaged iu the
case or interested in the result Messrs-
joseph II. CbOat. cX-Secrctary Is. i.
Bristow. Clarence 4. Seward, William ID.
]
Samuel Snellabarger Attorney-Gennal
Olnov. ard Assistants Whitney. Dichn-
son. and Conrad, Representative McNil-
lin. author Of the income-taX law. SEN
at1r Mitchell. Of oregon, Hon. John A.
KdsfOn. Of Iowa; cX-Spcaker crisp, VINO
is I'm the city on his way home from
visit TO New York. cX-Postmastef-Fcne-
raj Don NJ Dickinson, Richard aisch
Glider and mary ladies. who have from
tf 4 DO u HrIf. D.
the case. The beginning of the argument
was preceded by the announcement OF
opinions ih several cases none of tnem'
with POSSIBLY a single exception Of gene
raj interest or Importance.
THE ARGUMENT BEGINs.
This occupied forty minutes. SO that
Il was well on towards 1 o'clock when
W. -. Guthrie opened the argument for
the petitioners. Messrs Hyde and Pol
lock. who seek 10 enjoin the directors
of the Farmers Loan and Trust Company
and the Continental Trust Company or
New York from paying the tax ON dVi-
dcnds declared on the stock OF those
corporations. and in 30 doing attack the
Constituuonality OF the law.
TWO ARGUMENTS FOR EACH sIDr.
The chief Justice said: I'm these cases
appellants made application for "a rc-
hearing as 10 those propositions upon
which the court was equally divided
wheroupon the Attouey-GenCral present.
cd suggestion that ~ any rehearing
were granted. Dc should embrace the
whole case. Trcauns this ugeesron AS
amounting i'm itself TO an application for
"a rehcaring and not desiring TO restrict
the scope of the argument We set down
both applications 90 bee heard to-day be-
fore fun bench. which the anticipated
presence Of our brother Jackson, happily
realized, enabled Us TO do. No further
argument Will be desired We were
obliged. however. 10 limit the number of
counsel TO two on each side. but as TO
the time We await the suggestions of
counsel. AttOmey-General Olncy yielded
10 Mr.. Choate who said that he believed
five hours would be sufficient for their
side OF the case"
The chief justice announced the court
would grant so much. counsel for the
Government of course. 10 occupy the
same amount of time.
j. NJ. Wilson. o., counsel for John q.
Moore. who sued in the courts OF the
District o.. Columbia for an Injunction
restraining I'm; srnal Revenue Commission
or Miller from executing the law asked
permission 10 file an additional brief iu
that case which has not yet been de-
cidcd by the supreme Court.
Mr. GUIHmL's ARGUMENT.
I'm submitting the petition for a re-
hearing. Mr.. Guthrie said the appellants
invited and faced The criticism OF many
of the opponents OF the income tax. who
saw In the opinion decision in favor. in
part. al least. of those who denied the
legality Of the act. Counsel felt that "a
great constitutional controversy ought not
10 be permitted 20 transform itself into
test OF shrewdness. 10 was their duty
TO bring about as speedily as possible
hnal end 20 AN these controversies that
must onsuc. If the decision continues
20 stand as that Of divided court There
was doubt not so much as 90 whether
Congress had the power to tax. but as
TO its methods OF taxation. The decision
in this case should settle finally and
forever the grct est constitutional qucs-
tiOn ever brought before the court. and
counsel took t upon themselves 20 see
that the decision should not be under
mined.
Mr. Guthrie then called the attention OF
the court 10 The instances where pcr-
sonal property was particularly referred
10. in oder 10 show the court that the
people understood that taxes on personal
~ were included In the term direct
taxes" Marshall I'm the Virginia con-
vention. explained the term direct tax
es" when he said. "The objects OF de
rect taxes are well understood. they are
but few-lands. slaves. stock Of all kinds.
and a few other articles OF domestic
property
As TO PERSONAL PROPERTY.
Mr. Guthrie also quoted from debates IN
the conventions In North Carolina. New
York. Massachusetts, Rhode Island. etc,
10 show that the people did not under
stand or consider that the word direct
in the Constitution applied TO the corpo-
ration taxes and taxes on land.
Since the argument counsel had dis
covered two instanccs-one in Massachu-
setts and one in Pennsylvania-where in
a law the term, direct taxes was used
and defined. In view OF this proof, counsel
earnestly submitted 10 the Court that II
was clearly The intention and understand
ing of the trainers OF the constitution
and of the people who voted 10 adopt IL
that the term. direct taxes included
tax upon personal property ana us IN
comes as we'll as a tax OF land ana IT.
come derived from its ownership NO
difference i'm principle between the tax
ations Of land and the taxation OF per-
sonal property could be suggested which
was recognized In Jurisprudence Lana
had some use irrespective or us income
hut The great body Of personal property
had no value whatever TO It's owner eN-
cert hv reason Of the income arising
therefrom. Logically. II taxes on rents.
issues. and profit of rea. estate are equiv
alent to taxes on the land itself and
therefore. direct taxes. taxes on the In
come Of nersonal property, as such. must