The Anaconda standard., 1895-04-10
THE THING is MIXED UP
MORE TEST CASES TO BEGIN
Great Reduction In the Revenues Of
the Treasury-Attorney Wilson's
Statement-comme OF the
English Press.

the supreme court yesterday in the in
come tax case has plunged the internal
revenue officials into almost inexplicable
mysteries and trouble.
The more tho decision Is studied the
greater seem the difficulties attending
clear understanding of it's scope. The
declarations that rents and incomes from
real estate are exempted has opened up
the question whether the effect OF tho de-
cision is not to include all profits OF what
ever character growing out of real estate,
including farm products, timber, coal,
and all mine products, within the exempt
class.
Whether losses sustained through bad
rent debts, and amount of expenses in
CURED collecting rents, or for repairs on
houses, are to be deducted from incomes
| is also a mooted question. Under the de-
cision rents are not to bc included In as
sessing the income tax.
Supposed, it is asked, a mans income
| is of mixed character, that is from real
and personal property; il the former is
exempt, can he deduct the expenses ne
cessary for the collection of his income
| from realty from his income from per-
sonal property, before making return.
The question is puzzling the revenue
collectors, and legal opinion on the point
will probably be sought. Another grave
question raised by the decision is whether
roadbed, round houses, stations, etc., OF
railroads are real estate or personal prop
erty within the meaning of the law.
The laws of several states are said to
differ on this point and on several others
of importance involved in the decision of
| the court. As soon as a verified copy of
the opinion can be had the internal
revenue officials will begin preparation of
| supplementary regulations which will
cover more or less in a general way the
| opinion of the court, leaving the more OBJ
tuse questions to be solved as they pre-
sent themselves.
Collectors of the tax in different parts
of the country already have begun tele-
graphing for instructions on many points,
stating the crush of those desiring to
make the returns has already begun.
| All Things considered, il is now thought
the loss to the treasury from the income
tax source will exceed 80 per cent. of the
total expected from this tax.
WASHINGTON. April 9.-Attorney j. NJ.
Wilson, who represented John NJ. Moore.
in the court of appeals in the recent in
come tax cases, said this morning that
further proceedings will be begun immedi-
ately.
"Several parts of the law will be at
tackled" he said, "the principal one being
an exemption from taxation OK incomes
under q, 900 annually. This will be at
tackled as an unjust discrimination.
cannot say just yet who the complain
ants, or what the title of the suits will be,
but they will be instituted probably within
few days and pushed as rapidly as pos
sible.
LONDON, April 9.-The Globe this after.
noon in discussing the decision of the
supreme court of the United States as
TO the constitutionality of the income tax,
says:
EVERY man in this country will regret
that there is no supreme court of the
American variety here. Never in all the
long history of the English bench have
they scared to the height OF liberty reached
by the American judges yesterday. 1t Is
quite impossible to establish such a tri
bunal here"
The Sc. James Gazette comments on the
supreme court decision in a similar tone
and adds: mo one has suggested this
august tribunal can be bribed in the man
ner familiar to litigants in some inferior
courts of the union. Still it is significant
the politics of the various judges are care
fully mentioned in the dispatches"
The debates on the income tax while the
bill for its imposition was under consid-
Grafton in congress are almost barren oil
figures showing the comparative imports
ance of the incomes from rents and inter.
est on county, municipal and state bonds
| in furnishing a revenue to the govern
ment. 1t does not appear that this mat
ter was touched upon in the house dis.
J cussion and il was only casually referred
to in tho senate.
, Senator Ahirich of Rhode Island pre-
pared a statement placing the revenut
likely to be derived through the income
tax at si00.0O0,000 and creating rents and
public bonds with about 30 per cent. OF
this amount. Senator PETER, who made
the principal speech in the senate In
advocacy of an income tax, did not &C
| into this branch of the question at all
but he said to-day, in an interview, tha
he was of the opinion that between 9.00l,
600 and $40. .00O. 900 of revenue would hay,
been derived from these two sources II
the supreme court had allowed them {,
stand, and he added he thought this
amount would have been about two-third
of the revenue produced by the incom'
tax.
"The census reports shows he added
"that 80 per cent. OF the people OF tn
United States are renters. and 1t is to b
inferred that about this proportion of tn
land is occupied by xenters. The land o
the entire country with Improvement
added is put down rs worth $50. .si4- -5i4 ,32a
of this amount 10000. .0oo.0 900 worth 1
rented. The rental on that amount a
the average rate of per cent. would b
s.. 900, 100000. just what proportion o
that would come under the law Is ar
other matter and that could not be gotte
at accurately. but let Us assume one qua
ter Of il. or S250,00o,0o) worth would %
taxable income, that would give so.0oo.ol
of income tax, and that 1 think a yer
low estimate. The bonds. municipal
county and school district, which woul
be subject to the tax, amounting to S9o6,
213.053. Take one-quarter of this amonE
as coming within the operations of th