The Camden chronicle. (Camden, Tenn.) 1890-current, 1895-04-19
NO TAX CAN BE COLLECTED on
BONDS OR RENTS.
THE ENTIRE ACT ESCAPES ONLY
BY A TIE VOTE.
Justices White and Field Dissent In
Regard 20 Essential Features.


decision Of the United States supreme
court in the income tax cases Monday.
He began by stating the exceptions to
the law as made by counsel for the APP
pellant as follows:
i. That the act imposes a direct tax
in respect of the real estate, rents, is
sues and profits of personal property
and not being apportioned is in viola
tion Of section two of article one OF
the constitution.
2. That the law, If not imposing a
direct tax, is nevertheless unconstitu-
tional in that its provisions are not
uniform throughout the United States
and do not operate with the same force
and effect upon the subject of the tax
wherever found, and in that it provides
in favor of individuals and co-partner-
ships, while denying all exemptions TO
corporations having similar incomes
derived from like property and values
and provides for other exemptions and
inequalities in violation of section
eight of article one of the constitu-
ton.
3. That the act provides no exemp-
ton of the tax upon incomes derived
from the stocks and bonds of states of
the United States and counties and
municipalities therein, which stocks
and bonds are not proper subjects for
the taxing power of congress. The in
come from these securities in the
United States amounts to over $685.
600, 600 per annum, on which the to-
tai annual income tax would be 31,-
800, 900.
CONSTITUTIONAL POINTS INVOLVED.
He then took up the constitutional
points involved, dwelling upon the
fact that the constitution required the
appointment of direct taxes and uni
formity in excuses and imposts. He
also dwelt upon the question of repre-
sentation and taxation, which was, he
said, a foremost one when the consti-
tuition was adopted.
He then took up the question of the
tax on rents, and in so doing discussed
at considerable length the question of
direct taxes as considered at the time
of the framing of the constitution.
The trainers of the constitution
were, he said, well versed in the gov
eminent of the colonies and of Euro
pean countries, and were we'll versed
in the literature of the period, includ-
ing works on political economy and
were we'll calculated to pass intelh-
gently on this kind.
He quoted various supreme court
decisions and sought to show that
while the income tax question had
been before the court, the question
had only been considered as applying
TO the point at issue in the particular
cases.
THE TAX DURING THE WAR.
Coming down to the present tariff
act, he said that the law was passed in
time of profound peace and it was to
be taken as evidence that congress had
sought in this matter to form a prece-
dent and establish departure from
established lines, and it, therefore,
became important to inquire into the
circumstances with some attention tc
detail. For the purpose of compare
son, he went back to the enactment s.
an income tax during the civil war. h.
quoted from the decision in the
Springer case, giving a history of the
case and devoting much attention tC
it, as he said that it was upon this case
that the defense had appal emily relied
more generally than any precedent
tbs, she said, conceded in all the casel
from Hylton to Springer that taxes OF
land are direct taxes, while in some
of them it is determined that taxes OF
rents, derived from land, are
indirect taxes. Was there, he asked
any distinction between tax OF
the land or the income derived
from the land What, in other words
was the land but profit on itP TIL
name of the tax is unimportant, an,
the court had been unable to see an.
distinction. He closed by saying tina
/ the court had reached the conclusion
! that the tax on rents was invalid.
The chief justice then took up tn
question of the taxation of municipa
and state bonds. The decision wa
also adverse to this part of the law a
repugnant to the constitution.
On the other points, the court wa
divided and, therefore, no opinio
could be given.
Summing Up the Points.
n The conclusions of the court wei
/ stated as follows:
}. That bv the constitution feder,