Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1895-04-18

County snd Municipal Bonds.
Washington. April l0.--Tbe supreme
court has decided the income tax
cases. The cour knocked out the law
so far as IL taxed incomes derived
from rents. and also from state, coun-
~ and municipal bonds. By a tie
vote of the court the Law was sus-
tanned In other respects.
The courts conclusions after re-
viewing the historical and other
phases Of the question, were as fol-
lows:
First-That by the constitution fed
ciasses-direct taxes and duties, i'm
ports and excuses.
Second - The imposition OF direct
taxes is governed by the rule OF ap-
portionment among the several states,
according TO numbers and the imposi-
ton Of duties, imposls and excuses by
the rule OF uniformity throughout the
United States.
Third-That the principle that tax
alton and representation together was
intended TO be and was preserved in
the constitution by the establishment
Of the rule Of apportionment among
the several states, so that such appor-
] tionment should be according 10 num-
bers in each state.
Fourth-That the states surrendered
their power TO levy imposts and TO
regulate commerce to the general gov
eminent and gave IL the concurrent
power TO levy direct taxes in reliance
On the protection afforded by the rules
prescribed. and that the compromises
Of the constitution cannot be disturbed
by legislative action
Fifth-That these conclusions result
from the text Of the constitution. and
are supported by the historical evil
dence furnished by the circumstances,
surrounding and framing and adop-
ton of that instrument and the views
Of those who framed and adopted IL
Sixth-that the understanding and
expectation at the time Of the adop-
ton Of the constitution was that d.
rect taxes would not be levied upon
the general government except under
b pressure of extraordinary ext
gency, and such has been the practice
down to Aug. Is, 1894. IL the power
to do 50 is 10 be exercised as an ordi-
nary and usual Of supply, that
fact furnishes an additional reason
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present case.
Seveath-That taxes on real estate
belong to the class OF direct Il
and that the taxes on the rent or in
come Of real estate. which is the in
cident Of its ownership, belong TO the
same class.
Eighth-That by no previous decis-
Ion Of this court has this question been
adtudicated to the contrary of the
conclusions DOW announced.
Ninth-That SO much of the act of
Aug Is, 1894, as attempts TO impose
q tax upon the tent or income OF real
estate without apportiOnnent Is in
valid.
some Bonds EIemnt.
The court is further Of the opinion
that the act OF Aug. Is. 1894. is invalid
so far as IL attempts 10 levy a tax
upon the income derived from mu-
Dicipal bonds AS q municipal or
poration Is the representative OF the
state and q Of the instrumeptalities
Of the state government, thu property
and Of municipal orpo
lions are not subjects Of federal tax
alton, o is the income derived from
state, county and municipal securities,
since taxation on the interest there
from operates on the power TO Dor
row before IL is exercised and has a
sensible influence on the contract,
and, therefore, such a tar is a tax on
the power of the states and their in
strumentalities TO borrow money. and
consequently repugnant to the con
stitution.
Upon each Of the other petitions ar
gued at bar, to wit: First, whether
the void provisions as to rents and in
comes from real state invalidates tie
whole act; second. whether as TO the
Income from personal property as
such. the act Is unconstitutional, as
laying direct taxes: third, whether any
part Of the tax IL not considered as a
direct tax, IL invalid for want of uni
forrnity on either Of The grounds sug-
gested. justices vino heard the
arguments are equally divided aud.
therefore, no opinion Is expressed.
The result Is that the decree of the
circuit court Is reversed, and the case
remanded with directions to enter a
decree In favor Of complainant In re-
spect only Of the voluntary payment
OF the tax IN rents and incomes of its
real estate, and that which IL holds In
trust, and on the income from munich
pal bonds owned or so held by IL.
The announcement OF the foregoing
conclusions of the court was preceded
by a review OF many opinions OF the
supreme court from the time of Chief
Justice Marshall down to the celebrat-
ed Springer case, brought by ex-Rep-
resentative Springer Of Illinois, and
by an exhaustive review Of the nature
of the direct and indirect taxation In
the course OF which the chief justice
reviewed the debates leading ND to
the framing of the federal constitu-
ton. In conclusion the chief justice
stated that his opinion upon the Pol.
| lock case covered the two other cases.
TIE delivery Of the opinion con-
sumed just n hour. The chief jus
tice was followed by Justice Field,
who read the first dissenting opinion.
speaking in q Low tone that coutrssted
~noticeably with the loud delivery Of
the chief Justice.
Applies to Three Cases.
The decision applies to three cases.
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