Evening journal., 1895-04-09
NOT TO CALL CONGRESS-
President Does Not Think an
Extra Session Necessary.
DECISION ON THE INCOME TAX.
Most Of the Law Stands, but the Tax on
Rents and Municipal Bonds Ia Decided to
BE Unconstitutional and WIN Not Be Lev
ied--A Tie on the other Points.


on being asked whether, in view of the de- |
csion OF the supreme court on the income
tax law, an extra session Of congress would |
be called. said that neither he nor the sec
retary Of the treasury saw any necessity
for such action, and that unless there was
an unexpected change in conditions he
had no idea that congress would meet
again before the time appointed for Its
regular session.
After almost month Of deliberation
the United States supreme court rendered
its decision In the income tax cases, de-
Gliding by divided court the Jaw to be
valid except as regards the incomes de-
rived from rents and from municipal
bonds, on which points the decision was
that the tax was unconstitutional.
The interest which has characterized
the sase from tho beginning was again
made manifest by an unusual attendance
OF the public in the courtroom. The space
is limited at best, but every available seat
inside and outside the bar was occupied
and many were turned away because the
chamber could not accommodate all who
applied for admission. Only members OF
the bar were admitted in the inner circle,
and those in attendance included many
lawyers from other cities, as we'll as large
REPRESENTATION
were several senators In the list, including
Hill OF New York, Lodge Of Massachusetts,
and Lindsay Of Kentucky. Attorney Gem
earl Olney was also present
Justice Jaclksons Absence.
There was only ono member Of the
bench absent--Justice jackson, who has
not been able to be in attendance upon
the court since last fall and who has not
participated in the consideration of the
case in any way. 1t is to his absence that
the even discussion Of the court on the
majority of the propositions involved in
the oase Is due. II he had been present.
such result would have been impossible,
and the opinion would have included q
discussion of all the points involved in
stead Of only the two in regard to the in-
comes derived from rents and municipal
and state bonds.
The spectators had not long to wait for
the beginning of the delivery Of the main
opinion after tho court convened. The
judges filed in promptly at high noon,
and there was very little preliminary work
before the chief Justice began the detiv-
/ cry Of an opinion which is regarded by
many as the most important and farreach-
| ing in its effects that has been rendered
In this court since the days of the rebel
lion. There were only two minor deci-
sions rendered by other members Of the
| bench.
Thon Chief Justice Fuller, after MAX
| Ing d few routine announcements, began
| to read the courts decree in tho case Of
| Charles Pollock versus tho Farmers Loan
and Trust company and others.
This was the first in order Of the cases
against tho trust companies, and the con-
illusions reached in it apply also to the
case Of Hyde versus the Continental Trust
company, as the questions at issue are the
same in both cases Tho chief Justice read
with considerable rapidity, but his voice
was at all times clear and distinct, and
lawyers present who had familiarized
themselves wlNi the case had little or nc
difficulty in following him. The delivery
Of the opinion consumed an hours time,
and all present gave the closest attention.
Justice Fulier's Decision.
The body Of the opinion was devoted tC
the consideration Of the question from
constitutional point of view, and involved
q very elaborate definition Of the meaning
OF the phrase direct taxes. " and also 1
construction Of tho constitutional require
ment as Co apportlonment. Former opin
ions Of the court, among which were in
oluded tho Hylton and Springer cases
were quoted from at length and comment
cd upon. He said that under the consti
tuition federal taxes wore divided into di
rect taxes and duties, imposts and excises
and laid down the rule that direct take
should undor that instrument bo govern
cd by tho rule Of apportionment amonl
. tho several states according to population
) Much Of this reasoning was meant +
1 tl,... of hn fn a
!. incomes derived from rents but the chic
I Justice devoted a considerable part Of tn
4 opinion TO the especial consideration Q
b this branch Of the inquiry and held tina
4 in taxing the income derived from land
virtually and to all intents and purpose
taxed the land itself, for, he asked. wha
I was the land to any one but for the prof
derived from itg He failed to see any dis
tinction between tax on the land itse
and on the profit derived from 1t, and n
one had gone so far as TO contend that
tax on land would not be direct tax. A
. Hamilton had put il. What, In fact,
e property but fiction without the benz
\ fetal use OF itYn The name of the tax WI
" unimportant. hut the effect was Of va
j consequence. and as there could be neith'
r. distinction or material difference betwec
4 taxing the land and the profit derive
w from it the court had reached the opinlo
!. that this portion Of the law was inyali
8 and could not be sustained.
The same conclusion WAS reached in 7
gard to tho provision for taxing stat
county and municipal bonds. but into th
70 question the chief justice did not go
y fully as into that Of rent incomes.
y He said in effect that it was clear
% never intended by the states to delega
OF authority 70 the national congress to wea
rs en- their credit by providing tax up'
" their instrumentalities and reven
on agencies Power TO tax these agenci
a. must Of a necessity imply the exercise
ne an influence upon a contract before it W
ut made Such an exercise Of power "
repugnant to the constitution, and thel
4, fore the portion Of the law putting it IN
70, execution must also ho declared invalid
IL On the other points involved the opi
ion did not venture because of the ey
division OF the court.
las Treasury ohoiais Dispirited.
oa Tho treasury officials are greatly
ON pirited over the supreme courts decisi
in the income tax case and while adm
ap' ting that they have no reliable data NJ
ON which 10 form an accurate estimate q