The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1895-04-16
The Justices Divided on Several
Material Sections.
A DIVIDED COURT.


derived from the rentals of real estat,
and from State, county and municipa
bonds, and valid as to incomes from
other sources. AS to incomes derived
from bonds, the court was unanimous
AS to incomes derived from rent, Jus.
tices Harlan and White dissented
On all other points the court was
evenly divided. Justice jackson be-
ing absent aud the law, therefore,
stands to these points. The Justices
who voted to sustain all parts of the
law where Fuller, Harlan and White
and perhaps Justice Brown.
GIsT OF THE OPINION.
First-That by the Constitution
Federal taxation is divided into two
great classes: Direct taxes and
duties, imposts 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 impo-
sition of duties, imposts and excuses
by the rule of uniformity throughout
the United States.
Third-That the principle that tax
alton and representation 60 together
was intended to be and was preserv-
ed in the Constitution by the estab-
lishment of the rule of apportiontment
among the several States, so that such
apportiOnment should be according to
numbers in each State.
FOurth-That the States surrender
ed their power to levy imposts and to
regulate commerce TO the general
Government, and gave it the concur
rent power to levy direct taxes in re-
lance on the protection afforded by
the rules prescribed, and that the
compromises of the Constitution can
not be disturbed by legislative &C
ton.
Fifth-That these conclusions re-
suit from the text of the Constitution
and are supported by the historical
evidence furnished by the circum-
stances surrounding the framing and
adoption of that instrument, and the
views Of those who framed and adopt
ed it.
SiXth-That the understanding and
expectation at the time of the adoption
of the Constitution was that direct
taxes would not be levied upon the
general Government except under the
pressure of extraordinary exigency
and such has been the practice down
to August Is, 1894. If the power to
do so is to be exercised as an ordinary
and usual means of supply, that the
fact furnishes all additional reason for
circumspection in dispOsing of the
present case.
Seventh-That taxes on real estate
belong to the class of direct taxes, and
hat the taxes on the rent or income
IF real estate, which is the incident of
Is ownership, belong to the same
,lass.
Eighth-That by no previous decis-
If this court has this question been
to the contrary of the con
Illusions now announced.
Ninth-That so much of the act of
August Is, 1884, las attempts to impose
/ tax upon the rent or income of real
state without apportionment is in
aid.
The court is further of the opinion
hat the act of August Is, 1894, is in
aid so far as it attempts to levy
ak upon the income derived from mu-
icipal bonds. AS a municipal cor
is the representative of the
state Government, the property and
evenues of municipal corporations
re not the subject of Federal taxation
or is the income derived from State,
ounty and municipal securities, since
axation on the interest therefrom OPP
rates on the power to borrow before
is exercised and has a sensible in
uence on the contract, and therefore
UGH tax is tax on the power of the
tates and their instrumentalities to
orrow money and consequently re- 6
ugnant to the Constitution. g
Upon each of the other petitions ar
ued at the bar, to-wit:
First-Whether the void provisions "