The sun., 1895-03-12
THE INCOME TAX CASES.
EI-sENAToR EDMUSD1s ARGU.
MEHT AGAINsT THE LAW


vsds Every Private Eight orth citizen
wAsniSGToN. March IL The argument on
the part Of tho Governmcit in behalf Of the
conStitut tionality OF the income tax eases was
resumed to-day before the supreme Court ot
the United states by Assist ant Attorney Gen.
erAi whitney. Attorney-G sneral Olncy. eI.
Senator Edmunds, aud other members OF the
bar were present Among the interested listen.
err were ex-ConRrcssman Springer. Representa-
tive Mcmillan, and other R,prese ntatives who
had much TO do with the eeiactment OF the law
whose constltutionnity is questioned.
Whatever claim the appellants could make In
this case. Mr.. Whitney said, depended upon the
meaning Of the word tax" The claim that
the tax was not uniform. and that incomes be-
meath $4,000 were not taxed. and that such
legislation was therefore class legislation, was
admitted, to n certain extent, by Mr.. Whitney,
but he denied that IL was vital point. All
legislation was aimed at certain classes. and
not particular individuals Tho next point
made by the appellants was that the tax had II
minimum as against individuals, and not as
against corporations. 1t had been established,
said Mr.. Whitney That Legislature could
select any class OF individuals for taxation. 1t
was never disputed during the war and after
ward that the income tax anything similar
10 IL was unconstitutional. The exemptions in
tho present law differed very little from laws
heretofore enacted and which have stood un-
questioned. In tho statute of 1870 the last of
the income tax laws OF the war period, many
therefore attacked.
There remained to br considered a few obec-
tions to the law as a whole. 1t was claimed that
30 far as the income was derived from the rent
ais of lands the tax was direct and must be de-
ciare1 void to that extent. Also. that fEr as
tho income was derived from New York city
bonds it should be exempt because thcse
bonds were without the taxing power OF the
United States Mr.. Whitney. after an elaborate
review of the slbicct, claimed that tho cases
cited in support Of tho claim of appellants were
not analogous to the provisions ia the Income
Tax law and did not affect tho integrity and the
coristitut ionality of the law now under discus
sion. Mr.. Whitney called the attention OF tho
court to the iact that the Surcme Court Of the
United States had heretofore held, in n Maryland
case, that 1t could subject its citizens,
holders OF the municipal bonds OF New York
city, to taxation. If the State OF Maryland was
able to do this why not the United States2
What would be the effect IL the Supreme Court
of the United States held that the State of New
York could. by borrowing money. withdraw
from tho United States certain taxable prop
srty? such condition be true, New York
city, when 1t sold its tonds. would be able to
struction OF the law such Investment would be
free from taxation by the Federal Government
Mr.. Whitney concluded his argument at 80.
and was followed by ex-senator Edmunds for |
the appellants.
MIR. EDMUNDss ARGUMENT.
Mr. Edmunds argued that the Income Tax law
was an nnauthorzed invasion Of the rights |
the Constitution to appeal to the courts from |
that which had no authority In law he had no |
est Ia blshed body with the authority and power |
a. protect him from tyranny. then he had a |
" whether the law recently enacted was constItn.
tional. Parentheticaly Mr.. Edmunds said 1t was
useless to inquire OF the body that enacted that
who hHy1 snse from the face
question OF how many Of the gent lemen who voted
10 enact that law intended to or who would pay
however, was another branch OF the case ard
not before the court. He simply referred to 1t
uthorIty. but to adorn his discourses
Proceeding to more serious phase OF the case.
Mr. Ednunds took up the Constitution itself
judiciary Of the United States. Had not Con-
grnss established the courts provided BY the
tyranny and oppression would have been rebel
lion and revolution. He asked the court not only
sder all the rules in connection with the case
The action of Congress In denying the right of
Hppea! under m the income tax was unusual and
give the protection from this tyranny that Con-
gress had denied. Congress had. under this
judicial rights p"wsrs s Tfr n tho Geunss mattel
" cnnsiderlng the operations OF this income tax.
mnnds :" designate 1t as such for brevIty's
take-that declares that tho officer Of the Gov
Vt which there is no authority at nil car com
pei answers TO series OF questions that invade
e prys'9 n1 rTG spf4E Of TITS only %s
Portu'iites presented to the last Congress. This |
deputy, this illegal appointed, is directed to in
right TO compel tho citizen tn expose TO him
everything connected with these sacred rela-
I ions. II the citizen does not give the in
formation to this so-called agent. the agent may
make up his mind from any source obtainablc.
his private affairs. and the agent is dissatisfied
with 1t. the citizen Is punished by the imposition
do comn. G nsce o per er Scn t hem n order to
government. the citizen may appeal 10 the col |
lector OF internal revenue, ho decides the whole
tax, and, H. So. how much. That is the end OF
the me case The judicial power is not TO be In
Mr. Edmunds said this brought him around
To the fundamental question again, which was
under tho guise OF law was to be decrled by the
judiciary and the executive officers OF the Gov
eminent. The fact that the private affairs of
called agent made no difference. for those
secrets would be pretty much like the executive
ACCESSIBLE II such demand under the gmsa OF
law WAS not Illegal 1t was certainly an inva-
sion OF private rights which the courts ought to
prevent. IL WAS ono Of that class of actions
which no amount OF dollars in damages could
make whole.
Mr.. Elmunds paid much attention to the
Springer case, which grew out OF the old In
come Tax law, and suggested that a court was
justified in melting out Justice to
overruIo previous decisions. 1T is well TO re-
said he, that there are gradual and
nnnitesimal departures from the lines marked
Dut FOR our courts, until at last. like the mariner
after Storm or tho traveller In tho wilderness
after the stars have again come out, we must
take new observations and correct our course"
In the law books, dictionaries, and statutes OF
the country, from which We drew our Inspiration
Dt liberty, at the timo the Constitution was
adopted, income taxes We're included within the
class and designation Of direct taxes. To include
them within the category OF excises impOsts
and duties" said MIR. Edmunds. would have
ACCOMPLISHED the very mischief and wrong
which the founders OF tho country desired To
avoid, and sO they used with perfect cearness
The language necessary TO define their meaning
Now, after tho lapse of II century, we are told
that Congress, hnding itself short or funds.
may enact "A law that effects the same purpose
n hch the fathers sought To avoid.
Under this law, said Mr.. Edmunds 1t is
known, and the intelligent judicial knowledge 10
bound to know that fact. that fully g5 per cent. !