Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-05-08
Treasury Officials Apprehensive Of
the Supreme Court Decision.
THINK Mr.. JACKSON'S OPINION ADVERSE
Talk of an Officer Of the Internal
Revenue Bureau.
EMB ARRASSING RES ULT

One of the prominent officers of tbe in
ternal revenue bureau this morning said
this: 1t is fsct that the internal revenue
bureau is epprehensive as to the result of
the decision of the United States Supreme
Court in the income tax case. The appre-
hehsion is tnat the decision may destroy
the law.There is very strong belief, amount
ing almost to a conviction, that Justice
jackson is democrat of the school of
justice Field, and that he will agree with
the latter as to the main principles of the
law The only result of that could be that
the law as an entirety would be declared
unconstitutional. There is much in the
record OF Justice Jackson and in his known
legal tendencies to warrant the conclusion
Ihat ne may take exactly the ground which
'ustice f1eio iald down in his opinion.
AN Old-Line Nyhig.
Justice Jackson is an Old line whig. He
Is nominally democrat, but he does not
owe his place to the democratic party. He
was appointed by a republican President
and was confirmed by republican votes It
is known, moreover. that he was particu-
larly called to the notice of President EIar-
rlson by Senator George F. Hoar of Massa-
chusetts, who had become a very close
friend OF Mr.. Jackson when he was a mem
per OF the senate, and who knew perfectly
Wen what the bent of his mind was
Senator Hoar was criticised a good deal
by his republican assoc ociates for having
recommended a democrat to a position on
the United States Supreme bench Sena-
tor Hoar Is strict party man. At the
Tune that Justice Jackson was appointed
to the bench the Senate was close and no
democrat who was opposed by any con-
siderable number of republican Senators
could have been confirmed. 1t is known
that Senator Hoar secured the confirma-
uon OF Justice Jackson by the specific and
emphatic statement that he was right
itrrff
and all of the war issues; that in fact the
republican party, if any question should
come up in the United States Supreme
Court which might involve the contro-
verted questions of the war, might conf
IDENTIFY rely upon Justice Jackson, although
southern man. to decide in accordance
with the northern view of the constitu-
uonal amendments and all vital questions
which result from the war.
No Reference to the Income Tax.
This, of course. had no special reference
to the income tax. which was not then an
issue, and whieh could not be considered as
being in any way involved in the issues of
the war. It is to be noticed that Mr..
Choate, in the remarkable argument which
is ncw proceeding in the Supreme Court,
referred to the republican support Of the
income tax or to any other subject, except
ton OF patriotism, which had no relation
TO the constitutional question as to thu
income tax, or to any other object. except
the prosecution of the war. Indeed, Mr..
Choate said that at that time the men who
paid the income tax, whatever the per-
centage may have been, would gladly,
Tor the most part. have paid the rest of
the 100 per cent. If it had been necessary
TO successfully prosecute the war.
The income tax Of that day, as Mr.
Choate showed, could not in any sense be
compared to the present situation. That
was not time when the question of con-
stitutionality was giving the men who
he 1fr01 1of
any concern. 1t was altogether the ques-
ton of war measure, and it mattered lit
tie to the men in the north, who were in
favor of the prosecution of the war in
what form their patriotic contributions
were made. But the situation is very diff
ferent now, in time of profound peace
The men who, undoubtedly, if a war were
imminent, would raise no question as to
the best means of supporting the govern
ment, are now determined in their purpose
to fight the income tax to the last resort.
They do not believe in it. They regard it
as populistic or communistic in principle.
They consider that it is part of policy
which is aimed at the very existence Of
republican institutions, and they will con-
test 1t to the court of last resort in every
detail. not because of the money involved,
but on account of what they consider the
principle
Feeling of Treasury People.
II have said that the treasury people
fear that Justice Jackson may decide
against the constitutionality of the law.
The statement should be modified. 1t is
true that such an apprehension prevails,
but 1t is not correct to use the word ap-
prehension. I am satisfied that the treas
ury would prefer to have the income tax
law overthrown altogether rather than
have 1t declared to be in force in the form
in which it was left by the Supreme Court
before it was decided to grant rehearing.
In the modified form in which the law
1oFt 1Ax- f1,at
revenue bureau would rot be likely to col
lect any considerable amount of revenue.
yet the labor and expense and perpeXity Of
the bureau would be as great as if the law
had been declared to be effective in all its
parts.
II do not believe that the emasculated
law, as left by the first decision, would
yield the treasury more than seven million
dollars. 1t is fact that the decision has
lad the effect to prevent the internal rev.
enue bureau from receiving more than a
fractional part Of the returns that were ex-
pected- There is no question that in the
great city of New York, the center of the
corporations of the country, not more than
% per cent of the corporations have made
their returns. We are Informed that 1t IL
the purpose of these corporations, even IL
the income tax law whole shall not
now be decided to be unconstitutional, to
contest the income tax law at every stage.
An Embarrassing Result.
"The result will be very embarrassing to
the treasury, and will give infinite annoy
ance to the internal revenue bureau. Per-
picking questions of all sorts are certain to
be submitted Contests are expected in ev-
cry judicial circuit If the law shall be left
as it is decision adverse to 1t in one cir
cult, on any new case, will be fatal. 1t will
entirely block the internal revenue bureau
from a successful collection of the tax. An
adverse decision in one circuit will be ac-
cepted as a precedent in all other circuits
go fqr @ he "a raI w a 70
The result will be that the treasury will
have all the expense of litigation and col
lection which could result if the law We're
to be fully enforced, while the receipts will
be Insignificant. AS a matter of fact, 1t
will be better for the government TO have
the law declared altogether unconstitu-
tional than to have 1t left as IT is.''