The state republican. (Jefferson City, Mo.) 1871-1896, 1895-04-18

power to levy imposts and to regulate
commerce to the general government
and gave in the concurrent power to levy
direct taxes in reliance on the protection n
afforded by the rules prescribed, and
that the compromises Of the constitut tion
cannot be disturbed by legislative action.
8. That these conclusions result from
the text OF the constitution and are
supported by the historical evidence
furnished by the circumstances surround
ing the framing and adoption of that
instrument, and the views OF those who
framed and adopted it.
9. That the understanding and expec-
tation at the time OF the adoption OF the
constitution was that direct taxes would
not be levied upon the general govern
ment except under the pressure of
extraordinary exigency, and such has
been the practice down to August IS,
1894. II the power to do 30 is to be
exercised as an ordinary and usual means
Of supply, that fact furnishes an addi-
tionai reason for circumspection in dis
posing OF the present case.
z. That taxes on real estate belong to
the class OF direct taxes, and that the
taxes on the rent or income of real esta te
which is the incident of its ownership,
belong TO the same class.
s. That by no previous decision OF this
court has this question been adjudicated
to the contrary OF the conclusions now
announced.
8. That SO much of the act OF August
the rent or income OF real estate without
apportionment is valid.
The court is further of the opinion
that the act of August Is, 1894, lie
invalid SO far as it attempts to levy
tax upon the inSome derived from
municipal bonds. AS a municipal
corporation is the representative OF
the state and one OF the instrument
talities Of the state government, the
property and revenues of municipal
corporations are not subjects of fed
eral taxation, nor is the income
derived from state, county and
municipal securities, since taxation
on the interest therefrom operates
on the power to borrow before it is
exercised and has a. a.sensible influence
on the contract, and therefore such
a tax on the power of the states and
their instrumentalities to borrow
money, and consequently repugnant
to the constitution.
Upon each of the other petitions
argued at the bar, to-wit: First
whether the void provisions as to
rents and incomes from real estate
invalidates the whole act; second
whether as to the income from per-
sonal property as such the act il
unconstitutional as laying direct
taxes; third, whether any part ol
the tax, If not considered as direct
tax, is invalid for want of uniformity
on either of the grounds suggested
the justices who heard the argument.
are equally divided, and therefore nc
opinion is expressed. The result il
that the decree of the circuit court il
reversed and the case remanded witt
directions to enter a decree in favor
of complainant in respect only of tht
voluntary payment of the tax OF
rents and income of its real estate
and that which it holds in trust ant
on the income from the municipa
bonds owned or so held by it.
The decision applies TO three cases
the first of which was brought int
the courts of the District of Colum
bia by John G.. Moore to enjoin tn,
commissioner of internal revenu,
from the collection of the income tax
while the other two were those o
Charles Pollock vs.. the Farmer
Loan and Trust company, and Levi
III. Hyde vs.. the Continental Trus
company, both appealed from tn
decision of the United States circui
court for the southern district O
New York. The action in the latte
cases was brought to enjoin volun
tary compliance with the law in tn
payment of the tax and when tn
circuit court sustained the law, Pol
lock and Hinde appealed to tn
supreme court of the United States
The cases were then advanced on tn
docket and argued March 7, 8 and II
IL and 13. Attorney General Olney
James @. Carter of New York an
Assistant Attorney General Whitne
appeared for the government an
Messrs. Choate, Seward, Guthrie an
ex- Senator Edmunds for the trui
companies and Moore. The argu
ment attracted more attention tha
. has been given to any case in th
supreme court for years, and in tn
interest then manifested had ne
diminished since then.
AS soon as the chief justice ha
concluded, Justice Field began read
ing dissenting opinion. He finishe
y soon before o'clock, saying:
: am of the opinion that the whole la
u Of 1894 is null and void" He lal
v stress upon the fact that the law dl
y not exempt judges of the Unite
States courts from payment of ii
% tax. 1t was not right, he said tn
~ the supreme court should rema
silent and make no protest wht
~ many United States Judges drawn