The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-03-08

Washington. March 1.-THE supreme
court did not reach the income tax cases
until o'clock today, when W. D.
Guthrie was recognized to open the case
for the appellants. He appeared eSpec-
ially for Messrs. Pollock and Hyde. who
appeal the cases against the Farmers
and Continental Trust companies of New
York from the decision of the United
States court OF appeals for the southern
district of New York. Mr.. Guthrie de
voted himself to an outline of the argu-
ment proposed to be made by the counsel
for the appellants, and had not c6nclu5
ed when the court; at o'clock ad1our55
depend principally on showing that the
present income tax law was unconStitu-
tional, because of its want of uniformity
and quoted at length from The provision
Of the law TO show that the tax is not
Uniform, contendinS that Congress had
no right. under the constitution, TO levy
tax for the duty, excise or import
forInity as to individuals and corpora
tons. because it was the fundamental
rules that burdens and in these respects
should be equal upon all.
Class Legislation.
Mr.. Guthrie said the two cases against
the trust companies We're very similar
but that he would devote himself prin-
that case the interests involved were
greater than in the other. but While this
company conducts an immense business,
its business is one which might be car
ried on as well by private partnership
as by q stock company, in which case
Il would be exempt under the laws from
He said Mr.. Pollock was shareholder
IN this company, the net incomes or
profits Of which during the past year,
SuDJect TO the income tax, exceeds $780,,
COG, of which $4,000 represents rents of
real estate ana about $4,000 investme nts
IN municipal bonds, which latter invest
court
Mr.. Guthrie asserted that the provision
OF the law eXempting all incomes under
S4.0d0 would cause it to fall upon less than
2 per cent. OF the population OF the
United States. and the law was, there
tore, class legislation. He also showed
the tax was not uniform as regards cor
por2uons, of which a, favored class were
exempted as, for instance mutual insur-
ance companies and building associations,
as we'll as partnerships and religious and
benevolent institutions.
AS to the exemption Of churches, bene-
Volent concerns, ETC., counsel would have
nothing TO say, as there was enough in
the other exemptions in cases where the
exemptions were in the interest of share
holders. though called by another name,
10 AFFORD sufficient text for all they could
say.
As an Illustration of the effect of the
operation CT the law he pointed out that
an individual owning real estate bringing
an income OF S,000 would pay $50 tax,
Fay double that amount He also in
stanced the case of a partnership of Ave
persons, doing a business amounting 10
S50,0 900 a year, Which would be required
I to pay no tax. while a corporation COM
posed of the same persons would be COM
PEELED to. pay S4OO; In word, he said,
me neo1 adRplcatlon OF tie law would vary
The corporation was only an aggregation
of individuals, and in most corporations
a part at least of the stock was owned
by the middle classes.
! Mr. Guthrie dwelt upon the exemption
! in the interest of the building ana loan
ASSOCIATIONS who were. he said, relieved
whose assets it had been asserted were
! greater than the combination of capital of
I all the national banks. All that men would
have to do TO eyade the operati99s of the
! law would be. TO organize building and
I loan associations. He argued if the
present law should be held 10 be consti-
tutiondl. Congress could levy a duty of
% per cent on the imports of individuals
and of 80 per cent. on those of corpora
/ tons. or If the sentiment in Congress
I should change it could as easily reverse
! the process and favor the CORPORATIONS
l The principle would be the same.
Mutual Insurance Companies.
I IlCIcIIuIS 70 lilS 9-A9LApNiOh mace the
Interests Of mutual insurance companies,
| he asserted that in the United States
there were 1. 600 such companies and thai
Of these 1900 We're doing business on the
mutual plan. ana he said i'll New York
( such companies would relieve thousand
million dollars worth OF property from is
/ operation. The leading mutual insurance
! company would secure the benefit of al
exemption ON its income amounting &c
/ 500, 600 per year, while its rival organized
he e. r1la -r1111d n II.
\ income tax. This advantage was given il
the law, he asserted, simply because some
one wanted TO favor some particular mu
| tual company.
Taking up the provision of the .consti
tuition requiring uniformity in leVyine
| imports, taxes, etc, he refuted the argu
nent that the word uniformity was mean
to have only geographical application
To prevent discrimination In favor O
one state as against another, but con
tended it WAS meant TO secure eaualitS
of taxation
Mr. Guthrie Will resume his argumen
at Y O'Clock tomorrow.