The record-union., 1895-05-21
Decided to be Unconstitutional by
the .. S. Supreme Court.
FOUR JUSTICES IN FAVOR AND FIVE
AGAINST THE TAX
Collectors Instructed by the Internal
Revenue commissioner to Stop All
Work in Connection With the In
come Tax, and Send All Returns
and Records to the Commissioners
Office.
Special to the REcoRD-Usrox.

Special to the REcoRD-UNroN.
WASHINGTON, May 2O.-The income
tax law, which has received SO large
share of the public attention since the be-
ginning of the regular session of the
Fifty-third Congress, is thing Of the
past. After being twice heard IN the
United States Supreme Court, 1t was
finally decided to-day by the court to be
invalid and unconstitutional. There
were four dissenting opinions delivered
in these cases to-day, one each by
Justices Harlan, Brown, Jackson and
White, showing that the court had stood
five 10 four against the law. lnasmuch
IS one of these dissenting opinions was
handed down by Judge jackson, and as
he was absent at the first hearing, when
the court divided evenly on the question
of sustaining the law on all points except
those as to the tax on incomes from rents
and bonds, it follows that one OF the
members of the court who at hrst pro-
nounced for the law except on those TWO
points, changed his attitude after the sec
ond argument. There is very little Ques-
tion that Justice Shiras is the Justice who
changed his views in thess points. lie
made no announcement either to-day or
when the first opinion was delivered as
to his opinion.
While the opinion of the Chief Justice
was largely a review OF the general
aspects of the questions involved, he
based the opinion of the court to-day
upon the argument that the provisions of
the law regarding the tax Oh rents and
bonds were SO essentially factor OF 1t as
to render all other parts OF it dependent
on them and in accordance with the we'll
known rule of law bearing on this ques-
ton, the law as whole must be declared
invalid.
The opinions of Justices Harlan and
White were concluded in language so
vigorous and were 80 emphatic IN their
arraignment Of the majority as to cause
very general comment. Both Justices
indicated their belief that the ruling
opinion was revolutionary. ana lntl-
mated that serious consequences mlgnt
ensue Justice Harlan suggested the
necessity of amending the Constitution,
in view of the opinion.
The courtroom was packed during the
entire three hours when the opinions
were being delivered. The unexpected
event of to-day was i'll the appearance OF
Justice Jackson. He had announced
after casting his vote last Saturday week
that he would return on the following
Monday to Tennessee, but IL appears that
instead he went to Philadelphia to con-
suit specialist on internal diseases. he
LETT the bench immediately after deliver
ing his opinion to-day, and 1t is UNDER
stood will now proceed south. lie de-
liyered his opinion from notes.
1t should probably be stated that while
the cases in which these opinions were
delivered are uniformly characterized as
the income tax cases. they are known on
the court dockets as the cases OF Charles
loIt hQ EarmarS'
Company and Louis II. Hyde VS.. the
Continental Trust Company of New
York, both appealed from the Circuit
Court of the United States OF the South
ern District of New York.
The Justices were at the Capitol early
and a consultation began promptly at 10
O'Clock. continuing until few minutes
before II o'clock.
Immediately on the convening of the
United States Supreme Court this morn
ing Chief Justice Fuller read the income
tax opinion.
The TACT that he read it was generally
accepted as conclusive that the law would
be knocked out in toto, which proved to
be the case.
The conclusions of the court were, as
follows:
..First-We adhere to the opinion al
ready announced that taxes on real estate,
being indisputably direct taxes, taxes on
rents or the income OF real estate, are
equally direct taxes.
.Second-We are of the opinion that
taxes on personal property or on the in
come from personal properly are ike
wise direct taxes.
"Third-The tax imposed by Sections
q to 81, inclusive, of the Act of 1874, SO
lar as it falls on the income of real estate
and personal property, being direct tax
within the meaning of the Constitution
and therefore unconstitutional and VOID,
because not tappOrtioned according TO rep
resentation, all these sections constitut-
ing the entiro scheme OF taxation are
necessarily invalid.
The DEGREES hereinbefore entered IL
this court will be vacated.
The DEGREES below will be reversed
and the cases remanded with instructions
to grant the relief prayed for"
Sections 81 to 81 of the Tariff Act OF 1S9l
referred TO in the conclusions OF the
court, are the sections of the Act relating
to the income tax. SO that the entire in
come tax law is declared void specifically.
The Justices against the law were Chief
Justice Fuller and Justices Gray, Field,
Brewer and Shiras.
For the law-Justices Harlan, White,
Brown and Jackson.
VIEWS OF POSTMASTER GENERAL
WILSON.
WASHINGTON. May 20.-"That was just
as / expected" said Postmaster-Genera
Wilson when the news of the income tai
decision was carried TO him. Well 1t Il
not so serious as the general view seems
to make il. Ii trade revives and contln-
ues to improve as it has of late, there VIII
be revenue enough from now on: IN
creasingly larger amounts OF WHISKY
must be taken out under the new tax ano
this increase will amount to over Slo,UOO,
600 a year. With an increase revenue
from customs now the tax on whisky
will make up the deficit this month. ou
see the internal revenue collections are
S6,000.000 and the tariff about S7,0O0,0 600
while we paid out over S10,O00,O00.
think the times are improving and the
Government will have ali the necessary
revenue, and that the deficit will soon bt
thing of The past"
INSTRUCTIONS TO COLLECTORS.
WAsHINGToN, May 2O.-Interna Reve
nue. Commissioner Miller has telegrapheG
to all of the Collectors of Internal keve
nue. to stop ali work in connection witt
the income tax, and send TO his office n
once. under seal. all books, assessn,en
lists. returns and records in their otfic ce:
or in hands of deputies.
There has been collected about $50. .O0(
under the income tax law While n(
action has vet been taken. 1t is almos
CoTlalu lDdt nlileT, uS SOCi
as he is officially Informed of the COURT:
decision, will take steps TO refund all col
lections.
The Commissioners opinion is tina
S35. .000,00 or 10000 900 would have beef
collected during the first year from in
comes had the entire law been suslaines
by the court, aud even if it had beei
sborn of the rent provision CT least SIS,
100000 and probably S20OO0,0o0, he essi
mated. would have been collected.