Red Lodge picket. [volume] (Red Lodge, Mont.) 1889-1907, 1895-03-16
EDMUNDS ON THE INCOME 7aY
United States Supreme Court i,-t;,...
AskSI Him OueStilps

A''N' b'Ioie tile supreme court today
Mr. Whitney addressed himself IA III.
question Of uniformity III taxation. II.
Sontended that the limit of 81 ooo tiyet
hE IaW was not class legislation. Ii =
subsequent congress had sousht r,
amend the law by including those nor
pre- iously exempted by the 81 900 limit
'iilS amendment would no doubt be class
i7Slsfltlof, aS II would apply 10 a dis
liilet class. MI. Whitney reviewed pri
81 decisions in insurance and other
cases, showing that the Interpretation
OF TINS court on class legislation would
H"l apply 70 the income tax. Concern
iAS the exemptions allowed to certain
! corporations. the assistant attorney
general SAID II was most surprising that
thls WAS set up as a ground for invali-
/ dating the tax. He read from numerous
federal tax laws showing repeated ex-
I elnpuons i'll the cases of art societies
and many other corporations Nr
Whitney said that the supreme court
mad already over-ruled the contention
mat the taxation of land values and
rentals as made ty the income tax was
invalid. The state taxes We're against
the land and not against the individual
bot llle income tax was not against the
land bat against the total income of th4
hdIEldGal As this i,3cone came in
part from land. it was merely an Incl
dent. The income tax is in no sense. !
iahd tax. 1t is not on gross income
from land and other sources, but pu
the net income
MI W mtney took up the claim that
the federal government can not tax
municipal and local securities held by
individuals, as. for instance. bonds is
sued hy New York city He said 1t had
been decided in the case OF Bonaparte
against the state of Maryland, that q
state could tax bonds Of the city or,
state OF New York. If the state could
exercise this power, why could not the
federal government Go the same?
MI Whitney concluded at 80 and
was followed by Mr Edmunds. counsel.
against the law. N1l. Edmunds read
from the constitution as To the protsc-
t1on of private rights. These provi-
sionS he said, We're trite and yet ii
seemed necessary in these days With
such legislation before us, TO recall these.
bulWaris against an in
Fasion of private rights. In q question
OF this gravity. he would feel disposed
to ask the court not only to pursue pre-
eedents and follow them in this matter.
but 60 back ana rule upon the entire.
subject so vital to sustaining private
rights. The worst tyranny of history
was that which came in the guist Of re-
lief He first spoke Of the action Of
congress IN endeavoring 10 take away
rom the courts the right 10 appeal for
40 tt1li,r rif,ll nc, ~
ak law. He did not think the time had
'ome when there should be no longer an
appeal to the courts from the acts of
congress. ii was beyond the function
IT congress 10 pass an act that would
strip the courts of their rights, and this
vas just as true TO the rights of clti-
ems as TO those of the courts.
lie referred 10 the provision that the
axpayer was required to make his re
ulns to deputy collectors He said
he deputy was not recognized as lr-
Ultimate officer under the constitutions
] do not. however" he said, mean to
Well on that, but merely refer to it In
assing as one of the points of vice.
'hich blGOmed in the garden Of the last
ongress. He criticised many other
eatures Of the law providing for the
objection OF taxes, pointed out that ii
1T no room for resort or appeal to the
ourtS, but left to revenue officers the
dJustment, who, he said were not
My final judges, but inquisitors as Well
Mr.. Edmunds then reviewed the case
eretofOre decided, which has been re
alfed to by previous argument, and
lscussed the points involved at length
e was referring to the Hilton case.
hen Chief Justice Fuller called his
ttentIon to the fact that Hilton had al.
nusual number Of carriages, 1926, as h,-
,members. Unusual IN numbers
T. EdmundS asserted, but he pos
'Ssed them as many persons possess
rtue and grace" He asked the court
; oVerrule its former decision on the
come tax, as given in the Springer
tse, lie argued that the past congress
td oVerstepped the limits of the con
tuition in imposing this tax, because.
: said, 1t was short Of money. He ar
led that onder the law 50 per cent. of
e tax would be paid by per cent of
xable voters 1T hecomes," said he.
IN interesting subject of speculation
5 to how long the government can last
lder a system which allows those
no pay nothing 10 tax their fellow
tizens."
Justice Harlan asked Mr.. Edrnunds If
; had formulated a definition Of the
ference between a direct and indirect
x, ana he replied he had. He there
BON proceeded to give It, saying di-
ct tax was tax on any kind OF prop
ty and upon persons, not in respect
property in existence, acquired or to
acquired. while an Indirect tax in
ude'i all the rest az referred to in the
institution under the head Of duties
lports and eXcises. which would be-
-aVy or light on each person, DEPEND
9 upon his viii.
DO YOU not" asked Justice BROWN.
egard a tax that is paid by a person
mself as q direct tax" Yes e"
Asked by Justice Shiras to give a def
ton Of excise, he quoted Jacobs and
hnsOn, where the latter says it is I.
lteful tax, collected by wIetches
Justice Harlan suggested that The
inition would meet his tMr. Ed
undsD idea Of the income tax. t.
hich Mr. Edmunds replied that it did
part, Mr.. I1dmunds closed with
ca for equality in taxation. He de
ared it to be the mission of the SUI
eme court. the tribunal Of last resort.
correct such mistakes, and made =
st appeal for a return to the prnci~
IS Of equality and uniform justice
en- if in doing 50 it became necessary
7 1t to reverse a former decision
PS ATTACKED A CHINESE ARMY
feated q Force Of Seven thousand
Men and Burned the Town.
london, March IA Shanghai dis
tch to the Times says Chinese force
1860 men. supported by thirty gans.
IS attacked by the japanese at Don
otalon on Saturday last. The attack
S successful and in two hours the Chi
g fled toward Chin Chow, losing it
n. The Japanese loss was ten killed.
ter burning Don Shotalon for strategic
isons the Japanese recrossed the Liao.
PEACE AGREEMENT.
london. March n--A dispatch to the
mes from Pekn says the Chinese gov
lment through United States Ministers
nby and Dunn, have already agreed
Le into in ba faro