The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-03-14
THE INCOME TAX.
Tho Argument Boioro tho Unitod
Stntoo Supreme Court Closed.
OPINION WILL NOT BE- RENDERED
For Some Tlmo-Nir. Choa 60 Cluscs
tho series OF Distinguished Speakers
on tho Cause.-The Land Tax .autl n
Tax on Its Rental Without n Dior.
onco-rho Court Room Crowded.


werc crowded to-day as tho corridora
about tho senate md houIo chGmbers
arc at times when It ia understood that
something UNUSUAL IL likely to occur.
The seata inside aud outiido tho bar
and nll tho available standing room
wcrc occupied long before tho court
came In ut noon, and many who worc
unable TO gain admission remained
standing In tho corridors for hours,
hoping that ultimately place might DO
made for thom. A largo majority OF
those insidc retaining thoir places, how.
over, until Mr.. Choa.o had concluded his
argument, tho last OF tho illustrious
series in tho iucome tax cases. Thcro
was no preliminary business before tho
court and Mr.. ChoAto began his nd.
dross promptly upon the opening OF the
days session.
ie took up tho thread Of his discus.
sion by calling attention to tho dis,ri-
button OF tho power and tho methods OF
exercising tho power OF taxation by Con.
gresl lle said that tho second article
OF tho constitution provided for an ap.
portionment in accordance with tho 70.
turns Of tho census. Afior provision
was made rs in tho eighth article for
the exercise OF plonary power, which no
said. was almost without Limitation, but
they had added tho provision thnt all
duties, excise and imports, should DO
uniform throughout the United States.
This he understood to moan Just what
1t said. He was not among those who
attribute heedlossness or carelessnoss or
Ignorance TO tho makers OF the consli-
tuition, and no beloved they meant to
cover tho entiro question. They had
known all about tho struggled OF the
English speaking people for tho regula-
ton OF taxation. Hence they limited
and specified what was 10 DO known as
direct taxation.
Mr. Choato'a argument was largely
technical and legal aud indicated that
with his introduction disposed OF no
would hGncofo:th contine himself TO the
construction OF the constitution and the
presentation OF tho legal points.
The inevitable income Of all accumu-
lated property, whether the rent oil land
or tho interest on lands, is. he claimed,
necessarily tho subject OF direct taxa.
tion and OF no other. Flo hoped 10 es.
tablish this fact and to further show
tina! such tax vas 81 bjec. to the rule OF
apportionmcnt.
Whatever else was not included in
tho term direct tax, certainly real os.
tate wac included. There had been
universal assent to this proposition and
he would take this ~ the basis OF his
frat step. He controversial the propo-
sition that this idea was to apply only
to unimproved land, but commended that
tho application was to all property des-
ignated Us real estate. He followed this
argument with the assertion that the
income from rent of real estate is indis-
tinguishable from the tax on real estate
itself, and comba,tod the position oil
the attorney general that tho income
from rent after it enters tho pocket is
money and is to DO considered as such.
For that matter. any tax on land was in
substance and effect tax on it's rental
"How, under heavens" he exclaimed,
lis tax on land to DO paid except from
its income-its rental?"
Returning to the position OF tho at
torney general, that the proceeds were
not rentals but money in the pocket, he
declared it was distinction without Il
difference and wa, fiction which had
been stamped upon by the court with
all Its might, and quoted presidents to
sustain the position. Furthermore, no
controverted the RICH, to tax money
in the pocket" rs taxation on personal
property.
In the case OF United States bonds,
which arc no. subject to taxation, how
could tho interest on these bonds be
separated from tho bonds themselves
and taxed? Returning 70 the questions
OF appointment and uniformity he re-
Vowed tho history OF tho formation OF
the constitution. giving especial attcn.
ton to the compromise on the question
OF taxation and commerce.
Mr. Choate then took up tho conten-
ton OF the counsel for the appellants
tina. tho word uniformity had only n
geographical meaning and proceeded to
criticise it. Why, he asked, should this
limitation Us to uniformity in the differ.
ent states be insisted upon when tho
tax was to apply to the entire United
States. He claimed that tho consti.u.
tional requirement. OF uniformity meant
10 require equal and uniform duties aud
taXea among citizeus throughout the
United States. II means approximate
equslity-tho treatment Of all alike.
Mr.. Choate commended that In OK
change for tho surrender BY tho states
oil power to collect duties, imposts and
exciacs, the general government had
necessarily conceded tho right OF oil
men in their equality before tho law,
and the rule Of uniformity must BIO OBJ
served. Furthermore. no asserted TINT
this rule had been observed without
exception by Congross in all tariff acts.
Mr.. Carter had declared that there
wal no hel p for it II a mistake had boon
mado In tho law. but Mr.. Choato con-
tended that tho court was hero for tho
purpose Of providing help in such cases.
Ile then referred to what no designated
NJ the breaches OF tho rule OF uniformity
mndo by tho income tax, taking up first
tho limitation OF tho law 10 incomes in
excess OF $1,000. Had wo como 10 tho
point whom there wa, to be one law for
the rich and another for tho poor? llo
declared tho law to DO Il deliberate strike
on tho part OF tho mon who had voted
for it, Mt tho really rich. No wonder.
ho said. tho President alter ten days
de!ibcra.ion had rciuaod to put his
namo to tho bill. No wonder tho Pres
idcnt and tho secretary OF tho treasury
refuse to endorse It.
Continuing his argument Mr.. Choatc
said tho roIu'al TO mako tho exemption
in the caac OF corporations was in tho
nature Of q penalty whichwaa not levied
on othere. md 1t was an entering upon
n policy which Congress should have