The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1895-03-20
The Income Tax Hearing.

An event of great interest was the
argument of the question Of the consti
nationality of the income tax, last week,
before the supreme court at Washing
ton. There was great array of en-
inent counsel, but some reason other
than this attracted the throngs of
people who packed the supreme court
room and filled the corridors leading to
it. The great mass of these people
were not affected by the law. Their
incomes exempted them from its pro-
visions. Eminent counsel are fire.
queutly heard in Washington, and the
supreme court judges are on exhibition
periodically throughout the year. Some
motive other than idle curiosity must
have brought the crowd together.
The purpose of the supporters of the
law was, among other things, to make
the corporations "shiver and lake,"
but reaction came when the law was
passed Kate Fields Washington, dis.
cussing the matter in the breezy style
of that very bright aud energetic jour-
nal, says it was suddenly discovered
that there were corporations and cor
porations. For every corporation in
the nature of trust or monopoly, there
are thousands which are, in the truest
sense, poor mems corporations. Toe
differe nee between corporation and CO.
operation is very slight in business, as
in spelling. Scattered all over the land
are innumerable corporations which
are, in fact, cooperative organizations
-aggregations of small investors for
carrying on business of some kind
which no one could undertake individ-
ually. While hitting the great corpo-
rations, these small cooperative bodies
are also struck by the income tax. In
respect of these, what the Washington
says of the bearing of this inquisitorial
income tax has very serious interest:
How many gas and water and electric
plants, and others which minister greatly to
the growth and improvement of small places
where they are set up, would have been es-
tablished in the western and southern towns
of twenty or thirty thousand inhabitants
during the last fifteen years, II there had
been no device like a general corporation
law to encourage the aggregation of small
lots of capital for pushing such interests?
Many of these companies have had hard
struggle to keep their footing it should be
the policy of lawmakers everywhere to en-
courage rather than hamper them need
lessly The exposure OF their affairs at
some critical juucture, even when they are
perfectly solvent, is liable to damage them,
and OF all times to force such exposure, the
worst would seem to be period immedi-
ately following terrible financial panic. Yet
it ia just such an exposure, at just such a
moment, which the income-tax law COM
pels in the initial year Of its operation. 1t
is all very we'll to say that there is no ex-
posture attending the collection of the tax,
because every statement made to the col
lector is confidential; but we all know what
that means. 1t is human nature to keep
secrets by sharing them. 1t is the confiden.
tial discussions in the executive sessions of
the senate that we read the next morning in
the newspapers. 1t is the scrupulously-
guarded findings of our highest court,
which are peddled as speculative tips
whole days before they are publicly an
nounced from the bench 1t is the most i'm
portant cabinet secrets which leak out first
Secrecy in governmental affairs is hollow
mockery, an iridescent dream. Is it any
wonder that the small investor has suddenly
awakened to an interest in the income-taK
question:"
The decision of the court is looked
for about the middle of April. This
body has several times decided in favor
of the constitutionality Of the tax, on
some phase of the question, and it is
hardly anticipated that it will, on this
occasion, upset all the precedents.
Never before, however, was the broad
question, in all its bearings, 80 exhaust
lively considered. If there were ever
an occasion for new Interpretation of
legal principle, this is certainly one.
The supreme court might be justly ex-
pected to take its bearin 20 anew, and
would be justified in establishing a
new departure.