The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-04-07
AN IMPORTANT DECISION
Sections Of The IncOm, Tax Law Will
Not Hold Water.
CAN BE PICKED TO PIECES
Cabinet Officers Decline to Dis
cuss the Matter Until the Opin-
ion Has Been Officially
Promulgated. f

Tribune from Washington says:
/ The United States supreme court has
| reversed the decision of the lower court IN
the income tax case. but the income tax
law as q whole Is upheld by divided
court. Under the decision il is said all in
| comes derived from rents are exempt
from Ia xation by the federal government.
| and all incomes derived from state and
! municipal bonds are similarly exempted.
In other respects the income tax law
stands as 1t was last August, but the re-
suit of q consultation in the supreme
court shows very conclusively that the law
can easily be picked to pieces. provided
suits are brought to contest cvery particu-
lar point as il comes up.
The court was evenly divided. Justice
jackson was too ill to take part. Chief
Justice Fuller and Justices Field, Gray
and Brewer were opposed to the law. JUS
tice Harlan, Brown, Shiras and White
voted to sustain the law.
The expression among members of the
court is that decision will be rendered
on Monday in open court, but there is a
bare possibility that the court may again
split up into irreconcilable sections and
hold up the decision.
WASHINGTON, April 6.-The attention of
several members of the cabinet was called
to-day to a dispatch from Chicago regard
ing tho TriJune's publication of the SUI
preme courts decision on the income tax,
but they declined to express any opinion
thereon, on the ground that il would be
manifestly improper to discuss any opin-
ion of the court at least until IL had been
officially promulgated.
From another, but entirely authentic
source 1t is learned that whatever the de-
nj ctn NJ fI<.r H. -
will not call an extra session of congress,
and even should the decision declare the
law wholly unconstitutional, the presi-
dent will adhere to his determination not
to call congress together, and will so an
nounce In a publication.
All efforts to secure from members of
the supreme court, either an authorita-
tive confirmation or denial of the Chicago
Tribune's publication, prove unavailing.
Senator Voorhees,, chairman of the finance
committee, when told of the publication
to-day, said:
1T may be that portions of the law may
not be sustained. / consider there is a
possibility of such a result. but do not
know a thing and do not believe anyone
outside of the court knows thing about
1t. But suppose IL should be true that a
portion of the law regarding rents and
hunicipai ponus snoulu prove 10 be, IN |
the opinion of the court, unconstitutional.
the law will not be materially impaired.
The estimates made ara entirely too low |
on the revenue that would be derived |
from the law as a whole. Instead of its |
including from SIS 0OO, 900 to $50, 600, 900, it
will add s5o,0O0,OO0, S75,Oo0,0Oo or even
SlO0.OO0,O00 to the revenue"
Senator Harris of the finance committee
declined to discuss the question, as also
did Senator Jones of Arkansas.
Senator PETER expressed the opinion
that IL incomes from rents and bonds
should be eliminated, the efficiency OF the
law would be materially crippled.
Leaving out of consideration the
question of a tax on bonds, I" he said, trent
Is the most important ono when VIC con-
slider that a third of the farmers in the
country are renters, that 80 per cent. of
the entire population of the country at
large. and a per cent. of the people liv.
ing in cities of over 100, 900 population are
also renters, and in New York city the
of renters is "a. Such a de-
cision would result in a great spread of
populism."
The court is in consultation to-day, as
usual on Saturdays, but il cannot be
learned whether the income tax opinion
has been prepared, or whether IL will be
handed down on Monday.