The herald., 1895-05-09
Rehearing in the Famous Case
Resumed in Washington
CHOATE'S CLOSING ADDRESS
Technical Propositions OF the Law
Considered
At tie Conclusion Of the Argument the Court
Took the Matter Under Amusement
and Adjourned
Associated Press Special Wire.

of tho income tax case in the supreme
court WIS concluded at 2 o'clock today.
and the nine justices took the question OF
the act constitutionality in whole or in
part under consideration. On the 9th OF
this month the court will meet. probably
for the last time this term. to render its
decision in pending cases. and it is ex-
pectcd its conclusion upon the income
tax case Will be announced at that time.
Mr.. Joseph II. Choat, of New York fin
ished the closing argument, which he be-
gan yesterday. speaking until O'Clock
and recevin, the closest attention from
the justices and crowd of spectat) )rs.
1t has been generally remarked that in
terest in tn, hearing had been much less
intense than at the first argument Jus.
tice Jackson was one OF the most atten
tive of the nine men ON the bench
throughout the hearing, and seems to
nave borne the strain well, considering
the condition Of his health.
Mr.. Choate first took up tor examin2-
tion the argument OF the attorney general
that if tle decision i'll regard to rentals
was to stand, there should be no limit to
the time tho exemption should run. The
attorney general had pleaded that with
such ruling in force 1T might be impos-
sible to ever tax the proceeds derived
from rents. however they might be in
vested Mr.. Choate said in reply that 1T
was sufficient that the law left no such
question open. The provision was for
taxing rents at the moment of their re-
ception, and he, for one, should not be
SO foolhar1y as to claim that when the
rent monay should be invested it should
not be subject to the original ruling in
court in this case.
Mr.. Choate contended that of The vast
sum expended in the civil war, very
small proportion had been derived from
the income tax. which was in opera tion
at that time. Taking up the thread of
his affirmative argument. Mr.. Choate de-
c.ared the question OF taxation had been
one of the most prominent IN the minds
of the trainers of the constitution. The
members of that body We're the represen-
tative men, who knew all about that
question. for they had studied it hero as
their ancestors had in England. under the
Plantaganets, the Stuarts and the Tudors.
Mr.. Choate then proceeded on the basis
that the court had decided that lands
were to be free from direct taxes and that
there was to be no difference for tax pur-
poses betwee the body of the land S2d
its proceeds. He then entered. upon !he
discussion Of the undcc ded questions.
contending there wore tho same reasons
FOR excmpting incomes that existed for
exempting bonds and real estate.
Justice Harlan asked Mr.. Choate if he
meant by general tax of personal property
a tax on all personal p roperty of every
kind. t'
Not all, Mr.. Choate replied, ''be-
cause | admit the right of exemption"
Justice Harlan Does tax law tha
reaches only part of personal property
come under that head?
Mr.. Choate-In New York there is
vast body of citizens exempt-inmates of
tenement houses, nearly one-half of the
population, yet call that general as
sessment, not excepting the exemption.
1t is a tax that cannot be shifted and tax
that cannot be avoided. But the gu stion
whether tax on real estate can be shift.
ed. Will leave to political economists,
with whom | have no relations and
hopei never to have relation.
Mr.. Choate looked at the attorney gen.
eral when he spoke of political econo-
mists and there was laughter. rar
demonstration in the supreme court.
Justice Harlan asked if the counsel
would call tax on the income of bonds
direct tax that would have to be appor-
toned, and upon receiving an affirmative
answer. asked if the same were true of
tax on banking.
Mr.. Choate answered: "This is uusl-
ness and this court has over and over
again decided that congress can tax a
business
In discussing the principle OF state
decisions, which he defined as the rule of
standing by u former decision whether
right or wrong. he said he was con-
st trained to believe two os the justices had
only consented to the former decisions
in Difference to that principle.
Your honors are sworn to obey the
constitution as a primal Jaw. Every act
of con ,ress stands in the light OF it or
must fall.
Must not every decision OF this court
that is found to be in conflict with the
constitution by the light of the latest evi.
deace and the most complete information
also stand or fall?'
Then M. Choate continued "Regard-
ing the statement that former income
taxes will have to be paid back if the court
reverses the Springer rule. l submit that
with such consequences as that your hon
ors have nothing to do. That is not an
argument addressed to question of law
or constitutionality. A moral argument,
tis encouragement calls it. call 1T an
immoral one. The idea of the attorney
general standing up here for the nation
and asking that because the government
has collected much money illegally in the
past, it must go on collecting money il
legally"
Mr.. Chuate next considered the excep-
tons made in the income tax law and
in DING so made, special reference to the
mutual insurance companies as going to
show the magnitude Of the operations of
those companies. He could. he said,
mention one such company whose accumu-
lated property amounted to $2O4. OOO 5000.
An exemption such as this was beyond
the bounds of reason.
''Do you know" he exclaimed. 'what
this concern is that is given the vast ad
vantage implied in this exemption? 1t
gees under the reputable name of
mrnied corporation. 1t is a menied
monster. 1t lives upon money, 1t swa-
lows money, it digests money. it breeds