The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-05-09
INCOME TAX HEARING.
Hon. Joseph ohoato Conoludos Hlo
Argument Bo,oro tho
UNITED STATES SUPREME COURT.
Tho Prcscnt Income Tax Declared n
Measure Aimed at tho Industrial
Classes OF Certain statcs-The In.
Justice ortho Exemptions OF Mutual
Insurance Companics-A Decision
ofihp Court Looked for This Month,

WASHINGTON, ~. ", May S,-Ihe 70.
hearing OF tho income tax case In tho
,u,prsme cour. was concluded at .
o'clock to-day, and the nine justices
took the question Of the acts consti,u.
ionality in whole or any part under
cou.ideration. On the Goth OF this
month the court will meet. probably
10, tho last .imo this term. TO rendor its
decision in the pending case, and it is
expected that its conclusion upon the
income tax case will bs announced at
that time.
Mr. Joseph II. Choate, OF Now York,
finished the closing argument which no
had begun yesterday, speaking until Q
o'clock and received the closest alton.
ton from tho justices and crowd OF
,pectators. Il has been generally re-
marked that interest in the re.hcaring
had been much less intense than Of tho
fret argument. Justice Jackson was
one Of tho most attentive OF the nine
men on tho bench throughout the hear.
Ing and seems TO have borne the strain
well, conaidoriug tho condition OF his
health.
Mr.. Choate considered the exemption
made in tho income tax law and in do
lug so made especial reference to tho
mutual insurance companies, as going
TO show the magnitude OF the opera
lions OF these companies, he could, he
sIid. mention such company. whose &C.
eGnulated property amounted to S204.-
100000. An exemption such a, this was
beyond all bounds Of reason.
CONTROLS CONGRESS.
Having obtained so much money he
said the company re-invested it by
forming trus. companies, organizing
banks, building and reor2anizing rail-
roads and floating government loans.
No, only this. but it controlled Con-
rress and directed legislation. as had
been confessed by the attorney general.
Replying to an interruption by Jus
tice Shiras, Mr.. Choate said that his
contention WA that in making e1emp-
tons they should be made by classes,
and that they could not be made within
the same class. when the only differ
ence was that in ono complaint the in
te.eited persons were stockholders, aud
in the other policy holders.
Referring to the exemptions OF in.
comes OF less than $1,000. no said thn.
provision OF the law would exclude the
vlss majority OF the incomes OF the en-
tire country. 1t would exempt ninety.
nine one-hundredths Of the tradesmeu
0! the country and n majority OF the
professional men. Was such policy
az this adopted in pursuance OF leciti-
mate public policy, or was it arbitrary?
He contended that il fell within the
latter category and said that the avowed
purpose Of the authors OF the law had
been to concentrate the taxes upon the
people OF . few oil the states and TO ex-
empt those OF the other states mainly
instrumental in passing the law. More
over, it was an arbitrary blow aimed at
corporations, in hitting which the franz
ers OF the law we'll knew they were
striking at the main source OF incomes
OF thousands OF widows and orphans,
whose incomes, individually small. were
derived from corporate Investments.
sor Up TO ESTIMATES.
The returns received at the treasury
department indicated that since the de.
cision ol the court tho revenues would
not amount TO more than half OF tho
sum estimated for By tho department.
This was the results OF knocking out in.
comes from rents and bonds.
Was 1t to be supposed that Congress-
would have passed the law at all il i.
had been known that these principal
sources OF wealth were to escape? Tho
law had been directed at the wealth OF
the seaboard atatcs, most Of which
would now be exempt. Indeed, only
the bone and sinew and nerves of the
country was left to bc taxed. The law
directed at capital was 70 fall alone on
labor. The attorney general had said
that the Law was intended 10 operate
agains. few picked men, "and vot,"
said Mr. Choate, "the biggis, fish in
tended 10 be caught in tho net have es.
capped through the rent your honors
have made in its meshos."
However it ia regarded, he concluded,
the law now stands mangled and dis.
figured by tho pruning knife OF the con-
s;itution in the hands OF thoao author.
lied to WELD it, and it cannot DO pre-
served in its present ahapo unless tho
court shu.s It's Dyes blindly to gIaring
incon,is,enciea and obviou. irrogulari.
.Ies.
Mr. Choate stopped abruptly at .
o'clock and the court announced M i'm
mediate adjournment until IL o'clock
aonday, May 20.