Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1895-04-09


.e~Gs are Not Subject to the
-r-s Court Divided Evenly
-ss- Points at Issue; Hence,
v1sc.sion.
~srron. D. c., April S.-After
month of deliberatiOn the
safes Supreme Court rendered
to-day in the income tax
ding by divided court the
valid. except regarding the
ved from rents and from
bonds, on which points the
,hat the law was uncon-
court room. every available
occupied, and many were
f away.
-s was only one member of the
ut-Justice Jackson, who is
not participated in the con-
Of the case.
Justice Fuller began at 1906
e Courts decree in the case
Pollock versus The Farm
Ian and Trust Company, and
t applies also TO the case of
rsus The Continental Trust
The delivery consumed an
objections made by the ap-
- we're as follows:
That the act imposes a direct
.- respect 20 the real estate, rents,
s and profits as we'll as Of the
and profits of personal prop
and not being appOrtiOned is in
of section , of article i of
Institution.
That the law, if not imposing a
.. -aN. is nevertheless uncOnstitu-
1 that its provisions are not
throughout the United States
l1 not operate with the same force
s.ec- upon the subject of the tax
found. and in that il pro-
exemptions In favor of individ-
and coDartnerships while deny
au exemptions TO corporations
g similar income derived from
property and values and providing
other exemptions and inequalities
1riOn of Section 9 of Article 1
constitution.
That the act provides no eNemp-
of the tax upon incomes derived
the stocks and bonds OF States Of
United States and counties and
inequalities therein. which stocks
d bonds are not proper subjects Tor
be taxing power of Congress.
The courts conclusions after review
-g the historical and other phases Of
n question are as follows:
ID That by the Constitution federal
-ion is divided into two great
es Direct taxes and duties. inn
and excises.
-I The imposition Of direct taxes is
0.ued by the rule of appointment
rlrg the several States. according to
-rars, and the imposition or duties.
ports and exercises by the rule of
armiry throughout the United
a.-s.
That the principle that taxation
ragresentatiOn go together was in
-la. rO De and was preserved i'm the
,ut.Ol hy the establishment OF
re of appOrtiOnment among the
@ States so that such appOrtiOn-
should De according to numbers
.I State
That the statutes surrendered
power 10 levy impOsts and to
ata commerce to the general gov
ur- and gave it the concurrent
ar t1 levy direct taxes in reliance
-as protection afforded by the rules
aej and that the compromises
constitution cannot be disturbed
s'at.ve action.
That these conclusions result
20 tHa text of the constitution and
Imported by the historical evil
furnished by the circumstances
u|ug the framing and adoption
- .-srument. and the views of
who framed and adopted it.
That The understanding and eX-
a- the time of the adoption
institution was that direct
would not be levied upon the
-Iyernment. except under the
of extraordinary eXigency,
.1 has been the Sractice down
- I5. 1894 If the power 20 do
Pm le exercised as an ordinary
usual means of supply, that fact
.s aD additional reason for cir
1u in dispOsing of the pres
That taxes on real estate belong
class of direct taxes and that
- on the rent or income Of
which is the incident of
s6ip. belong 10 the same
.- 10y no previous decision OF
has this question been ad-
ro the contrary Of the con-
now announced.
mae so much of the act OF Au-
-. '>.+. as attempts to impose a
the rent or income OF real
without apportiOnment is IN
court is further Of opinion that
e. August 10, 1894. is invalid
attempts 10 levy tax upon
-.tHa derived from municipal
As municipal corporation is
.-elative Of the State and
..e nSuumentalities Of the
.erauent the property and
'. municipal corporations
& subjects of federal taxa
& e -le income derived from
and municipal securities,
..lou on the interest there
rates on the power TO borrow
is exercised and has a senst-
tc on the contract and there
O. TAX is a tax on the power
states and their instrumental
borrow money, consequently
'1 the constitution.
each of the other petitions
~. ,le bar, tO-wit, First