The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1895-04-17
The Plutocrats Rejoice.
The Supreme Court Decides
Against the Legality Of
the Income Tax Law.

WASHINGTON, April s.-The au-
nouncement of the decision of the
Supreme Court of the United States 10
the income tax cases to-day was made
in the presence of a crowded court
room, the spectators lobby being
thronged t6 its utmost capacity. The
members Of the court. except Mr.. Asso-
ciate Justice Jackson, entered the
chamber promptly at noon. A few
cases of minor importance were dis
posed of and the Chief Justice auoounc-
ed that at the conclusion of the sitting
on Thursday, the court would adjourn
over Good Friday and several orders of
the court, after which the great case Of
the day was read by him. He said,
amid almost painful stiffness Il AN
charged with the duty of announcing
the opinion and judgment of the court
in the case of Chas. Pollock VS.. the
Farmers Loan and Trust Company ct
al" The conclusions of the court were
stated to be as follows:
/. That BY the Constitution, Federal
taxation rs divided into two great
classes Direct taxes and duties, i'm
ports and excuses.
2. That the imposition of direct
taxes is governed by the rule Of ap-
portionment amosg the several States,
according to numbers. and the imposi-
ton of duties, imports aud excuses by
the rule of uniformity throughout the
United States.
8. That the principle that taxation
and representation 60 together was To-
tended to be and was prescribed 10 the
Constitution by the establishment Of
the rule Of superintendent among the
several States. so that such appcrtioo-
ment should be according to numbers
in each State.
4. That the States surrendered their
power to levy imports and to regulate
commerce to the general government
aud gave it the concurrent power to
levy direct taxes in reliance on the pro-
lection afforded by the rules prescribed,
and that the compromises of the Con-
sti.ution caurot be disturbed by legis-
lative action.
5. That these conclusions result from
the text of the Constitution and are
supported by the historical evidence
furnished by the circumstances sur
rounding the framing aud adoption of
that instrument and the views of those
who framed and adopted it
6. That the understanding and ex-
peetatiou at the time of the adoption OF
the Constitution vas that direct taxes
would net be levied by the general
government except under the pressure
Of extraordinary exigeuces and such
has been the practice down to August
Is, 1894. If the power to do so is to
be exercised as an ordinary and usual
meaDs Of supply. that fact furnishes
an additional reason for circumspection
in disposipg of the present case.
I. That taxes on real estate belong
TO the class of direct taxes and that the
taxes on the rent or income of real es-
tate, which is the incident of its owner
ship. belong to the same class.
8. That by 90 previous decision of
this court has this question been adju-
dicated to the contrary Of the conclu-
sious pov announced. That so much
Of the act Of August Is. 1894, as
attempts to impose q tax upon the rent
or income of real estate without appor-
tionmeut i. invalid. The court is
further Of opinion that the act OF
August Is, 1894, is invalid. so far as
it attempts to levy tax upon the in-
come derived from municipal bonds.
AS . municipal corporation is the repre-
sentative of the State and one of the
iostrumentalities of the State govern.
ment, the property and revenues oi
municipal corporations are not subjects
of Federal taxation, nor is the Income
derived from State. county add NUM-
cipal securities, since taxation on the
interest therefrom operates Oh the
power to borrow before it is exercised
and has a sensible influence on the COZ
tract, and therefore such a tax is q tax
CD the power of the States and their
ins,rumentalisies to borrow money, and
consequently repugnant to the Con-
stiution.
Upon each of the other question ar
gued at the bar, to Wit:
/. Whether the void provisions as to
rents and income from real estate IN
yalidates the whole act
2. Whether as to the income from
personal property as such, the act is