The diamond drill., 1895-04-13

/ several states, which they had. In many eases.
helped 10 frame. Many Of them were we'll
vcrscd IN the literature OF the times. es-
| pecially on the subject OF political economy
| The chief Justice then made extensive QUO
tations from the history Of the debates In the
convention on the subject Of taxation The
| inference from them. he said. was TINT the gen.
| crei distinction between direct and indirect
taxation was well understood by the members
OF tho convention ana that the expectation
was TINT direct tax would be the last resort
OF congress.
what the constitution Intended 10 prevent"
said the chief justice. "was that no tax should
be laid on tho residents OF any state by the
Representatives OF other states The exercise
| OF the power TO levy direct taxes was 10 bo ro-
| stricted TO extraordinary occasions
In conclusion. therefore, upon this point, the
| chief justice announced that the court we're OF
the opinion that that part OF the law imposing
taxes upon rents obtained from real estate
was invalid
State and Municipal Bonds Exempt
Next In order tho opinion considered the third
objection 10 the law; That IL imposed tax
| upon the incomes derived from Investments In
state and municipal bonds, and was therefore
| invalid
Chief Justice Fuller rensserted tho general
| principle that the tax government bonds
was held 70 bo a tax on contracts and
| prejudlcial TO the public interest II was
| therefore obvious that such a tax on the power
OF states or municipalities TO- make contracts
was prciudcal TO public policy and therefore
| unconstitutional
Yield and white Read Opinions
Justices Field and White read inde-
pendent opinions the former holding
the law wholly invalid
should $50 Declared Null and Void.
Justice Field devoted some time to a review
OF tho provisions regarding rents. and de-
| hn pri lFala u~n m ho al
by the income tax law. Many OF his conclusions
were In conformity with those expressed
| by the chief Justice Ho also attacked the law
on account OF its lack OF uniformity and dwelt
upon It's exemptions ana the many discrimina-
tiOns found therein In conclusion Justice
| Field announced hts opinion that the whole
| law OF 1894 should be declared to DO null and
void
Thinks tho Law All Right.
Justice White profaced his dissenting opln-
ion with the statement that the custom OF rem
dering long disscnts In court OF last resort
was more honorcd in the breach than in
the observance Their only effect was 10
weaken tho efficiency OF the opinion OF tho
court. Justice white said be should not speak
but for the fact that the court had overruled
and set aside established precedents
and the settled and uniform doe
trine OF the supreme court down 70 the present
time lie regretted that at this late day this
court should thus overthrow and nuliify an
act OF congress, supported and affirmed by
OH text writer's and by every decision
az the supreme court OF the United States
When the iarhors constructed our form OF gov
ernmcnt. they gave f. not limited but unlin-
tied powor 20 levy taxes, with but ono exception
that OF taxing exports The Insertion that the
constitutional power OF congress was limited
was, he thought, the fundamental error In the
reasoning OF the majority OF this court Tho
great question before the court was. IS the in
come tax direct taxi That question was
practically decided on hundred years ago,
ana he did not deem It necessary 20 enter into
on elaborate review OF the cases that had been
nToct OF the Decision.
WASHINGTON, April 0.-The effect OF
the supreme court decision on the In
come tax law so far as tho .treasury de-
partment officials can determine
after hurried estimate made Mon
day afternoon will be n reduc-
tion OF about one-half in the revenue
originally estimated as obtainable
from that source, thus making the an
nual revenue 20 be expected about
Si5,O0O,O0O. The original estimate OF
S3O,00O,0O0 per year WAS based on
the assumption that tho law would be
held to be constitutional In all It's pro-
visions
Disappointment.
The president was informed of the
income tax decision shortly after IL
was rendered by the supreme court,
and at 1880 he summoned Secretary
Carlisle 10 the executive mansion and
the two discussed the matter for some
time. Other members OF the cabinet
dropped In later, among them the
attorney general. The decision was
disappointment, but che ndministra-
tion will at once issue instructions 20
collectors OF internal revenue 10 con-
form 10 the emasculated law. Sccre-
tary Carlisle followed his well defined
custom not 60 discuss the matter for
publication.
WIN Accept tho Decision.
Attorney General Oiney said the
government would not ask for re-
hearing, but would accept the de-
cision as rendered. lie was not SUR
prised at that portion OF Il excepting
municipal and state bonds from taxa
ton, but expressed the hope that tho
question OF rents might be brought
before the court In some other shape.
when he entertained the strong belief
that the present attitude of the court
would be revised.
No Extra session OF Congress.
WASHINGTON, April o.-The president
on being asked Monday afternoon
whether In view OF the decision of tho
supreme court on the income tax law
an extra session OF congress would be
called, said that neither he nor
the secretary of the treasury saw any
necessity for such action, and that un-
less there was an unexpected change
In conditions, he had no idea that con-
gress would meet again before tho
time appointed for its regular session.
MUST PAY HEAVY TAXES.