The Portland daily press., 1895-04-09
Effect Will Be 10 Kill This UupOp-
uIar Measure.
IT WILL REDUCE THE RECEIPTS
UNDER THE TAX.

Crowd-Thc Bill Was Read by Chief
Justice Fuller-Fuu Text of the De-
cision by the Supreme Court.
shi1gton, April S.-Chief Justice Fuller
at one O'clock finished reading the decision
of the question whether or not a tax of
rents from real estate is tax on real es-
tate and therefore a direct tax. He an
nounced that the court has decided that it
is tax on real estate, taeref for a direct
ta1, and, provided for in the present
law, is unconstitutional.
The opinion of the Chief Justice also de-
clares that the tax on municipal and state
bonds is unconstitutional. On all other
points the court is equally divided and no
opinion thereon is given.
The decision of the court below on these
points is reversed and similar entry made
in the case of Hyde Us. the Continental
Trust company.
FULLER'S DECISION.
The decision of the Supreme court declar-
ing those portions of the income tax law
unconstitutional which impose tax upon
rentals and sta tie and municipal bonds, it is
justice doss not affect the legality of the
remaining POI lions of the law.
In the statement sent out On March Is,
it asserted on the authority of The At
torneY General that the case had been so
presented to the court that portion of
law might be declared unconstitutional
while the rest of it could stand.
The announcement of the decision of the
Supreme court of the United States in the
income tax cases was made in the presence
of a crowded court room, the spectators
lobby being thronge6 TO its utmost capaci-
iy.
The members of the court, except Asso-
ciate JUSTICE Jackson entered the chamb-
ers promptly at noon. A few cases of minor
Importance were disposed of, after which
the great case of the day was read by Chief
Justice Fuller. The conclusions OF the court
were stated to be follows:
First-Tha by the Constitution, federal
taxation is divided into two great classes:
Direct taxes and duties. imports and ex-
cises.
Second-That the imposition of direct tax
es is governed by the rule of apportionment
among The several states acc ording to num-
bers, and the imposition of duties, imports
and excuses by the rule of uniformity
throughout the United States.
Third-That the principle that the taxa
ton and repro sen tation go together was in
tended 10 be aud was preserved in the Con-
stitution by the establishment of the rule
of apportionment among the several states
SO that such apportionments should be accord
ing to numbers in each state
Fourth-Th the states surrendered their
power to levy imports and 10 regulate COM
merse to the general government and gave
it the noncurrent power to levy direct tax
es in reliance on The protection afforded by
tie ru les prescribed, and that the pro-
misses of the Constitution cannot be dis
turbed by legislative action.
Fifth-That these conclusions result from
the text OF the Constitution and are sup
ported by the historical evidence furnished
by the circumstances surrounding the
framing and adoption of that instrument
and the views of those who framed and
adopted it.
Sixth-That the understanding and ex-
pectation at the time of the adoption of the
Constitution WAS that dire ct taxes would
not be levied by a general government ex-
cept under the pressure of extraordinary
exigency, and such has been the practice
down to August 10, 1894.
If the power to do SO is to be exercised
as an ordinary and usua! means of supply.
that fact furnishes an additional rea son for
circumsp ection in disposing of the present
C ase.
Seyenth-That taxes ON real estate be-
long to the class of direct taxes, and that
the taxes on the rent OF income of real
estate which is the incident of its owner
ship belong to tie same class.
Associate Justice Field read an opinion
declaring he whole income tax provision of
the tariff law of 1894, to DE unconstitution-
al.
Associate Justice White dissented from
the view of the court and protested against
a reopening of the decisions of the court of
hundred years past. He concurred with
the mujority of the court. however, upon
the question of the taxation of state and
municipal Donds.
The effect of the Supreme court decision
in the income tax law. so far as the treasu-
| ry department officials can determine after
! a hurried estimate, made this afternoon,
will De reduction of about one-half in the
revenue NEUTRALITY-SUSPICIOUS. as obtainable
| from that source, thus making the annual
revenue to be expected about S15,C0O,0OC
| The original estimate of $50, COO, 600 pei
| year was based on the assumption that the
| law would lie held to be constitutional in
| all it's provisions.
| Collectors of internal revenue will be no.
titled of he decision and instructed tt
make whatsoever corrections may be neces
fary through the decision rendered today in
the blank form furnished them by the COM
missioner of internal revenue.
No new forms will be issued and the work
of preparation for the collection of the taz
" i'll proceed without delay.
| Eighth-ThaI by NO previous decision o!