Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1895-05-09
TAX TALK RESUMED
SUPREME COURT LISTENS TO
ARGUMENTS.
JUSTICE JACKSON PRESENT
Mr.. Guthrie Makes the Opening Ar
guments for the Appellants
Whole Country Interested-High
Patriotism InYOlyed-Mr. Whitney
Takes up the Other Side.

Washington, May 7.-There was a
full bench in the supreme court of the
United States yesterday for the first
ume since Justice Jackson left for
the south last fall The occasion of
the appearance of the full bench and
of the large audience was the order of
the court for rehearing in the il
come tax cases.
Before Mr.. Guthrie began, the chief
Justice, after calling the case again.
stated that in response to the SuggeS-
tlon OF the attorney general, which the
court interpreted as virtually motion
for a rehearing, the court had decided
to permit counsel to go into all the
questions involved. He said the re-
hearing had been dependent upon the
presence of Justice Jackson, which
had now been happily realized The
court had found it necessary to limit
the argument to two of counsel on
each side, but it wstS for counsel to
say what time they would require
Thereupon Mr.. Choate and Attorney
nOunced that five hours on each side
would be sufficient, and this was
granted. Judge Wilson was also per-
mitted on behalf of John @. Moore to
file a brief in the present case.
Mr.. Guthrie began by saying that
counsel for the appellants had been
subjected to considerable criticism for
their motions for rehearing. but that
they felt justified in the realiza ton of
the fact that there were points still
undecided in the definite and final adj
juSdica tiOn, in which the entire cOun-
try was vitality interested and he as
Sured all concerned that counsel for
appellants would approach it in q
spirit of the highest patriotism and
with no desire for mere self aggran-
dizement. He said that the question
involved was a constitutional one.
The point of contention, said Mr..
Guthrie, was that the authorities eS-
tablish the principle that taxation
upon an income of one class of prop
erty is as Objectionable as upon an
other. He charged the HyltOn case
with being the sole cause of all er-
/ ror in this matter. 1t was, he said a
political case in which the administra-
tion of Washington was pitted against
the anti-federalists and the case in
which local prejudice cut an important
figure. Mr.. Guthrie then presented at
some length the contention that as it
was clearly the intention of congress
to have the law act as a whole upon
all incomes, and any provision I'M
: questionably void, would invali-
date the whole act. The law, he said,
expressly includes rents and other in
comes from land and personal proper
ty and it's general language covers
also incomes from municipal bonds.
The government insisted that it was
not only the intention, but within the
power Of congress to tax incomes from
municipal bonds. The object of the
act is single and entire, that is to say,
it is for taxation of incomes from all
sources, and in order to preserve the
provisions now remaining, the court
must strike out words actually used
such rents, income and product land.
He declared the act should be sent
back to congress because it is arbitra-
~ and unjust and il violation of the
express provisions of the constitution.
He then took up the questions of linn
itatiOnS and exemptions, repeating
much of the argument advanced at the
first hearing and asked the court to
declare the whole act uncOns titutiOnal
because Of exemptions.
Mr.. Guthrie concluded at three
o'clock, and was followed by Assistant
Attorney General Whitney, on behalf
Of the government. Mr.. Whitney said
that the government would not again
present any argument on the question
of municipal bonds. AS to the ques-
tiOE of exemptions of rentals of real
estate, that was different The gov
eminent had hopes that this question
could be so presented as to obtain a
reversal of the former opinion. He
commended that the bill in these cases
asked for no special relief in cases
Of rentals. He announced that the
historical and detinitiye argument
would be handed to the court in the
shape of brief. Whitney said that
Of economics of John Stuart Mill,
which had not come into existence at
the time the constitution was adopted.
and he contended that the distinction
between direct and indirect taxes was
so obStruse that it VISA net possible
to incorporate it in Il written conStitu-
ton. Mr.. Whitney referred at some
length to the distinctions between the
words tax" and duty in English
legislation. He said this distinction
has been very sharp and the word
tax" has been applied only where the
word duty could not be made to cover
the case. He cOntended that direct
taxes were traceable to English land
taxes, and it was impossible to levy
such a tax except by apportionment I
The system of appOrtionment among
countries was the same in this country
in early days as in England. At this
point, Mr.. Whitney was interrupted by
the adjournment of court for the day.