New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-05-07

people did not understand consider that the
word direct in the Constitution applied only 10
capltation taxes and taxes directly on ianc
DELEGATES KNEW WHAT THEY WE'RE
ABOUT.
Mr. Guthrie then examined the tax laws OF the
colonies and States in order to show the familiar
itv of the delegates with taxes not only upon lahd
and income derived therefrom. but upon personal
nronortv or estate AMI tho income ana proHtS
thereof This examination tended to prove thht
the delegates mus; have intended to Include a TAX
IN personal estate for otherwise 1t must Dc cica'
that Il they contemplated merely lana TAX '"eS
would have used these words AFTER numerous
quotations from the early debates ana cohVeh-
t,one Mr. Guthrie declared that 1t must be con-
coded that we refer TO the literature Of the period
and IN the works upon political economy which our
statesmen were then studying the deilnuoh OF
counsel Of a direct tax was sound ana was the
one which, In all probability. the great maJV'l'S VI
the members Of tho convention had In tner minus
when ,boy inserted that term In the Constitution.
The Views Of no writer Of that day conflict VIII"
this contention
Since the last argument counsel had dis''V'''"
two instances--one in Massachusetts and one IN
Observation-Disclosures In n law the term direct
taxes WAS used and defined In view OF TINS proof
counsel earnestly submitted to the court mat u
WAS clearly the intention and understanding oil
the trainers Of the Constitution. and Of the people
who voted to adopt IL. that the term direct 'dN's
included a tax upon personal property ana i's III
comes as we'll as a tax on land and income ue-
rived from It's ownership No difference III P''"-
CHILE between the taxation of land ana the 'aN"
ton Of personal property could be suggested WIN"
was recognized In jurisprudence. Lana hau so'no
USE Irrespective of its incomes. but the great po"s
OF personal property has no value Whatever ~ 10
owner except by reason Of the income a'iS'"e
therefrom Logicalys if taxes on rents issues anu
profit Of real estate equivalent TO taxes Oh 'he
land Itself and therefore. direct taxes taxes Oh
the income Of personal property. as such must I've
equivalent to taxes on such property ahn '"eie-
fore, direct taxes.
TAXEs on INCOME ARE DIRECT TANts'
II seemed idle to insist that the tax cannot De
deemed direct because it is imposed only upon
the income OF property, and therefore does not
fall upon property which Yields no income Inc
principles which the authorities establish are as
conclusive against taxation upon the income Oh
one class of property as OF the other l"is
seemed TO be- he said conceded by the Attorney
General Mr.. Guthrie then took up the Hylton
case. which, he said, had been the sole cause or
all the error on this question. and which IT was
insisted by the Government irrevocably estao-
lished as II written into the Constitution itself
the doctrine that the Federal Government was
limited In the power to lay direct taxes to
capitation tax and a tax directly on land we
are told" said he that although the conclusion
might be different if the question were new
one the court is precluded from considering the
merits OF a constitutional question or guarantee
by the expressions in this case Such an areu-
ment comedies the possibility Of original error
It is never too late 10 adopt and declare the
truth as to the Constitution Under such cir
cumstances as are here presented the doctrine
Of stare deciss should not be applied
Three considerations under the Hylton case
ne continued were presented for discussion: First
Whether Congress. at the very formation OF the
Government. in passing the act Of June D. l'9i'
gave practical Interpretation Of the ConSutu-
ton adverse to counsel's contention; seCohoiy,
whether the Justices OF the court inten1ed 10 de-
eide anything Of the kind: and, thirdly, whether
the decision thus rendered was acqui seed In and
considered settling and determining the qres-
ton. The first ground was the prinfpal re,
lance OF the Government. and counsel ccrtelded
that the passing Of the Carriage Tax law by Con.
gress in 1894 not practical Interpretation OF
the Constitution adverse TO the views held by
counsel; but that, on the contrary the practical
Interpretation of those days was entirely with
them The second consideration was denied ny
citations from the opinions OF the court IN me
Hylton case and decisions bearing upon similar
questions In subsequent cases. BY an eiaDorate
discussion Of the third ground Mr.. CiutArie en-
deavored to prove that the conclusion was
erroneous that. although the court did not intend
to decided the question. there sprang up con
sensus Of opinion on the part OF the government
and people that the decision had irrevocably de-
termined that there were only two objects Of al
rect taxes. namely. cap!tation tax md Il land
tax and that IL was regarded as the logical ana
necessary result OF this that tax IN personal
property or its Increase and tax on rents or the
produce Of income Of land a duty
else within the meaning Of the Constitution.
FOLLOWING THE GOVERNMENTS EXAMPLE.
Referring to Of the arguments advanced
at the former hearing as TO the desrability Of
conforming to the popular will, Mr.. Guthrie
said:
Much was said upon the prior argument in re-
gard to the awful responsibility which the Court
would assume In declaring an act OF Congress
unconstitutional. and the clamor that IT might
incite. 1t might not therefore. be amss to OBJ
serve that while we have been contesting some
OF the provisions OF the Wilson Tariff bill on the
ground Of their unconstitutionaty. the Depart
ment Of Justice itself has been earnestly and
strenuously carrying on a contest on precisely
the same ground against certain sections OF the
Mckinley Tariff bill This has been done with
so much ability and success that the Executive
branch Of the Government has procured judy
ment annulng as unconstitutional and void the
sugar bounty sections of that act. Therefore, it
should not. II seems to me. excite comment and
much less criticism. that private citizens. in
protection Of their own rights, have followed
this example. In that same case precedents
were C1teO anu tNe OOClTlUe OF pTdctlCdi inter-
probation advanced. but the Government sue
ceeded In clearing all this away and inducing the
Court to return to what 1t insisted was. prece-
dent or precedent the only safe gude-the
truth Of the Constitution
Speaking Of the income tax during the war
period. Mr.. Guthrie said the Nation not
saved by the tax. 1t was the National credit
that saved and preserved It. and upon that
alone could dependence in the future be placed.
The way to maintain credit and the confidence
CT the people by scrupulous adherence
to the highest principles OF Governmental integ-
rity The people We're told in almost every con-
yention called TO consider the adoption Of the
Constitution that direct taxes would not be laid
except In time of war or extraordinary emergen-