The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-09

legislation, in the discrimination Il makes,
is made in the burdens law imposes. or
in the benefits 1t confers on any citizens
ng gon e is Of cass egisaon edh and leads
inevitably to oppression and abuses, and
TO general unrest ana dissnroance ad ,hai IN iba
great amendments to the Constitution wntcn
followed the late civil war had rendered
time. But the Objectionable legislation re-
appears in the act under, consideration.
that of the English income statute of 1871.
which taxed Protestants at a certain rate.
oath1es - as e,ass. d ews a at another and
separate rate. ,.-,.,..,...
Under wise and constitutional legislation
every citizen should contribute his pro
portion, however small the sum, 10 the
support of the government and It is no
escape from that obligation. If he con-
tributes the smallest mite OF his earnings
regard for the government and more self
respect for himself. feeling that though
his Is pe1r M And Il IS to be hoped
that, whatever woes and embarrassments
lose os their ld manlness % apd %seifrespect These
qualities preserved they will ultimately tri-
umph over all reverses of fortune. :,
come tax laws prior. to 1870 these institu-
tions were specifically taxed. Under the
are exempt, provided the shareholders do
not participate in the profits, and interest.
posters. pos sis No limit is liked to the property
and income thus exempted-t may be
''As to mutual insurance corporations
These companies were taxed under previous
income tax laws. They do business some
they conduct a strictly private business, in
which the public has no interest, and nd have ave
Deen Deyolent oi'eh or neia charitable orsaniza-
tions The sole condition for ex-
p eIared to '1ee be- that % they s make loans to or
divide their profits among their members,
or depositors or policy holders. Every
corporation is carried on, however, for the
benefit of its membes, whether stockhold-
ers, or depositors or policy holders Ii it Is
ers every dollar of income is taxed; If IL
is carried on for the benefit OF its policy
holders or deposittSSrs. VINO are o, paa anotner
empted.
BUILDING ASSOCIATIONS
LAS to building and loan associations
The property of these institutions is ex-
empted from taxation to the extent of mil
lions. They are in no sense benevolent or
| charitable institutions and are conducted
| solely for the pecuniary profit of their
members. Their assets exceed the capital
| stock of the national banks Of the coun-
try. The aggregate amount OF the saying m
| exemption is over 5000 900 year.
This inherent limitation upon the taxing
power forbids the imposition of taxes which
are unequal in their operation upon similar
kinds of property and necess" strikes
down the gross and abitrary inctions
in the income law, passed ongess.
The law, as we have seen, dist shes In
the taxation between eorporati by ex-
empting the property of some of them from
| taxation and leyying the tax on the prop
erty of others, ,s when the corporations do DO
the character of their business or in the
protection required by, the government.
ness, but not in their results, made
| the ground and occasion of the greatest
| levied upon them showing that the action
| of the legislative power upon them has been
| arbitrary and capricious and sometimes
There was another position taken on the
argument In this case which is not the
vanced by the upholders of the law, and
that is. that if this court should declare
| taxation. extended to the various corpora
tons mentioned, fire, life and marine insur-
snee companies ar and to mutual savings
| late the requirement of uniformity. and are,
| therefore, void, the tax aS to such corpora.
stand though the exemptions had never
been inserted. The abrogation or repeal of
| not operate to create and give force to any
enactment part of an enactment which
| Congress has not sanctioned and promul-
gated. The law of 1894 says there shall be
| assessed, levied and collected, except as
| herein otherwise provided per centum
| of the amount, etc. If the exceptions are
| stricken out there is nothing to be assessed
| and collected except what Congress has
iess can have the force Of law This court
| is impotent to pass any law upon the sub
| ject. 1t has no legislative power.
| "The law of Congress is also invalid, in
| that it authorizes tax on the salaries of
| the judges of the courts of the United
| States against the declaration of the Con-
stitution that their compensation shall not
| be diminished during their continuance in
| Office
| In conclusion Justice Field said: "Here
| close my opinion. / could not say less in
| view of questions of such gravity that go
| down to the very foundation of the govern
ment. If the provisions of the Constitution
| can be set aside by an act of Congress,
| where is the course of usurpation to end? :?
| The present assault upon capital is but the
i beginning. 1t will be the stepping stone to
| political contests will become war of the
+ poor against the rich; war constantly
| growing in intensity and bitterness. If the
| court sanctions the power of discriminating
/ taxation and nulifies the uniformity, "a
| mandate of the Constitution said by
| one who had been all his life student of
| our institutions it will mark the hour
| when the sure decadenee of our govern
| ment will commence &c ~ If the purely arbi-
| can be sustained, none having less than
| that amount of property being assessed or
| taxed for the support of the government.
/ the limitation of future Congresses may be
/ fixed at a much larger sum-at $1,000 $l0,
alone being bound to bear the burdens Of
/ government or the limitation may be desig
| mated at such an amount, as a board OF
/ walking delegates may deem necessary.
! There is no safety III allowing the limita-
1 ton to be adjusted except in strict compli-
/ ance with the mandates of the Constitution,
/ which require it's taxation to be uniform in
/ operation and. so far as practicable, in pro-
1 portion to their property, equal upon all
/ citizens. Unless the rule of the Consttu-
/ ton governs, a majority may fix the limi-
/ tation at such rate as will not include any
1 of their own number.
| II am of opinion that the whole law of
/ 1894 should be declared void and without
i any binding force-that part which relates
/ to the tax rents, profits, or income from
| real estate, that is, much constitutes
/ the direct tax because not imposed by the
| rule of apportionment according to the
i representation of the States, prescribed
1 by the Constitution-and that part which
| imposes a tax upon the bonds and seouri-
| ties of the several States, upon the bonds
| and securities of their municipal bodies as
| being beyond the power of Congress to i'm
] pose and the law so far as 1t imposes du-
I! ties imposts and excuses as void in not pro-
yidng for the uniformity required by the
| constitution in such cases"