Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1895-05-30
INCOME TAX KILLED.
1T IS KNOCKED OUT COMPLETELY
DY THE SUPREME COURT.
By n Vote of Five to Four the High
est Tribunal in the Land Declares
Tint the Income Tax Is Uncon-
stitutional In Toto.


That the Income Tax Is UncOn- !
stitutfonal In Toto.
Washington, May 22.-The income
tax is declared unconstitutional in |
toto.
There was the usual throns of peo- |
pie about tie United States supreme
court room, in anticipation of II final
decision of the income tax cases, tia
chamber being crowded for quite a
time before the court convened. These
present included many attorneys and
q full representation of the press, as
well as fair sprinliling of congress-
men. The justices We're at the capitol
early aud the consultation began
promptly at 10 o'clock, continuing I'M
til q few minutes before u. All the
members of the court were present, in
Guiding Justice Jackson, who appeared
at the court greatly to the surprise of
every one save the justices. While
there were other cases under consid-
GRAFTON in the conference the income
tax cases received the principal share
of the attention OF the members of the
court. The presence of Justice Jack
son caused Il great deal of speculation.
and was the basis for a great deal of
gossip as to the possibility Of some
| sort Of surprise for the public. The
fact that Justice Jackson was in the
city aud that he had participated in
the consultation. did not become
known until few minutes before the
court came in. He occupied his seat
with the other members OF the court,
making II full bench at the delivery of
the opinion, as there was at the hear
| ing.
The chief justice Immediately bt gan
| the delivery Of the main opinion in the
case.
| Conclusions of the Court.
The conclusions of the court were as
| follows:
Filst-We adhere to the opinion al
ready announced that taxes on zeal
estate. being indispurably direct taxes,
taxes on the rents or income of real
! estate are equally direct taxes.
| Second-We are of the opinion that
taxes on personal property or on the
income of personal properly are like
| wise direct taxes.
Third-The taxes imposed by Sec
tions % to 81 Inclusive, of the act of
I 1894. so far as it falls on the income
of real estate and on personal prop
crty. being direct tax, within the
meaning of the constitution. and t.cre-
fore unconstitutional and void. be-
cause not apportioned according to
representation. all those sections cen
shutting one entire scheme of taxation
are necessarily invalid.
The DEGREES hereinbefore entered in
rf IL ,11
crees below will be reversed, end the
cases remanded with instructions to
grant the relief prayed.
Sections 81 to 81 of the tariff act of
1894, referred to in the conclusions of
the court i'll the opinion. are ali the
sections of the act relating to the in
come tax, so that the entire income
tax act is declared void specifically.
Three dissenting opinions We're read.
Justices Harlan. Jackson and Brown
read the dissenting opinions.
The vote on the income tax resulted:
Five against the constitutionality Of
the law To four for the law. Those
against the law We're Chief Justice
Fuller and Justices Field, Gray. Brew
er and ShiraS. For the law. Justices
Harlan. White, Brown and Jackson.
shirns Changed His Views.
1nasmuch as one of these dissenting
opinions was handed down by Justice
Jackson. and as he was absent Mt the
first hearing when the court divided
evenly on the question OF sustaining
the law on all points except those as
to the tax on incomes from rents and
bonds it follows that one of the men,
bers of the court who at first pro-
nounced for the law. except on. these
two points. changed his attitude after
the second argument. There is very
little question that Justice Shiras is
the Justice who changed his views on
these points. He made no announce
ment either to-day or when the first
opinion was delivered as to his posi-
ton.
While the opinion Of the chief JUS
tice was largely review of the gem
eral aspects of the questions involved,
he based the opinion of the court upon
the arguments that the provisions of
the law regarding the tax on rents
and bonds We're so essential a factor
of it as to render all other parts of it
dependent on them, and in accordance
with the we'll known rule Of law bear
whole must be declared invalid.
The opinions of Justices Harlan and
White were concluded in language so
vigorous and were so emphatic in their
arraignment Of the majority as to
cause very general comment Both
Justices Indicated their belief that the
ruling opinion was revolutionary, and
intimated that serious consequences
might ensue. Justice Harlan suggest
ed the necessity for amending the con-
stitution in view of the opinion The
court room was packed during the ell
tire three hours when the opinions
were being delivered.
Up to this time about $4,000 has
been collected under the income law.
While no action has been taken it is
almost certain that Internal Revenue
Commissioner Miller will take steps to