The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1895-04-12

The Government VIII Uphold the
Justice Of the Measure,
ORIGIN OF THE DIRECT TAX CLAUSE

Assistant Attorney General whitney De-
clares That 1t Was Placed in the Consti-
tuition in the Interest of Slavery, and |
Should be Wiped Out
WASHINGTON April l2-In an inter
view Assistant Attorney General Edward |
B. Whitney spoke as follows in connec-
tion with the recent decision of the SUI
preme court in the income tax case. Mr.
Whitney participated with Attorney Gen
eral Olney in the argument of the case on
behalf of the government. He said.
"The government was not party to the
income taxes which have been decided. 1t
only received informal permission TO be
heard 1t cannot, therefore, move for
reargument. The decision, however, is
not to be regarded as final upon the rental
question. 1t can be brought up again at
the next term of court, in a case where the
government is less at a disadvantage.
This rental question was not argued
with any approach to fullness on the part
of the government. Merely one or two
out of many arguments on this question
were even mentioned and those cursorily
The number of questions raised was so
great and these questions were so intri
cate that it was impossible in the very
limited time allowed TO argue them all.
The government was obliged to devote
Itself almost exclusively to answering the
positions taken by the opponents of the
law in their oral arguments.
"Hhe opening argument is always SUP
posed to cover the points on which appel
lants' counsel reply The government
counsel found their time insufficient even
TO treat fairly the question of the validity
of the law as a whole, and could spend but
a few moments on each of the other ques-
tions. The opponents of the law asked no
special relief as to rentals in their bills of
complaint and raised the question for the
first time in briefs filed a week before the
argument. Nor did they bring it up in
the oral argument until it was raised by
Mr. Choate in his closing address, when
the government had no opportunity to
reply. This is an unusual course, putting
the other party at great disadvantage
Doubtless, however, it was not Mr.. Choate's
intention to take any unfair advantage,
but the Importance of pressing this point
was an afterthought. He made, however,
very eloquent and powerful address.
"The stories in the newspapers as to
plans of awaiting changes in the person
mel of the court, and as to hopes of influ
encing individual judges, are inventions
of the reporters or their informants. 1t is
believed that at the present stage of the
litigation the judges minds are open to
conviction upon "A rehearing Reversals on
rehearing are not common, but are not
unknown The government will rely on
the belief that every justice will carefully
listen and weigh the arguments which
will be presented
q do not desire to discuss the law of the
decision, even if it would be proper for me
| to do so. From an economic point of view
| it appears peculiar. Most of the eCOno-
mists agree that an income tax, taken as
whole, is a direct tax, as is a tax on all
the land of a country at valuation. l be-
lieve, however, that all or almost all econ
omists would agree that tax on rents
collected by landlords from their tenants
| is indirect, because it can be shifted by the
landlord on the shoulders of the tenants.
| Yet the tax on rents now stands as indi-
rect The present decision therefore, if it
stands, clearly implies that economic def
nitions are or no value in constituting this
part of the federal constitution. To this
extent 1t agrees entirely with the argument
of the government.
"If the income tax should eventually be
declared void the remedy of the people is
very plain. If they desire such tax they
can secure the passage of a constitutional
amendment wiping out the direct tax
clause of the constitution This clause,
now so important practically, has outlived
it's original reason. Its adoption was
mainly procured by persons who desired
to protect the institution Of slavery They
were afraid that the apti-slavery move
ment would take the form of prohibitory
taxation, either by poll tax or by land
tax (for slaves were usually considered to
be real estate). This clause, originally in
tended to protect the slavery of the black
by the white, now effects the oppression
of the comparatively poor as compared
with the rich.
I'm common with the great majority of
my countrymen, believe the income tax
to be a wise, just and fair tax. Our pre-
vious system of taxation, by import duties
and internal revenue excises, bore i'm
mensely harder on the poor than on the
rich, and this can be righted by an income
tax. Such tax cannot be advantageously
| levied by separate states for many rea-
| sons. 1t must be a national tax or not be
| effective. l believe, therefore, that ulti-
| mately we shall have a national income
tax law, whatever may be the final decis-
ion of the court about this law"