Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-04-08
n the courts of the District of Columbia

py one moore 10 en1oln the commissioner or
internal revenue from the collection of the
Income tax, while the other two were those
OF Charles Pollock against the Farmers'
Loan and Trust Company and Lewis n.
Hyde against the Continental Trust Com
pany, both appealed from the decision of
the United States circuit court for the
southern district of New York. The ac-
enjoin voluntary compliance with the law
In he payment of tax, and when the circuit
court sustained the law, Pollock and Hyde
appealed to the Supreme Court of the
vanced on the docket and were argued on
March Z, S, Ii, II and IL, Attorney Cen
eral Olney, James c. Carter of New York
and Assistant Attorney General Whitney
appearing for the government. and Messrs.
Choate, Seward, Guthrie and ex-senator
Edmunds for the trust companies and
Moore. The argument attracted more at
tention than has been given to any case
in the Supreme Court for years, and the
interest then manifested appears not to
have diminished since. The lawyers for
Moore and the trust companies attacked
the constitutionality of the law on broad
grounds, while Messrs. Olney. Whitney and
Carter defended it.
VIII Not Ask for q Rehearing.
Attorney General Olney said late this af-
ternoon that he does not think that the
government will ask for n reh caring in the
income tax case before full bench. He
thinks that the decision will be accepted
as final.
Suggested by Mr.. OIney.
The decision today appears to have fol-
lowed very closely the lines suggested by
Attorney General Olney.
When the Attorney General was arguing
the income tax cases for the government
during the progress of the hearing in the
Supreme Court he suggested that parts of
the income tax law might be declared in
va xyif aft n a g n W t,,lI,
and mentioned the incomes derived from
rents and from state, county and municipal
bonds. which might be excepted by a de-
cisiOn.
MI. Wilson's Views.
Postmaster General Wilson and his pre-
decessor. Mr.. Bissell, have spent today as
they have several other days. in trying to
catch up on the mail of the office, which
in the transitional interval since Mr.. Bis
sell resigned has accumulated to a large
amount.
of the decision of the Supreme Court on
the income tax cases would be upon the
revenues of the government, said he had
read no more in regard to the decision
than the headlines in the papers. AS
Stunning that 1t is true" said the Postmas-
ter General, II believe there will be reve-
nue. enough without the tax, or without
that which is affected by the decision"
AT THE TREASURY DEPARTMENT.
Serious Embarrassment Expected in
Enforcing the Law.
Treasury officials admit that the decision
of the Supreme Court on the income tax
law will make the execution Of that statute
extremely difficult, and that it will lead to
endless litigation. The division Of the court
on the main question of constitutionality
is expected to result in general legal re-
sistance to the collection of the tax by the
majority of persons with large personal
incomes.
Secretary Carlisle refused to talk about
the effect of the decision. Commissioner
Miller said he wanted to read the decision
before making any comments. 1--WE are
slightly disfgured." he remarked, ''but still
in the ring" and he added that he proposed
to do the best he could toward the execu-
ton of the law. All the returns for in
comes in excess of 800 should be in by
next Monday, and persons failing to file
returns by that time will be subject to a
penalty of 80 per cent. The tax for the
year 1894 Is not collectible until July next
but the returns have to be made before the
18th instant.
The Loss of Revenue.
The deductions from Incomes ON account
of rents, municipal bonds, ETC.. will prob
ably deprive the government OF about one
half the estimated collections, or $15.0O0,
100. No official estimate has yet been
made at the Treasury Department as to
the effect of the decision, but it Is gem
orally conceded that 1t will reduce the cs-
timated revenue from income fully 80 per
cent.
Many complications will undoubtedly rise
in the enforcement of the law, and the
treasury officials are apLreh snsive as to
the result.
The removal of rents, etc, as taxable
items will necessitate a re-examination OF
all the returns already made, and result in
q general overhaUling of the records of the
office. Commissioner Miller has not yet
decided what to do in the matter. but will
probably telegraph instructions to all col
lectors tomorrow as to the course of action
to be followed in view of the courts de-
cision-