The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1899-04-07
TAX ON SPECTATORS.
Decided To Be Valid by the Su.
preme Court Of the
United States.
MUST CONTINUE TO STAMP FUTURES

Washington, April 4.-Much interest
in the decision of the cases in the
United States supreme court yesterday
involving the validity Of the war reve-
nue. law. The opinion was handed
down by Justice Peckham who orally
announced only bare summary of the
written document. The opinion as pre-
pared for preservation took up the
various phases of the subject, holding
the law constitutional as applied not
only to stock exchanges but to live
stock yards as we'll, the principle being
the same in all cases
Right That Congress Must Have.
In speaking Of the general powers Of
congress as to taxation Justice Peck
ham said: In searching for proper
subjects of taxation to raise moneys
tor the support of the government con-
greSs must have the right to recognize
the manner in which the business Of
the country is actually transacted; how,
among other things, the exchange of
commodities is effected; what facilities
nor the conduct of business exist; what
is their nature and how they operate;
and what If any practicable and recOg-
nizable distinction there may be be-
, tween transaction which is affected
by means Of using certain facilities, and
one where such facilities are not availed
of by the parties to the same kind of a
transaction. Having the power to
recognize these various facts it must
also follow that congress is justified,
: i in min CT a t11fQ
relating to taxation. to legislate with
direct reference to the existing condi-
tions Of trade and business throughout
the country and to the manner in
which they are carried on
Tax on Board Privileges.
The Chicago Board of Trade streated
in the opinion as a type Of boards of
trade all over the country, the size of
the Chicago institution only serving to
increase it's Importance. 1T is conEnon
knowledge that these exchanges en-
courage and promote honest and fair
dealings among their members; that
they provide penalties for the violation
of their rules in that regard, and that
contracts between members relating to
business on the exchange have the ad-
vantage of the sanction provided by the
exchange Tor SuCn purposes.
Nor is there any doubt that these ex-
changes facilitate transactions of pur-
chase and sale, and it would seem that
such facilities or privileges, even though
not granted by the government or by
a state, ought nevertheless to be recog-
nized as existing facts and to be SUBJ
ject to the judgment of congress as fit
matters for taxation"
Not Direct Tax, Says the Court.
THE tax" he said, lis not direct
tax within the meaning of the constitu-
ton, but is in the nature of duty or
excise. The amount of such a tax when
imposed in a case like this may be in
creased or diminished by the extent to
which the privilege or facility is used
and it is fixed in this act by the value
of the property transferred by means of
using such privilege or facility; but this
does not make the tax a direct one
We do not see that any ma
terial difference exists when the sale is
for future delivery. The thing agreed
to be sold is the same whether for i'm,