The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-03-14
REVENUE WAR TAX.
no" the ouor License Was Settled in
II inois Circuit Court.

inois Circuit Court.
An interesting question affecting the
revenue war tax has just occupied the
attention Of the courts Of Illinois and
is Of note at this time when applica-
tons for liquor licenses are being re-
ceived by the local license commission
ers. Some time ago suit was brought
70 test the authority Of the city OF
Chicago TO refuse q salOonkeeper's IL
cense 10 applicants if the 50-cent war
tax stamp was not attached to the
bond.
III his decision on the subject, Judge
Tuley Of the circuit court declared that
the attempt on the part Of the United
states government to attach a fifty
cent tax on these bonds was an I'M
/ warranted Interference with the city
and state governments and an inter
ference with the principle Of state
sovereignty He declares that the
powers Of the United States govern
ment in respect to such taxation are
limited, and that if the federal gov
( eminent can impose a tax of fifty
cents on these bonds as a condition
precedent 70 the issuance of a license
under the ordinances Of the city and
the statutes Of the state, II can as well
cunt and make it SO burdensoTne to the
applicants that the state would be I'M
able 10 regulate the licensing power
granted to it by the constitution The
saloonkeeper has a right to the license.
having complied with the conditions
imposed by the state and the city.
The question of the constitutionality
Of the revenue war tax act Of June 10.
1879 under which the payment Of the
50-cens bond tax is demanded by the
city, is involved in the proceedings
which will be pushed to a final abjudi-
cation in the higher courts
as rapidly as possible. While
inconsiderable in itself the final
decision on the validity Of the
tax will have a far-reaching effect, as
over 10000 bonds, which under the
present construction Of the law are re-
CURED to be stamped are annually
presented to the city authorities.
The proceedings were begun in the
name Of Hugh DAILY and directed
against the city collector and Mayor
Harrison. Extended argument on the
question was made by Attorney Levy
Mayer in behalf Of the relator. the
principal contention being that the act
whose constitutionality was questioned
was an excess Of the taxing power OF
the federal government The federal
district attorney was notified Of the
proceeding. but made no appearance in
the case. the city being represented by
Assistant Corporation Counsel Hill.
This is the first attempt of the state
court to pass directly on the validity of
the revenue stamp act on bonds re-
CURED by city and state authorities
and prominent legal authorities differ
! on the Jurisdiction Of the state courts
to pass on the question.
The question was indirectly raised in
the hearing Of the litiga ton over the
stamping Of parcels delivered to the
/ express companies, but in that connec-
ton the main point considered was the
question by whom the tax should be
paid, while the present case concerns
the validity Of the tax a applied to the
exercise Of the executive functions of
the state and municipal government.
! The decision in the matter is final SC
far as the city is concerned. The fur
( Their procedure will probably be brought
/ by the levying of penalties against the
+ saloonkeepers who accept the licenses
without attaching the stamp to the
/ $4,000 bond required from them, unless
/ the federal authorities acquiesce ir
I - RI