The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1899-04-04
REVENUE TAX VALID
Supreme Court Renders an Inn
n0-tant Decision.


Washington. April s-Much interest was
manifested by la gyers and Others IN the
decision Of the cas- 3 in the United states
supreme court today involving the valid
ity OF the war revenue law The opinion
was handed down by Justice Pcckham,
who orally announced only a bare sum"
mary Of the written document. The opn-
ion. as prepared for preservation took Up
the various phases of the subje' holding
the law constitutional as applied not only
TO stock exchanges but to live stock yards
as we'll. the principles being the same in
all cases.
In speaking OF the general powers Of
congress as TO taxation, Justice Peckham
said:
IN searching for proper subjects Of
taxation to raise money for the support
on the government. congress must have
the right to recognize the manner in
which the business of the country is ac-
tuaIly transacted; how among ather
things, the exchange of commodities Is
effected: what facilities for The conduct
OF business exist; what is their nature
and how they operate; and what. II any
practicable and Tecognizabls distinction
there may DC between a transactio1 whicn
Is effected bv means 81 certain facilities
and one where such facilities are not
availe5 by the parties to the same kind
of a : 'ansaction. Having the power to
recogn Ee these various facts. Il must al
so folluw that congress is justified If not
compelled in framing a statute relating
to taxation to legislate with direct refer
ence 10 the existing condNlons OF trade
and business throughout the country AM
to the Kramer in which they are carried
on"
The Ch ,aPO board Of trade is treated
in H. T. Jptu on - a typs of boards OF trade
all over tu- country, the siSe of the chief
inst utlou I4ly serving to increase It's
importance
ut a. common knowledge that these ex-
changes encourage and promote honest
and fair dealings among their memb ber9;
that they provide penalties for the vio-
lation of their rules in tnat regard and
that contracts between members relating
to business on thee xchange have t1e ad-
vantage Of the sanction provided by the
exchange for such purposes.
"Nor is there any doubt thatt hese 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 recognized
as existing facts and to be the subject
to the judgment of congress as ft matters
for taxation"
1.-THE tax" he said. "ls not dlrec
tax within the meaning Of the constitu
tion burt is I'm the ature Of duty or excise
The amount of such ajax when imposed
IN a case liket his may be increased OF
diminished by the extent to which privi
llege or facility is used, and It Is fixed n
this act by the value OF the property
transferred by means OF using such privi
leges or facility; but this does not max,
the tax a direct one.
We do not see that any material differ
ence exists when the sale is for futur,
delivery. The thing agreed to he solo Il
the same whether for immediate or futur,
delivery
| On the point OF discrimination It wa,
remarked that a purchase occurs when
ever sale Is effected and to say tina
a purchaser at an exchange sale must b
taxed for the facilities made use Of i
making the purchase or else the tax o.
the seller is void is simply TO insist puo
doubling the tax. Nor IS 1t necessary t
tax the use Of the privilege under all eli
cumstances In order to render the ia
valid upon its use I'm particular case,
We see no reason why II should be nee
essary to tax privilege whenever It :
used for any purpose or else not to ta
It at all 1t is not inits nature indivisabl,
In holding that the tax under consider
alton is "A tax on the privilege used &
making sales at an exchange, we there
by hold that h Is not a tax upon tn
memorandum required by statute upo
which the stamp is to be placed. The ac
does not assume in any manner to inte
fere with the laws of the state in rela,
on to the contract of sale. Though cor
gress might have adopted some othe
means for collecting the tax which woul
prove less troublesome and annoying
the tax payer, there can surely be no res
son for holding that the method set fort
in the act renders the tax invalid. I'll
means must be a question for congres
alone"