The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-04-04

congress as to taxation, Justice Peck
ham said:
In searching for proper subjects OF
taxation to raise moneys for the sup
port of the government congress must
have the right to recognize the manner
in which the business in the country is
actually transacted; how among other
things the exchange of commodities is
effected; what facilities for the con-
duct of business exist; what their ma
ture and how they operate; and what,
If any, practicable and recognizable dis
tinction there may be between a trans
action which is effected by means of
using certain facilities and one where
such facilities are not awaited of by
the party to the same kind of trans
action
Having the power to recognize these
various facts, it must also follow that
congress is justified, if not compelled, in
framing a statute relating to taxation,
to legislate with direct reference to the
existing conditions of trade and bust
ness throughout the country, and to
the manner in which they are carried
on
The Chicago board of trade is treated
in the opinion, as a type of boards of
trade all over the country, the size of
the chief institution only serving to
emphasize its Importance.
1T is common knowledge that these
exchanges encourage and promote hon
est and fair dealings among their MEM
bers: that they provide penalties for
the violation of their rules in that re-
gard. and that contracts between men,
bers relating to business on the ex-
change have the advantage of the
sanction provided by the exchange for
such purposes
THE tax" he said. sis not a direct
tax within the meaning of the constitu-
ton, but is In the nature of a duty or
excise. The amount of such 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 stat
ute of the property transferred by
means of using such privilege or facili-
ty. but this does not make the tax a
direct one.
We do not see that any
material difference exists when the sale
is for future delivery The thing
agreed to be sold is the same whether
for immediate or future delivery
On the point of discrimination it was
remarked that a purchase occurs
whenever sale is effected, and to say
that purchaser at an exchange sale
must be taxed for the facilities made
use of in making the purchase or else
tnat the TAX on the seller Is EOlQ, Is
simply TO insist upon doubling the tax.
Nor is it necessary to tax the use of the
privilege under all circumstances in or
der to render the tax valid. Upon its
use in particular cases, we see no rea-
son why it should be necessary to tax
a privilege whenever it is used for. any
purpose or else not to tax 1T at all. It
is not in its nature indivisible.
=" In holding that the tax un-
der consideration is tax on the privi-
lege used in making sales at an ex-
change we thereby hold that it is not
a tax upon the memorandum required
by the statute upon which the stamp is
to be placed. The act does not assume
in any manner to interfere with the
laws of the state in relation to the con-
tract of sale.
i" Though congress might
have adopted some other means for col
lecting the tax which would prove less
or annoying to the tax
payer, there can surely be no reason
for holding that the method set forth
in the act renders the tax invalid. The
means must be question for congress
alone" pa .r'..