The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-09-05
ATTACK THE
INCOME LAW
Constitutional OBJ
iections We're
Raised.
JUDGE ESTES
SUGGESTIONS
Upholds One of the AlIesedIy
Harsh Features-Decision
Probably on Monday.

The constitutionality of income tax
law was threshed over again yesterday
in the United States Court in the suit
Assessor Pratt from collecting the tax.
The suit came up on demurrer to the
complaint, and upon the points raised
here the case will be carried to the
higher courts.
Attorney General Dole represented
the Territory and Thomas Fitch and ].
r. Dunno appeared for the petitioners.
Mr. Dole began by saying that he had
expected Mr.. Robertson to argue the
matter so had but little time for prep
aration. He stated however that the
hearing in the Supreme Court covered
practically the same grounds and he
therefore read Robertson's brief in the
Robertson VS.. Pratt case, which had
been presented in the Territorial courts.
Mr.. Dole argued that the points in the
Federal suit were substantially the
same as those upon which the Supreme
Court had passed, and that the Su-
preme Court should govern in a manner
the acts of the Federal Court. 1t was
contended further that the Territorial
legislature had as much power as a
State legislature, under the organic
act
Mr.. Fitch conceded that Territorial
legislature can impose a direct tax.
The complainants,'' said he, rest their
case upon the ground that the income
tax law of Hawaii is void for want of
uniformity, in that it was enacted in
brazen defiance of the Organic Act and
of Section of Article I of the United
States constitution, saying that all du-
ties, fmposts, etc, shall be uniform
throughout the United States, and of
the Fifth, Sixth and Fourteenth Amend
ments to the United States Constitu-
ton, and that the void sections of it
make invalid the entire law, for that it
ation''
Mr.. Fitch contended that the law dis
eliminates in favor of the idle man.
who earns So per day and works but
200 days, and the man who works 300
days would have to pay $40 tax.
1t was further argued that the law
did not exempt income from United
States bonds, and is therefore in con-
flict with the laws of Congress, and
that salaries of judges in Hawaii paid
by the United States are not exempt.
1t is further argued that there is dis
elimination in favor of private schools,
fraternal societies and insurance COM
panies which are conducted for private
benefit.
1t is also contended that there is a
discrimination between married men
and bachelors, between wards living to-
gether and wards living separately, be-
tween families where the husband is
the only breadwinner and where both
husband and wife earn an income. Mr..
Fitch further said that the Hawaiian
income law was more drastic than Con-
gress ever dared to adopt, and that the
Hawaiian legislature leaped defiantly
with both feet, upon all constitutional
restrictions
Mr. Fitch referred to the, section Civ
ing the assessor the right to add two
hundred per cent penalty in eases of
what he supposed to be fraudulent re-
turns, making the assessor complain
ant, judge, principal witness and high
sheriff, all in one.
Mr.. Fitch declared also that where
it is impossible to extract the unconsti-
the law from the body of it, without
invaildating the remainder and destroy
ing the law as understood and intended
by the legislature-then the law, being
void in one particular, is altogether
void, and the injunction asked for
should be granted"
Mr. Dunno, in his argument, paid
special attention to the section of the
law giving the assessor the right to fix
the amount in case no return was made
and declared that courts uniformly de-
nounced such arbitrary and uneontroll-
ed power, there being no appear from
mis- action.
Judge Estee interrupted to say that
the California courts had held the as
SCISSOR could be given such power. Mr..
Dunno replied that the United States
Supreme Court ever since we had one
had repudiated this power.
The Court stated further that gov
eminent officials were not supposed to
De arbitrary, but that taxes from their
nature were summary. This power, he
said, happened to be given by law in
number of States, and the Supreme
Court had decided that taxes could be
enforced by such extreme measures.
Mr. Dole made no reply and Judge
iGstee requested counsel to file briefs
before the end of the week. A decision