The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-08-12
To ENJOIN
COLL-ECT
Income Tax Law In
United States
Court.
la NEW ATTACK ON
| CONsTITUTIONALITl
Injunction Asked Because of Allie
! CATION That Territory is un.
able TO Repay Money.

Suit to enjoin the collection of the
income tax for 1902 was begun yester-
day in the United States Court. Thos.
Fitch. representing the following plain
tiffs, made the application to Judge Es-
tee for an injunction against Treasurer
Wright and Collector Pratt:
w. c. Peacock. & Co, Ltd; Benson,
Smith & Co. Ltd; Lewis & Co, Ltd;
Honolulu Brewing and Mating Co.
Ltd; The Hollister Drug Co, Ltd; NJ
s. Grinbaum & Co.. Ltd; Kash Co.,
Ltd; The Manufacturers Shoe Co,
Ltd; w W. Dimond & Co, Ltd; Wall,
Nichols & Co, Ltd; Bulletin Publishing
Co, Ltd; Lee .Toma & Co, Ltd; Oahu
Carriage Mfg. Co, Ltd; Wing Wo Chan
& CO.; Pacific Land and Improvement
Co: Yee Wo. Chan Co.; Wing Wo Tai
e Co.: Kwong Yuen Hong Co; Green
wood, Richardson & Holloway. Ltd; all
of the foregoing being corporations I'M
der the laws of Hawaii Territory: s.
Roth & Co.; e. A. McInerny; NJ. Nc
Inerny; James j. McInerny; Edward n.
McInerny, as trustee for Ella McIner-
ny; Clinton B. Hutchins; L. b. Kerr;
George w. Smith; F. ]. Church; Edgar
L. Lewis; II. T. Lewis; F. M. Lewis;
A. Hooking; J. j. Williams; H. f.
Wichman; j. II. Schnack; Aug. E. Drei-
err: A. Gartenberg; E. w. Jordan; e. r.
Bath; F. j. Wilhelm: w. w. Dimond;
James Steiner: Emmett May; A v
Gear; James L. Mclean; Thos. E.
Wall; Fred Philip: Fred Harrison; w.
&c. Peacock; W. H. McInerny; ]. G.
Rothwell; E. S. Cunha; T. G.. Faria;
Vim Quon; w. B. Knapp; David Day
ton: Wing Wo Kwai; Nj. Phillips; Mrs.
s. Phillips; M. Green; S. Lesser; VIII
liam Green; Theo. Wolff; and all others
similarly situated, having a common
and general interest IN the subject mat
ter of this action, who may by leave OF
the Court be joined as parties plalntiH
herein, compliments.
The attack in the United States Court
is upon a different line than was pur-
sued in the Supreme Court year ago.
The plaintiffs will it is said rely upon
the theory of double taxation; contend
ing that though States may levy such
tax Territories have no more power
than is given by Congress and the con-
stiiution The United States Supreme
Court,it is said, has decided that Con-
gress had no power to levy tax upon
incomes, and a Territorial legislature
can have no more authority than the
body from which it derives it's life.
The petition filed yesterday is on be-
half of j. G. Rothwell and the other
plaintiffs named above; it being set out
that they are corporations and resi-
dents Of the Territory. and that w. h
Wright is Treasurer and J. w. Pratt,
assessor, both charged with the coIlec-
ton of the income tax under Act 20, en-
acted by the legislature of the Terri
tory, session of 1901.
1t Is further set out that at the time
OF the enactment of the law it was I'M
constitutional, being also in violation or
the Organic Act. 1t is alleged also that
Rothwen returned $3.50 as income in
1901. which was derived from property
which has been otherwise assessed. The
gross income of the petitioners Is 81, :
147 900, and the income tax on that
amount amounts to $S056.68- The in
| junction is asked because the complain
ants fear that If they pay their tax 10
| the Territory they cannot get 1T back.
because it would have been paid out,
! the expenditures of the Territory being
largely in excess of the receipts.