New-York tribune., 1910-01-25
TEST OF NEW TAX
sTRGE EARLY HEARING
Points on Which Government
4sks Decision Stated.

Washington. Jan. es.-The United States
!. Supreme Court took under advisement a
request for an early hearing of the suit to
test the constitutionaliIy OF the corporation
tax. In the event OF the failure OF the at
tempt 10 obtain decision before March i.
I. The date bv which the return on the income
: OF corporations must be filed, Congress may
be asked 10 extend the date for the law TO
become operative.
Solicitor General Bowers asked the court
for permission 10 submit oral arguments
and briefs and that the case he advanced
fot an early eharing. This suggestion was
made in connection with q similar request
hy Maxwell Evarts, counsel for Stella 7.
Flint. in brief submitted TO the court on
Saturday.
The deep interest Of both the govern
rrent and citizens affected by the tax
throughout the country I'm a determination
of this court concerning the constitutionality
Of the taxing act before the close of the
period FOR payment of the tax. June 80
next" said MFR. Bowers, 'Is apparent. The
government therefore expresses its entire
accord with the motion which appellant
hss submitted that the cause be advanced
snd set for hearing on a day during the
present term
Mr.. Bowers said in his brief that among
she specific questions of highest Importance
which are involved In the general inquiry
concerning the constitutionality of the law
Ere these:
Whether the tax is direct in the consutu-
5 rlonal sense and is void because not ap-
portioned among the states in proportion 10
their population.
Whether the tax improperly interferes
with the general taxing power of the state
10 create corporations.
Whether the tax is vald in so far the
net Income OF corporation may he attrlb-
utahle TO state or municipal bonds held by
the corporation as part of its business
capital
Whether the tax is invalid in the case of
state
Whether the taxing act makes an i'm
rl1e one hand and partnerships and indi-
Tiduals on the other hand engaged in the
same business.
Whether the exemptions enumerated in
The statute are sustainahe.
Mr.. Evsrts also asked that the case be
advanced. When Mr.. Bowers formally sub
'nitted his motion Chief Justice Fuller in
ouIred II the TAX could not be refunded
II declared invalid. The Solicitor General
replied that such a course might be q great
burden on the persons concerned.
Chicago. Jan. 24-Judge c. c. KohIsaat
sn the Federal Circuit Court to-day sus-
1alneo nelnufrers IN ine TWO cases brought
10 test the constitutionality of the corpora
zion TAX law. The demurrers were filed by
the Northern Trust Company and the Corn
Exchange National Bank, defendants in
the suits brought by the stockholders in
both corporations. No argument was made
by the counsel for the complainants, who
;n7mediately after the orders were entered
sHked an appeal to the United States Su-
preme Court, which was granted by Judge
bohlsaat.
Boston, Jan. 24--John E. GAY, Of Jarray,
y. H. a stockholder in the Baltic Mining
Company, brought suit to-day in the United
States Circuit Court against the directors.
seeking an Injunction TO restrain them from
making any return under the new corpora
tion tax law to the collector Of internal
revenue. The purpose Of the suit is TO test
the constitutionality of the law.