The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1910-01-21
A SUIT TO TEST
INCOME TAX LAW
Constitutionality of Federal
Statute Involved
IN CASE BEFORE JUDGE MARTIN
Stakeholder In Windsor Corporation
Asks Oficers 10 Make No Return TO
Collector Of Internal Revenue as Pro-
vided In Statute.

To Vermont falls the honor Of making 9
| test oi the federal corporation tax passed
by congress IN August, 1909, entitled An
| act 10 provide revenue. clualize duties and
encourage the industries OF the United
| States. and for other purposes. A bill
in chancey was filed with Judge j. J..
| Martin in the United States circuit court
| Monday afternoon by Gibson & Water
man. solicitors for the complainant, Mrs.
Stella p. Flint. as general guardian OF the
property oi Samuel y. Stone, IT,, a minor,
against Stone, Tracy company, Frank y,
Tracy Ida = Tracy and Zee Is HAYWARD.
defendants All OF the rartles live in
Windsor Maxwell l.. Evaris OF Windsor
i ni counsel for the complainant and
Davis and Davis Of Windsor are entered
a. attorneys Of record Tor the defendants.
The defendants filed demurrer TO the
bill on the grounds OF insuiiiciency, and
hearing was held before Judge Martin yes
terday forenoon. The demurrer was sus.
tanned and the bill dismissed. An appeal
was entered and certified to the supreme
court Of the United States. and motion
will be made in Washington Monday to
advance the case on the docket for an
early hearing II i expected that this case
win take precedence over others of SINH
lar nature.
In the bill Of complaint the orator, Mrs.
Stella =. Flint, sets forth that Stone,
Tracy company is a corporation existing
under the laws of Vermont. capitalized at
s20,0oo. and doing retail mercantile bust
ness in the town of Windsor. The ora
tor says that the directors of the corpora
ton should manage the affairs of the con
Germ and that they should made defend
ants in the case and that in 1866 Dwight
Tuxbury and Samuel y. Stone, both de-
ceased, engaged in mercantile business UNI
der the firm name of uxbnry 4 Stone, and
that such partnership existed for 20 years.
The old firm, the orator AYERS, was dis
solved in 1895 and two new companies
were formed by the former proprietors.
One Of the new companies was formed by
Dwight Tuxbury. Charles Tuxbury and
William ID. Tuxbury under the name OF
Dwight 1uNbury 4 Sons. At the same |
time Samuel n. Stone, Shirley G. Stone
and Frank b. Tracy became associated TO |
conduct a mercantile business under the |
name of Stone. Tracy company. In 1900
the persons composing the firm of Stone,
Tracy company received charter from
the state of Vermont TO carry on such
a mercantile business as they were then
engaged in. as corporation. The ora
tor AYERS that such business was carried
on to the extent of from $4,000 to $780,
900 per year and that the business of
Stone, Tracy company amounted to as
much as did that of the firm OF Dwight
ruxbury Sons The orator as guardian
says that she holds 40 shares of the stock
IF Stone, Tracy company. Under the
corporation tax law the orator believes
hat the defendant company has been re-
luested to make not later than March /,
$40, return of its business to the col
ector of internal revenue and that not
alter than June 30 one per cent of the
ntire net income should be paid to the
ederal government as corporation tax
The orator AYERS that such records and
eturns would be made public and that in
o doing it would disclose to Dwight Tux
Jury 4 Sons and to the general public a
act which the orator seeks by this bill
o keep private. The orator believes
hat the net income of the defendants for
he year ending Dec. l, 1909, will axceed
5000 and that the defendants propose to
lake such report to the collector of in
ernal revenue and to pay such assess
lent as may be levied.
The orator AYERS that such tax upon
operations as is provided for by this
ct Of congress is unconstitutional and
hat the requirement that such return
g made a public record is burden and
tax upon prerogatives. power, instr,i