The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-03-27

Washington, March Especial IA PEE
culiar situation developed in the supreme
court of the United States when the
government, through Solicitor General
Lloyd W. Bowers filed his brief in the
corporation tax cases, which are now
pending before that body for final con-
sideration Although it was filed In strict
conformity with legal procedure, It has
nevertheless been the source OF general
comment in legal circles throughout the
country, particularly among members OF
the bar of the supreme court or the
United States who are generally familiar
with the practice obtaining pefore tne
tribunal, as to Just what position the
United States government occupies IN the
litigation.
1'his situation was brought about by the
appeal of number of corporations from
various circuit courts to the United States
supreme court under the recent act Oh
Congress, which levied tax of l per
cent lon the net incomes of corporations.
The act contemplated the payment Of the
revenue taxes by March l, last, and spe-
cifically stated that corporations not com
plying with the act should be fined not
more than $4,000 4sl5EF
Internal Revenue Commissioner Cabell,
of the treasury department, was desig-
mated as the officer to collect the TAX
through local revenue collectors. was
also provided that this officer should have
discretionary powers in imposing the lines
on recalcitrant corporations. To further
protect the officers in collecting the tax,
The law states that suits of injunction or
judicial restraining orders could mol pc
served on collectors of taxes Hence the
keneral opposition of corporations to the
payment of the tax and also the avidlty
with which it was paid by all OF the cor
porations in a little less than one month";
time.
Although the tax, it is thought, was
paid bv all of the corporations, certain
large stock companies resorted TO the
courts to test the validity of the iegisia-
tim and TO endeavor IL possible, TO es-
eana SUBSEQUENT levies. Already Is cases
have been limited on the docket OF the
supreme court of the United States, and
for The purpose of facilitating the al
iudication of the points involved were
Consolidated SO that they could be heard
as one case According to the caienaar
the cases were presented to the court on
March n. when arguments were heard by
tbe respective sides The governments
brief. which was presented by solicitor
General Bowers consisted OF more IMAM
$50 pages of printed matter.
The Situation presented by the filing Of
this brief shows that the government IL
an interested party, but there IS apso-
lutely nothing in the cases Indicating
that it Is one of the many defendants in
the suits Necessarily, when a case OF
this sort is presented to the supreme court
of the linked States the government must
defend tho law. 1t did so, OF course, but
wlthoat Icing named as party to the
suit. AS il stands the suit involves dis
pute between individuals and corpora
tions.
Yet this unusual state of affairs is just
n little. more complex than this. The in
dividunls who are suing the corporations
are themselves stockholders in the cor
porations. They asked that the courts re-
strain The corporations from paying q tax
imposed BY the federal government, which
the corporation could not refuse to pay
as tho statute under which the tax IS col
lected does not permit the corporation
any alternative, nor could it bring suit
against, the United States by making the
collectors of taxes the defendant.
Just to make things little more in
tercsting and bewildering to the lay
mind. an attorney of New York, repre-
sefiting Il large corporation, entered his
appearance in the case in behalf of the
corporation. AL the same time, however,
he takes issue with the general points
involved on the sides of other corpora
tions ard threw his argument with that
Of the United States. The case as 1t
stood involved more than 80 lawyers, each
of whom wished to be heard in support
OF several arguments which had been adj
vanced.- AS the time was limited by the
court 10 two days it was obviously i'm