The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-09
CORPORATION TAX
HOTLY ATTACKED
Notable Brief by Former Sena-
tor Foraker Raises Question
of COnstitutionality.
UNABLE TO DETERMINE
WHAT PROVISION MEANS
Wide Range of Debate in Sen
ate Cited as Evidence
of Ambiguity.

WASHINGTON. March S.-Attaoks on
the constitutionality OF the corporation
tax doomed into prominence today when
brief after brief in opposition was fled
in tho supreme court. Final argument
OF the cases involving the question is
set for next week.
Prominent among these briefs was one
OF former Senator Foraker OF Ohio. So
licitor for Louis w, Jared. a sLockhold-
er in the American Multigraph company
of Cleveland. o., who seeks to have the
the ground that 1t Is unconstitutional
Senator Foraker says the "indefinltencss
OF the language employed" In the cor
porauon tax provision Of the Payne
Aldrich tariff law makes II difficult to
ascertain just what the tax Is.
Points to Senate Debate.
The debate in the senate over the pro-
visions, he suggests. warrants the claim
that the Ambiguous character of the
provision is due TO an effort to bring
It within the courts Jurisdiction, and he
contends that the thing taxed must be
one of these:
l. The business carried on by the cor
poratlon TO be taxed,
. Tho entire nos income from all
3. The corporation Itself.
a. The franchise TO be corporation,
8. The prlvilcnge OF facility afforded
by the Incorporation TO transact the busi-
ness conducted by the corporation
He claims studied attempt was made
TO avoid using language that would indi-
cate that IL is business. as such, that is
taxed.
Taunting Comment.
He says 1t is equally clear that the
trainers intended 10 provide corpora
ton Income tax without laying II on the
Income. "and.'' he added. equally clear
that they did not succeed"
THE thing without which no tax is
imposed" says Senator Foraker and
which. when II is had or possessed, de-
tfyttN i,hu 10 1f Ic
palpaby the thing taxed that II does vlo-
lence to common sense TO claim the con-
trary."
According TO the natural meaning OF
the language employed there is some ex-
cuse for the claim that the TAX is laid
upon the corporation Itself, says the
senator in discussing that classification
IF the tax be on the corporation as
such" he adds, ibecause Of the advan-
tages supposed 10 attach 10 corporate or
ganizatiOnS for business purpose. IL should
be the same for all corporations of the
same capital and the same class. but 1t
is not the same and cannot be the same
for all. unless the impossible result OF
equal incomes from all sources has been
realized
II 1t is tax on the franchise, a cor
poration. the senator contends. II violates
the implied meaning of the constitution,
that no state shall tax any instrumental
ity OF the federal governor. nor shall
congress tax any instrumentality of a
state government
Question Of Publicity.
An emphatic attack is made the
publicity features OF the provisions.
THE provision is not only In viola
tion OF the guarantee against unreason-
able search and seizure" says the SEN
ator. "but It is also I'm violation of all
that sense of justice and all that spirit
OF liberty and freedom OF action, which
our Institutions are supposed to secure
to our citizens. and II upheld will be
a long step in the direction OF multiplying
heretofore well recognized powers of the
state and such Capitalization of force
as VIII make the government at Washing
ton an arbitrary and irresistible power for
evil when the white house chances TO be
occupied, as It may be. by an executive
who would be disposed to misuse and
abuse the tremendous weapons thus
placed at his disposal