Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-01
WANT FULL BENCH TO
SIT IN THE HEARING
constitutionalIty Of Fifteen Causes
Appealed to the High Tribunal Must
Wait indefinitely for Decision
President Father OF statute--First
Action Comes Up from Vermont.
CRY Associated rres..,

WASHINGTON, ID. c.. May 81
Just before Adjournment today until
October. the Supreme Court OF the
United states restored the fifteen co..
poration tax cases, heard last spring.
to the docket for re-argument before
fun bench. No specific date was
set for the reargument. AS two
lease. touching the eonstitutionality OF
the law and It's applicability to GER
tam organizations, have been set al
ready for the first Tuesday of the
October term, ii is believed the cour:
will advance the fifteen cases in.
question for a hearing in the same
month. Chief Justice Fuller made
the announcement of the restoration.
Reason as Given.
For argument before full bench"
was the only reason assigned for tho
unexpected action of the court.
The cases were argued on March
III and is before bench consisting
OF eight members. Inasmuch as the
tax must be paid by July l. Il was
believed the court would announce a
decision this term The only reason
advanced for the delay OF the court
in reassignment OF the cases. was
that the court hoped Ii would reach
satisfactory decision OF the matter
before the summer recess and thus
avoid a rehearing. How the court
stands on the case no one of the
bench pretends to know.
The action today will allow Cover
nor Husbes, OF New York. recently
appointed to the bench, to participate
in the consideration of the law.
VIII Collect Taxes.
Secretary Macyeagh said that not
withstanding the failure of the Su-
preme Court to pass on the constr
nationality OF the corporation tax. the
treasury would proceed to collect il
as required by law.
Should the court. after argument.
declare the tax not constitutional. the
money collected will be refunded
without the necessity OF congressional
legislation. the statutes making sm-
pie provision for the return of taxes
paid wrongfully or in error.
The corporation tax is collectibie
June 80. The assessments on that
account have aggregated trifie in ex-
cess of $27,000.000, while the taxes
paid to date amount to ss75,3z5.
Taft Father OF Move.
President Taft IS regarded as the
father of the corporation tax idea as
represented in this statute. He evolv-
cd Il during the discussion Of tariff
legislation and income and inherit
ance taxes in 19es-09. As result.
congress inserted the Corporation
Tax Law into the Psyne-Aldrich tar
IN act passed by congress last sum
mer. 1t became section IS OF that
ratute
The law subjected 20 the tax in a
general way every corporation, joint
stock company, or association. organ
ized for profit and having a capital
stock represented by shares. and
every insurance company. The tax
was designated as "a special excise
tax with respect - the carrying on
~ doing business and Il was prosid-
cd that IL should be equivalent to
one percentum upon the entire net IN
come over and above 5000 received
from ali sources" during the year.
There were TO be excluded from the
income. however. amounts received As
dividnds upon the stock Of other or
CARNATIONS. subjected to the tax Ex-
empfec from the tar were certain or
ssRizztions, such a. labor. sgricultur-
al. horticultural and fraternai bene
hciary societies
Publicity ~ Returns.
One paragraph Of the Law provided
for the publicity Of the returns re-
quircd a. a basis Of fixing the tar.
The tax was 10 be Paid On or before
June 20 Of each year and The returns
for each year were 10 be made BY
March l. Il was provided that the
tar should BE- paid for the year end
.nE June -. 1919. although the Law
vas not passed until August ;. 1919.
Not unfn shortly before the expi.
ration II the time Tor The making u
the returns vas sre 1rst move faste
70 test the validity q The t>x- This