The Washington times., 1910-03-15
Bowers Files Brief Dealing
With Objections to Cor
poration Tax.
ARGUMENT MAY
BEGIN THURSDAY
Many of Country's AblSSt Lawyers
to Engage In Supreme
Court Battle.

The brief Of the Government in the
corporation tax cases was fled in the
Supreme Court today.
Ii was prepared by Solicitor General
Lloyd w. Bowers, and in the opinion
OF some Of the lawyers who are giving
attention 10 the case, II forms a legal
argument, which for cIoseness Of reason
tng and comprehensiveness Of detail has
seldom been equaled in any legal docu-
ment recently produced from the De-
partment Of Justice
Considering the extent OF the sub
3ect with fits many and wide ramiica-
tions. the Solicitor Generals legal
friends have congratulated him upon the
fact that he was able TO present his
case in the 175 pages Of which the brief
consists.
The brief is fled in response to ap-
peals agair-sl the imposition of the tax
on corporations from fifteen different
appellants. The appeals attack practi-
caIly every phose of the corporation tax
law. They come from miscellaneous
companies. insurance companies, public
service corporations. and real estate cor
porations- Dividing them into these four
classes, the brief Of the Solicitor Gen
eral deals with each.
SAoAaSNSA VI
His argument on behalf Of the Gov
ernment is primarily that the tax is not
a direct levy upor che property, real or
personal, Of the corporations required 70
pay the tax
On the contrary, he said. the tax is On
excise upon the carrying on or doing
business by such companies and there
fore needs no appOrtiOnment among the
States according TO population, under
the Constitution. Neither, il Is argued
is the tax a direct tax upon the shares
Of the stockholders or upon their income
from their shares.
1t IS denied that the tax becomes
q direct sax in thu special case of a
company engaged n dealing in real
estate. Considerable space IS devoted
20 the argument on this point IN view
of the fact that various realty COM
panies have made a particularly strong
plea II is further denied that the tax
II an infraction on the general power
of the States TO authorize the for1na-
ton Of corporations and Joint stock
companies.
State Rights Questions
Contending that the business Of pub
lie service companies such as railroads,
street railways. telegraph, lighting and
power companies . not intrinsically an
operation of the State which created the
company II is furthermore held that the
United States n-ay tax even a business
conducted for or y a State itself. II
is held that income receive dby a com
pany from State municipal bonds is to
he included in the computation Of its net
income.
An important part Of the argument
for the Government is that the tax. as
m excise, is uniform, in accordance
with the Constitution, though it is laid
upon other kinds Of business than in
surance only, when the business is con-
Quoted by a corporation having shares
OF stock; and the imposition Of the tax
upon the business of such corporations
while the kindred business OF indlvid-
Nals and partnerships is not taxed, does
not take property without process OF
Jaw and does not COntravene any rule
of equal legislation implied, from the
2ture Of the National Government
Declares Tax Uniform.
II is further argued that none Of the
Epecial rules prescribed by the law con-
aerning exemptions or computations OF
the tax, produces any lack Of necessary
uniformity
The solicitor general declared that no
eble search or seizure, or is improperly
fSquired to incriminate itself by any OF
the provisions Of the law He further
argued that the tax could properly be
collected this year. although measured
by the net income Of the tax-payinE
company during the last calendar wear.
Of which seven months had already
passed when the law was enacted
i7 conclusion. the brief Of the solicitor
general eDnfEnUAd that IL fha
should find that any part of the law is
unconstitutional n should. neVert heleSS. ]
be sustained in all its other parts.
These points touch upon practically
every important objection that has been
raised In all the fifteen cases now pend
ing before the Supreme Court protest
ing against the corporation tax law.
Noted Lawyers to Take Part.
II is expected that argument upon
these cases. which will all be considered
at once, will begin IN the Supreme Court
Immediately after arguments are con-
cluded in the Standard Oil case. The
first speech in favor Of the appellants
viii, Therefore, be made on Thursday
at the opening Of the court
The first Of the fifteen cases to be
called will be that of Stella p Flint, as
general guardian of the property Of
minor Who appeals as a stockholder to
prevent the Stone Tracy Company from
PAVING the corporation tax. Maxwell
Evarts. son of the late Senatof from
New York, is one of the counsel in this
case and is expected to make the open
ing argument
Many Of the abest members Of the
legal fraternity throughout the coun-
try are engaged IN the other cases and
f. is certain that the historic court
roum will contain within its walls, on
this memorable day as large a proper
1ion Of eminent lawyers Of the country
as has ever been gathered together on
any similar occasion