Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1910-02-03
A FAMOUS CASE.
Corporations Behind the Vermont Suit
Over the Corporation Tax.

Washington. D. c., Jan. 2S.-The name
of Stella P. Flint. OF Windsor, Vermont.
will probably attain worldwide promi-
nence as result OF the appeal to the Su-
preme Court of the United States of the
case OF Stella Y. Flint. guardian of the
property Of Samuel NJ. Stone. Jr.. minor,
against the Stone-Tracy Co. This COM
pany is q corporation doing general mcr-
chandise business Mt Windsor. Vt. The
plaintiff IS stakeholder who sues 10
enjon the company from paying the cor
poration tax required by the tariff law
passed last summer.
In discussing this suit the Washington
ost OF Saturday, Jan. %, speaks as fol-
lows;
Maxwell Evarts. of New York, is the
attorney for the appellant. He is son
of the famous William NJ. Evarts, once
senator from New York and attorney
general Of tho United States, and behind
his connection with the case lies the
chief significance Of the action. Evarts is
the general counsel OF Judge r. :. Low
EFT. the new president Of the Union Paci-
fic railroad. and was associated with him
when the latter was the legal advisor Of
the late E. II. Hartman, railway mag
nate.
CORPORATIONS BEHIND FIGHT.
Consequently, the Interpretation placed
upon his connection as counsel for sin
gle stockhoder in a so 900 corporation is
that the large corporation known as the
Hartman interests are virtually backing
the efforts to invalidate the tax which
Congress levied upon the recommendation
Of President Taft,
The case has been rushed to the SUI
preme Court from the circuit court The
Stone Tracy company promptly demur-
red to the petition for injunction filed by
Stella y. Flint. and was sustained by the
circuit court. With equal promptness an
appeal was taken to the Supreme Court,
and next Monday a motion will be made
to have tho case advanced for hearing
by that tribunal. The original hearing
took place on January IS. the decree was
handed down two days later, and on the
third day, that is yesterday, the case
reached the Supreme Court. The contcn-
ton is set forth in the petition filed here
that the corporation tax is uncoustitu-
;onal. and a number Of grounds upon
which to base this claim are cited. These
may ne summarized rs lolloWS.
First-The tax is burden upon n fran
ch.se granted by the State of Vermont.
and is based upon prerogative and
function of sovereignty belonging to the
state and never reinquished.
VIOLATION or CONSTITUTION.
Second-St Is a violation of the fifth
amendment to the federal constitution,
which protects citizen against being
deprived of property without due process
OF law. in that through the publicity of
its business. the privacy Of the corpora
TONS affairs will be largely destroyed
and its chief competitor a general store
operating as a partnership, and all 9TH
ers, will be able to gain an intimate
knowledge Of the company and its trade
secrets, while no corresponding publicity
will he permitted to the corporation. by
reason of such unjust advantage. the COR
poration Is dangerously threatened, and
will be compelled to surrender its charter
to the State and go into voluntary DISC
luton.
Third-The tax Is unconstitutional be-
cause the private property of the cor
poration will be taken for public use
without Just compensation and without
any compensation whatever, In that Its
private hooks, records, etc, are taken FOR
publication by the collectc~ or interna