The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-03-19
FINAL ARGUMENTS IN THE
HEARING ARE MADE eY THE
ATTORNEYS IN ACTION.
NOW IN HANDS Of COURT
FIFTEEN Cases IN Which the Question
OF the constitutionality Of the Law
Is Questioned Are Taken Under
Consideration by the Members Of the
Supreme eeneh-Deeision Important.

4 Washington, March 1s.-The last
4 word. by the lawyers. on the constI-
tutionallty of the corporation tax was
spoken this afternoon and the supreme
court OF the United States took under
consideration the II ca ses In which the
question arose. The day was consumed
largely by the presentation of the
governments defense of the law by
solicitor General Bowers John J.
johnson Of Philadelphia closed the at
tack on the tax. just before court ad-
journed
one of the biggest side fights In con-
nection with the great contest was laid
bare when Mr.. Bowers insisted that
The net income from an sources"
mentioned In the law as the basis OF
measuring the tax included all the
property of corporation
Counsel for the Home Life Insurance
company insisted the law did not mean
to include the income derived directly
from federal. state or municipal secur-
lties or from real or personal property
not used or employed In business They.
advanced this doctrine on the theory
that If the tax were not levied on such
property the law would became clearly
constitutional.
Mr. Bowers argued that corporations
cannot mold property that was not de-
voted 10 corporate business either ac-
lively or passively. He cited the de-
cision Of the supreme court, holding
the United states could levy an in
ternal revenue tax on the dispensary
OF South Qprollna, as showing that tho
United States may tax public utility
corporations.
Publicity Feature.
In closing. the attorney said the pub
llcity feature of the law was not
raised In the cases. which involved
only private individuals as parties to
them.
Mr.. Guthrie, counsel for the Home
Life Insurance company. followed Mr..
Bowers. arguing that federal, state
and municipal bonds and property not
actively engaged In business are not
subject to the tax. He also spoke for
the constitutionality of the law as ap-
piled purely to a corporations proper
~ dctiNtly useu IN business.
In beginning his argument. Mr. john
son said the argument Of the solicitor
general was one he would have been
glad to listen to had 1t not been on
the other side. As To Mr.. Guthrie, Mr..
Johnson said he was wolf In sheep's
whom he did not want on his
side. What made the law so obnox-
ious Mr.. Johnson explained was the
publicity feature. whereby IL was pro-
public record. However" he added.
the act must be cut Off a little higher
up"
Not Excise Tax.
His principal argument was To prove
the tax was an income and therefore
not an excise tax. according to the
famous income tax decisions
The wine given to Mark Twain to
irnk on the Rhine did not satisfy his
palate any the more, the counsel ex-
planned. because they changed the
abelton the bottle from which 1t was
poured
Children In making pictures of
'ows and horses" said Mr.. Johnson,
have habit of writing below them
cow and horse 50 you will know
Wat they have been drawing. So
for fear, If You were left to-
iour own judgment. you would not
leclde what the excise tax Is, labeled
L."
Mr. Johnson urged that the tax was
N the power of state to create
1T
create them instead of authorizing
hem" as Br Bowers argued.
III this law il upheld" he said,
and federal incorporation law Is
'assed (and | don't know to what ex-
ent the fads now running win became
law the federal government may see
II to tax state corporations out OF ex-
stence"