Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1910-06-01
By Associated Press.

WASHINGTON, May 31.-Just
before adjourning today until next
October the supreme court of the
United States restored the fifteen
corporation tax cases, heard last
spring to the docket for re-arg1-
ment before the full bench. 10
specific date was set for the re-
argument. AS two of the cas-
touching the constitutionality of the
law. and it's applicability to certain
organizations, have been set al
ready for the first Tuesday in the
October. term, after long list If
cases previously assigned to hear
ing at that date, it is believed the
court will advance the fifteen cases
for hearing in the same month.
Chief Justice Fuller made the an
nouncement of the restoration.
The cases were argued on March
II and Is, before the bench con-
sisting of eight members. When
Justice Brewer died shortly afte,-
ward it was thought the cases
might be restored to the docket.
The only reason advanced for the
delay of the court re-assigning the
cases was that the court hoped l.
would reach a satisfactory decision
before the summer recess and thus
avoid a rehearing.
Secretary Macveagh said notwitn-
standing the failure of the court to
pass on the constitutionality of the
corporation tax the treasury would
collect it as required by law. Should
the court, after the re-argument,
declare the tax unconstitutional the
money will be refunded as the
statutes make ample provision for
the return of taxes paid wrong
fully or in error. The corporation
tax will be collectable June 30th.
President Taft is regarded as the
father of the corporation tax idea
as represented in this statute. He
evolved it during the discussiol
of tariff legislation and income AMI
inheritance taxes in 19OS-1909. AS
a result, congress inserted the "cor-
poration tax law into the Payne
Aldrich tariff act passed by CON
gress last summer. 1t became sec.
tion 3S of that statute.
The law subjected to the tax i'll
a general way every corporation,
joint stock company, or association,
organized for profit and having
capital stock represented by shares,
and every insurance company.
The tax was designated as "a
special excise tax with respect to
the carrying on or doing business
and it was provided that it should
be equivalent to one per centui1
upon the entire net income" over
and above $4,000 received "from all
sources during the year. There
We're to be excluded from the in-
come, however, amounts received as
dividends upon stock of other or
ganizations, subjected to the tax.
Exempted from the tax were cer-
tain organizations, such as labor,
agricultural, horticultural and fra
ternal beneficiary societies.
One paragraph of the law pro-
vided for the publicity of the re-
turns required as a basis of fixing
the tax.
The tax was to be paid on or
before June 80 of each year and
the returns for each year were to
be made by March 1. 1t was pr1-
vided that the tax should be paid
for the year ending June 80, 1910,
although the law was not passed
until August 5, 1909.
Not until shortly before the ex-
piration of the time for the making
of the returns was the first move
made to test the validity of the
tax. This movement to test th,
great question about corporation
was started in the little town
of Windsor, Vermont.
There Evarts, a New York law
yer, son of the late William NJ
Evarts, had summer home. He