Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1910-06-02
Supreme Court Orders That It Be
Re-argued before Full
Bench
FIRST SUIT FROM VERMONT
Maxwell Evarts Brought It in be.
half of Stakeholder in the
Stone Tracy Company
of Windsor.

Washington, MAY 91-The Supreme
Court Of the United States to-day set
The corporation tax cases for re-arGu-
n1ent at the beginning Of the next term
before a ful bench. IT Will Insure the
participation of Governor Hughes In the
determination Of the cases.
No reason was given for the reassisn-
rert unless the statement before n full
couch" can be 90 interpreted
Secretary MacNeesh said to-day tina,
Notwithstanding the failure of the court
- pass on the constitutionality Of tho
corporation tax. the treasury would col
'cct H. Should the court eventually de
.lare the tax not constitutional. the
money collected will he refunded without
the necessity Of congressional legsa-
ton. the statutes making ample provts-
ion for the return o. taxes paid wrong
fully or in error.
The tax is collectnhle June 80 The
assessments on that account have aggre-
eeted trifie in excess Of Sc,,roVn while
he taxes paid to date amount to ss75,325.
TAFT FATHER OF THE IDEA.
President Taft is REGARDED as the faith
sr Of the corporation tax idea as repre-
;eri"f in this statute. lie evolved II dur
ing the discussion Of tariff Legislation
end income and inheritance taxes in 1oos-
.S" As result. Congress Inserted the
corporation tax law" into the Payne
Aldrich tariff act passed by Congress
est summer. II became section IS OF
mat statute.
The law subjected to the tax in n
saneral way every corporation, Joint
'tock company, or association, organ
'7ed for profit and having capital
Hock represented by shares and every
insurance company. The tax was des-
lgnated as "a special excise tax With
respect TO the carrying or or doing
business and II was provided that It
should he equivalent to one per cen
:un upon the entire net income over
and above $4,000 received from ALL
sources" during the year. There were
to be excluded from the income, how
aver. amounts received ms dividends
upon stock of other organizations. sub
!ected TO the tax. Exempted from the
tax were certain organizations, such
as labor, agricultural. horticultural
snd fratcrnal beneficiary societies
One paragraph Of the law provided
for tho publicity of tho returns re-
ouirei as basis Of Axing the tax
The tax was 70 he paid on or before
juno 80 IF each year and the returns
for each year were 70 be made by
March !. II was provided that the tax
should be paid for the year ending
June 30, 1910. although tho law was
not passed until August E. 1a0a.
VERMONT CASE FIRST TEST.
Not until shortly before the eNpira-
ton ~ the time for the making OF the
.eturrs was the first move made TO
test the validity of the tax. This
movement 20 test the great question
about corporation law started in the
little town Of Windsor VI
There Maxwell Evarts. a New York
lawyer, son Of the late William NJ.
Evarts. has a summer home. He had
often noticed the keen competition be-
tween the two general merchan dise stores
IN the town. the Stone-Tracy company, a
corpora ton. and Dwight Tuxbury Sons.
partnership concern. He what he
believed was discrimination against the
corporation II l. were compelled 10 pay
the tan and make public its business ar