The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1911-03-14
HIGHEST TRIBUNAL HOLDS THAT
CORPORATION TAX is
CONSTITUTIONAL.
IT MEANS MORE MONEY
Great Concerns Of the Country viii
Pay Big Sums Anaually for the
Privilege Of Doing Business-Not a
Direct Tax on Ownership OF Prop.
erty-Woman Started Fight

Washington, March iS.--In unanl-
nous opinion the supreme court of the
United States today held that the
corporation tax provision of the
Payne Aldrich tariff act was consti-
tutional.
Thus GUIDED T. controversy wagcd al-
most eontiauouei, since President Taft
first suggested ;hc enactment to CON
preSs.
The opinion was announced by Jus
iIco Dn4 appointed Ia the supreme
court front ohio in 1903. II was an
elaborate treatment of the subject.
About half an hour was spent by the
justice IN orally explaining To the bar
the position Of the court. the printed
opinion being used as n basis for the
remarks.
The justice first determined that the
tax was just what II claimed To he I'm
the net. namely, mn excise tax on the
doing OF corporate business and not n
direct taN on til. ownership of prop
crty. With that point decided. the
justice took up the objections urged
against the tax as nn excise. when
finally he Interpreted the law SO as to
apply 10 real estate companies and
the So called public service corpora
tions. hut not to real estate trusts"
Nearly All Collected.
Practically all Of the NOR than $27.-
900 900 assessed for the fiscal year
ending June 30. 1910. on corporations
In the United States. has been paid
into tha treasury. The exact amount
received I" February I. 1911. the latest
dntn for which precise figures are
available. was s27.loS,OS9
The amount assessed last year was
S27.l30aOl. Added To this were penal
Il S amounting to about 100000 for
failure to pay the tax when due.
What the tax viii amount To this
year. the commissioner of internal
revenue II not yet able To determine
An reports from corporations We're
due March ! ard II Is thought that
practically all Of them have been re-
ceivcd. But WORK has just been be-
gun nn figuring out the assessments.
ON ~ before June | h So figures
viii be in tho hands of the internal
revenue collectors throughout the
country, who Immediately will notify
the corporations In their districts ol
the amount they owe the government
for the privilege of doing business
Taxes not paid by July | will have
added "A penalty Of per cent and in
ierest ut the rate of per cent n month
for each month they remain unpaid.
Fight Began in 1909.
The fight against the constitutional.
ity of the corporation tax began al.
most Immediately after the enactment
of the Payne Aldrich tariff law of 1909
of which II is II part. During the lont
days of wrangling in congress owe
that measure. Pr sident Taft origi
mated a plan 10 raise part of the rev
enne necessary for the running of tn,
government by imposing II corporatio,
lax. He Is said to have made the firs
rough draft nf the proposed law an'
10 have asked the department of jus
tiea to perfect II.
Scarcely II years before the suprcm
court OF the United States had de
clared unconstitutional the incom
tax measure enacted by congress. II
order to have II valid tax, the error
of that law had to be avoided. Final
ly the attention of members of tn
house and senate were called to tn
proposed corporation tax as "a consti
Continued on Page Seven