Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-13
Supreme Court Upholds Pro-
visions of the Payne-AId-
rich Tariff Act.
UNANIMOUS OPINION
READ BY JUSTICE DAY
Imposed Not on Ownership, But on
"Doing of Corporate Business"
Law Held to Be Not Applicable to
Two Real Estate Concerns Not
Organized Under Any
Statute.

Organized Under Any
Statute.
The corporation tax provisions OF the
Payne .Aldrieh tarin act were sustained
today as constitutional by the Supreme
Court Of the United States. The decision
was unanimous.
Thereby = source Of income Of approxi-
u,ately $25,ooo,o 900 annually was assured
to the government.
OF all the objections to the tax raised
by suits in all parts OF the country none
of them was found sufficient to nuiIIfy the
law. The court did hold that the tax
was not applicable to the real estate
trusts" of Boston. which are organizes
not under any statute, but under the
common law. The law was held not ap.
pIIeabIe to the Minneapolis syndicate, =
real estate concern, on the ground that
II was not ''doIng business" within the
meaning Of the law.
Justice Day, who read the decision,
first .nnouncat thai =, wa. within +ba
power of the Senate to insert the corpo-
ration tax provisions in the tariff law.
which originated IN The Ho,s. and of
which the tax provisions are a part.
Conditions Of Tax Defined.
Near the outset Of the opinion as 1t ap-
49, t. a.
'i' P'A"eeo A"'"' 20 ehe ON@aenaen'
ua% the tAx ID imposed not upon the
ffA0chise0 oe tho corporation irrespective
eR their use in business nor upon the
nrnne~tv n IN. corrora,,o,, n,,. u,on tho
,-
- e'''
=" WIN fssp0Ss " inc SAS'J"s On thefe-
- N . sum eQutvolAnf 70 ] per, centum
- - efttf9 ast tnc6kne over and above
kuno rsceivsd Srov, asI sos,rce. a,,r,rp
~. s.Sx. .a ..,.
- 10 - "S~'' '"e ~v'"s VI
O0slnesS with the advantages which IN
here in the peculiaYtties Of corporate or
s.,., .S..lr o.~.ns.%,or 40 %b> ch.r.c..r
.....,.
snare mshS dement's oi corporate orssii-
1ation, II may be described generally as
a tax upon the doing of business in a
.o-,or.,. c.n.r,.v
be equivalent to one per centum of the
nc. 'Hoo'.e "o. Gnu ooo 49,
e .Ie
'as % '"e ,,''e y. ~
p"e'''s "uop.eu % '"e s,~.u & ~"
s ~
' .
.n =. o.,o 80 -" e' 49, 'e' '"oo"e
49, ''o"i an 'oui'. e~oiuoiis
.,oc,, r., atteu oo.o,,:a. 80. o
~ po.a"'' 'oi''' a'oeA
oc,onaa;.s .,.o -, ~, "Ie %
.,- " ia. IDA :"
o'heE "ords' the tax Is imposed upon the
doing of business of the character de-
scribed and the measure OF the fax Is To
he tho incoy,e n,Itb ,b. ao,,,.,;a, ~...s
rooa,,.oa -. =.
no' ohi9 AIo'i property useo III
business, but from every source.
This view Of the measure OF the tax
is s,-enp,bensd nha, ,.e not. .h.. as
70 orc.n,,a,,ors -.
~ oiea"i@a'i'hs onoer Tue laws OF ior-
eIGn countries tho amount Of net In
come over and above $4,000 includes
that received from bus,res.
80. 90, -, -.
'IonS anu eapi'di iii'esteo IN the United
states. the territories, Alaska and Dis
trict Of Columbia"
Objections Answered Seriatim.
After Justice Day had thus given the
Interpretation which the court had M.
r,or Oh. ,ro,,;.,.
SoH' VI tue ac'' ne pro-
tions urged against the constitution
amy Vi tue TAX. he nrst took up the
contention that IL was a direct tax
""u UNCONSTITUTIONAL Tor the same rea-
sons .ha' 'he Famous income tax law
vas oeciareo unconstitutional In 1895.
~. Poih.eo OUT thA' the income tax was
ieiu 'o oe oirec' because imposed upon
property simply because Of It's owner
ship
I'm the present case" said Justice
Day. the tax Is not payable unless
there IS carrying on or doing Of busi-
ness IN the designated capacity. and
thls is MADE the occasion for the tax.
measured ny the standard prescribed.
Inc diferenee between the acts is not
stantial eifferences between the the mere nsn,