The Detroit times., 1914-06-29
Judge Tuttle Decides First
Round of Case Against
Wealthy Detroiters
CASE WILL BE CARRIED
TO SUPREME COURT
District Attorney Webster Crit
cizes Form in Which Action
is Brought

Judge Arthur j. Tuttle, OF the Uni
ted States district court, handed down
a decision, Monday morning, uphold
ing the constitutionality OF the fed
eral income tax law which was being
called in question by John f. and
Horace f. Dodge Attorney Fred A.
Baker, representing the Dodge broth
ers, announced that the case would
be taken directly TO the supreme
court OF the United States, where he
expects to get hearing on II in the
coming October term. This IS the
first case in the country In which the
tax has been paid and the constitu-
tionality of the law upheld by a re-
fusal OF the court to refund IL.
The most of the hearing Monday
morning consisted of precautionary
measures on the part OF Mr.. Baker
and District Attorney Clyde l. Web
ster, each Of whom was careful to
get the case in such shape as he
wished il To go up to the higher
court.
The original prayer of the COM
plainants for temporary injunction
restraining James ]. Brady, collector
OF internal revenue from collecting
the surtax for which they were liable
under the new income tax law, was
denied by Judge Tuttle at the open
ing OF court IL was not even pressed
by Attorney Baker, who intended 10
file n supplemental bill setting forth
the fact that since the action was
started the plaintiffs have paid the
tax under protest and that now they
wished to have it refunded.
The district attorney opposed the
fling OF this supplemental bill. he
argued that the procedure OF the case
had been improper from the begin
ming i'm that an injunction was asked
10 restrain the collection Of the tax
instead of an order for its refunding.
The plaintiffs, he argued, should
have paid the tax. protested IT, and
II no refund was allowed, should have
brought a suit at law against the col
lector OF internal revenue.
Fifteen other such cases are now
pending i'm the United States, all or
which have been taken up in that
way" he said THE suit had no
standing in court before, and II should
not be allowed TO gain standing
through the filing OF supplemental
bill"
The court. however. allowed the
papers to be filed. Thereupon Mr.
Webster made a motion that both
the original and supplemental bills be
dismissed The court allowed his
motion and gave his decision uphold
ing the law.
The Judge already had examined
comprehensive briefs OF the case
which had been submitted 10 him by
counsel
The surtax feature OF the law which
was objected TO by the Dodge broth
ers is the progressive feature by
which a larger percentage Is paid the
larger the income It is also claimed
that the law discriminates against
members OF a partnership. such as
the one under which the Dodges carry
on business, and in favor of stock
companies. In the case OF the plain.
tiffs this additional amount was more
than S91 900.
Mr.. Baker explained that the rea-
son for taking up the matter as he
has. was TO expedite the hearing and
sIble rIf the tax had been paid in
the first place and, protested as the
district attorney suggests" said he.
Eve would have had TO wait six
months before bringing action at
law. BY this means we we're able to
get a decision in equity right away.
have no doubt as TO favorable de-
cision by the United States supreme
court"
The appeal bond which was fixed at
$500 gave an opportunity for Attor-
ney Baker TO get of a joke as TO the
security offered by his clients.
Yes" replied Mr.. Webster, Just
give me their income for 10 months
and would not object TO paying the
tax on it
Suit FIRST was brought by Dodge
brothers in the District OF Columbia
but their case was thrown out OF court
there for lack or jurisdiction.
THE VIZ TyIIED