New Britain herald., 1916-01-24
VALIDITY OF INCOM|
 TAX LAW UPHEl
Supreme Court Decides in Fa1
 of COnStitutiOnality
SWEEPS ASIDE OBJECTIq

or Ncafly E11ty 1cafS E1ghbS
 and Against Federal AssessnT
 Has Been Somewhere in
 Courts.
 Washington, Jan. 24.-The supr court today upheld the constitutl ality of the income tax law.
 Chief Justice White gave the couS decision sweeping aside all the m objections to it's contitutionalityE whole or in part.
 Five Separate Suits.
 Five separate suits to test the r stitutionality of the new income were brought in the federal coE throughout the country soon after jaw became effective and all foA their way to the supreme court of k United States soon after.
 For nearly fifty years the fight and against a federal income tax been somewhere in the courts.
 Union Pacific Case.
 Chief Justice White announced decision in the case of Frank R. EH shaber, stockholder of the Ul Pacific railroad, who sought to join the company from paying the on the ground that it was unconst1 tional.
 Most of Justice Whites opinion directed toward over ruling the q tention that the income tax and ment provided a hitherto unknI power of taxation. Going far into history of income tax legislation, chief justice concluded the argunj was without merit. Advancing to other points, the cI justice held that the tax was not constitutional because it was rel active.
 Fight Became Serious. Theincome tax imposed during | Civil war and the years immedia| following were not attacked with seriousness of later cases. It was| until the Cleveland administra| l placed an income tax in the vii tariff act that the fight bec] ! serious.
 The contest over the validity of tax in 1894 and 1895 before supreme court was one of the I bitter ever fought out before court. One of the lawyers, lame Carter, warned the court against ting up its judgment to thwart will of sixty million people. Jos H. Choate, opposing, called upon court to exercise its judicial pol regardless of any popular or popul1 propaganda.
 Rehearing Was Granted.
 At first the court decided that tax was unconstitutional as to Il i from land because it was directl not apportioned according to pop1 tion, and was unconstitutional aa interest on municipal bonds. q eight judges participated and were evenly divided as to the vail1 l of other features of the law. 1 hearing was granted and Justice Ja l son voted to sustain the law JUS | Harlan created sensation by nouncing from the bench that anou | hlstice had changed his mind night on the question, and the en tax. both as to realty and as to ince from personality was set aside on ground that it was a direct tax not apportioned according to DO lation. as was required by the con tuition of direct taxes.
 An agitation for an amendment the constitution then began. It ca to nothing until President Taft re mmended the enactment of an else tax on corporations to be me ured by their income and an anne ment to the constitution to permit levying of an income tax on all come. The amendment was subm ed to the states at once and was p claimed as the sixteenth amendnl to the constitution on March 1, ls
 Provisions of Amendment.
 It provides:
 "The congress shall have power lav and collect taxes on incomes TIT whatever source derived without 4 portionment among the several sta1 and without regard to any census enumeration
 The Five Suits.
 Congress aVailed' itself of the nl opportunity to exercise the new po CT by incorporating into the tarif which becomes effective October1 1913, the present income tax. F'l suits, all challenging the validity certain features of the tax were;
 Frank R. Brushaber, stockholder the Union Pacific railroad Co, ses ing in the New York federal coul to enjoin the company from payi the tax
 John F. Dodge and Horace Dodge. manufacturers of Detrs Mich, in the Michigan federal cour to enjoin the internal revenue q lector from collecting the tax. larg' on the ground that it discriminat against o-partnerships in favor corporations.
 John R. Stanton. stockholder the Baltic Mining Co.,, in the Mass federal courts to enjoin t company and others from paying q