The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-10-29
BY LOWELL MELLETT.

EU7 ITHOUT an income tax the
.IWI Government probably could
IL not have fought the Civil War
to a successful conclusion.
Without an income tax it is difficult
to see how the terrific financial drain
of the World War could have been
borne by the American people Such
taxes were possible and were used
during those two wars, so why raise
the question?
In 1895 the United States Supreme
Court decided the income tax law was
unconstitutional It had been in use
then for 100 years. Previous decisions
of the Supreme Court had found it
perfectly valid, but. voting to A. the
court this time held it unconstitu-
tional.
Twenty years Of effort thereupon
resulted in an amendment to the Con-
stitution precluding-it is hoped--the
Supreme Court from again wiping out
this essential source of income to the
Government.
Resisted by Capitalists
The particular statute made occa-
sion for the Supreme Courts decree
in 1895 had been passed in the pre-
ceding year. It was resisted by strong
financial interests. John G.. Carlisle,
secretary Of the treasury said he
could not enforce 1t because his de-
partment had no funds for the pur-
pose. This is the same Carlisle whose
turning over to a syndicate headed by
]. Pierpont Morgan of bond Issue
on which 1t was alleged the syndicate
made a profit of S1S.000,00o, had
caused one Of the Government scan
dals OF the nineties)
Congress passed an urgent def
cheney bin giving the treasury $3.50
600 with which to enforce the new
income tax law. Before II passed, so
tx. Senator Pettigrew has declared, he
was offered $3.50. 900 If he would vote
against II and persuade four other
Senators OF his populist group to do
the same.
Writ Is Sought
Having become a law the act was
reachable only In the courts. The
Farmers Loan and Trust Company
announced 1t would pay the income
tax and one Of its stockholders there
upon brought suit to enjoin. SO the
case on which the Supreme Court
made this momentous decision affect
ing the Government and the whole OF
the people. was a suit to which the
Government was not a party. It
rested entirely between members OF
the same concern. The Government
was permitted to offer argument only
as a matter OF courtesy!
Although no improper motive was
alleged on his part. Justice Shiras
was scored by many newspapers fol-
lowing the courts decision for having
changed his mind over night. With
his vote the act was declared uncon-
stitutional. to T.
The courts opinion was written by
Justice Field His language illus
trates the theory that the court too
often decides cases on It's conception
of public policy admittedly the sole
concern of Congress). rather than on
its conception of the law
Poor Against Rich"
The present assault upon capital"
wrote Field. rs but the beginning. 1t
will be but the stepping stone to 9th.
ers. larger and more sweeping, until
our political contests Will become a
war Of the poor against the RICH a
war constantly growing in intensity
and bitterness"
Chief Justice Walter Clark Of the
North Carolina Supreme Court has
estimated this decision Of the United
States Supreme Court saved a billion
a year for the wealthiest class of this
country. A billion a year for twenty
years, until the people amended the
Constitution and a new income tax
law was passed In 1915.