Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-18
SOCIAL SECURITY
OPINION DUE SOON
Attacks on Legality of Act
Only Major Issue Before
Court.
ny John H. CLINE.

Court.
BY JOHN H. CLINE.
Three attacks on the legality Of the
social security act and supplementary
State legislation were the only i'm
portant cases left on the Supreme
Court docket today. as the justices
prepared to recess for the Summer
on June 2.
Unless present plans miscarry these
cases will be decided next Monday or
on the closing day of the term.
The failure to announce the social
security rulings yesterday came as a
sharp disappointment to a large
crowd that filled all available room
in the spacious court chamber.
In its most important action at
yesterdays session the court declined
to order the Government to refund
some 1868 ,000,0 900 in processing taxes
collected under the invalidated agri-
cultural adjustment act
Another highly important ruling up
held the Louisiana chain store tax,
enacted during the regime OF Huey
Long.
McReynolds Alone Disssnts.
Delivering the s-to-l opinion In the
processing tax case, with Justice Nc
Reynolds dissenting Chief Justice
Hughes said the law gives a tax
payer means OF recovering the tax
II he can show it was not passed on
to the consumer.
The Admission Manufacturing Co.
Of Alabama. plaintiff in this case,
commended it WAS impossible for it to
show the tax had not been passed on.
but the Chief Justice said the ques-
ton Of impossibility was not properly
before the court.
Asserting that ''impossibility OF
proof may not be assumed" the Chief
Justice added in part:
1T cannot be doubted that the re-
quirement (of proof has appropriate
and valid effect in placing upon the
claimant the duty to present fully all
the facts pertaining 10 the question
OF the shifting OF the burden OF the
tax and in denying relief where the
facts justify conclusion that the
burden has been shifted from the
claimant to others.
When the facts have been shown
1t becomes the duty of the Board OF
Review to make its determination ac-
cording to the legal rights OF the
claimant.
Claim Held Premature.
petitioners contention as to impos-
sibility Of proof is premature. Mani
testify there is no impossibility so far
as the production OF proof of petit
toners operations is concerned.
What Is meant by impossibility of
proof is impossibility Of determination
after these facts are in. Whether or
not any such impossibility of determi-
nation will exist is a question which
properly should await the ascertain
ment Of the facts. For the present
purpose it Is sufficient to hold, and
we do hold, that the petitioner may
constitutionally be required to present
all the pertinent facts in the pre-
scribed administrative proceedings and
may there raise. and ultimately may
present for judicial review, any legal
question which may arise as the facts
are presented"
Justices Stone and Cardoeo con-
CURED in the opinion, but expressly
reserved their vote as to the constitu-
tional or statutory rights of the tax
payer in event it shall be impossible
to ascertain whether there has been 4
shifting Of the tax.
Cummings Gratif,ed.
Hailing the decisions as an impor-
tant victory for the Government, At
torney General Cummings issued 4
statement saying:
The decision is gratifying ter
mination OF the Governments at
tempt to solve the serious fiscal prob
lens arising from invalidation of the
agricultural adjustment act processing
taxes.
1T was unthinkable that the Gov
eminent should pay gigantic windfalls
to those who are not harmed by the
imposition of the tax.
"Over $4,000 900 was collected
under the A. A. A., and an automatic
refund to the nominal taxpayers
would have placed very serious bur-
den on the United States Treasury
The professor who was the nominal
taxpayer ordinarily did not in fact
bear the economic burden OF these
taxes, but recouped their amount from
his customers, or from those who sold
to him, On the other hand. the ex-
ceptional professor who in fact bore
the burden of the tax should have q
means Of recovery, to the extent tina,
he was actually harmed by its imposi.
ton. Title Z OF the revenue act OF
1896 represents an attempt to solve
the complicated economic problem OF
translating into dollars and cents the
amount OF the tax burden which the
A. A. A. taxpayer actually bore.
The decision of the Supreme Cour,
sustaining the validity of this act il
an important recognition that the
Constitution contains nothing to pre-.
vent the Government from adopting
the fairest possible alternative in the
difficult task OF being just to taxpayer,
who have paid an invalid tax without
placing unwarranted burdens upon thu
Federal Treasury"
Chain Store Tax Upheld.
The legality of the Louisiana chair
store tax was upheld by = to
vote in another opinion. Justice
Roberts delivered the majority opin.
ion, with Justices Sutherland, Nc.
Reynolds and Butler dissenting. Jus.
tices Van Devanter and Stone, fol
an unannounced reason, took no part
in the case
The attack on the tax was filed b.
the Great Atlantic & Pacific Tea Co.,
which operates or controls 1902
stores, 106 OF which are in Louisiana
The company contened the tax statute
denied them equal protection Of the
10