Show I S GENERAL DENIAL NIAL MADE Trial of or Frederick Kohler Golden Itule Chief of or Police Pollee Cleveland Cl veland 0 O May 31 A trial treat that promises to be bitter was begun be foro the civil service commission to today today day when whon Frederick Kohler suspend suspended ed chief chIc of ot police appeared to charges which have been be on filed lied against him Kohler who has hM a reputation ns tho the best beet chief chlof and 1 Ie lathe the originator of or golden rule rulo rulIn In police matters Is ac accused accused accused of ot misconduct In office intoxication tion and gross immorality The charges against the tho chief wore mod flied last Wednesday and ho he was wn sus suspended suspended suspended by Mayor Thursday Kohler lohler today flied filed with the th civil service commission a n general denial of ot the twentythree charges against him himI I I Washington a May 31 Just t before ad adjourning adjourning today until next October the Supreme court of the United States re restored restored stored the fifteen corporation tax cases cat heard last spring to the docket for re reargument argument before beCore a full bench No roo specific date was set Bet for reargument reargument reargument ment As the two cases case touching the constitutionality con of oC the law Jaw and Its IU ap applicability applicability to Co certain organizations organization have been set already for the first Tuesday Y of the October term after Arter a long Jong list 11 of o cases previously assigned for hear hearing hearing ing on that date It Is III believed the tho court will advance the fifteen cases for a u hearing in the same me month Chief Justice Puller Fuller made the an announcement announcement of the restoration r For lor argument before a full fuU bench was wan the only reason rea on assigned for the unexpected action of the court The cases were argued on March 17 li liand and 18 before a bench consisting of oC eight members member When hen Justice Brewer Brever died shortly afterward It wa was thought the cases C II II might be restored to the docket The only onty reason rea on advanced for Cor the delay dela of the court in reassignment of oC the oases cases C was that the court hoped It would reach a satisfactory decision be before before before fore the tho summer recess roce and thus avoid I Ia a rehearing relt reh aring Secretary MacVeagh said that not notwithstanding withstanding the failure of the court Gourt to topan toon pass pan on the constitutionality of o tho the cor corporation corporation tax the treasury treasure would cot col collect hoot lect it as required by b law Jaw Should the court after r reargument declare the I tax lax not constitutional the money mone eel col looted will be b refunded ft u as the th statutes make ample provision for rr the return ef of eftaxes taxes taxI paid wrongfully wr or In fa error The corporation tax Is collectible June 99 The assessments on en that ac so account account count have aggregated t ted a trifle trine In ex excess excess cess c of 0 while the taxes tIU paid to date dale amount to Ides Idea President Taft is Ig regarded as a the Ute father of ot the corporation tax idea a as represented rel In this statute He Ue evolved it ft during the discussion dl eu of tariff legis lation and Income and inheritance taxes In 1 As a result Congress in inserted Inserted inserted the corporation tax law Jaw into the tariff act passed by b Congress last lut summer Bummer It became sec tion 38 78 of or that statute The Theo law Jaw subjected to the tax In a general way wa every corporation joint Continued on en Page Two To I CORPORA CORPORATION nON CASE Will BE REARGUED Continued d Prom From Page One stock tock company or corporation organised organ organised IMd for fer profit and having a capital stock represented by b shares and every insurance company The Tho tax was des dee designated desI I ted as a special excise tax with respect to the carrying on or doing business bu and it was Wan provided that it should be equivalent to one per upon tho the entire net Income over and above 60 received from all sources during during the year There were wore to be excluded ed from the Income however amounts received as dividends upon stock of other organizations subjected to the tax Exempted from the tax were certain organizations such as la labor labor labor bor agricultural horticultural and fra fraternal fraternal beneficiary societies One Ono paragraph of tho the law provided for Cor the publicity of the returns ret ras re required required required as all a basis of or fixing the tax The tax was as to bo be paid on or before June JURe 39 3 of ot each year ear and the returns for lor each year Vore to be made by b March 1 I It was provided that the tax should be paid for the year ear ending June 20 JO 1910 lUG although the law was no not passed until August 6 S 1969 1909 19 Not until shortly before tho the expiration tion of o the time for tiro tho making of tho the returns wax tho the first move made mace to test the validity of or the tax This movement to teat test the great question about cor corporation C law Jaw started In la the little town of oC Windsor vt to There Maxwell Evarts Evans a II New York lawyer son lion of the tho late William M D 1 Evarts had b d a summer home bome Ho lie had bad ha often noticed the tho keen competition be between tween the two general merchandise o stores in tho the town tl Ua Stone Tracy company a corporation aad and DwIght Sons a partnership con concern concern cern corn He Jle saw what he be believed wa waa waa a discrimination against the corpora corporation corporation corporation tion if It it were wore compelled to pay th tax and make m ke public Its business arrangements ar arrangements arrangements and so accepted the position post position tion of general counsel for Stella P Flint as 1111 general guardian of the prop property property property erty for tor Samuel N Stone Jr a minor who owned stock in the company compan Suit was brought rought in the fed federal federal eral oral court by Mr tr Evarts to enjoin th the corporation from making the returns and paying the tax on the ground that the law was wa unconstitutional Th The corporation filed a demurrer which was W II sustained and tho the bill dismissed An AJI appeal appe l was W taken staken to the Supreme court Tho The Institution of the FlintStone Tracy Trac case caso was Willi tho the signal for tor the bring ing of at suits suit in many sections of or tho th United States State All AD wore were decided In Inexactly Inexactly f exactly the same ways way wa and almost in invariably Invariably invariably variably appeals were taken to tho th Supreme court Tho The government was wall wa allowed to Intervene Fifteen cases headed by the suit SULt were set up Ui u for Cor argument on March It U Besides B the Vermont case those heard were Wyckoff Van Derhoef vs the Coney Island and Brooklyn Railroad company Francis Francia L I 1 nine fine vs va Homo home Life Lito In company of New York Tork Fred W Smith vs tho Northern Trust company of Chicago William H lL Miner Iner vs tho the Corn Ex Exchange Exchange Exchange change National bank of ot Chicago Cedar Street Stroet company vs Park Realty company of New York Lewis W Jared vs s the American ph company of or Cleveland Clevel nd Joseph E Gay vs the tile Baltic Mining company a Michigan corporation Percy Peroy H Brundage vs va Broadway Realty Re company of or New York Tork Paul Lacroix vs s Motor Taximeter Cab company of New York Arthur Lyman vs VB International Rapid Transit company comp ny of New York George Wendoll Wendell vs VI Fifty Associates of Boston Doston Oscar Mitchell vs Clark Iron com pany a Minnesota corporation Katherine Cary Cook vs Boston Doston Wharf company of Counsel Two days were wore consumed in tho the ment nent of the case cose In the Supreme court co rt William D GuthrIe of or Now New York coun sel for tor the tho Homo Home Life Lite Insurance com any pany pan argued that If the court would Interpret tho the law so II as not to Include In n the tho net Income the income derived directly from federal state county or municipal securities and real and per por property not used or employed In n business bu there thero would be no question about bout the he constitutionality of the law Solicitor General Bowers defended the constitutionality of tho the law with out qualification He contended that the tax was W 8 not a direct tax upon property real or personal but on the contrary was an excise tax upon trio tho carrying ho on or doing business The tax ho continued was not not a a direct tax tax upon shares of tho the stockholders In the companies to the business of ot which tho trio tax taz attaches or upon the Income of or such puch stockholders from their shares It did not become a direct tax ho I added because the trio company engaged mainly or oven even solely In the business of or handling or dealing in real estate The various objections to the law were taken up in turn by the tho solicitor Mr Ir Evarts opened the argument against tho the law He contended that the tho law Invaded the sovereignty of the tho I state of Vermont that It would do de tho the corporation of or property with without without without out due process of law aU an nJ J that Its publicity feature would take private property for tor public use without just compensation Throughout ho emphasized emphasized sized tho the point that the tax was upon franchises of a state and therefore un unconstitutional unconstitutional constitutional Former Senator Son tor Fora ker of Ohio argued that It was 15 an in income inCome come dome tax John G Johnson of Phila delphia dolphia made a general attack on tho the law Richard V V Lindabury of Now York and other counsel addressed tho trio court In explanation of features or of in cases cales I II |