Show INC OMI IE TAX REHEARING fmc I 1 arguments begun before a r full bench I 1 17 I 1 1 justice JUSTICE JACKSON VERY WEAK I 1 couchel sel in opposition to the law attach t its validity as a whole think the recent decision destroys the ali entire act ney streets directs ills attention to the rents rants question direct and indirect tax V washington slay may 6 the supreme court courtr I 1 n with till its lt I 1 full till member membership a alp a 0 f nine justices on the bench for the first time tri in many months began tile tho he hearing ar today to day of the income tax suits justice jackson of 0 tennessee who ilia has been absent from washington the ike best part of the past scar ear seeking becking restoration to health took hla his seat beat with extraordinary tra interest attached to his I 1 presence since lie he assumes assume practically the liosi tion of umpire upon the vital clu question estion of the principle upon which the law Is based which divides the justices ices into equal factions faction justice jackson did not appear to be feeble ceble but it was plainly aident ril lent that lie ile was far from being a well man and that only by a strong effort did he sit alt throughout tile the hearing must most conspicuous ambrug the spectators sri in court postmaster 0 gan on crol cral wilson the chairman of the ways and means committee that hot framed the tariff act representative mcmillan of T Ten crin essee chairman of the sub com cittee which drafted tile income tax provisions and ex speaker crisp ot of the house the attends attendance nee of lawyers and others havlic an official interest in the matter mailer was noticeably smaller than at the cirit argument of the law anil atter after the casual contingent of casual tourists had satisfied their curiosity to obtain a bleat of the prominent men the courtroom was mas not crowded crowd d but two arguments ars amenta are to be made tor for each a alda ide by attorney central olney and assistant general whitney for the government and by W G guthrie and joseph choate for the appellants who are hyde and pollock today to day mr guthrie guthorle delivered hla his speech and mr fr whitney began ills hla which he will w ill finish tomorrow to morr morrow 2 w As the time assigned Is if live five hours to each side the arguments will bo be closed wednesday afternoon I 1 MR ARGUMENT before sir mr guthrie began the chief justice fitter after calling the case stated that in response to a suggestion of the attorney general which the court interpreted as virtually a motion for rehearing the court had decided to permit nit counsel to go eo into the questions dinv inv ity aa 1 l ahe jhc thc rehearing had been dov d poll the presence of justice jackson Jac kuon the court found it necessary to limit the arru arrement ment to awu on each side but it t was for counsel to tay m what hat time they would require thereupon mr choate and attorney general olney after consultation an ani i bounced that fi live hours on each side would be sufficient and this time was granted judge judee wilson was also permitted on behalf of J C moore to tile alle IL a b brief r I 1 e I 1 C RAVE GRAVE questions INVOLVED I 1 mr guthrie began beean by saying t that hat counsel tor for the appellants in the cases had been subjected to considerable criticism for their motions for a rehear ing in but they had felt lit in the realization of the tact fact that there were many points still undecided in the de dc finite and final adjudication in which the entire country was vitally inter filter eskild and lie he assured all concerned that the counsel tor for the appellants in the present case would approach I 1 it t jn ill a s spirit of f t alie I 1 i e h highest 1 hes t p patriotism at r lo 10 alsi ii a and n d w with 1 t no od desire e s t r e f for 0 r more i er e 0 lieff e lf agaran g gr a diz ement lie said that the quest question jort involved was a constitutional one anil and added the constitution Is tile llie political lotical creed and conscience of the nation which must control our destiny and in so tar far as this court shall preserve it intact according to its letter and its spirit or permit the darkness of 0 error to affront its light tie so will our future see progress or decline happiness or misery glory or shame there can be no law inconsistent with the fundamental law and a century ci 0 of er rois roia cannot overrule ove irule the constitution the question Is not to be determined by considerations of a present expediency y or practicability or hardship but accord ing in to the lights the purposes tile the 0 intention O of the framers and as they I 1 intended n the constitution to operate so must we enforce it today todar to day dar tife the people are not to be deprived of inherited rights slits rl such as an are Im bedded in our constitution by mere precedent or the technical application of tile the rule rula of stare denials deci sla als POINT OF contention tho the point of contention salil said sir mr guthrie w was a s that the authorities ies establish tb the ep 1 that taxation unon the income of one class of property la is as objectionable ay as upon another he ha charred charged I 1 the cylton case with being beine the sole sola cause of all the error in this matter nia t ter it WAS lie he said paid a political case in which the administration of washington was mas pitted against the anti federalists and a case in which the local prejudice cut an important figure lie he controvert ed the opinion that flit th in the hylton case hail bail been accepted as deciding that only tho the capitation tax and the land tax were direct taxes and aa asked ked it if this was so no why was it congress in 1706 less than thirty days after iho decision was rendered had instructed the secretary detary of the treasury by resolution to report a plan f or laying laylas direct taxes by apportionment lon brae ali tor mr guthrie then presented at some gome ong th the contention mat bat as I 1 it was clearly the intention of congress to have the law act as a whole upon tile the incomes the provisions which are unquestionably u n void invalidate thil aholo hole act the law lis lie said expressly includes rents end and other incomes from land and personal property and its general language langu aKe covers also income from municipal bonds the government has insisted that it was not only the intention but within the power of congress to tax tile the income from rn municipal url I 1 bonds tho the object of the act Is 1 single anil and entire that Is 11 to say tho the taxation of income from all sources jn in order to preserve the provisions now remaining the court must strike out words actually used such ouch as rents income arid and product of land ile he declared the act should be sent back to congress Conar yaa because it la is eibl aibl arary and unjust and in violation of the provisions of the constitution lie then took look up ills question of exemptions anti and limitations repeating in g much of the argument advanced at it the he first hearing and asked the court tn in declare the whole liole act linnal because be ciuc of the exemptions replying to the th suggestion of at morricy general olney that in the light of 0 the recent decision lc cllon the government should refund the money collected under former 0 o income tax lax laws mr guth he aa all TI the c people ot of tho the united states gladly pall paid thu the income tax to artray the expenses or 0 the war and w would y make almit similar zar sacrifices today to day it if it were necessary congress has not tile cott cotton n tax although it was clearly sectional n a partial and liei fair nas hila it over been advanced as a principle of 0 justice Jui Licu and morality that it 1 you decide that a certain interpretation ot at the custom 1 lawn hai ha i been or erroneous eroneous rone ous every man dmn who 11 ho had paid without protest la is entitled to have his duties refunded ON of exemptions EXEMPTION s sir concluded at a t 3 and nd was waa followed by ag actor iley ney general whitney on behalf behala of 0 tile alie government govern men 1 sir mr whitney of 0 the brief time lime riven alven tor for preparing for or the rehearing lie ile said the government would not aglan abtin present any argument on the question luis llon of municipal bends ile he did not a any ny tax law had been enacted which made express mention of 0 all possible exemptions empt ions if K such a requirement were to be applied there would be very ery few feir valid laws As to the question ot of exemptions or of rentals L from rom real ml estate that was different diff f the government had hopes that this thin question could be no BO presented as to obtain it a reversal ot of the former pinion opinion he ha contended that thai the bills in the cabe asked for no special relief in cases of rentals he announced that the historical and argument would be handed I 1 to the court in the shape of a a brief MO mr r whitney faid ald the appellants relied principally upon the system of decono mice of 0 john stuart mill ifill w which aich had not come into exl existence Atenco at tile the time the constitution was adopted and lie la contended that the distinction between direct and indirect taxes was so au ab that mat it was not possible to incorporate it in a written constitution mom sir in tile the opposition 6 tor for going so no tar far back into history for precedents said he had not intended to go 60 back further than igsa but is as tile the appellants had bad rone gone to he would mould himself give some precedents 0 of f that date cant you asked the chief justice lit in a tone which appeared to contain a r spirit of banter go co back further if than that 1 I might highl replied sir mr whitney but I 1 should not tax lax the patience of 0 the ca court urt to that extent but lor for the precedent of 0 my learned friends on oil th tiro other side ile ho raid he would agree to stop short of it 1180 it 1 mr air choate would whereupon sir mr choate assured mr whitney and the court that lie ho would stop several ce centuries short of 0 that date mr whitney referred ret erred at some kongth to the distinctions between the words tax and duty in english legislation lie he as said ld this distinction had been vory sharp harp S and the word tax had pon ap nied only where the word duty could not be made to cover the case if lie said bald the framers of 0 the constitution were acquainted with blackstone they worn were familiar with the english classification A peculiarity ot of the english R system since issa was that everything c ailed a 1 tax was laid by the rule 0 of apportionment whereas where everything called a duty duly was laid by flip rule of uniformity the thorough understanding ot of blits cepl api by the democrats of the convention explained the apparent lack of interest in tho the discussion of 0 tile the d distinction I 1 in these matters the important question with them appeared to be that ot of the proper oleti 0 of the taxes is xe R to be made according to the apportionment a ile he contended that tile di direct taxes were traceable traci ablo to in tile english isn alish land tax and it was impossible e to levy such a tax lac la c except by ap the system of apportionment adiong amon countries was the same in this ahli country in the tally eaily days as in england at this point mr whitney was interrupted by the adjournment of the court for the day CATHOLIC CHURCH BEATEN in the case of the corporation or catholic of Ne squally washington wahington territory versus john T gibbon it T ye atman and the united IJ cited states the decision of 0 the unit united s santes t e s court for the d district strict of 1 washington ielli n gat 0 r t was affirmed today to day by ill abe e supreme court tile hiir net brict of congress establishing the government of oregon confirmed the title to land not exceeding 6 tilo 10 acres occupied ns as missionary stations among the indian tribes to which tile the missionary stations belonged in february 1887 the catholic carl corporation bedran a suit it for acres djohn adjoin f t ing IDS the town of vancouver a e ies of which were occupied by the government n as a military reservation tile the united states circuit court entered a decree in favor of oc the defendants anti anil th t be bill tho the mission was in when the land was in possession of the hudson day bay company and in 1850 colonel loring of the army Y created by rin proclamation a military y reservation ri tour four nilles ficare which was afterwards by act of congress reduced to aarm tho the church asserted its claim bu but t ali ahto secretary of the interior in fix isa 1 decided that it was only entitled to a small tract less les than half an acre upon which the church building stood justice brewer for the court said cold that the decision of the secretary was conclusive C to the merits of the con t it aversy lie he said that the act ci cicat eat ins tile the territory only conveyed land actually occupied by tile the missionary societies in their own right the real occupant of ef the land he was the hudson vay bay company and the mission station was only there on sufferance the case of jano if tull et a vs va b vedar et at al for the tha title to I 1 arge t tracts 1 of land in tile the city of sark san jose cal was decided and the judan judgment ont of the th circuit court was affirmed in the opinion delivered by justice bield id it was wild maid the long conff undisputed possession p by the holders of the lind land would bar out other claimants under the statute 04 0 limitations of california was wag arrested n near cuba on a charca 0 of 81 ux the it a it t being ahn 1 11 el tant hn a 1 aard to sell arms to th ahrin ebli I 1 tab charbo g 0 1 I 8 dc 1 0 ailed riled end in alt t th of arthe as methods of 0 tho the lh court martial secretary Gr Or grsham slam osbarn 13 naked to Beet tift t Fu lunlow lun enton los receives protection pending an knestle ln estle alon djs |