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| Chief Justice Melville Fuller. |
Cortland Evening Standard, Tuesday,
April 9, 1895.
INCOME TAX
DECISION.
The
Treasury Will Be a Heavy Loser Thereby.
TAX ON
RENTALS A BIG ITEM.
The
Change in the Law May Reduce the Government's Income Tax Revenues One-Half—Further
Litigation Sure to Follow—What Olney Says.
WASHINGTON, April 9.—The anxiously awaited
decision of the United States supreme court in the income tax was rendered by Chief Justice Fuller.
The court knocked out the law so far as it
taxed incomes derived from rents and also from state, county and municipal
bonds.
By a tie vote of the court the law was
sustained in other respects.
Upon each of the other questions argued at
the bar, to wit: First, whether the void provisions as to rents and incomes
from real estate invalidates the whole act? Second, whether as to the income
from personal property as such the act is unconstitutional as laying direct
taxes? Third, whether any part of the tax, if not considered as a direct tax,
is invalid for want of uniformity on either of the grounds suggested?—the
justices who heard the arguments are equally divided and therefore no opinion
is expressed.
The result is that the decree of the circuit
court is reversed, and the cause remanded with directions to enter a decree in
favor of complainant in respect only of the voluntary payment of the tax on the
rent and income of its real estate and that which it holds in trust and on the
income from the municipal bonds owned or so held by it.
The announcement of the foregoing
conclusions of the court was preceded by a review of many opinions of the
supreme court from the time of Chief Justice Marshall down to the celebrated
Springer case brought by ex-Representative Springer of Illinois and by an
exhaustive review of the nature of direct and indirect taxation, in the course
of which the chief justice reviewed the debates leading up to the framing of
the federal constitution.
In conclusion, the chief justice stated that
this opinion upon the Pollock case covered the two other cases.
The delivery of the opinion consumed just
one hour. Chief Justice Fuller was followed by Justice Field, who read the
first dissenting opinion, speaking in a low tone that contrasted noticeably
with the loud delivery of the chief justice.
The decision applies to three cases, the first
of which, was brought in the courts of the District of Columbia by John G. Moore,
to enjoin the commissioner of internal revenue from the collection of the income
tax; while the other two were those of Charles Pollock vs. Farmers' Loan & Trust company and Lewis H. Hyde vs. the Continental Trust company; both
appealed from the decision of the United States circuit court for the Southern district
of New York. The action in these two cases was brought to enjoin a voluntary
compliance with the law in the payment of taxes.
Justice Field in a dissenting opinion said:
"I am of the opinion that the whole law of 1894 is null and void."
He was followed by Justice White in a second
dissenting opinion.
Justice Field's opinion was largely devoted
to a review of the provision regarding rents, and was a vigorous denunciation
of the principle sought to be established by the income tax law, his
conclusions being in conformity with those announced by the chief justice.
Justice White's dissent was largely
extemporaneous and was very long. Apparently he favored the upholding of the
whole law.
Justice Harlan followed Justice White in a
dissenting opinion and the case was closed. Nothing was said to show how any of
the justices stood save the three who read dissents.
The treasury officials are greatly
dispirited over the supreme court's decision in the income tax case and while
admitting that they have no reliable data upon which to form an accurate
estimate, they express the belief that the net result of the decision will be a
loss of at least 50 per cent in the receipts from incomes.
In some cities the loss will be far greater
than this, notably in the city of Washington, where the loss is expected to exceed
75 per cent. Washington, however, is exceptionally a renting city. The
proportion of rented houses in other cities of the country is very large.
In 1890 the rented houses in New York city
was nearly 94 per cent of the whole. In Boston it was 81 per cent, Brooklyn 81,
Cincinnati 80 and Jersey City 81. In other large cities the percentages range
down to 56 at Rochester.
The total number of rented houses in the
United States in 1890 was 1,120,487, which during the last five years have
undoubtedly increased very materially.
Dwelling houses, however, represent only a
small part of the capital invested in buildings of every character which
produce enormous rentals.
Comparatively little was expected from
interest on state, county and municipal bonds, but the total loss, it is
thought, will not fall short of $15,000,000 or $20,000,000 the first year, and
this loss is expected to increase rather than to diminish in succeeding years
should the law remain unrepealed.
The loss of this revenue, however, is not the
only cause of regret among the officials. The fact that the court was evenly divided
on the main constitutional question, it is expected, will result in almost endless
litigation, thus very materially adding to the expense of collection of the tax.
Nevertheless the internal revenue officials will
proceed at once to prepare supplemental regulations to conform to this decision,
and from now on until next Monday, when the time expires within which returns
may be made, any returns in which incomes from rents and bonds are deducted,
will be regarded as a full compliance with the law.
Persons who have already made their returns
and paid the tax will be advised of the change in the regulations and as soon
as possible the proportionate amounts of tax paid by each on rents and bonds
will be refunded to them, under the general law which authorizes the
commissioner of internal revenue to refund taxes wrongfully collected.
Attorney General Olney was much surprised at
that part of the decision which exempts rents under the income tax.
As to the section of the act relating to
bonds, the attorney general rather expected an adverse decision, but he regards
the action of the court on the rent proportion as having been taken on
technicalities which he believes will not stand the test of time and cannot
remain the permanent law of the land. On all the other points the government,
he believes, has no serious cause for complaint.
It is universally regretted that there was
not a full bench to hear the case, and should Justice Jackson resign, his
successor, there is good reason to believe, would almost certainly be favorable
to the law, in which event another test case very soon would be brought to the
court for determination.
Extra
Session Not Necessary.
WASHINGTON, April 9.—The president, on being
asked whether in view of the decision of the supreme court on the income tax
law an extra session of congress would be called, said that neither he nor the
secretary of the treasury saw any necessity for such action and that unless
there was an unexpected change in conditions he had no idea that congress would
meet again before the time appointed for its regular session.
Report
on the Brooklyn Strike.
ALBANY, April 9.—The special assembly
committee to investigate the Brooklyn trolley strike reported in a printed
document 93 pages long. The committee says that the mayor and police
commissioner of the city showed a marked lack of fitness for office. It
recommends a strict enforcement of the 10-hour law, the licensing of all
railroad employes, the reporting to the governor by the state board of
mediation of where the responsibility lies, the issuance of extraordinary writs
of mandamus, and forbidding the stock of transportation companies to be held by
foreign companies. The committee does not believe that municipal ownership or
compulsory arbitration can successfully be adopted.
PAGE
TWO—EDITORIALS.
Direct
and Indirect Taxation.
Dr. Albert Shaw, in The Review of Reviews,
quotes from John Stuart Mill's textbook in political economy the following
paragraphs defining the difference between direct and indirect taxation:
“Taxes are either direct or indirect. A
direct tax is one which is demanded from the very persons who it is intended or
desired should pay it. Indirect taxes are those demanded from one person in the
expectation and intention that he shall indemnify himself at the expense of
another, such as the excise or customs. The producer or importer of a commodity
is called upon to pay tax on it, not with the intention to levy a peculiar
contribution upon him, but to tax through him the consumers of the commodity,
from whom it is supposed that he will recover the amount by means of an advance
in price.
“Direct taxes are either on income or on
expenditure. The sources of income are rent, profits and wages. This includes
every sort of income, except gift or plunder. Taxes may be laid on any one of
the three kinds of income, or a uniform tax on all of them. A tax on rent falls
wholly on the landlord. A tax on profits, like a tax on rent, must—at least in
its immediate operation, fall wholly on the payer. We now turn to taxes on
wages. Any tax levied on these (the higher grades of mental or educated labor)
falls on those who pay it.”
But Mill's distinction is faulty. It is not
true that a tax on rent falls wholly on the landlord. His tenants pay it just
so surely as the consumer pays the customs duties on the wines and textile
fabrics he buys from the merchant who imports them. To tell the truth, the line
cannot be drawn exactly between the direct and the indirect tax. Even when
profits are taxed the man who gets the profits raises the price of his goods so
as to get the amount out of his customers. Wages alone of the three sources of
wealth mentioned by Mill seem at first thought to constitute the one in which
an income tax would be a direct tax. But even here the wage earner will try to
get his pay raised so that he can get the tax out of the business in which he
is employed. That he cannot do it always is not his fault. He would if he
could.
On the whole, is there any such thing as a
direct tax? Is it not, like so many other beliefs, an exploded superstition of
the political economists of 200 years ago?
L. T. L.
UNION SOCIAL.
Several
Noted Characters Personated by Young Ladies.
Last evening was a time of special interest
to every member of the Cortland Loyal Temperance legion, senior union. These
young people comprise the two senior grade L. T. L.'s, Co. B. and Co. D, and
the Graduate club of Cortland, about 65 in number. For the purpose of becoming
better acquainted and more imbued with the spirit of comradeship, as branches
of one great organization, they had decided to hold a union reception and
social at the W. C. T. U. rooms. Dainty invitations were sent out to all
members of the organization, and an exceptionally fine program was given,
consisting of personations of different temperance leaders and the
presentations were artistically made by members of the legion.
The following great leaders were presented
and each made a characteristic speech. Miss Frances E. Willard personated by
Miss Katie Collins was introduced and gave an interesting account of her life
from her earliest childhood and of her present plans and purposes. This was a
particularly happy personation of Miss Willard, as, except in height, every one
noticed the marked similarity in personal appearance of Miss Collins to the
great leader.
Miss Anna Gordon personated by Miss Maude
Stevenson was next introduced and in a few remarks made all see how
indispensable she had become to her great friend and how loyal and loving she
was to the great cause to which both lives were consecrated. She also assured
the legion of her intense interest in every thing which concerned them as she
stood at the head of the L T. L. work. As world's superintendent she closed her
remarks by singing one of her own songs written for the L. T. L., "Onward
we are Marching Alcohol to Fight."
Then the great W. C. T. U. evangelist, the
sweet and gentle little Quakeress, Mrs.
Hannah Whithall Smith, was introduced. Miss Catherine Keese personated most
perfectly this character, and in her sweet and modest, yet dignified and self-controlled
manner gave a selection from the charming writings of "Our Hannah,"
as Miss Willard often tenderly designates the beloved W. C. T. U. leader.
Following her came the gentle but intrepid
first round the world Missionary of the W. C. T. U., Mrs. Mary Clement Leavitt.
This character was beautifully personated by Miss Alma Morrison and the brief
account of her perils and deliverances of her unwavering faith and wonderful
preservation in the midst of dangers, while on her unique journey round the
world in the interest of the W. C. T. U. was full of interest.
After her came Mrs. Helen G. Rice of Boston,
national superintendent of the Loyal Temperance legion. This personation was
finely made by Miss Edith Williams.
She expressed her pleasure in again meeting the L. T. L.'s of Cortland,
assuring them she had never forgotten the delightful convention which she
attended here last August, and bidding them Godspeed in their blessed work,
asked them to give again the L. T. L. rallying cry, which under her leading
they gave with a vim, and closed by leading the legioners in singing the L. T.
L. battle song, "Down with Whiskey All."
The next personation was by Miss Pearl Owen
of Mrs. N, H. Hutchinson of Owego, New York, state organizer of L. T. L.'s, who
so endeared herself to all hearts both young and old last summer at the State
L. T. L. convention. Miss Owen was so hoarse she could not speak, but her
personal likeness to the loved leader was striking and she was well received.
The young lady who was to represent the
beloved state leader of the L. T. L., Mrs. H. A. Metcalf of Brockport, was Miss
Maude Robbins. She was too ill with a severe cold to act her part and in place
of it Mrs. Cotton, county superintendent of L. T. L. work read a genuine
message from the pen and heart of the dear superintendent which was received
with rapt attention and heartily applauded.
At the close of the program cocoa and cake
were served and the legioners went home congratulating themselves on the
success of their first union social.
COMMITTED
SUICIDE.
Henry C.
Babcock Shoots Himself, Temporary Insanity the Cause.
The people of Cortland were startled this
morning at the report that Mr. Henry C.
Babcock had committed suicide by shooting. A STANDARD reporter visited the
scene of the shooting and found the facts concerning it as follows:
Mr. Babcock lived just east of the D., L. & W, railroad track a
little south of the crossing between Cortland and Homer. Last evening a little
before 9 o'clock Mr. and Mrs. Babcock, who occupied separate beds retired, but
Mr. Babcock laid down without removing his clothing, remarking to his wife that
he was not feeling well and would lie down a little while without doing so.
Soon after the lights had been extinguished
Mrs. Babcock was startled by a sudden report of a pistol discharged in the
room. She immediately arose and obtained a light, but Mr. Babcock who was
gasping for breath died almost instantly with blood gushing from a bullet hole
about two inches above and just in front of the right ear. The ball passed
through the skull, penetrating the brain to the depth of four or five inches.
The revolver, which was a 32 calibre, was kept in a chest at the head of Mr.
Babcock's bed.
Coroner Moore was immediately summoned but
after an examination it was decided that no inquest was necessary. Mr. Babcock
was the son of the late Hiram Babcock of Scott. He was born in that place
nearly 59 years ago and resided there until about a year ago when he moved to
Cortland. He leaves a wife and one child, a daughter, Mrs. Hiram Crosley of
Truxton who was immediately summoned. Four brothers and two sisters also
survive him. They are William and Albert Babcock of Scott, Edgar of Minnesota,
and Myron of Homer, and Mrs. J. C. Atwater and Mrs. William Hannum also of
Homer.
The immediate cause of this unlooked-for
act is a fit of temporary insanity.
Law of
the Road.
It is a rule established by custom and supported
by judicial decisions that when teams meet on public highways they must turn to
the right. This salutary rule which prevails upon highways is followed to some
extent upon double-tracked railways, that is, trains going east, for instance,
run upon the right hand track, and trains going west pass over the left hand
track. But upon the Four Track railroad while this rule is generally adhered
to, it can always be dispensed with for obvious reasons.
The best known code of rules and signals is
employed for the operation of their trains, but with four tracks trains can, in
case of necessity or emergency, be thrown upon another track and sent forward at
very high speed, without the least danger. The most perfect and reliable block
signal system in the world is used upon the Four Track route and by the
operation of this system trains can be controlled with the precision and
accuracy of clockwork. With this system not a train can pass into or out of a block
unless the way is clear, and the elements of danger are reduced to the zero
point. Working automatically and in perfect unison this system is as immutable and
inexorable in operation as the law of gravitation. With its entire track roadway
equipped with these wonderful block signals, trains can be run at great speed,
without delays and with absolute safety and comfort.
A manager who expends thousands of dollars
in order that nothing will be neglected that might add to the enjoyment of his
patrons certainly deserves success, and, as a rule, he generally gets it, if
the public would endeavor to discriminate between responsible companies and
those who possess no stability.
There are plenty of good shows, but, unfortunately,
there are hundreds which are utterly devoid of merit. Now, any one can tell at
a glance if they see a magnificent new store with massive plate glass windows, that
it necessarily calls for a great outlay of money to erect it, and the stock in
such a store is generally of the finest. The same line of reasoning to
theatrical enterprises; for instance: when you see a show billed in the lavish
and expensive manner that characterizes "She Couldn't Many Three"
company you can rest assured that there is money and push back of it.
The
beautiful artistic pictorial lithographic work, is the finest and the costliest
on the road. No lithographic firm would attempt that kind of work without having
ten thousand dollars down to insure them from loss. This is only one of the
many items of a great show, and the same good taste which provides this beautiful
printing will neglect no other department of the show. So there is no doubt
that the production of "She Couldn't Marry Three" is the biggest show
of the season.
HOMER
DEPARTMENT.
Gleanings
of News From Our Twin Village.
William Forrest of Cortland is now in charge
of H. K. Hannum's grocery business.
Mr. and Mrs. Byron Maxon left town this
morning for a ten days' trip to Washington and Norfolk, Va.
O. B. Andrews and J. W. Fassett are in Syracuse
to-day.
The Homer lodge, I. O. O. F., will hold its
weekly meeting in the First National bank building this evening.
The Willoughby Babcock Post, G. A. R. and
the Willoughby Relief Corps will hold their respective meetings at the G. A. R.
headquarters in the Brockway block this evening at 8 P. M.
W. H. Foster and C. H. Danes returned from
Little York this morning with seventy-five pounds of suckers.
Mrs. Bridget Kinney, who lives on Cherry-st.,
fell and broke her right leg yesterday noon. Dr. Robinson was called and
reduced the fracture. Mrs. Kinney is over eighty years old and this unfortunate
accident it is feared will cause her much suffering.
The Salvation Army meeting in the Congregational
church this evening is to be addressed by two able speakers, Brig. Gen. Holtz of
Buffalo and Adj. A. C. Smith of Syracuse. Everybody is invited to be present.
The
assistant chief of the Homer fire department made a thorough test of Homer's natural
water supply last Sunday afternoon, while paddling on the Tioughnioga in a
light canoe. The craft capsized and the result was satisfactory so far as the
test was concerned.
The list of uncalled for letters in the
Homer postoffice includes the following—Daniel Carr, Pat Daley and E. C.
Kinney. Persons calling for the same will please mention this notice.
 |
| Cascade at Glen Haven. |
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| Steamer Ossahinta. |
Glen
Haven in the Spring.
It would be difficult to find a place more
beautiful at all seasons of the year than Glen Haven. The business rush of the
summer season has not yet opened, but this only tends to make the place more
enjoyable. The millions of tons of ice in the lake are gradually melting and the
balmy air and fine climate tend to dispel any indications whatever of
"that tired felling."
Among the most recent guests at the sanitarium
was Mr. Geo. S. Cady, captain of the steamer Ossahinta which has safely carried
many a Cortland county party down the beautiful lake. Capt. Cady is bracing up
for the summer trade and is taking a series of the new surprise shower baths,
the first of which he received Sunday morning, when he caught a pail douche on
leaving his room.
The
first party to visit the Cascade this season made the ascent of the mountain on
Palm Sunday. The falls never looked more beautiful. The melting snow has
increased the stream in the gorge till it is quite a torrent.
BREVITIES.
—Mrs. C. Sweet, the nurse, has changed her
residence from 49 Lincoln-ave. to 31 Lincoln-ave,
—C. N. Tyler has sold his grocery on Elm-st.
to W. J. Perkins who has taken possession. Mr. Tyler, however, will remain in charge
of the business.
—It costs nearly $2,000 a year to maintain
the Fiske-McGraw mansion and grounds, which have never earned a dollar of
revenue.—Ithaca Journal.
—The river has risen nearly twenty inches
and the water has backed to Cooper Bros.' foundry to such an extent as to cause
them to stop work for a few days.
—The defunct Ithaca Herald yesterday resumed publication under the name of the Ithaca
News. The editors and publishers are Merritt M. Dayton and DeWitt C. Bouton of
Ithaca.
—Binghamton expects to adopt the telephones
of the new Standard Oil Telephone company which proposes to put in telephones
in all parts of the country at the uniform price of $25 each.
—The Y. M. C. A. Camera club will meet in
the association parlors on Wednesday evening at 8 o'clock. G. E. Butler will
present a paper on elementary photography. All interested are cordially invited
to be present.
—The removal of hat idea among ladies is
spreading. Sixty-five Oneida ladies removed their hats at a recent performance in
the theatre. One hundred Geneva
ladies have signed a petition asking all ladies to remove their hats at the
beginning of every performance in the theatre there.
—A stove which was being moved out of the
Squires building stood on the curb at 1:30 this afternoon. The team which was
to move the stove backed the wagon up to the curb faster than the driver wanted
them to go. The wheels struck the stove, there was a smash and the stove lay on
its side on the flagging, and there were several pieces of it, where before
there had been but one.
Village
Fathers.
A special meeting of the board of trustees
of the village of Cortland was held at the office of the clerk of said village on
the 8th day of April, 1895 at 7:30 o'clock P. M. There were present F. W.
Higgins president, Benj. L. Webb, Frank J. Doubleday, James J. Glann and E. J. Warfield.
The meeting was called to order by the
president. The minutes of the last meeting were read and approved. It was moved
and carried that Mr. Warfield be a committee of one to oversee the furnishing of
work to Mr. Griffiths under the arrangements made with him.
On motion of Mr. Doubleday, seconded by Mr.
Glann and declared carried, Resolved:
That the president appoint a committee to negotiate for the purchase of an
additional roadscraper. The president accordingly appointed Messrs. Doubleday
and Warfield as such committee.
On motion of Mr. Webb, seconded by Mr. Glann
and declared carried, Resolved, That Mr. William T. Linderman be and is hereby
appointed one of the policemen of the village and chief of the police force of
this village in place of James E. Sager, to hold office as such policeman
during the pleasure of this board.
It was moved and carried that the president
be a committee of one to purchase necessary uniform for the newly appointed
policeman.
On motion duly seconded and declared carried,
Resolved: That Mr. I. H. Palmer
be chosen and appointed attorney and counsel for the village.
The following bills were allowed:
Thomas Mulligan, $10.80
Cortland Savings Bank, 180.00
Frank Williams, 5.69
Police Force, 50.75
Buck & Lane, 4.07
B. B. Jones, printing, 14.50
Empire State Telephone Co., 9.00
Yager &
Marshall, 3.50
James E. Sager, meals for prisoners, 4.45
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