Newspaper Page Text
DECIDED Supreme Court Finally Declares Income Tax Constitutional. JUDGES UNANIMOUS This Decision, in the Opinion of Con gressional Leaders, Opens the Way for Irn reasing the Tax Rate on Great Fortunes to Help Pay for Na tional Defense—Author of the Law Declares That Without Any Un usual or Unjust Charges It Can Be Made to Yield $185,000,000 or $195, 000,000 a Year. WASHINGTON, Jan. 24.—The in come tax was declared constitutional today by the supremo court in a unan imous decision which swept aside every objection raised against it and in the opinion of congressional lead ers opened the way for increasing the tax rate on great, fortunes to help pay for national defense. Proposals are pending in congress to tax incomes of more than $1,000, 000 as high ng 50 irer cent. Leaders on all side3 agree that out of the ini petus which the decision today will give such proposals is likely to come a definite movement to levy on the revenues from great private fortunes for some of the millions the govern ment must raise to carry out the army and navy increases. "The supreme court's decision ha absolutely unfettered the income tax as a source of revenue," said Repre sertative Hull of Tenessee, author o' tlie law. ''All doubt is removed and congress is left much freer to act. believe congress will take advantage of the opportunity to amend the lav materially. Without any unusual o' unjust charges it can t o made to yield $185,000,000 to $195,000,000 ! year as 1 against $85,000,000 or $95,000, 000 at present." Representative Hull is preparing amendments to carry the tax to in comes below $3,000 and make grad -u increases in the sur-taxes on income' exceeding $20,000 a year. So far the problem of raising tin revenue for national defense, a! though approached from many sides, has not been carried toward any defi nite solution, because with the consti tutionality of the income tax undo titled, administration leaders were re luctant to place too much dependence on it. In its declaration the supreme court construed for the first time the sixteenth amendment to the constitu tion, under which the tax is levied and gave it the broadest interpretation possible, rejecting suggestions to con fine its scope to narrow limits. The decision was announced by r 'hief Jus tice White and was unanimous. T was rendered in the appeal of Frank R. Brushaber from the action of the New York federal court in refusing to enjoin the Southern Pacific, which Brushaber was a stockholder, from paying the tax. The can" raised substantially every point involved in all the five income tax cases before the court, with the exception cf the effect of the provision allowing min ing corporations to make a 5 per cent deduction annually from gross income for depletion of mines. This provis ion is regarded as being an amend ment to the old corporation law rather than as a part of the income tax The basic error of those who tacked the constitutionality of the tax, Chief Justice White held, was regarding the sixteenth amendment United States to Prince Albert is such friendly tobacco that it just makes a man sorry he didn't get wind of this pipe and cigarette smoke long, long ago. He counts it lost time, quick as the goodness of Prince Albert gets firm set in his life! The patented process fixes that—and cuts out bite and parch! Get on the right-smoke-track soon as you know howl Understand yourself how much you'll like Fringe Albert the national joy tmoke It stands to reason, doesn't it, that if men all over the nation, all over the world, Watch your step! It's easy to change the shape and color of unsalable brands to imitate the Prince Albert tidy red tin, but it is impossible to imitate the flavor of Prince Albert tobacco t The | ' patented process : >■- protects that! prefer P. A. that it must have all the qualities to satisfy yourfondestdesires? Men, get us right on Prince Albert! We tell you this tobacco will prove better than you can figure out, bearings 1 The laxative tablet with the pleasant taste Protects every member of the family from Constipatioa the enemy of good health 50 * S2BB5ZS Wo have the exclusive selling rights for this great laxativ* Trial size, 10 cents SEIDEN DRUG CO. THE REXALL STORE direct tax without apportionment mong the states according to popula tion. In substance, the court held that be sixteenth amendment had not ent •owered the federal government to >vy a new tax but that "the whole 'irpnse of the amendment was to rc ieve all income taxes from a constd rntion of the source whence the in 'ome was derived.' ...... Those opposing the tax had urged bat (he sixteentli amendment pro dded tli at income "from whatever ource derived, should be taxed witli >ut regard to apportionment among lie states." They argued that the Un lerwood-'Simmons income tax provis ons by reason of exemptions of cer ain incomes from taxation had not 'orae within the meaning of intendment the Chief Justice White said the power the federal government to levy an ncome tax had never been questioned, Quoting at length from the famous tn "onie tax decisions of 1895, he de clared the court then recognized the fact that "taxation on income was In he nature of an excise entitled to be enforced as such unless and until it was concluded that to enforce it would amount to accomplishing the result which the requirement as to appor ionment of direct taxation was adopt al to prevent, in which case the duty would arise to disregard the form and consider the substance alone and bence subject the tax to the regulation, s to the apportionment which other wise as an excise would not apply o it." The court then decided, lie added, hat tiie effect of the tax on income 'rom real estate was the same as if a direct tax had been levied on the real estate and that it was with a view ■o obviating such questions that the amendmont had been adopted. Inasmuch as the amendment had not "onferred the power to levy an income ax, said the chief justice, it could not ■o interpreted as embracing limits lions as to the nature and character! of incomes to be taxed. To consider I . . ,, ,. „ ,, : as embracing limitations, such as not authorizing a progressive tax he held was irreconcilable wltli the pur pose of the amendment. He explained, too, that tlie uniformity of excise luxes required by the constitution , .. .. . .______ uniformity of applicaLon as to clasHes^ v as geographical uniformity and not The clilef justice further lield that • i.n t ax diq n ot violate "the due pro 'ess' of the constitution, by imposing a higher rate of taxation on incomes i hove $20,000, than on those below that ligure or by other provisions. Five separate suits to test the con fitutlonality of new income tax were brought in the federal courts through - ut. the country soon after the law became effective and all found their way to the supreme court ot the Uni ted States soon after. For nearly 50 years the tight tor and against a federal income tax has been somewhere in the courts. The income tax imposed during the civil war and the years immediately following were not attacked with the seriousness of later cases. It was not until the Cleveland administration placed an income tax in the Wilson tariff act that ttie fight became seri ous. The contest over the validity of the C. E. Ovren, Billings; Mrs. R. D. tax in 1894 and 1895 before the su tireme court was one of the most bit ter ever fought out before that court. One of tiie lawyers, James C. Car ter, warned the court against setting up Us judgment to thwart the will of 60.000,009 neopln. Joseph H. Choate, opposing, called upon the court to ex ercire its judicial powor regardless of any popular or populistic propa ganda. -At first the court tax was unconstitutional as to rents from land because it was a direct tax not apportioned according to popula decided that the tion, and was unconstitutional as to interest on municipal bonds. Only eight judges participated and they evp;l!v divlded as to the validity o fother Vature3 of the law . A o fother ''natures of the law. A re hearing v,granted and Justice Jack son, tin. dying, took his place on the bcncli to listen to the last arguments In liis lifetime. Justice Jackson vot ed to sustain the law. Justice Har | an created a sensation by announcing / 1 ' bench that another justice ad changed his mind over night on the question, and the entire tax, both as to realty and as to income from per sonality was set aside on the ground that it was a direct tax and not ap portioned according to population, as was required by the constitution of direct taxes. thp UienVg^m^clme noth) until president Taft recom mended the enactment of an excise tax on corporations, to be measured by their income and an amendment to the constitution to permit the levying of an income tax on all income. The amendment was submitted to the states at once ami was proclaimed as tiio sixteenth amendment to the con stitution on March T, 1913. It provided; "The congress shall have power to ! lay and collect taxes on incomes from ! v. hatever source derived without ap-! portionment among the several states I and without regard to any census or i enumeration." j Congress availed itself of the first opportunity to exercise tiie new pow or bv incorporating into the tariff act | which became effective October 3. j 1913, the present income tax. Five | suits, all challenging the validity of certain features of the tax were: I Frank R. Brushaber. stockholder of | tlle Union Pacific Railroad company, seeking in the New York federal! -ourts to enjoin the company from ■ firing the tax. John F. Dodge and Horace E. Dodge, emt'a-Hirers of Detroit. Mich., In the Michigan federal courts, to enjoin lie internal revenge collector from collecting the tax, largely on the ground that it discriminated against ''o-partnerships In tions. John R. Stanton, stockholder of tiie ■'altic Mining company, in the Massa chusetts federal courts, to enjoin the company and others from paying the 'ax, largely because of the 5 per cent, annual deduction from income allowed mining companies far ore depletion. Tree Realty company, in tho New York federal court, to enjoin the col lector of internal revenue. Edwin Thorne, in the New York federal court, to enjoin the collector, largely on the ground that the addi tional or surtax imposed on incomes over $20,090 was unconstitutional. In each instance the loWer court held tho tax constitutional, and the case was brought to the supreme court cn appeal. The cases were advanced for early hearing and were submit ted to the court for decision on Octo ber 15, 1915, 20 years after the first great income tax decisions. favoi of corpora JUDGE METTIEF1 HAS CASE UNDER ADIIISE1ENT ASKING FOR BRIEFS : The trial of Trix Marshall, charged | with selling liquor in a rooming house, j took place Monday afternoon at tiie ! °ity hall, with Police Judge Mettler on the bem h. City Attorney I. B. Kirk land represented the city, while J. C. j Huntoon epepared for the defendant, j The city proved b.v two witnesses ; that liquor had been sold in the Ma i jestic rooming house, conducted by Miss Marshall. Two men testified I that on the evening of January 12 I the purchased some beer there. The defense did not attempt to pre ' sent any evidence, but Attorney Hun I toon attacked the validity of the city j ordinance under which the complaint wa 8 filed. He presented a number of points, one being that the testimony of I the accomplices was not corroborated, as the law required. After the argu ments by both attorneys, Judge Mettler pave 21 hours in which the attorneys are to present briefs, and he will then . take the case under advisement. ----------O-—-— CHANGE FOR 131. It is reported that a change in Mil waukee trains on the Musselshell and Rocky Mountain divisions will bring train No. 131, from Butte, into Lewis town at 6 o'clock p. m., instead of 5:30, after January 31. STATE INDUSTRIAL INSTITUTION AT MILES CITY DOING SPLENDID WORK. iHE REV. GEWETRST VISITS IT Rev. George Hirst, who has just re turned from Miles City, where he went ts special probation officer by appoint- ! ment of the court to take an mcor-1 rigible boy to the state industrial school, comes back enthusiastic over ; the work being done by that institu-1 ion, being most favorably Impressed : vith its management and influence, as | ire all who have ever Investigated its j vorkings. There are now 86 boys and 53 girls in the school, with about a tundred out on paro'e. The inmates to given, in addition to school room work, the very best of training, the boys being drilled in the manual train ng department, while the girls have .he benefit of thorough instruction in lomestic science. The result of this s that when they come out they have something to offer the world in the way of useful work and service. In addition to that they are all given initiative help and acquire habits of lirift, industry, neatness, individual esponsibility that were sadly lacking vhen they entered the school. In a general way these hoys and girls are surrounded by better influences and are under more intelligent and effec tive guardianship than they were in he homes they left. Tho success achieved by this insti tution i B very largely due to the abil fy, patience and all around fitness for he job of the superintendent, Mr. Door, who is achieving a great work it Miles City. The boys and girls ill love him and the inmates of tho 'nstitution form one big family. The school has a farm of 738% 'cres. When Mr. Door took charge his fajm consisted of but 98% acres. Tho work is all done by the boys and girls, who soon come to enjoy it and 'o take a pride in their advancement. They are well clothed, have excellent ''ood and quickly undergo a change when subjected to influences and a system that is calculated to bring out he best there is in them, while their undesirable qualities recede and in many cases are obliterated. Mr. Hirst investigated every department and feature of the school and comes hack with only words of praise for it. Of curse there are some things needed to facilitate the work and in time they will be secured. THE REMLEY SCHOOL. WINNETT, Jan. 23.—A. Remley, known as "Earnev," has given the ranchers in the section south of Win nett the use of a corner of his ranch for a school house. The building is now being erected and will be know# as tho Remley school. --O GEORGE STEPHENS MARRIED. Word has just hern received here of the marriage of George Stephens, formerly of this city, to Miss Lolita Hauswirth of Baird, Mont. The cere mony took place last Friday at Mis soula. Mr. and Mrs. Stephens will reside at Baird. The groom is the son of Mr. and Mrs. Albert Stephens of this city. He is well known locally, having left here only last September for Baird. --;-------— GROGAN—ROBINSON LUMBER CO. — - F.H. Robinson has returned from Great Falls, whoro he attended the an nual meeting of tho Mahon-Robinson Lumber company. The name of tho 1 corporation was changed to the Gro ! inn Robinson Lumber company, and J. R. Grogan, manager of the Great Falls office, wag made general man ager of tho company. , The headquar tprR were r i M nged from Minneapolis ! to Great Falls. There is no change I in the ownership of. the concern, the i stock of John Mahon, formerly a large owner, having been acquired by others ; many vm-s "<"c hough the name is allowed to stand. Emerson Farm Tractor is Ideal Tractor for Small Farms SPECIFICATIONS BRIEF. IN Rated Tractive H. P...........12 Rated Belt H. P...................20 Number Cylinders .............. 4 Cylinder Bore ..............4% in Piston Stroke ...............5% in Circle Engine can turn in ..........................17 ft. radius Gallons Water Held by Cooling System ................9 Capacity Gas Ttank.... 25 gal. Capacity Oil Reservoir ' ........................ 2% gal. 'Transmission; Number of tSpeeds ..................................2 Wheel Base ..............7 ft. 9 in. Length of Engine, Total 15 ft. Magnet .............High Tension Shipping Weight ......5.000 lbs. it Is simple, easy to operate aid light in weight. The Investment is less than fOr horses and horse-drawn ■emitpment. It operates equally we 1 over a wide variety of soil conditions and will not pack the soil. It is easily taken care of and on account of tiie strength and quality of materials used, It is extremely durable and will give lasting service. * The Emerson Farm Tractor la recommended for use with three 14-inch plows and will pull drills, binders, mowers, disc harrows, xvagons, sm ill road graders and manure spreaders. It will operate a small thresher, bay baler, feed grinder, wood saw, silo filler, pump, or other belt-driven farm machines. The tractor has but one drive wheel, one master gear, one master pinion and no differential. Thus a great saving in weight is accomplished, which makes the price possible. Nowhere throughout its construction has die i.'ualitv of materials or workma iship been neglected. Tho Emerson Farm Tractor w ilghs only 5,000 pounds. Tho pressure per square inch under the drive wheel is less than under a horse's Hpof. The drive wheel runs on top of the ground, not in the furrow; conse quently,, it dojes Aot pack tip? ^up oil but has the advantage of added traction on the surface of the stubble or, sod. , I ho plow or other machines nny he attached to the frame directly behind the center of the drive wheel. The three plows turn over a wider strip of land than the width of the drive wheel. Anyone will readily ap preciate this means no packing of the soil. The. Emerson Farm Tractor ii a winter economy and summer nece sitv. It-is a money maker all the year round. By roason of>Its low-construction it Is readily adapted for orchard work, as it will clear the limbs of the trees and allow for practical orchard cultivation. One of the most important features of the Emerson Farm Tractor is the protection of working parts from dust and sand. The geafs, e :cept master gear and pinion, operate in a dust proof oil bath, Insuring al most unlimited life to the transmls ;ion gears. Fergus County Hardware Co. LEWISTOWN HILGER WINIFRED Out n«w, big. complete sedtf c:stalo ccAorn and-fully illustrate*! it contain valuable information concilrnitig Mo It* have a catalogue early to that you it is necessity to place your spring etdet. ' * PEERLESS BRAND THE QUALITY SEEDS THAT CROW a century we Iihvc endeavored tu tentfe; the but! possible service. "I bit uii foi u* a large tniSHUMa aud .in enviablereitutaiKu). VVeutuseU you anything hoe. thoroughly i*cci»man?d to Montana condition*. Stnjda aad plants arc aure lo jjtow l^fgast florins iu the northwest Scfid'for free seed catalogue tfcday OUR PEtHLEAS Oft AMO ALFAUA SEED WON COLO ME0AL At PANAMA PACIFIC EXPOSITION STATE NURSERY, Heiona, Montana , wrestling championship of the world BILLINGS, Jan. 24—The 155-pound changed hands .here tonight when Wa! ter Miller of St. Paul .present welter weight title holder, defeated Joe Tur ncr of Washington, D. C. The end came, after 2 hours hnd gruelling when Miller clarifpod a toe hold on Turner and forced his should ers to the mat. The mkteh was sched uled for the bo3t two 1 falls out of three, but Truner'a ankle was so bad ly wrenched that he conceded the sec end fall and Miller was awarded the match, championship and gold belt cmblefcatic of the 155-pound champion ship. Turner had held the belt for five years. ' ■ - 1 > , TWO HOURS; NO FALL. SPOKANE, Wash., Jan. 24.—Charles Cutler, Chicago heavy-weight wrestler, and Jack Taylor of Saskatoon, Ca nadian heavy-weight champion, went two hours here tonight without a fall, in a match for the Pacific northwest title. They went totlie mat in ten minutes, Taylor remaining on top one hour and fifty minutes. Cutler was warned repeatedly for roughness. Tay lor confined his efforts entirely to Cutler's legs, probably fearing, it was thought, Cutler's well-known side roll. Cutler weighed 235 and Taylor 208. --------O-- TRAINS AFFECTED. The Milwaukee trains were running pretty well on time yesterday, al though No. 116, frem Great Falls, was about two hours behind. The Great Northern trains have been battling wealhcr west of here which is consid erably worse than,around Lewistown md consequently have lost time since Sunday. The funeral of tiie late Mrs. Laura I'rokop took place Monday afternoon at Creel's undortakipg parlors, Rev. Donaldson conducting the services. I HE GOOD JUDCE MAKE3 PEACE BETWEEN PINTV HOGAN AND MR.SCHUl £±3 J J TOL' HE BOY TO CUM HERE f AND GIT A POUCH OF THE REAL I CHAWIN'TOBACKy.yE SINT ME ' AHUNK OF TOBACK.Y LOADEDWITH PRUNE JUICE. YE CAN'T TRATE ME L THAT WAY AGIN AND LIVE. I-Cf DON'T BE MAD. MR HOGAN. MY CLERK MADE THE MISTAKE Y OU can't blame him at that, looking forward to W-B CUT Chewing—the long shred Real Tobacco Chew—and then not getting it is enough to make any man see red. Get a pouch, give it a quality test. "Notice how the salt brings out the rich tobacco taste" Made by WEYMAH-BKUTON COMPANY, 50 Union Square, New York City INTEREST IN BOWLING GROWS; FIGURES FRO! EMPIRE ALLEYS The bowling tournament which iff being conducted at the Empire alleys in ihis ei£y is growing in interest and is resulting in some good alley work being done. The following notes on )ho tournament wil , prove of interest . p' " Standing cf Clubs. Won. Lost. Pet. - Rainier .............. ........... 20 10 .667 1 Ramblers .......... ........... 19 11 .631 > .loiters ............... ........... 16 11 .592 , Braves ............... ......... 13 14 .481 Lind av ............ ........... 13 17 .433 Millers .............. ........... 9 18 .333 Team Averages. Rainier ..................................................1C5 leaves ..................................................164 164 Lindsay ..................................................161 ! Millers ....................................................156 Jokers ....................................................160 l The Ramblers, by losing two games i to the Rainiers on Monday, lost first I place, which they have held since the ■ tournament opened. Two hundred sixty-eight is the alley record made j by Will Devine and Roy Scovel. S McQuaid made the high score tills week, 257, and also scored 179 with out a strike. Mrs. Linn made the I high score for ladies, 176. The ladies' high score for the season is held by , Cook, 221. Miss Kircher is next with 193, Mrs. Linn third with 184 and Miss Waite next with ISO. Mrs. Linn lias the record for ladies in three suc cessive games, with 170, 172 and 171. The 10 best averages thus far made in the tournament are; Scovel, 184; Devine. 183; Powley, 182; Emigh, 180; McQuaid, 178; Hal loran, 172; C'arruthers. 172; Miller, 170; Zappone, 170; Royce, 170. BUYS ROOMING HOUSE. F. O. Johnson has just bought the Mackey rooming house from Mrs. Bloom. Mr. Johnson is now in charge end will exert his best efforts to con duct the house on the highest possible plane. Mrs. Lou Corbly of Hilger was a week-end visitor in the city, returning home Monday.