Another important case was decided in the House of Lords
on Monday, that of "The Income-tax Commissioners versus Pemsel," in which the freedom of religious as well as charitable trust-funds from liability to be assessed to the Income-tax has been established. The question narrowed itself down to the meaning of "charitable purposes" in an Act of the present reign. Lords Watson, Macnaghten, Her- schen, and Morris were in favour of regarding religions trusts as charitable; Lords Halsbury and Bramwell, against so doing, on the ground that, though religions purposes are benevolent, they are not charitable in the proper sense of the word, as they might often be more used for the benefit of the rich than the poor. In a word, the dissenting Lords of Appeal were in favour of giving a common-sense meaning to the word, while the majority considered themselves bound by the technical interpretation created by the Court of Chancery in ad- ministering the statute of 43 Elizabeth. We must confess that we lean to the decision of the minority, and should, indeed, prefer to see all the charities made to pay income-tax,—not because we want to check charity, but because exemptions are apt to grow, and kill fiscal productiveness. Peel's original plan, if we remember rightly, was to make even the Sovereign pay.
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