He joined the majority in "Pollock v. Farmers' Loan & Trust Co." (1895), a 5–4 ruling that the unapportioned income taxes on interest, dividends and rents imposed by the Income Tax Act of 1894 were unconstitutional. This case was heard twice, though only the second hearing resulted in a decision; the justices, feeling that the opinions written had not adequately explained their view of the situation, wished to rehear the case. After the first hearing, Gray wrote that he sided with the defendant (Farmer's Loan & Trust), arguing that the tax was indeed constitutional. He was in the minority, however. After the second hearing, Gray changed his stance, joining with the majority in favor of the plaintiff. He also sided with the majority in "Plessy v. Ferguson" (1896), a 7–1 ruling that upheld the constitutionality of racial segregation laws for public facilities as long as the segregated facilities were equal in quality.