, 1859-03-08
WARD QFFIoEg2
ADXhKxE,
Important Legal Decikion-TWo Per
lent Tax on Foreign Insurance COM
panies.. ..AdiudEed Unconstitutional

| Cent. Tax on Foreign Insurance Com
| panies--Adjudged Unconstitutional.
| FIr<mea's Bentroltnt Assoeiasioa u. John H.
| Itnsie. Ag<nt Of Lir1pool dnd London Fire
| and LJt Msurancs Conapsnv.--Do e. ~ g.
Lounsbury, Ageat1nd Others. :;
These we're cases brought by the plaintiffs un-
der The 6th section Of their Act Of 1ncorpora.
tion which is as folloEs:
SEC. 6. There shall be paid to the treasurer
OF said association for the use and benefit OF
such association, by every person who shall &C.
IN the city Of Chicago II agent tor or on behalf
Of any individual or association of individuals
not incorporated BY the laws Of this Stste to
effect insnrances against Losses or injury by fire
IN the city Of Chicago, although such individ.
uas or associ&tion may be Incorporated for that
purpose BY another stats or country, the sun
Of two dollars upon tee hundred dollars. and At
that rate upon the amount OF all premiums which
during tho year or part Of year ending on the
next preceding first day Of December shall
have been received BY Auy other person for him,
or ehall have been agreed to be paid for any in.
snrance effected or agreed to BE- effected or
promised By him ~ such agent or otherwise
against loss OF injury By IRE in the city Of Chi
cago.
The constitutionslity Of this impoaition of q
tax Of 2 per cent. on the receipts OF insurance
sgents parable to the Firemen's Benevolent A..
soclatlon WAS the point ia issue.
The defendants demurred to the declaration
Oh the ground that this section Of the aet was
unconstitutional
The principal points relied on in the argu-
uaent were:
!. That the cover Of taxation could only .bs
e1erclsed for public purposes, and thst un1ess
the tax Was payable Into the Treasury Of the
State, or of aome county or city, or to soue
public corporation or department Of the gov
ernment, 1t could not be regarded ~ ieyied for
public uses.
9 That ths Firemens Benevolent Association
did not constitute any portion Of the State Gov
ernmens, or Of the government Of anT county
OF city il the State, but was q more pripate
corporation.
8. Thst the Constitution forbids the taking of
private property eTen for public Uses uishoss
comPensdttoo and thas where property is taken
bY way Of t111tion, the onpensaiion IN the
benefit received By tax payer in ita expenditure
OF the government for the general good and
that Law cras&in8 tho tax and making 1t paya-
bio 70 = private corporation, VA therefore
tskins Of she property Of the citizen without
L That although the Legislature might havs
the constitutional right to appropriate money in
aid Of the objects Of the Fremens Benevolent
Ahsociatien, Jet if they did 10, it must be BY IN
express law mixing such appropriation Of pub.
41G UQQG38s IN QuHlNtI21ky Win kH4 EQtQ &$EtlGQ
Of the sd Article Of the Constitution.
S. That If the use could be deemed public
use, that tho tax imposed by it was IN violation
Of the second section Of the 9th article Of the
Constitution, which Ia rs follows: " Sea- Tie
General Assembly shall provide for levyIng tax
tion sh4.l pay tax In proportion to the va!nc Of
lis or her property; such valac to Be ascertained
by some person or persons to be elected OF ap-
pointed in such manner as the General Assembly
shall direct. and not otherwise but the General
Assembly shall hare power to tax peddle1s, auc-
: tioneers, brokers, bswkers, merchants, oommis-
sim merchants, showmen, jugglers, inn keepers,
grocery keepers, toll bridges and ferries, and per-
sons using and exsrcialng privileges, in such
manner as they shall from time !, time dfrec&.n
&. That the tax imposed By the law is ia fact a
, direct tax upon property. and 10 not q tax upon
the business or calling Of the pe1sons sought to
be taxed and as direct tax upon property, It
WIS admitted to BE- repugnant 70 the Constitution.
: 4. That Is TAI upon the business OF calling it
WAS illegal, because It was not one Of those named
In the Constitution Is taxable, nor included under
the terms practices or privileges.
, S. That 80 far ss the tax Infected the agents Of
foreign Insurance Companies, considered ~ tax
On the business By xay OF license, it was repealed
by the subsequent act Of February 1855, and
viewed as tn On property, it VAS opposed to
the constitutional requirement Of equality and
uniformity.
8. That regarded as license hws, OF laws iru-
posing taxes upon the b14lness or calling Of H.
tsurance. 1t WAS unconsts ution3l because It was
not uniform. That although tho Legislature had
the power to tag the trades aud cslnes specified,
the tax must be upon al exercising such trade
or calling. The Legislature could not arbitrarily
discriminate between possons OF corporations in
1hs State exercising the same trade Of calling. :
ii. That the law Was in violation ot tho COZ
stiiatonl provision that every pirate Or local
law should have but one subject and that SHOULD
be parnd In its title,
Ths plAnti6a relisd chiefly On the oases of
Fire Department Of New York ca. Nob1e. and
sa,ne q. Wight, recently decided By tho court
OF Common Plsas Of tho city Of New York, and
affirmed br The Court Of 4pp4ls, and which
ware seeeg arising upon Law containing simi-
lar prorisioaa to thai On ~h1ch tho present suit
~ dsfsndsnsa denied that tn. Nsx York
cases vars in point
was Z puhlip eossora3ion and part Of the city
kovernmaut, md The tax Wa therefore lsvied
8. That 4hs Constitution Of New York oou-
tanned 10 restriction apon tho LeRislature IN it,
&xarcita OF ths pawsr Qf taxation, and in the
ahesnee Of saAh rastfistioa. tho legislative poxer
Of taxation NJ 1poootFoles}a By tas Court bat
such VA not ths eas9 In Ufuui1-
TAe Cont held that the tar wss Rnnpns4itutiou.
q. That oaooedinx that it WIS Awfal foe she |
LeRa1f1re to impose = .tax for the benefit Of and
% BE- oollaeted by shIs p1ivaAe Coeyekattno (Which
: The Court coas3deeed 70 b . MISTER 'of KNA4
!! douhta 1st 4hs tax- mnst b 0nffoeH thzo1ghoat
thd 9tasa,. That Insussqp; hgl9ssavns npt r.;
4resay named in tbs Cousst1 RQs. suAoux }tha i
It unss be found II Ill IN the eth eeetaoo Of