Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1875-12-04
FOREIGN INSURANCE COMPANIES.
Their Exemption from the Payment
of any Other but State Taxes.

The Supreme Court. sitting at sJack-
son has rendered the following inpsrt-
ant opinion:
The City o; Memphis vs.. the Foreign In,
sursnce Companies.
This wss an agreed case to test the
right of the city of Memphis to assess
4 tax in the nature of privilege upon
certain fe.=aign insurance companies
having agencies and doing business in
Memphis. The Legislators passed an
act on the 9th of March, 1875, entitled
IAN act to regulate the business of 6re
and all other except life insurance.
companies" The Sth SECTION enacts
that each and every company organ.
lied for any of the purposes named in
this act, not incorporated By or organ
lied under the laws of this State shall,
on the Both of june and December in
each year, report under oath of the
President and Secretary, or other chief
officers of such company, the total
amount of premiums received from
policies issued in this State within the
SIX months next preceding or since
the last return of such premiums were
made by such company, and shall at
the same time pay into the Treasury of
this State the sum of two dollars and
hity cents upon each one hundred dol
lars OF said premiums so ascertained,
schich shall be IA lea of all other
tuEes."
The question of whether the last
clause quoted precludes the city Of
Memphis from imposing the present
tax for corporation purposes. In the
case of the city OF Memphis VS.. Her
nando Insurance Company and other
companies, this court held that sim
liar language in the character of the
several companies wouh preclude the
city from imposing any further license
tax on the companies. The ouly differ
ence is, that in the present ease the
act in question is not part of the de-
fendants charter. The act is there
fore repealable at the willof the Legis-
lature, and in this respect the case is
different from the one referred to.
1t is clear, however, that the city
imposes It's tax under the power con-
terred by the Legislature aud cannot
impose a tax, where the Legislature
has denied the right. So the simple
question is what was meant by the
above clause2 1t is argued by the city
that it was only meant that the tax i'm
posed by the above act should be in
lieu OF all other taxes to be imposed
for State purposes, leaving the coun-
ties and cities to impose additional
taxes for county and city purposes,
whenever the said companies sought
to do business within the limits of any
city or county. This Argument Is
plausible and gains strength from the
rule that such exemptions are to be
construed most strongly against parties
the exemption. But it is
difficult to conceive why, If the above
language in charter is to be construed
as meaning that no further license tax
shah be imposed by city, the same
language in the act shall net have the
same meaning. The latter law, unlike
the charter. may be repealed, but while
in force its meaning, as to the extent
of the exemption fron further tax
alton, it seems manifest must be the
same.
We express no opinion as. to the right
of the city to impose property tax
upon any property the companies might
acquire or own within the city. Such
seems to have been the case referred
to in IL Grattan, though the reason
ing of the court sustains the views Of
the City Attorney.
In this view, the decree Of the Chan
cellor denying the power of the city to
impose the tax is correct and must be
affirmed, with costs.
MCFARLAND, Judge.
Upon inquiry it is found that in con-
sequence OF a levy of taxes by State,
counties aud interpretations, the people
of Tennessee have been charged from
a quarter to half per cent higher pre-
miums than the citizens Of other States.
Now that it has been decided under
the law of 1875, that foreign insurance
are taxable only by the
State, corresponding reduction will
be made by the National Board of
Underwriters, to go into effect the first
Of next January, and it will result in
a saving to the people in the way Of
premiums of not less than $50,O00.
The effect Of former laws was to force
foreign insurance companies out Of the
State, apd thus cause an advance in
rates.
The people will await the action of
he National Board Of Underwriters
With no little interest, inasmuch as
,reat macy make renewals of policies
IN the first of the year, aud they will
want the benefit of whatever reduc-
inns NAV be made - American