The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-11-01
Tnr INsURASCE LIoENsE GASES.
Argument OF WIN. ErskIns. Esq city So
llalfnn.

Argument of WIN. ErskIns, Esq City So
lIeitor.
Judge cranmer has now on hearing be-
lore him the most important case, in It's
legal aspects, that has ever been before the
Police Court. Many points are raised, In
questions Of constitutional law, Of
construction Of statutes, and Of Police
Court practice.
The questions have arisen, as our readers
will remember, upon the motion Of the at.
torneys for the Insurance Agents to quSsh
the wtits. We have already given syn.
opsis OF the leading points made by
Messrs. Lamb, White and Barr In support
OF the motion. These gentlemen occu.
pied almost two days in the opening ar.
gument.
The argument for the City was begun
by the City Solicitor, Mr.. Erskiue, on Fri
day evening, and continued through Sat.
urday until four O'Clock, when the court
was Obliged to hold its usual Saturday mat.
inee, as Police Court.
The leading points OF Mr.. Erskin's arpu.
ment, as far as presented, are as follows:
He cited the provisions OF our State
Constitution as to the power OF the Legis-
lature to increase taxes and to delegate
to municipalities the authority to impose
taxes.
The authority given by the Legislature
to the city, by clause in the act Of 1870,
Is as follows:
1.-THE council shall also have authority
to assess by ordinance, and collect, an an.
nual license on each agency OF any for.
eign insurance company doing business
within the city,"
He cited decisions OF State courts, and
OF the Supreme Court OF the United
States, showing that business corporations
are not "citizens" in such a sense as to be
entitled 10 the benefit OF the provision Of the
United States Constitution, that "The citi.
Gems OF each State shall be entitled TO all
privileges and immunities OF citizens oil
the several States"
The cases in the U. =. Supreme Court
where foreign insurance companies. or
their agents, had been Disseminated by
State and municipal taxation. The Court
in holding that such discrimination was
not In violation oil the Constitution, do II
upon the ground that corporations are
the creatures Of the legislature. That gen.
orally the stockholders, while they reap
the profits OF the business, II successful,
are relieved from liability for the debts Of
the corporation lit fails. II 1t were in the
power OF the legislature Of each State to
incorporate associations with extensive
functions and few restrictions, and send
them out into other States to exercise
their franchises in competition with indi.
yiduals who are responsible, and, with
home corporations having less liberal
charters, it would jeopardize the business
interests OF the country. II would admit
OF unwarantable interferences by the leg.
islatiye power OF one State with the do.
nestle concerns OF another Foreign cor
porations do business in other States only
by the comfy existing between the States,
aud subject always TO such regulations, re.
strictions or burdens as the legislature
may impose, or authorize to be imposed
upon them. He stated that he maintained
this position and cited the decisions chief.
ly because OF the effect Of these decisions
in determining the extent OF the power
conferred upon the City Council by the
legislative act above quoted.
Licenses may be, LIST. For regulating
and controlling business keeping it with
in safe bounds. End. For revenue; aud,
Srd. For prohibition. They may be in
part for revenue, and in part for one or
both Of the other purposes. Tie intention
OF the Legislature in granting the power
to the city 10 license determines the ex.
tent OF that power. In the act in question
there Is In the words "to assess by ordi-
nance and collect an annual license" the
Clearest evidence OF an intention to au.
thorize the city to tar the insurance agen-
cies. There lie no evidence that the object
was exclusively to permit the city to "rtgu
late and control the insurance agencies, as
is claimed by the other side.
He claimed, also, that inasmuch as the
business to be affected is the business Of
corporations having no right, as matter Of
riQft, to do business here-corporations
which may lawfully be restricted, and
even excluded, under the State authority
the question OF the amount OF the tax Is a
matter for the City Council alone. II the
Legislature intended to authorize the city
to tax agencies OF foreign insurance com.
panies, either for revenue or for the pur-
pose Of crippling and restricting their
business, or for both purposes, It had the
right to do go, and il the Council has pur-
sued the authority given, then there is no
judicial authority to say that the tax is too
heavy.
After citing numerous authorities In sup.
port OF his claim as to what was the legis.
lative intention, he took up the question
OF the compliance OF the ordinance with
that intention.
The power given was, 10 tax "eacb
agency otany foreign Insurance company"
An agency Is merely the relation between
principal and agent. How was 1t to be
licensed How was the license assessed TO be
collected from It? II Council had endeav-
ored to tax the foreign insurance com.
panies, they would say: ave are not an
agency" Just as the agents are now say
ing that they are not agencies. The Leg.
islature intended that the business Of
foreign insurance companies done here by
agents should be tagged, and left It to the
Council to ordain in such manner as to
carry that intention practically into effect
Council has done so BY requiring the
agents, as a condition OF establishing an
agency, or doing business as agent, to pay
the license required by the ordinance.
Other questions as 10 the ordinance, aud
all questions raised, as to the sufIiciepcy
OF the writs, upon technical grounds, are
yet to be argued on behalf OF the city. Mr..
Erskine will resume his argument this
morning The attorneys for the insurance
agents, having the affirmative OF the Is.
sues" will close the argument.