The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1886-11-17
INSURANCE DECISIONS,
Tho Right Il stafes to Levy Exceptional
Taxes IN Exceptional Cases,

IHo lNkNt Nt StWeA 10 Levy EA'ept ohNl
Taxes In Exceptional Cases.
WAsuISGToN, Nov, l8-A decison was
rendered to-day by the Supreme Court in
the insurance company tax case Of the
Fire AssociatiOn OF Philadelphia against
the people OF the State OF New York.
In 1895 the legislature Of New York pass.
ed q law providing that II any other
state should impose on New York insur-
ance companies doing business within the
limits Of such state a higher rate OF
license or taxation than that imposed
BY the State ol New York upon ito own
companies, the superintendent OF the
New York insurance department should
have the right TO collect from the Conpan.
iea OF such State doing business In New
York an amount Of license or tax equal to
that collected in such State from Now
York companies In other words, II
Pennsylvania shonll tax New York In.
BurauCs companies more heavily than
New York taxed its own companies, the
latter Siats would itnpoae discriminating
tax upon Pennsylvania companies,
By Ru act passed April 4, 1873, the
State u Pennsylvania did 80 tax New
York companies, and the New York law
rf 1885 was Lhereupon enforced against
Pennsylvania companies, Ths question
raised by tho case 10 whether tho Sew
York law authorizing the taxation Ol allen
insurance companies at higher rates than
the State Of New York imposes upon ita
own companies IL not violation OF the
Fourteenth Amendment to the Federal
Constitution, which provides that no
State shall "deny TO any peTsou within
lion Of tho law" Tho court
holds that the above quoted clNRsa
OF tbe FoHriesnth amendmen. has no Gp.
plication 10 tho case ithRt this Pcnnty,VN-
MIA corporation came into the g,ats oi
New York by consent Of the State, with q
license granted for . year, and has ro-
celyel spCh license annually to run for o
year, and II 10 within the State for any
given year undeF suOh lilsnce and subject
10 the conditions prescribed by atOtdts.
The State having power to exclude entire.
", has the power to change tho conditions
Of qdmjssIon Gt-auy time for the future,
and to Impose Gs condition the
lax 81 . license fee. II II imposes
such license fee "a prerequisite
Tor TIN future, tho foreign corporation,
until it pays such license fee, Is not I'D.
mltted within the State. or within Ito iuris'
diptlon, The Pennsylvania corporation
wss at all times subject, aS a prerequisite
10 its power to do business In New York,
to theuame liCenae eawhiGh Its own State
might impose on New York companies
doing business in Pennsylvania, BY going
into the StSte OF New York In 1872 1t as.
Gented 10 suph prerequisites 20 9 condition
OF Its admiration within the Jurisdiction d
New York. The judgment Of the court
below Is affirmed.
Opinion by Justice Blatchtord, Justice
Harlan dissenting.
In the case oI the House Insurance
Company Of New York, plaintiff in error,
vs.. the People OF tho State OF New York,
In error to tho Supreme Court Of the state
Of New York, judgment was affirmed with
costs by . divided court. Ths controversy
In this case relates to a taE imposed upon
the insurance company by virtue Of chap
ter 549, section 8 Of the laws Of the state
Of New York for 1880, and chapter 3Gl,
section Of tho laws Of 1881. Ddriug tho
yosr 1881 the company had large part Of
lts capital GtoGk inYegled In bonds Of the
United States. 1t claims that Tor that
year II is taxable only upon the part Of lie
capital not 30 invested. Tho State, on
the other hand, maintains that the insur.
ance company is taxable upon the basis OF
its entiro capital. The court beIqY took
tho latter view, and as tho members pf
this court (in the absence OF Justice
Woods are equally divided In opinion
upon this question:, the judgment Of the
Supreme Court Of New York In favor Of
the State stands as the decision Of this
Collfk.