The Saint Paul globe., 1896-12-08
KNOCKED BOTH OUT
NEITHER OF THE MINNEAPOLIS
SALVAGE CORPS is A VALID
ORGANIZATION.
ST. PAUL CORPS MAY FOLLOW
THE WAY OF THE OTHERS UNDER
THE DECISION OF THE SU-.
PREME COURT.
COMPACT CORPS IN DISGRACE.
All Underwriters Paving Their
Share of the Fees and Taxes
Must Be Admitted

Neither Of the alleged boards of fire
underwriters in Minneapolis is board
within the meaning of the salvage
corps laws. They are both irregular
and not entitled to participate in the
funds secured from the per cent sal
wage corps tax on insurance companies.
according to decision rendered by the
supreme court yesterday morning.
Moreover, it is a question whether
the st. Paul board is in any better con-
dition at present.
The decision is rendered on the an
peal of the Minneapolis board of fire
Underwriters from decision of the
Hennepin county district court order
ing that half the moneys received from
the salvage tax be paid to the Mer-
chants Board ofsUnderwriter and the
other half to the Minneapolis board
composed of insurance men,. The Mer-
chants board had set up the claim that
1t was entitled to half the money, and
the insurance men claimed that, as the
law contemplated the organization of
but one board, and it had been first in
the field, it was entitled to the whole
amount. The supreme court affirms
the decision Of the lower court in SO far
as it places the two boards upon an
equal footing, but goes further and de-
clares that neither of them is a board
OF underwriters within the meaning of
the law, and consequently that neither
Is quahhed to participate in the tax
money.
The court holds that the first vital
defect In the organization of the two
poafds is that in neither case is there
any provision as to the qualification of
members, or for any one but stock
holders to vote or have any voice in
thelr proceedings The court sets up
three qualifications that are absolutely
essential to the organization of a board
OF hre underwriters, legal within the
meaning of the salvage law. The first
Is that the board should be composed
exclusively Of insurance men. TT is
charged that two members of the Mer-
chants board are not insurance men.
Inc second is that there must be only
one board in the city. Third, every
nre underwater or insurer liable to as
sessment under the law is entitled to
membership, or what is the same thing,
vote IN the proceedings of the board
1t is shown that there is no provision
In the articles of Incorporation of either
or these Minneapolis boards that the
members must be fire underwriters.
Not member of either board need be
fire underwater
Furthermore, says the court: "If the
contentious of the Minneapolis board
are correct, if there were 100 insurance
men in their city, three of their num-
Der, or, worse still, three men not en-
gagged in the insurance business, could
organize a company by calling it a
board of underwriters, monopolize the
fund and privileges, and exclude from
the association all in the city who are
assessed for its support
If the contentious of the Merchants
board are correct, then an Unlimited
number of such boards, not a member
OF which is an underwater. each en-
titled to share in the assessment. could
be formed. The act of 1895 contem-
plates nothing of the kind Neither
Htigant is such a board as the law
contemplates, and neither is entitled
to participate In the fund
Whether it is the result of gross care
lessness or of design, the law of 1895.
on this subject is exceedingly crude
and imperfect and if construed as
either of the parties to this action
contend for, It's effect would be mere
ly to create fund, and then provide
corporation to absorb it. without any