The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-20
THE INSURANCE TAX CASES.
Points in Mr.. Beveridge's Brief Filed
in Supreme Court.

Albert ]. Beveridge, one of the attorneys
for the appellees in the life insurance tax
litigation, yesterday filed brief in the SUI
preme Court, contending that the proposed
tax upon the surrender value of life insur-
ance policies is illegal He furnishes argu-
ment and cites authorities to establish the
following propositions:
THE so-called surrender value of life
insurance policy Is not really q value at all
and does not become such until it is re-
duced to a surrendered value.
THE surrender value of a life insurance
policy is not IA debt due the insured from
the company and cannot become such until
the happening of the conditions named in
the policy. Neither in law nor equity is the
title to the funds out OF which policy values
including death losses and surrender
values, are paid, in the policy holders as
individuals.
.T'he Constitution divides our government
into three MISUNDERSTANDING, judicial
and executive, and forbidS any one of these
departments from performing the functions
of the other. The power of taxation, in
volving the selection of subjects. the fixing
of methods of the valuation of property
and the collection of taxes, and the 1nYen-
ton of proper machinery to make effective
the revenue laws, is exclusively and intrin-
delegated to any other department.
THE reason why the Legislature pre-
scribed no regulations for the taxation OF
surance policies to the policy holders is
threefold.
prescribe regulations for the taxation now
proposed by the board, and not only has
It prescribed regulations of different kind.
but it has affirmatively disapproved the ad
vaorem taxation now proposed by the
board.
ut is fundamental that the jurisdiction
of the taxing power of the State is confined
to the boundaries of the State.
1.-The Constitution and laws of this state
have received a practical construction al at
H. 10 49, In nnY1In a
of government; and this construction is
controlling. nc.
insurance policies is an interest so uncertain
as not to be subject to taxation.
eff doubt exists as to the authority or
taxing officers to lay a tax upon any subject
of taxation it should be resolved in favor
of the public upon whom the burden is laid
aud against the proposed tax"
In the course of his conclusion the at
torney says
Not so long ago the attempt of an
executive department to designate SUD
jects of taxation and lay burdens there
on, was corrected by an indignant people
with arms in their hands; and this, too
Lords anointed. 1t is hard to realize, ana so
seems extraVagant to state, that the action
of Indianas Tax Board is of precisely the
same character, so perfectly have the or
derby methods provided by our form or gov
eminent for the correction Of such evils re-
placed the harsher methods Of century
no express statutory authority for the
boards action. 1t is admitted that, II sus-
tanned 1t must be sustained by authority
and power inferred and not expressed. The
matter thus reduces itself in large meas
ure to a sort of judicial legislation. 1t is,
therefore proper for this court to consider
the policy Of the entire world with reference
to this subject, and to examine the reasons
upon which all governments have heretofore
refrained from this species of taxation"
After declaring that no government has
ever sought to tax life insurance policies,
he says:
Shall this action Of an administrative
board stand in lieu of law which the
Legislature refused to pass? Shall the
theory of our Republican form of govern
ment concerning the division of powers be
abandoned? Shall the consensus Of the
worlds opinion through all history be dis
regarded and insulted? Shall the highest
and hottest of human virtues be taxed?
And will our State now resort to
what all the world has avoided, at the be-
hest of an administrative board. which. dis
regarding the Constitution, assumes to ex-
ercise the institutional and constitutional
powers Of the people Of Indiana represented
in ASSemblY?'