The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-06-11

introduced for this purpose. 1t is further
claimed that such policies as are mentioned
In Queries and are not taxable as per-
sonai property or property OF any kind or
description within the meaning of the Con-
sttution and laws of the State of Indiana.
ana are therefore, subjects of taxation;
that any attempts to so tax said policies
would be in violation OF the following sec
lions or the Constitution of the State, viz:
section OF Article ~, which vests the
legislative authority of the state in the
General Assembly. Section l of Article \.
which provides for uniform and equal rate
of assessment. taxation etc. Section p or
Article ~, which prohibits local or special
laws for the assessment and collection OF
taxes for state. county, township or road
purposes. 1t is further argued that such
an attempt at taxation IS also in violation
of the following provisions of the Consti-
tuition of the United States. viz: Section
Of Article XIV, which provides that NO
State shall make or enforce any law which
shall abridge the privileges or immunities OF
citizens of the United States: nor deny to
any person within its jurisdiction the equal
protection of its laws. Section 10 of Article
|, which provides that no State shall pass
any law impairing the obligation of con-
tracts.\
The general allegations as to the nature
of the transactions of the company with
its members or policy holders are set forth
about as follows; The annual premiums
paid upon policies to the company by the
policy holder is divided into three parts as
follows: First, reserve which is a sum
required by the laws of the State of the
organization of the company 20 reserve or
keep out of each years premiums a certain
portion of the annual premium, which is 10
be compounded annually at a given rate,
usually for a per cent. the sum of which
will equal the face of the policy when the
insured arrives at the age of one hundred
years or at the expiration of the endowment
period: second, an amount to meet the eX-
pected loss by death during the current
year, which is known TO insurance men as
the risk; third. the expense fund which is
applied 20 the ordinary expenses or the
company and any surplus carried 10 the
reserve and risk portions OF the account:
The reserve fund is not 70 be encroacheo
upon for any purpose other than the pa:-
ment of death losses or matured endoW-
ment policies; that the assets of the COM
pany consist of two items. viz, the amount
of reserve value of the policies, and sec
ond, the surplus of undivided accumula-
tons over and above said reserve.
1t is alleged that the legal and equitable
title to all the assets is in the company
and that they are held in the city of New
York and are there taxable and taxed under
further alleged that the New York Life
Insurance Company has paid the tax re-
ouired by Section 81 of the act of March 8.
1885, and in addition thereto license fees in
the sum of 81 per year for each OF It's agents
doing business in the State Of Indiana. 1t
by the company represent>a certain proper
ton of the reserve funds and that such
accumulatlons give the holders OF policies
the following privileges and benefits: ta(
right to surrender the Ire pohcy anu
obtain a paid-up policy. (b) A surrender
cash value (c) A securatiVe value for loan
from the company. The above values de-
pend in amount upon several things, among
which are the following: The age OF the
insured the amount of the face OF the
and the length of time the payments have
been made.