The Indianapolis journal., 1897-05-22
TAXING LIFE INSUR ANCE
TRIAL OF THE HOLIDAY CASE BE-
GUN IN THE LOWER COURT.
English Opera-HOuse Litigation
Warm Time in the Munger
Case--Supreme Court.

The plaintiffs in the case of John H. Hol-
liday and others against the State Board of
| Tax Commissioners to enjoin the assess
ment of pad-up or nonforfetable and part
! ly paid-up life insurance policies closed
| their case in the Circuit Court yesterday
evening
| The case came up on it's merits yesterday
| evening before Judge Brown. The attorney
general, appearing for the State Board of
| Tax Commissioners, was assisted by Smiley
| n. Chambers and Silas NJ Shepard. The
| plaintiffs We're represented by A G. Smith,
| Charles A. Corbly John A Finch and AL
| bert j. Beveridge Attorney Finch made
| the opening statement for the plaintiffs,
| in which he declared the action of the tax
| commissioners would have the effect of tax
| ing insurance policies of every sort. These
| policies, he said, We're of no value to the
| holder and were of value to the beneficiary
| only on the death of the insured. The at
torney said that prior to April l. 1891, in
| surance policies had never been considered
| taxable. In concluding his opening state
ment he defined the positions of the plain
tiffs. This would be that insurance poll
cies are not subject to taxation, and if they
were there is no state law authorizing such
| taxation.
| Smiley N. Chambers in the opening state
ment for the defense, agreed that the State
| had not hitherto assessed property of this
/ character, but it was high time such a tax
We're being levied. Such property should
| bear its equal portion of the burdens of
| the State. The attorney contended that
| Article 10 and Section ] of the State Consti-
| tuition provides for the taxation of all prop
| erty, with the exception of property used
| Tor municipal, educational, literary, scien-
| tific, religious or charitable purposes. The
| only questions are whether insurance poll
| cies are property exempted in this provision
| of the Constitution The act OF 1891, the at
| torney held, authorized the State Board of
| Tax Commissioners to add to the tax list
other items more specific or new kinds of
| property, such as are likely to be created
| by changing conditions. Mr. Chambers de-
| MED that the taxing of policies is double
The taking of evidence in the case began
yesterday afternoon. The plaintiffs first
| introduced the charter of the New York
LlIe insurance Company, in which they
hold policies, and a copy of the laws under
which the company was Incorporated The
| last annual statement of the company was
! also introduced. Then the policies of the
/ plaintiffs were brought forth and read The
| plaintiffs offered to introduce bill which, it
was aVerred, the tax commissioners of
Indiana tried to get through the last Legis-
lature, providing for the taxation of in
was passed by the House but defeated in
| the Senate It was the theory of the at
| torneyss that if the Legislature refused to
pass this bill at the request of the Tax
Board the State could hardly uphold the
| board in its present action There was long
and violent argument over the attempt to
| Introduce this bill as evidence, and it was
| nnally excluded by the court ATTORNEY
Beveridge contended that, although this
| was not admitted evidence the court
| could take judicial cognizance of the same
James @. Barcus then took the stand and
was Questioned concerning the provisions
of his policy He is one of the plaintiffs
IN the suit. The testimony of John A.
Mccall president of the New York Life
| was then offered to show that the assets
and a. Tres reserve fund of the insurance company
| in New York are taxed by that State The
court took the Mccall testimony under ad-
visement. The plaintiffs then rested their
| case. the attorney general said it was pos
| sible that the State would introduce testi-
| mony this morning. Otherwise the attor-
| neys will go into argument at once.
! one of the plaintiffs attorneys said ii was
| the intention to get the case into the Su-
| preme Court at early date. The case.
he said, would be advanced there and a de-
cision could be looked for by the middle of
| June.