The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-02-15
FOREIGl INSURANCE TAX
AUDITOR OF IOWA WRITES THAT
THE LAW THERE rs STAND
ING FIRE
A Case, However. Has Been Taken
to the United States Supreme
COurt-NO Definite Figures as to
the Increased Revenue.

State Auditor Dunn Yesterday re-
celVed communication from Frank f
Merriam. state auditor and insurance
commissioner of Iowa. speaking highly
OF the operation in that state of the
law placing a special discriminating
tax upon foreign insurance companies.
Inc communication is of interest TO
insurance men, in so much as a similar
law mas been proposed to the legis-
lature by Representative Gutterson. in
a Dill introduced by him some time
ago. In fact. it is framed after the law
on the Iowa statute books.
insurance Commissioner Dearth was
asked yesterday for his opinion of the
adaptability of the law for this state,
but declined to go on record. as he re-
garded the matter one for the legis-
lature to decide. as it was almost
purely q revenue measure. The COM
munication in part is as follows:
note what you say in regard to having
after the Iowa law The law has worked
very smoothly here and as a general thing
has been complied with promptly by all the
insurance companies doing business In the
their taxes under protest, and commenced
action in the district court here in Des
Moines, claiming the law Disseminated
against the foreign companies, and that the
same was Illegal and unconstitutional. They
also began action in the federal court at
lacking the validity of the law in that it
abrogated certain treaty rights that existed
between this country and foreign countries.
However, all the foreign companies paid the
taxes, and have continued to do business in
the state OF course, It was necessary for
them to pay the taxes in order to secure q
certificate. The case in the district court in
Des Mofnes was decided against the insur-
ance companies and has been appealed to the
Iowa supreme court. It is expected the de-
cIsion will be given at the May term. The
case in the federal court was decided against
the companies by Judge Shiras at Dubuque
The case from the federal court 1 under
stand, has been appealed to the United States
SuDreme court.
This year the companies again attempted
to pay their taxes under protest filing a
statement with their receipt for the taxes
paid in this office, which they are required
to do before the auditor issues a certificate
saying they paid the taxes under protest and
under duress. 1 returned the receipts to the
companies, saying they must file receipt
without any protest or claim of duress and
SO far they have all complied with the re-
quest | do not believe a single COMPANY
has refrained from doing business in the
state on account Of this law.
1t Is not easy to get at the exact increase
of taxes received from foreign insurance COM
panfes, although 1 think it is about 81 900
number of other items have been figured
IN with the account. such as the 1 per cent
on state and stipulated premium companies
and the per cent additional on foreign
companies, so that 1t is not easy to tell Just
what the increase was from foreign insurance
companies.
The law of 1897 increased the revenue from
taxation of insurance companies about $23-
600 above what it had been under the pre-
vious law. I might say that the state of
Iowa received in taxes from insurance COM
panies in 1893 the sum of $14754I02: the
amount contributed by the foreign Insurance
companies was s1S2oS.44 the amount con-
trfbuted by American companies organized
outside of Iowa, but doing business in the
state was s114, 299 05; the Iowa companies
contributed s15o33. SO. I consider the law a
success, and am hopeful that both the SUI
preme court Of Iowa and the supreme court
Of the United States will sustain the validity
of the law.