Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1899-10-27
THAT TAX DECISION
Insurance Companies of Iowa Hard
Hit by the Supreme Courts
Decision.
State Tax Law Can Not Exempt
Them From County and Local
Taxes.
Decision Affects Telegraph, Tele.
phone and Express Companies
Iowa Soldiers to Vote.
Special to Times- -Republican.

Special to Times Republican.
Des Moines, Oct. 27.-Nothing more
serious has happened to the insurance
companies of Iowa in years than the
decision of the supreme court yester-
day, compelling them to pay double
taxes. They were greatly surprised
last year when the assessor of the city
Of Des Moines undertook to assess their
property the same as that of other cor
porations, for local taxation. They re-
Esiszed on the ground that the state law
exempts them from such taxation upon
the payment of the state tax on their
net premium receipts. The county as
sessment was made upon the advice of
Senator Thomas A. Cheshire, who has
acquired something OF a reputation as
corporation fighter. and is employed
by the county board of supervisors as
its legal adviser. He advised the coun-
ty that it could collect its tax and the
couty insisted upon the assessment.
The insurance companies united and
made a stand in the case of the Hawk
, held against them and the company ap-
pealed. All the insurance lawyers in
Des Moines except Senator Cheshire
, were arrayed against the county The
supreme court has sustained Judge
i Prouty's holding, on the ground that
the state law exemptlng insurance
feompanies from local taxation upon
II paymet of the state tax is unconstitu-
"A tional because it does not comply with
81 the provision of the constitution 10 the
effect that all corporations shall be
j taxed equally for all purposes the same
as Individual property owners. The
5 payment of the state tax does not meet
!, this requirement. because il all goes
into the state treasury and none of it
can be used for county city, school or
t road purposes. for which individuals
are taxed This is the gist of the de-
cision: The court does not go TO the
lextent of passing upon the validity of
. the state tax, but only decides that it
lean not act as a bar against the col
:. llection of local taxes. The court says,
however. that the legislature has the
! right to levy such tax in addition to
4 the regular local taxes, This particu-
liar tax is not passed upon, but it might
as well have been.
-
This decision is far reaching. 1t af-
sects telegraph, express. telephone and
! Iother corporations, but not railways.
The taxes of the latter, though levied
by the state through the executive
council, are paid on the local leyies TO
the counties direct, the same as taxes
on any other property and are divided
.among the several funds. The tele-
graph. telephone and express taxes are
paid directly to the state and not a cent
of the amount so received goes to the
counties or cities. There Will now be
some doubt as To the validity of this
: ellaw The corporations affected may re-
fuse to pay the state tax. in view OF the
lprobability of local taxes being levied,
land then go into the courts 10 test the
law. Senator Cheshire doubts the
/ validity OF the law himself
-.
3 1t is particularly hard on the insur-
/ ance companies because they are com
5 pelied by force of circumstances to pay
III.