The times. [volume] (Washington [D.C.]) 1897-1901, 1900-08-28

by Representative Stark of Nebraska. who
besides being a member OF the company,
was requested by a large number of his
constituents, several thousand OF whom
are also members. to come to Washington.
Mr.. Little, in his brief, recites that:
The said Mutual Life Insurance Company de-
mics the right of Collector Houtz to make the
decision set forth in the letter to Mr.. Wli'
liams the part Of the Government. said as
socation never having had notice OF tine pend
ency of such claim, and never was heard IN is
own behalf by Collector Houtz or any other per-
son or persons acting in behalf of the Govern
mcnt by color OF Office
In legal effect the claim made by the decision
of Mr.. Houtz is an attempt 10 take the private
property of the association without due process
Of law and in violation OF guaranteed rights
This society believes that these guaranteed rights
may be invoked before a department OF the Gov
ernmeut that construcs the law as well as IN
the courts ofathe land whenever by that con
struction the property Of the citizen IS to b.
taken for public purposes. 1hls principle Is Iyo-
ognizcd through all matters OF taxation IN tue
several States, there being a time ana pace
fixed by statute where the taxpayer can be heard
and show cause, if any he has, why his assess
ment should be modified
1t is no answer to say that the department Of
feers will resolve all doubts in favor OF the
Government and force the citizen into the courts
to have his fair and impartial hearing. The
going into court Is a matter Of great expense
the citizen and ought not to be resoTted to
until all other means have failed. | therefore,
desire TO be heard TO the end that after d.
cussion it may turn out that agree in the mat
ter OF the Interpretation of the law and the eN-
pense and delay incident to hearing in court
be avoided
This association states in :ts own behalf that
examination of the law of the State OF Ne
braska, under which this association is incor-
porated and does business, its bylaws. form OF
application. and form OF certificate will show that
1t is beneficiary society,", and therefore falls
within of the classes exempted from the
operation OF said revenue law. This association
only makes assessments to provide for the pay
ment OF losses they occur; its benefciaries
Nebraska touching mutual benefit associations. it
is organized and conducted solely by its mem
bers for the exclusive benefit OF its members, and
not for profit.
Companies Affected.
Mr.. Little in his brief presents list OF
the fraternal insurance companies which
would be adversely affected by the appii-
cation of the Commissioners ruling. He
says:
That a correct Interpretation to who are
exempt under said revenue law is matter OF
great public interest, for if the rule be allowed
to stand set forth in said decision-viz: ouch
companies as make assessments based upon fixed
premiums 10 be collected al regular Intervals
without regard as to whether rot loss actually
occurs are companies that are not IN the opl4Ou
OF this Office prima facie conducted for proft, 1t
carries outside of the exception the following
named associatiors.
American Fraternal Union, of Buffalo, y. Y;
American Guild Richmond, Va; American IN
suranoe Union, Columbus, Ohio; American Le-
gion Of Honor, Boston, Mass; Bankers Union
of the World, Omaha, Neb; Tribe of Ben Hir,
Crawfordsville, Ind; The Chosen Friends In
diafapolis, Ind; Columbian League Detroit,
Mich: The FTaternsl Tribunes, Rock Island, H.;
The Grand Fraternity, Philadelphia, Pa; Home
Forum Benefit Order, Chicago, H.; Independent
Order CT Mutual Aid, Maeomb. H.; Tne Inter
national Congress, Dowagiac. Mich; Knights and
Ladies Of Columbia, South Bend, Ind kniShts
and Ladies OF Security, Topeka. Kan; Knights
OF Columbus. New Havea, Conn., Knights OF
PythiaS, Endowment Rark, Chicago, III; The
Ladies' Catholic Benevolent Association, Erie,
Pa; ladies Of the Nacabecs OF the World, Port
Huron, Mich: Loyal Additional Benefit Associa-
tion. Jersey City, \. j.; National Reserve As
sociaton. Kansas City, Mo-; New Era Assoeia-
ton, Grand Rapids, Mich. Order of Amertets,
t:reensburg, Pa; order Of Mutual Protection.
Chicago, H.: Pioneer Reserve Association, Bloom
ington. H.; The Protected Home Circle, Sharon,
Pa: Prudent Patricians of Pompeii, Saginaw,
Mich and Washington, d. C.; Royal ArcInIm,
Boston. Mass; Royal Highianders, Aurora, Neb.;
United Aoderns Denver, Col.
To hold that fraternal society or a psncfci1ry
society can only levy assessments to met death
LOSES as they actually occur, and thereby he
deprived Of the right to create a fes,rve fund
is impairment Of Freedom Of contract.
The Nebraska Mutual Life Insurance
Company was organized, it is said. by those
people in Nebraska who. first. believe in
Insurance for protection and not for
profit. and second who because of relig-
ious scruples could not enter into member
ship with societies which prescribe oaths
Of secrecy. igr
1t is claimed by the fraternalists that
the finger prints of monopoly are upon the
Treasury d5cistOn complained Of. They
express the-beIief that the "old-line" in
gurance companies are particularly inter
ested in the announcement, and in the
enforcement OF the ruling. II is contend
ed that during The last few years the ''old
liners have seen their business gradual
ly passing away from them and going TO
the fraternals. which furnish much cheap
er insurance. The contention is made
that if the 'old liners" can succeed in
forcing this. revenue tax they can cripple
many of the fraternaI organizations and
kill others.
1t is expected that the judgment of the
Commissioner of Internal Revenue in the
case of the Nebraska company against
Houtz will be rendered this week. II it
be adverse to the company. the case will
be taken into the courts which in previous
decisions have leaned toward fraternal in
surance organizations in that they promote
thrift and good citizenship and protect
widows and orphans who might otherwise
become a charge upon the community.