The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1902-11-20
WoRKMEN WIN THEIR CASE.
Judge Smith lnstructs Commissioners
Shober to Issue a Certificate,

Shober to Issue a Certificate.
The famous Ancient Order of United
Workmen case, which was brought be-
fore Judge Smith at YanktOn on man.
damus proceedings some time ago, has
been decided in favor of the order.
According to Judge Smiths decision,
Commissioner Shober will be COM
PEELED to issue a certificate to the or
der without the payment of the back
taxes claimed to be due under the
state law. Following is a summary of
the case, which Is a test one, brought
In the interest of all the fraternal in
surance societies of the state:
Chapter 81, Laws CT 1890, was en-
acted by the legislature and approved
on March 7, 1890, with an emergency
clause. The law went into effect at
he time of it's approval
Section SO provides that every mu-
tual benefit association or insurance
company, organized for doing business
in this state, shall, at the time of max
ing the anpual statement required by
the act, pay into the state treasury as
taxes, 2 per cent of the gross amount
of assessments received in the state
during the preceding year, and that no
certificate of authority shall be issued
to transact business in the state until
the payment of said tax. Provided,
that nothing in this section shall be
construed TO apply to secret, benevo-
lent or fraternal societies who pay
sick or death benefits to the widows,
orphans, heirs or relatives of deceased
members
"The A. o. u. W. has never paid
any tax upon the assessments received
by 1t from members, but has received,
either from the state auditor or insur-
ance commissioner of the state, a GER
tifcate of authority each year previous
to 1892, authorizing 1t to transact bust
ness in this state.
Some other similar orders have an
nually paid this tax. Others paid it for
few years after the enactment of the
law and then ceased paying.
"The commissioner of insurance, II.
C. Shober, believing that all secret or
CARNATIONS which pay death benefits
to the widows or orphans of deceased
members should pay the tax, or that
none of them should pay, in 1901 sub
mitted the question to John L. Pyle,
then attorney general. Mr.. Pyle's
opinion was that these orders were Ii
able to the tax, if the benefits paid by
them to widows or orphans Of de-
ceased members were paid by virtue
of an insurance contract, and that only
such orders or societies were Exempt
as paid small sums to the widows and
orphans of deceased members out of
their general treasury, without max.
ing special and stated assessments.
and which did not issue any insurance
policy.
THE insurance commissioner, under
the opinion of Mr.. Pyle, refused to
grant the A. o. u. w. a certificate nn.
til the 2 per cent cent tax upon the
previous years business was paid. He
also demanded, as a condition prece-
dent to the issuing of the certificate,
that the per cent tax on all assess
ments received by the order from 1891
Il 1901, inclusive, should be paid.
THE supreme court declined to en-
terrain original jurisdiction, whereup-
on the A. o. u. W., through its attor-
neys, served notice on Mr.. Shober that
1t would apply to the circuit court of
Iankton county for a writ Of manda-
mus. On the 18th ult this application
was made, the attorney general ap-
pearing for the insurance commission.
er. His answer to the application
raised no issue Of fact, and the case
was tried before the circuit court upon
questions of law alone"