The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-11-07
A. O. U. w. WINS ITS CASE
State Insurance Commissioners Must Gran
1t the Usual Certificate.

State Insurance Commissioner Must Grant
1t the Usual Certificate.
YANKTON, S. D.-The famous Ancient
Order of United Workmen case, which
was brought before Judge Smith on man
damus proceedings some time ago, was
decided yesterday in favor Of the order
According to Judge Smiths de-
cision, Commissioner Shober will be COM
PEELED to issue a certificate to the order
without the payment of the back taxes
claimed to be due under the state law.
Following is a summary Of the case which
is test one brought in the interest OF all
the fraternal insurance societies of the
state.
Chapter 81, laws of 1890, was enacted by
the legislature and approved on March T.,
1890, with an emergency clause. The law
went into effect at the time Of its ap-
prevail.
Section So provides that every mutual
benefit asocia lions or insurance company,
organized or doing business In this state,
shall at the time Of making the annual
statement required by the act, pay into
the state treasury, as taxes, 2 per cent
Of the gross amount Of assessments, re-
oeived 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
ceived during the previous year. PRO
vided, that nothing In this setcion shall
be construed to apply to secret, be-
neyolent or fraternal societies who pay
sick or death benefits to the widows, or
phans, heirs or relatives Of deceased mem
bers." -...- .@
The A. O. u. w. has never paid any tax
upon the assessments received by it from
MEMBERS but has received either from the
state. auditor or insurance commissioner
of the state, certificate Of authority each
year previous to 1902, authorizing it tc
| transact business in this state. =
Some other similar orders have annually
paid this tax. Others paid it for a few
years after the enactment Of the law anc
then ceased paying.
The Commissioner Of insurance, H. G.
| Shober, believing that all secret orders
| which pay death benefits to the widows OF
| orphans of deceased members, should pay
| the tax, or that none Of them should pay
| in 1901, submitted the question to John l.
| Pyle, then attorney general. Mr.. Pyle's
| opinion was that these orders were liable
| to the tax, If the benefits paid by then
| to widows or orphans of deceased mem
| bers were paid by virtue Of an insurance
| contract, and that only such orders, or so
| cieties were exempt as paid small sums
| to the widows and orphans of deceased
| members out Of their general treasury
without making special and stated assess
ments, and which did not issue any in
| surance policy. ST. 49, g.. a-r.-....- .,--,-.
The insurance. commissioner, under tn,
opinion of Mr.. Pyle, very properly refused
! to grant the A. Q. u. w. a certificate un
til the 2 per cent tax upon the previou
years business was paid. He also de
!. manded, as a condition precedent to tn
issuing of the certificate, that the 2 pc
cent tax on all, assessments received tn
order from 1891 to 1901 inclusive Shout
be paid.
! The supreme court declined to enter