Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-08-04
Important Question Raised In
State Auditors Office Has
Been Settled
FOREIGN INSURANCE TAXES
Conservative Life of California Com
PEELED to Pay State Tax On Business
Done in iowa-company Sought to
Evade Tax On Ground It Had No
Certificate in Iowa.

Des Moines, Aug. 4.--Iowa will soon
be about $4,000 richer by reason Of a
point raised In the Office OF the auditor
of state, in the insurance department,
and the decision of the attorney gener-
al of the state on the point in ques-
ton.
The attorney general has decided. in
other words, that the state is entitled
to that sum in taxes on the 1902 busi-
ness of the Conservative Life Insur-
ance Company, OF Los Angles. The
company, when pressed by the insur-
ance department to pay these taxes,
demurred on the ground that during
1903 it did not hold certificate to do
business in this state, and could not,
therefore, be taxed. The auditor took
the question to the attorney general.
and he decided 1t quite differently.
1t Is assumed that the company will
pay the taxes without further dissent,
having requested that collection be de-
layed until the attorney general went
into the question.
The question OF whether the company
will be required to pay taxes in the
future remains for adjudication.
The Conservative Life Insurance
Comany is what Is termed an old line
life insurance company, organized un-
der the laws of the state of California.
In the year 1901 the company re-tnsur-
ed the risks OF the Southwestern Mu-
tual Life Association, of Marshalltown,
Iowa, and by such act of insurance
came into possession Of the business
of that association, took over Its as
sets and assumed its liabilities.
In the transfer of the business and
assets OF the Southwestern Mutual Life
Association to the Conservative Life
Insurance Company, a contract was en-
tered into whereby the Conservative
Life Insurance Company obligated
itself to establish and maintain per-
manent central headquarters In the
state of Iowa for the transaction OF its
Iowa business. and It also agreed TO
keep a permanent deposit of not less
than 100000 with the auditor OF state
in securities to be approved by him.
The certificates of authority issued by
the auditor of state to the company to
transact business in this state was IN
force until April i. 1903. On March .,
of that year, a request was nied py
the company with the auditor Tor IL
cense to be issued to Mr.. Bergman OF
Marshalltown as agent of the company.
frequent transactions relating to IN
surance business were had between the
insurance department Of the of1ice OF
the auditor of state and the agents
OF the company during the year 1908.
During all of that time and up to the
present time, the deposit required by
the contract between the Conservative
Insurance company and the Southwes-
tern Mutual Life association mas peen
maintained with the auditor OF state.
A considerable number OF the policies
of the Southwestern Mutual Life assoc
citation are In force in this state. ana
the premiums upon such contracts
have been paid by the holders thereor
to the insurance company under the
contract between such company and the
association.
Doina Business in Iowa.
The attorney general says: Under
these facts. 1t is clear that the Conser-
yative Life Insurance company OF Los
Angeles, Cal, was doing business in
this state during the year 1903. and
that under the provisions OF section
1888 OF the code 1t is required to pay
into the state treasury. as taxes, two
and one-half per cent upon the gross
amount OF premiums received by 1t on
all business done in the state during
the year.
Second. The second question Is not
Of so easy solution. 1t involves the
construction of the provision of section
1898 OF the code and determination OF
the power of the state to impose con-
ditions and burdens upon foreign cor
rorations transacting business in the
state, and the application OF the stat
ute and principles Of law to facts which
exist at the time the collection OF the
tax Is sought to be enforced.
When the time arrives for the col
lection of taxes under the provisions
Of the statute the question OF liability
OF the company must then be determin-
ed from all Of the facts involved. And
until that time arrives It is not. In my
judgment, advisable that an opinion
upon that subject be given"
PArTEMnil REijNlNN