The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-10-26
Illinois Life Gives Up Fight on
Taxes.
VIII Pay All Due With the
Penalties.
STOPS BY LAWSUIT.
County Will Receive About Ten
Thousand Dollars.
Company Figured That Victory
Would Mean a Loss.

The case Of the Illinois Life Insurance
company against the county clerk
county treasurer and the board of coun-
ty commissioners of Shawnee county
set for trial this term Of the United
States court was dismissed this morn
ing at the request of the plaintiff who
agrees to the terms of assessment as
made by the board OF county commits
sioners
By the terms of the agreement reach
ed this morning the Life Insurance
company pays all back taxes due the
county for the years 1904, 1905 and 1906
as well as all of the costs of the case in
Guiding the fees of the attorneys en-
ployed by the board of county commits
sioners.
Shawnee county not only gains every
point in the contention but received
from the insurance company nearly S10,-
600 in back taxes with accrued penal
ties amounting to something over $500.
The disagreement of the company and
the board dates back several years ago
when shortly after the Kansas Mutual
Insurance company was absorbed by the
Illinois Life Insurance company it re-
fused to pay taxes on S530,OOO which was
deposited with the state treasurer to in
company.
Inc insurance company claimed that
their holdings We're taxed at their home
on1ce in Illinois and for that reason
the reserve fund in the state treasury
was exempt. The securities were not
assessed at their face value by the
board of county commissioners and were
placed on the tax roll at a valuation OF
$4,000. Prior to the time of the fall
ure OF the Kansas Mutual Insurance
company that company had paid taxes
on that amount and the new company
was asked to do the same
Anls tney declined to do and brought
proceedings In the United States court
against the county treasurer, the coun-
/ " clerk and the board of county COM
Iniss1oners enjoining them from collect
ing the taxes In accordance with the
provisions of the compromise effected
this morning the insurance company
! Will In the future as in the past pay
600.
When the suit was instituted bv the
insurance company the board of county
commissioners Immediately raised tho
assessed valuation of the securities Oh
deposit by the company from $50 900 to
Sz65'OOO, their face value, and levied
taxes on this amount
It is the contention of the Insurance
company that if the suit had been tried
and won by them that they would have
practically lost their case and if ii
should have been decided against them
1 it would have meant that they would
have been compelled to pay taxes on a
largely increased valuation which would
have more than doubled their taxes and
J made the conducting of business in
Kansas Improbable for them.
AS the case now stands it is just
/ where it was before the litigation was
| commenced and the insurance company
will pay in the neighborhood Of So ,00C
per year as taxes on their securities as
did the old Kansas Mutual company and
| the company Will continue its business
/ in the state
The taxes paid by the company for
the years 1904 and 1905 were about S, ,00C
| though the taxes for the year 1906 which
| have been paid amount to but 81, $50 ow-
ing to the lowering of the rate of as
/ sessment in the county by several mills