Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-03-13
OUR LETTER BOX

Sovereign Consul Root Explains.
OMAHA, March ITO the Editor OF The
Bee: In the matter Of the Nebraska State
Board Of Taxation attempt TO tax fraternal
beneficiary societies, much has been printed
In the daily papers that Is not consistent
with facts. and 1 have been misauoted.
The taxing OF the reserve fund. and even
the property occupied by such societies. is
unusual. The constitution Of the state Of
Iowa provides that only corporations con-
Quoted for pecunary profit are liable to
taxation and fraternal beneficiary societies
are by statute defined as corporations not
Tor pecuniary profit, and in nc other state
is any tax required by statutory law.
In Nebraska heretofore the state board
has not undertaken to impose any tax on
such societies, recognizing, no doubt, the
equities and exemption in other states but
the present board had different views and
singled out the woodmen of the World and
Highlanders from all the corporations In
the state and ordered them to be assessed.
AS to its legality we must leave that to the
courts to determine. Even Shylock could
not take his pound Of flesh because of tech
nical obstruction. although he stood eager
and determined in spite of every considera-
ton of humanity, charity and public good.
Suppose the state board is successful,
then what would result? It would be dis
elimination against societies not organized
for pecuniary profit but for fraternal aid
and assistance i'm sickness, distress and
death, whose members for convenience and
safety, make a deposit available when they
age, to relieve them from increased burdens
of payments and which cannot be diverted
or used for any other purpose. The con-
tributors to this fund in the Woodmen re-
side all over the United States, only one
fortieth OF whom are residents of Ne.
braska.
If this tax is legalized and assessed the
-WoOdmen of the World will be called on to
pay on a basis of it's funds and property
April 1, 1906. on about s35OO,OOO. l am in
formed that the assessable valuation is
one-fifth real present value, which would
be 100000. The tax on this, il the 1905 rate
is continued, will be IS mills for all pur-
poses, aggregating S61,6OO tax to be paid by
the Woodmen OF. the World.
The emergency fund at average rate of
interest earned last year will produce on
the amount to be taxed during the year
1906 total of $117.S9O. In my opinion to
levy tax of s61. 600 on the gross earnings
of S117,s9O is outrageously excessive, even
though the corporation was conducted for
the profit of its members or stockholders,
and fancy II such a ratio OF taxes was
imposed upon the citizens generally there
would be a greater agitation than that ex-
listing among those interested in fraternal
beneficiary societies at this time.
| Would it be reasonable or right to tax a
life insurance company which is subject to
taxation IN every state on its premiums
collected within that state; also on such
premiums in this state because its princi-
pal Office happened to be located here?
Could any business AFFORD to give to the
state, county and city over one-half its
/ gross earnings and prosper?
! This is the whole situation. II Nebraska
insists on such exactions and no other state
does, and the advantages for doing business
are equally favorable, is it strange that a
removal would appear attractive?
]. c. ROOT.
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