The morning journal-courier., 1908-01-02
TO REFUND S69,O00
Long Dispute on Taxes Be- tween This State and New
 York Settled.
MACDONALD GETS RESULT
Connecticut Companies to Get Some S50.000 from the Empire
 State Treasury.

Hartford. Jan. l.-The long standing dispute between this state and the state of New York in regard to the re- funding of taxes by a reciprocal ar langement has at least reached a set tlement. The settlement is due to the prompt businesslike action of lnsur- ance Commissioner Theodore H. Mac donald. Attorney Charles F. Gross, who was counsel for the Phoenix Mu- tual Life Insurance company, says that the settlement is due to the course taken by Insurance Commissioner Mac donald. The result of the settlement Is that Connecticut refunds to New York companies about s69000 for taxes paid by them and New York state pays the Connecticut companies interested between siO.OOO and $50,O0O. The money has not been actually refunded to the Connecticut companies by the state ot New York. but they have been given credit for the amount which each has paid.
 There will be trifiing financial los. in interest to the Connecticut compan- les by this arrangement, but the satis- faction which all feel in the settlement of the dispute compensates for the loss of interest money.
 In the years 1902. 1903 and 1904, the comptroller of the state of New York assessed the life insurance com panies of Connecticut taxes for carry ing on life Insurance business in New York state during the years 1901. 1909 and 1903 The Connecticut companies paid the taxes, but, in some cases. the payments were made under protest. The insurance commissioner of this state, who was then Theron Upson, in compliance with the provisions of sec tion 2,ij0, collected from the insur- ance companies Incorporated under the laws of New York the same taxes as had been imposed by the New York state authorities upon Connecticut companies and the taxes were paid by the New York companies.
 Tho court of appeals of New York state by a divided court. decided In 1 1904 that the tax assessed in 1902 up on premiums collected in 1901 was not authorized by chapter liS of the laws of 1901 of New York state as the | law was not retroactive.
 In all cases where the Connecticut companies had paid under protest or had filed claims within ono year af- ter payment the taxes paid in New York have ben repaid by credits, in this way tho taxes in 1904 have been returned to the Connecticut con- panies.
 Tho New York companies sought tC recover the taxes paid in Connectlcu on the ground that as the tax in New York state had been declared Illegal the tax In Connecticut under recipro cal statute section 2i60 became illega also that the failureto cover the tax es in New York within the period ike, by staute did not affect their right {, i recovor the taxes paid In Connecticut The insurance commissioner MT. Up sonl, declined to return the taxes. Tn, i matter was taken 10 tho supreme coui. of this state, and tho court declined tC interfere with thc commissioner ae ton. Bills of q reciprocal nature wer, then passed by the legislature of thi state and of the state ot New York.
 The bill passed by the New Yorl legislature left 1t discretionary witt the comptroller of that state to fix tn time for paying to the Connecticut com nanies the taxes to be refunded. Tn New York companies tried 10 indue the attorneys Of tho Connecticut com panies to join with them in obtaining for them the money which Connecticu was prepared to refund when condlti tions were made satisfactory 10 the in surance commissioners. Tho represen tatives of tho New York companie promised to assist the Connecticut com ranies to get their money from Ney York In return for the assistance ren dered them here. But the Connection companies would not agree to such n arrnn gement.