The Montgomery advertiser., 1909-06-26
FIGHT TAX ON
CORPORATIONS
Department Of Insurance
IS Opposed.
WANT INSURANCE EXCEPTED
Messrs. Julian And Sextsn Write
Alabama Delegation.
Omeer Of Great western Life on Hand
to Renew Licease--Mesile
wants Cenvention--other
Insurance. News.

Hon. Frank ". Julian. State Insur-
ence Commissioner, and Deputy Com
missioner A. C. Sexton, said yester-
day that they would forthwith write
letters to every one of the Alabama
allegation in Congress urging them
10 oppose the Taft corporation tax
measure in SO far as 1t apphes to IN
surance corporations. They profess
that they cannot see the Justice OF the
rronosea amendment to the Constitu-
fion which would result In tax OF
per cent ON the net earnings OF cor
porations withouts execution.
The reason for taking this position
is given by the oflciais of the Ala
hama Department without reservation.
They believe that the insurance cor
porations are already sufficiently taxed
that they are in some States taxed
nroportionateiy higher than the aver
age corporation and that even IL there
il Justice In the taxAupon corporations
in general 1t may Work an inJnstce
TO insurance companies. The FUNDS OF
an Insurance corporation are more or
less OF the nature Of trust and every
time that the taxes in general rise the
ueople have 70 pay for IL in the long
run. as the premium may be uniformly
raised.
The insurance journals are wagins
a persistent fight on the Taft measure
and 1t promises to have nard saiihs
before It lands safe.
commissioner julian was in confer
ence Yesterday with James Chappeiles
secretary-treasurer OF the Great west
ern Life Insurance Company OF KAN
sas City, Mo-, whose license was can
celled few days ago by the Alabama
recruitment on the certificate of the
ctarl Of the Alexander City Circuit
Court that the company had transferred
! case to the Federal Court. Mr. Chap
nellie was accompanied here by Gen.
eral Counsel william Thompson, of the
Great western. and they are endeavor-
ing to arrive at a basis for restoring
the company to its right to do business
In the State.
Methods suggested.
There are two methods by which this
readnission may be accomplished. The
company could pay the penalty OF 800
OR one-tenth of / per cent. Of the
capital stock-and regain its license,
still pursuing its litigation in the Fed
eral Court. Or, It Is barely possible
that the Commissioner may be per-
: suaded 70 reissue license on prom
Use that the case which Is the subject
Of the dispute is carried back to the
State court where II was originally
Aled by benenciaries OF party in
cured In the Great Western. There IL
q precedent for such action on the
DATt OF CnS COfutntSolOHcE IN oAOtAch
State. but Mr. Julian has not yet given
assurance that he win follow such
course.
II IL generally recognized that the
forfeiture of tho company,s license was
NOT due to the policy Of the present
administration of the Great western
srhe transfer of the suit was done by
the officers In charge while the COM
panv was In the hands OF receiver
n Missouri. Since the reorganization
the company has sbcen put on q safe
and conservative basis and in fact the
officer who was In the Capitol yester-
day declared that he knew nothing
81 the violation of the Alabama stat
ute until advised of the cancellation OF
the license to do business In Alabama.
Upon hearing this he and counsel pro-
ceeded to Alabama at once from KAN
sas city.
Commissioner Julian, who has been
working so persistently to get the
1910 convention of Insurance Commits
sioners of America to come TO Mobile.
opened letter yesterday which pleased
him beyond measure. 1t was from
Chas. W. Bell, the Kentucky Commits
sioner, who declared in favor of the
Gulf City with all his might and main.
adding that it was the first time ~he