The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-12-01
Supreme Court Declares
Pension Fill Uncon-
stitutional.
JUDGE GRINNAN
is SU STAINED
Appeal Refused From Order Re-
straining Insurance commis7l
sioner From Collecting TaY
From Insurance Companies
for Benefit Of Disabled
Firc-Fighters.

--------------------
what is known as the "Icmeen. $
fund act providing for tbs coiiec-
tion Of tax from fire lnsurghce com.
panies to form fund for She relief
of aged and disabled momPrs OF hre
companies. was yesterday 4clared I'M :
constitutional. by the supeme Court
OF Appeals Thus erds Me hope tor
the present OF building up "a system
Of nenstons for those nY-hghters who
have been Injured in hhc discharge
nr duty or who have outlived their
opportunities for actiS service.
This action on the part of tisJ su-
preme Court uphoIds decree Of Judge
Daniel Grinnan. in ye Chancery Court
of the city of Riclfnond, and forever
restrains and entqns Joseph Buttoh.
state Commissioner of Insurance. from
collecting the taY from the insurance
concerns.
court simply r9uses to grant an ap-
peai from the lower court. thus. as in
the Jackson Wise case in reference
10 urinary acctions. making the de-
cfaion stronger by declining to even
hear argument, after an examination
nv each jsdgo individually into the
constitutional questions raised.
Companies Taxed.
The bill creating the flremen's fund
vas passed by the Legislature OF 1908.
III provides that FIRE insurance COM
pariies doing business in cities and
towns where there are dre-fghuns or
ganizatious which qualify as heneh-
ciaFics under tlie further terms of the
act. snail pay tax Of per cent. on
fhclr gross premiums for the mainte-
ranee of fund 10 aid disabled fire.
fnau.
Ifndcrs the provisions Of the act. The
IRE departments of number of VIZ
Efnia municipal CORPORATIONS qualified
10 receive their proportion Of the
funds.
IiiGursncc Gornnlissions- Joseph 3rt-
ton. acting under the terms of tho
act. projected 70 attempt the coli
Lection az the tax. Thereupon the Act
ma Insurance Company. Of Hartford
Conn; the Dixie Fire Insurance Com.
pany, of Greensboro. N. c.; the Fire
Association OF Philadelphia Pa; the
Germania Fire Insurance Company. o;
New York; the Home Fire Insurance
Company. OF HAMPTON. Va; the Home
Insurance Company, OF New York; the
Pennsylvania Fire Insurance Com
pany. of Philadelphia. the Queen In
. sCIIdUte5 NEW - VI ~ XIV
ROYAL Insurance Company. of Liver
pool. England, and the Southern, Fire
Insurance Company. of Lynchburs
Va. with all other companies similarly
affected, brought their suit in the
Chancery Court of Richmond. asking
for an order restraining the collection
of the tax because OF the unconstitu-
tionality Of the act.
Argument Advanced.
One of the claims made was tina,
the bill was in violation of section
81 of the Constitution Of Virginia
{ which provides that no law shall en-
brace moro than one object, which
shall be expressed in the title. whereas
there Is a tax here involved on in
surance companies in addition to pro-
Viding for relief fund.
Richard Evelyn Byrd, Samuel Z.
/, Kelley ard Roy 3. Smith, counsel fol
the Insurance Commissioner reply tc
this point that the creation of the
fund necessarily carries with 1t the
idea of an appropriation, which must
come from some. source. They further
7 say that an Identical law in Illinois
has been declared constitutional.
The argument Is advanced by tbs
Companies that the act conflicts witt
the section of the Constitution forbid
ding the giving of pensions by 8
special act or giving TO any corpora
tion or individual any exclusive rights
In reply the other side: says that thi.
section was intended TO prevent TIL,
constant appeal to Legislatures fol
unusual and ineauitable pensions.
In reply 10 an argument that th'
Legislature may not levy taxes eXcep
in case of need for the expenses o
4 government or for interest on the pub
q lie lebt il is said that the. Legislature
Z is the judge of such matters,
Not Owned by state.
Apparently the very strongest poin
made was that the Constitution pro
vidos that there shall be no appropria
tionato charitable institutions not own
ed or controlled by the State. Th
attorneys for the Insurance Commis
sioner who also In this instance rep
resented the ttiremen, said In respons
that fire companies are public institu
tlons, and stress is laid upon tbei
services to the State and her citizens
In the saving of lives and property.
However, Judge Grinnan In his re
straining order holds that this act wa
In fact an attelSpt to appropriate
money to an Institution not owned o
Y controlled by the Commonwealth. an
also that IT appropriated money to
private purpose, Thereforesh he entere
: the order, from which the Insuranc
{ Commissioner appealed in vain, Thi
cnds the matter,
- ~ n 4 - n - So ~ ~