The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-06-14
GOVERNOR SAYS
WHY HE VETOED
REVENUE BILL
CITES REASONS FOR DIsAPPRoV-
ING MEASURE WHICH WAS
PASSED BY THE LEGISLATURE
AND WHICH WAS DESIGNED TO
PRODUCE REVENUE FOR NEXT
TWO YEARS.
Special TO The Journal.

Special 20 The journal.
Tallahassee, June 13.-Gov. Gilchrist
has vetoed the general revenue bill,
and in giving his reasons therefor,
says:
State of Florida Executive Department
Tallahassee, June IL. 1911.
Hon. H. Clay Crawford, Secretary of
! State.
My dear Sir: In pursuance Of the
provisions of Section %, of Article
III of the State Constitution, I have
the honor to hand you herewith for
fling the following bill passed by the
legislature of 1911, from which my
approval is withheld for the reasons
stated below:
AN Act Imposing License and other
Taxes, Providing for the Payment
thereof, and Prescribing Penalties for
doing business without a License, or
other Failure to Comply with the Pro-
visions thereof"
In Section 8 of this bill is found the
following provisions reference to taxes
| imposed upon Insurance Companies au-
! thorized to do business in this state:
THAT each Foreign Insurance Com
pany or Association, doing business
in this state, and not being incorpo-
rated under the laws of Florida, in
Guiding corporations or associations
engaged in the business of insuring
against fire indemnity, accidents to
the person, acting as surety upon
bonds guaranteeing the fidelity of en-
ployees, and insuring employers
against liability to employees, and life
! insurance companies, or sick, funeral,
or benefit companies, shall pay to the
State Treasurer a license tax of Two
Hundred ($200.00) Dollars; plate glass
| insurance companies shall pay to the
/ State Traa a TcarSo fax If dFfv
$4,000 dollars, and in addition thereto
each of said companies shall, upon the
| first day of January after the passage
of this act, and on the first day, of
each succeeding January thereafter,
pay to the state treasurer two (2) per
! cent. of the gross amount of the re-
ceipts of the premiums Of policy hold
ers in this state.
Companies or associations doing
business under chapter 5459, laws of
Florida, acts of 1905, Incorporated
under the laws of other states, shall
cent. of the gross amount of receipts
from policy holders in this state.
And insurance company, firm, cor
| TC---'cn or association incorporated
! u@l,f the laws of this state, doing
business in this state, shall pay to the
state treasurer a tax of two hundred
(2OO00) dollars, and in addition there
t oshall pay a license tax of one a.
Lper cent. on their gross receipts from
premiums from their policy holders
In the cese- az the Southern Railway
Company VS.. Samuel p. Green, vol.
216 q. S., p. 400, the Suprezne court
Of the United States laid down tAs.fol-
lowing rules, which apply to the pro-
visions of this bill:
Equal protection of the laws means
subsection to equal applying alike to
all in the same situation.
| fiOy1 io a within
the meaning Of the equal protection
provision Of the fourteenth amend
ment.
, "A corporation which comes into
state other than that in which 1t is
created, pays taxes thereto and &C
uuires property and carries on bust
ness therein, is within the jurisdiction
) of that state and, under the fourteenth
amendment, entitled to protection
! againts any statute of that state that
denies to it the equal protection OF
the laws.
! Arbitrary selection cannot be jus
= titled by calling it classification in the
= absence Of real distinction on sub
stantial basis; and a classification for
taxation that divides corporations do
ing exactly the same business with
the same kind of property into foreign
and domestic, is arbitrary and a de-
NAL of equal protection Of the laws
Whatever power a state may have
to exclude or determine the terms OF
n the omission of foreign corporations
not already within its borders, 1t can
not subject foreign corporation which
has already come into the state II
IS compliance with it's laws and has ac-
ouired property of a fixed and deter
- mined nature to a new and additiona
~ franchise tax for the privilege Of do,
N ing business which is not imposed
"a upon domestic corporations. 1t woult
" 81 IrV1 srl nFNVT
20 protection of the laws under the four
DO teenth amendment"
In the case of Hardee V. Brown
~ June term, supreme court of Florida
1908, vol Sc, p. 378, the supreme cour
Do held:
There is no express limitation upol
81 the power of the legislature to provld
p for leyying a tax on licenses; but sue
% power should not be SO exercised as t
&c deprive any person Of property with
w out due process of law, or so as I
deny to any person the equal protec
ton of the law"
IS In the case of the Southern Rallwa
Company Samuel E. Green, Octobe
term. 1909, the United States suprem
w court, vol. Eye, p. 400:
r. Equal protection of the laws mean
subsection to equal laws applying alik
90 to all in the same situation.
90 "a corporation Is a person With
~ provision of the fourteenth amend
90 ment."
az In the case of the Seaboard A
Line Railway, corporation, plainti
81 in error, V. Abraham Simon and Fran
90 L. Simon, partners as Abe simon
- Co., defendants in error, June teri
'SS 1908. supreme court of Florida, vol. 8
~ D. SAG, headnote 4:
90 ''Classifications adopted for legislE
. tive regulation should have some ju
.55 relation to, or reasonable basis in, e
sential differences Of conditions al
IS: circum stances with reference to Il
me subject regulated, and should not
he merely arbitrary: and all similarly 81
uated or having similar legal duti
and obligations in regard to the SUI
:: iect regulated should be included
one class, at least where there q
no practical differences that are suf
cient to legally warrant further
special classification in the interest
his the general welfare"
1t will be observed that this b