Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-09-09
RESERVE FUND OF
WOODMENSOC|E
TAXEDAT PONTIAC
Funds Amounting to $780,
1875 Are Assessed in Liv-
ingston County.
WILL BE BITTERLY FOUGHT
Would Mean Payment Of $4,000 =
Yesr-Loeal Officers Claim No
Legal Ground for Move.

While the board Of review Of Rock
Island county refused TO assess the .
reserve fund OF the Modern Wood /
men Of America amounting to $4,000.
1s5, the equallzing body OF Living
sion county meeting at Pontiac, yes
:erday took an opposite position, find. /
ing that the sum IN question was tax
able and assessed the same against :
the organization, amounting % about |
$4,000 a year.
The action viii be bitterly fought !
BY the society and ii is said that at !
torneys for the organization are al
ready planning an appeal TO the su-
IRENE court. The agitation to have
the reserve fund of the organization
taxed originated in Rock Island when
Harry NJ. McCaskrin filed with the
local board Of review a complaint
alleging that the society was lodging
its taxes in not listing the reserve
fund and urging that he be appointed
special prosecutor, to investigate the
same, on the ground that States At.
torDey F.. E. Thompson was not quail
fled to so serve because Of alleged
friendliness.
DISMISSED HERH
At the hearing here, attorneys for
the Woodmen contended that even II
the fund was taxable, that action
would have to be taken at Pontiac,
where d. 3. Myers, head banker for
the organization resided. The board
dismissed Mr.. McCaskrin's complain
ant but the matter was carried to Pom
tiac and the assessment levied.
When interviewed today, local Off
GERS Of the Woodmen society declar-
ed that every legal means would be
taken 70 prevent the imposition OF the
tax. 1t was stated that the reserve
fund was scattered throughout the
country at the various depository
banks OF the organization, drawing In
terest at per cent.
I'VE do not think there Is any legal
ground on which this fund can be as
sessed,' continued a local official.
The legislature passed a law exempt
ing fraternal insurance concerns
from taxation except on their person
al property but the supreme court
held the same unconstitutional and
the only other law on the point is the
revenue act which provides that old
line companies shall be assessed on
funds over and above the liabilities
and providing a method for figuring
the value OF outstanding policies.
Should the Woodmen figure on this
old line basis and use the same meth.
cd OF calculation on the value of our
policies, our liabilities would exceed
our assets. At Pontiac we quoted a
ruling from the supreme court of Ne.
braska which held that a reserve
fund Of this character was merely
trust sum for the members for their
protection and since the organization
was not founded for profit. should not
he held taxable. The law in this
state applies merely to old line com.
panies and We cannot be figured on
that basis.
ONE OF LARGE AXPAYERS.
Official action by the society on the
matter cannot be taken until the
head camp meeting in June 1914 but
meanwhile we will make every honor
able effort TO have set aside the &C
ton a. Pontiac. We are now paying
about $4,000 on personal property
each year and the organization is one
- the largest tax payers in the
county"
THREATS OF REMOVAL.
Threats have been made that the
Woodmen society would move its
head Offices 70 Indianapolis should
the tax be insisted in thA state. In
diana hoe a constitutional clausa Nv