The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1914-01-01
Published every Thursday in the year
Two Victories for the State.

Two Victories for the State.
Within tie last two weeks the at.
torney general of Montana, Honor.
able D. M. Kelly, has won two nota.
BILE victories for his state; one in the
supreme court of the State of Mon
tana, and the other in the supreme
court of the United States.
EARLY III December, Montana's SUI
preme court handed down an opinion
sustaining the contention of Attorney
General Kelly, to the effect that the
Northern Pacific Railway company
should be assessed and pay taxes
upon it's mineral reservations on all
land sold to settlers by that company
where reservations were made in the
deeds. In about half the counties of
the state Mr.. kelly's advice was
taken by the assessors and obeyed i'm
1913, and as a result about 81 ZOO. 90
was added to the taxable wealth of
the state. Had these reservations
been assessed in all the counties of
the state, in accordance with the
opinion of the attorney general, it
would have made Il difference of more
than $3.50, 900. 90 on the tax rolls.
Last Monday dispatch was re-
ceived from Washington by Attorney
General Kelley, announcing that he
had won for the state of Montana the
suit brought by the New York Life
Insurance Company against the
county of Deer Lodge, involving the
right of Montana to levy and collect
taxes on the business of life insur-
ance companies done within the state.
This is one of the most notable legal
victories that has been won by this
state III many years.
Life insurance companies ordinar-
lily have no tangible property within
state other than office fixtures and
the like, which amount to very little.
The only method, therefore, in which
their proper share of taxes can be
collected is by levying an assessment
on the business done by the company
Within the state, and this state sought
to collect taxes upon the net premi-
ums earned within the state.
The contention OF the New York
Life Insurance Company was that
their business was interstate COM
merce within the meaning of the con-
stltution of the United States, giving
to Congress absolute control of this
question, and that any attempt on
the part Of the state was a burden
upon Interstate commerce and in vio-
latlon of the constitutions.
The case just decided was institu-
ted by Deer Lodge county S eptember,
1910, and a judo ment was rendered in
favor of the county by the district
court. This was appealed to the SUI
preme court Of the state, and the
Judgment of the lower court was af-
tirmed. Then an appeal was taken to
the supreme. court of the United
States. The case was heard by the
supreme court 81 the United States
in the early part of November of this
year. James II. Mcintosh, chief
aounsel of the New York Life Insur-
ance Company of New York aud Pro-
lessor Roscoe Pound, professor Of
OF law of the Harvard Law school.
appeared for the life insurance COM
pany. and Acknowledgement Kelly
pleaded the cause of the State of Mon
tana. On Monday the supreme court
OF the United States affirmed the
Judgment of the supreme court of
Montana.
The effect of this decision will be:of
far-reaclling benefit, not alone to the
State of Montana, but to all the other
states. Hereafter this source of rev.
enue will be open for the states. as
the decision applies to all insurance
companies doing business within the
states.