The north Mississippi herald. (Water Valley, Yalobusha Co., Miss.) 1888-1929, 1921-02-25
new SUIT TO PRO-
LONG TIEUP OF
WRITING BUSINESS
Complications Follow One An
other Rapidly-Hope Now
Centers in Globe & Rutgers
Group of Companies.

The filing of the new bills in the in
surance litigation last week by the
revenue agent and the attorneys for
the intervenors still further compli-
Gates the matter, introduces new and
intricate questions and will probably
extend the case over q long period of
time.
Another new feature has been add
ed by the fact that the attorneys for
the Companies have ppealed from the
order of the chancellor appointing the
receivers This means contest over
the side issue raised by the revenue
agent as to the insufficiency of the
answers of the garnishees.
Tho new suits of the revenue agent
deal only with the question of the de-
iinquent taxes due by the companies
for premiums collected and the fire
marshal tax, The exact amount of
these taxes will have to be determin-
ed, but will hardly exceed 1925, 900.
The revenue agent, however, claims
damages on these taxes in double the
amount due, contending that they are
privilege taxes. The revenue also in
cludes the reinsurind companies in
this privilege tax question. As yet
the intervenors have included the re-
Insurance companies in their claim of
taxes due, and this will make another
issue to be thrashed out.
The receivership involves Hercu-
lean task. Onelof the oldest and most
experienced insurance men in the city
has advised the receivers that they
will find it absolutely necessary to
call to their aid an expert insurance
man to explain the numerous techni-
cal questions which will arise in deter
mining the exact assets due on policy
valuations. He said it would take
many months to do the necessary
checking on this item alone. Other
suits are sure to arise over the settle
ment of the garnishment question.
Farther, the Intervention suit has
many interesting phases now that the
revenue agent has instituted new liti-
CATION claiming the right to collect
premium taxes, which are admittedly
due and now delinquent since Feb. Is.
In this matter three state officers will
be pitted against each other-the rev.
enue agent on one side and the attor-
ney> general and insurance revenue
commissioner on the other.
Aside from the interest in the liti-
CATION itself and its possible results,
great eagerness is being manifested
for information concerning the ac-
ton of the companies in the matter
of renewal of licenses on March 1st.
1t is conceded that none of the COM
lpanies which have suspended writing
of policies will renew. All hope of
this vanished, if any remained, after
the companies notified the insurance
commissioner that he must look to the
taxes due on the last half of 1929.
They could not renew their licenses
until these premium taxes are paid. or
at least until it is definitely settled
thst they will be paid out of the gar
nishced assets.
The hope of the insuriDg public
now cCnters IN the tIlol'e q Rutgers
group of companies which continue to
operate under their present licenses
but give no intimation as to their fu-
ture course. That these a4mpanies
have been endeavoring to Obtain
settlement of their cases apart from
that of the others is now matter
of general information, but up to
date no arrangements to this end
have been made. If this group of
companies fail to renew their icen-
ses there will remain but four lcen-
sed companies in the state, which can
handle only limited amount of small
business.