Scottish Union & National Insurance v. Bowland

Citations

• 196 U.S. 611
• 25 S. Ct. 345
• 49 L. Ed. 619
• 1905 U.S. LEXIS 929

Syllabus

<p>While technically municipal bonds deposited with the insurance commissioner under the laws of Ohio regulating the right of foreign companies ' to do business within the State are investments in bonds, they are' also a part of the capital stock of the company invested in Ohio and required to be so invested for the security of domestic policy holders, and for the purposes of taxation to be considered as part of the capital stock of the company and included within the statutory definition of personal prop- • erty required to be returned by foreign and domestic corporations for taxation.</p> <p>While no tax can be levied without express authority of law, statutes are to receive a reasonable construction with a view to carrying out their purpose and intent, and</p> <p>The collection by distraint of goods to satisfy taxes lawfully levied is one of the most ancient methods known to the law and in this case the law of Ohio authorizing it does not violate the constitutional right of a foreign insurance company and deprive it of its property without due process of law.</p> <p>There is nothing in the exemption of Government bonds from taxation which ■ prevents them from being seized for taxes due upon unexempt property.</p> <p>The laws of the State of Ohio as construed by the Supreme Court of that State haTC conferred the right to tax bonds deposited by a foreign insurance company with the insurance commissioner under the laws regulating the right to do business in the State.-</p> <p>Where municipal bonds so deposited are withdrawn before the return day and Government bonds substituted therefor as provided by law the company is not liable for taxation on the bonds so withdrawn.</p> <p>Where there is no personal liability for. taxes the defense -can be set up in an action at law and there is no necessity to resort to equity to enjoin prosecution of suits therefor. It will be presumed thát if the claim of the party taxed is right no personal judgment will be entered.</p>