The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-01-09

fectually protect the rights and fulfil the int
of the individual who devotesa portion of hi
| earnings To purchase a pecuniary competency fo
his children after his death. The moneys collected
| for premiums ought TO be held az trust fund, ac
| cunulatiDg from year to year, and 10 be kept ga
cred for the ultimate performance of the obligation
tract of life insurance
An intelligent cinzen. who has given much at.
tenton TO the subject. estimates that tine amount
paid by the people OF this State to foreign corpora
tOns, in premiums for Insurance on lives, within
the present year. will exceed $500, 900. When II
is considered that the policies are continuing
contract, on which further payments are TO be
made every year. during the life OF the party ln-
crease In this branch OF insurance, the Legislature
can hardly fail to perceive the Importance Of
adopting such safeguards will afford to our
citizens the security they seek, and for which they
gestioDs, the Comptroller would not be understo
questioning the integrity Of the corporations in
other States which have established agencies here.
That many OF them are In the hands of honest and
responsible managers, and are administered with
the most upright Intentions, he Is we'll assured.
But 10 assume that no exceptions will occur would
be to disregard all past experience In some Of
the states charters have been granted with great
facility the nature OF the capital and investments
are tar belowsthe standard required from similar
corporations in our own State and venus. not
forget that, with the best intentions, there is
strong temptation To divide, or appropriate, pre-
actually earned. In case OF default, or contro.
versy, whether arising from an improper diversion
OF the funds, or from unavoidable msfortunes, our
own laws imperative, and il is not difficult 10
foresee cases in which the remedy Of widows and
orphans against remote corporation, beyond our
jurisdiction, would be difficult and expensive if
not wholly nnavailing. II seems just and polite,
therefore, that companies abroad, desiring to ex-
ercise the privilege of life insurance in this State
should be required TO furnish such pledges, and
comply with such regulations, as will ensure the
prompt performance OF the obligations they may
assume.
BY the Revised Statutes, (part ], title 2I,) as
amended by an act Of lS47 the agents of all FIRE
and marine insurance companies In other States
dong business In this State, were required TO pay
INTO the state treasury tax OF two per cent upon
the amount OF premiums received. The law re-
CURED every such agent to execute a bond to the
State, conditioned that he should render an an
nual account of premiums to the Comptroller, and
pay the tax thereon The act Of lS49 (chapter l7S)
relEquishes the right of the State treasury to the
tax on premiums tor the fire insurance, and re-
CURES that the same be paid to the fire department
OF the city or village where the agent resides;
leaving The former law unchanged, SO far as 1t re-
lates TO the tax on marine insurance A circular
was issued to the several agents Of foreign COM
psnies IN February last, requiring the payment OF
this tax This call was promptly responded to by
many OF the agents in The interior of the State but
NEST OF the larger agencies in the city of New
York refused to pay the ,on the ground that the
law imposing It is unconstitutional. II appears
that the payments have been withheld for years by
some OF The principal agents, and the treasury has
been deprived CT from $4,000 to $4,000 per
apnum, IN consequence of this refusal. The opin-
ions Of eminent legal counsel have been presented
10 the Comptroller, denying the power OF the State
TO impose tax on The agents of insurance COM
panies created by other States. The Comptroller
cannot concur in this view Of the subject and he
has deemed il his duty to place one of the largest
claims IN the hands Of the Attorney General. The
question involved will soon be decided by the
courts.
II is respectfully suggested that the act be 60
amended as to withhold certificates Of authority
from the agents of foreign insurance companies,
unless proof shall be furnished that the agents of
the company applying have paid the tax as required
by law.
AUCTION DUTIES.
The annexed statement (marked NJ presents an
account IN detail OF the sums received for auction
duties during the year. The gross amount received
was $50, S969, showing diminution, az compared
wi'h the preceding year, OF $7,ll5 II.
VIgiani efior,s have been made 10 prevent frauds
upon this branch Of the revenue. Competent agents
have been employed under the act of 1919, To in
yestieaie the accounts and proceedings Of the
tcne.Is, and the results have been useful.
Several suclioncers III the city OF New York
have taken the ground that State laws, imposing
auction duties, are Unconstitutional. Options have
been obtained from several distin guished lawyers
to that effect. For the last two years, a number
OF auctoneers have paid the duties under protes 4,
or with formal notices to the Comptroller and
Treasurer. that they will be held personally liable
to fefund the money! II they place il In the Treas
ury, or allow II 10 be used by the State. Notwi,h-
sist ding these warnings Of intended litigation the
comptroller hes certified the payments 10 the
Treasurer, and The moneys have been carried 10
the General Furd.
The Comptroller eniertans no doubt of the con-
siiutlonal validity Of the law imposing auction du-
ties ana II his disregard Of the various protests
served Upon him, forbiddipg the pay ment of the
money into the treasury, should involve him in
personal actions, he will confde in the Justice of
mr. Ia an frrfn h,ro
STATE PRISONS.
The receipts and expenditures 81 the State prisons
are exhibited IN three statements (narked O.
POP
The earnings of he Sing Sing Prison during the
last fiscal year were s53,i79 30. The amount
drawn from The treasury during the same period
was cal ,5s1 81, The gross amount OF expendi-
600 was applied to the erection OF new buildings.
A large increase III expenditure was n aae neces-
sary by the destructive hire which Consumed a
valuable portion OF the prison buildings.
The controversy between the State aui Chaun-
cey Smith, late agent has been terminated by the
decition Of the referees 10 HON II was suomittsd
An appropriation OF $4,000 will be required for the
support OF this pfison for the coming year, includ
ing The payment OF old indebte dness, consisting
chic ily OF the balance ourd BY the above referees
The Auburn prison continues to present more
favorable results. The earnings for the year were
Sos,7N 81; the expenditures 81 l66 o.; and the
accounts exhibit balance on hand at the close Of
$500 OF
The amount advanced fro the treasury for the
sprrou 81 the Clinton prison during the last fiscal
year, was s2L723 0l. The earnings for the year
were sl2tO1 %; the expenses Si0,373 -. Ii ~
estimated TINT m appropnstion ot 5000 will be
required Tor the current year. The agent has on
hand on accumulation Of iron ore equ i To 100
tcns, which Is unavailable nj present.
IMPROVEMENT or THE UTTER WATERS or THE HuD'
son EiyEr.
by .chepter 400. laws q $50, 10000 was ap
propriated for improving the upper waters OF the
Hudson river.
OF this amount there has been drawn from the
treasury the sum ~ - 600, and the Commissioners
hcvc expended 81, i32 -, leaving 1861 Is Of the
appropriation uncxpcndtd, Of which ~ 900 remains
IN the treasury, and ,j61 ~ IN the hands of the
Commissioners.
The reports ~ Daniel Stewart and Jacob Par
menter, two OF The Commissioners, are hereto
annexed tmefkcd X. 81
IL will be perceived that only a small sum was
expended the lasi season. The high state OF the
h.