Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-02-12

naturai growth III rests upon a soilu lounuatioh
of truth and reason. 1t results from conviction
which is every day gaining strength, of the meal
cuable benefits Of the system. No other plan has
been devised by which duty and affection can so
adequately, so securely, and so instantly provide
against the uncertainty and the rreparable loss OF
productive human life. 1t only needs that the
merits and benefcent working of the system should
be more fully understood and appreciated, in order
that life, the most valuable Of the gifts Of the
Creator to man and his dependents, should be Sc
cured against the hazards of untimely death, as
universally the prudent insure their material
possessions against the peril of destruction by the
elements. The mature and enlightened conviction
of the public will surely require that any man,
with whose life Providence and the order of nature
have wrapped up the lives and we'll being of others,
should be deemed guilty Of inexcusable selfshness
and criminal inprovideDce If he fails to invoke for
their protection the security which this system
offers
The prevalence of Life Insurance may justly be
regarded as the measure of advancing refinement
and social virtue; and if it be true that "if any
provide not for his own, and specially for those of
his own house. he hath denied the faith, and is
than infdel" then it is also true that it is
the type and outgrowth Of practical Christianity.
Life Insurance is in fact necessity of American
society. Our male population are emphatically
race Of producers. The fortunes of great major
ty of our families in the productive brain or
hand of the paternal head Every such life has a
yalue,-not merely a moral value weighed in
the scale Of social affection and family s-but
value which may be measured in money as pro-
ductive capital. 1t is to replace the loss of such
resource to the dependent members of the family
group, that Life Insurance interposes its aid; and
by doing it confers benefit not only on the
widow and orphan, but society at large. by pre-
venting their dependence on the charities of the
public, the breaking up Of the family relation and
the destruction of home. 1t is also probably
true that more than three-fourths Of all the pre-
miums received by the companies, are paid by per-
sons whose income is hardly more than enough for
the current wants Of life, and thus saved not
only to benefit the insured his dependents but to
increase the accumulated and productive capital Of
the country. Were it not for the motive and the
opportunity which this system furnishes, these
ugs would practically be lost to the family and to
the public.
No view of the system of Life Insurance is broad
enough which does not regard it as of the most
bencicent, not only in its relations to the indivd-
ual and the family, but also to society and the
state. Families the foundation of a well-or
dered society, and the welfare of families is the
welfare of the state. If the system not in itself
one of the noblest Of public charities. it is some-
thing better because it places its benefciaries above
the need of public charity. 1t deserves the foster
ing care of wise and liberal legislation. 1t should
be freed from all unnecessary burdens. Govern
ment should as tax its asylums and hospitals,
as seek to gain a revenue from the deposits which
foresight and affection have set apart for the pro-
lection Of thousands among the most helpless Of its
own citizens. A tax on Life Insurance is nothing
more nor less than a tax on widows and orphans"
Hon. A. w. PAINE, of Bangor, Examiner
of Banks and Insurance, followed Mr.. Chase,
defending in the strongest terms the bill rec
commended by himself, and which imposes
tax of two per cent. on all premiums paid for
eign companies. He said two questions pre-
tod s.lx let- han hnu
Department of Insurance which this bill es-
tablishes? He felt that there was great
unanimity of opinion in favor of such a de-
partment claiming that his opponents substan-
tally yielded this point. The I'd question
presenting itself was whether the bills now
before the Committee are of the proper char
acter. He stated that the bill drawn up by
himself cost him an immense amount of in
vestigation, research and labor: that he had
essayed to make the bill. in all its provisions,
as perfect as thought and labor could make it,
and that it is what is demanded. The other
bill which had been placed before the COM
mittee-and which for distinction he termed
the Portland bill,-was analysed by Mr..
Paine,-and the distinction between the two
bills defined. He said the Portland bill ex-
cludes the proposed tax; also practically all
connection of agents with the insurance de-
partment, and substantially all jurisdiction
over foreign marine companies. He saw
some good features in the Portland bill, es
pecially section 8, and part of section 8 ; other
portions of the bill are identical with that
presented by him. He liked the provision in
the Portland bill prohibiting mutual compan-
les doing business before they have secured
risks to the amount of 100000. The proyi-
sion requiring the companies to advertise their
business under the sanction of the law he dis
approved of as unwise, and would rather rely
on the annual Report of the Examiner, which
would give the standing and agents of all com.
panies authorized to do business in the State
and which at little expense might be general
" supplied to every town or school district.
That the FOX law" SO called is unjust in
some of its provisions, and he therefore
sought its repeal in his bill and a new provi-
sion in its place. The Portland bill keeps
alive this .odious" provision. He objected
to the retaliatory provision suggested by Mr..
Williams of Augusta for reasons given in his
last annual report.
Mr. Paine proceeded to speak of the tax
clause in his bill, and remarked that if he be-
leved it would have the effect of driving in
surance companies from the State he would
sooner part with his right arm than recon-
mend it. He spoke of the absolute neces-
sity of retaining the foreign insurance bust
ness in the State, and read from his first an
nual report his argument in favor thereof.
The companies should pay tax to aid in
support of the government all other
branches of business like them the insurance
business is engaged in from money making
motives, and for the mutual benefit of both
parties. Indeed said he, even more joy is
caused to the agent and company in receiving
the premium, than to the insured for his poll
CIV, coupled as it is with lifelong obligation
to pay continually accruing debt or prem
ium. In this respect it does not differ from
any other kind of business, and is in hardly
any respect more hazardous. Is the general
business of insurance profitable? he asked.
The business is immense in amount, and
everywhere exhibits an outward show OF
prosperity and even extravaganza. He read
from the reports of the insurance depart
ments of Massachusetts and New York, show
ing the great margin of profits over expenses.
and premiums over losses, rs compiled in his
second annual report. OF the $4,000 900
given by Mr.. Munger of Portland, as disburse-
mcnts of the companies for the last four years,
he showed that only 00,00000O went for
losses, while $l7,000,000 were paid for divi-
dends, and the balance went mainly for sal
aries of officers and commissions to agents,
all of which he held IS be as justly the objects