Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-02-03
HEARING ON THE INSURANCE
RTII

{
ly noticed by the press. Mr.. Paine said the
bill was substantially the one presented last
winter, and proceeded to explain its principal
features. 1t proposes to create department
of insurance, such as exists in other States.
This department, having an oversight of the
entire field Of operations, will render more
safe the business of insurance by keeping GU,
of the State bogus companies and irresponsi-
bic or unauthorized agents. Complaints come
from all parts of the State of imposition. II
this law is passed, any man may know what
companies are safe. Only authorized agents
of responsible companies will be granted GER
tifcates, which an applicant for insurance can
demand of the agent, and thus may be sure
that he is safe in his policy of insurance.
The Examiner will receive no pay except fees
to be paid by the companies. Provision is al
SO made for licensing insurance brokers who
may place risks with any company either in
or out of the State, who are authorized to do
business here. Provision is made for annual
returns of all companies doing business in the
State, showing all the facts pertaining to their
responsibility, which statements are to be in
corporated in his annual report to the Lcgis-
lature, that the people may be informed at
any time, of the standing and respons iblity of
any company authorized to take risks in the
State. Further provision is made for the ac-
countability of the companies to our State
laws, and for a remedy in case a resort is
necessary to legal means to collect policies.
Provision is made exempting life policies
from the claims of creditors during the life of
the assured Alusion was made TO the favor
able notices taken by people out of the State
of the efforts being made to establish the de-
partment in the State
Mr.. Paine then proceeded to the discussion
of the 18th section, providing for the taxation
Of two per cent on all premiums collected by
foreign insurance companies doing business
in this State. He based his advocacy of this
on the great principle that all who share in
the benefits of the government should share
also in its burdens, except in eases of meri-
torious exemption
The business was money making one and
ter. The business of insurance was then al
luded to and general statistics of the aggre-
gate of the several companies given, showing
in cases of fire and marine companies for the
year 1868 an aggregate of $40, 012 81 premi-
ums paid while the losses were S23, IA ,e0S,
or As per cent. In life companies aggregate
of cash income for same year $50 CPS, 3lG !;
losses paid, $40, 932 ,033, or Is per cent, be-
sides expenses For the same year list of
dividends was given of the several companies,
most successful course Of business. In Maine
the amount of premiums for fire and marine
received during the year was S649, 002, losses
$3.50, 906; in life, 5000, go premiums, and
Sl35, 1887 losses, making an aggregate of pre-
mums paid in Maine that year of 81 ,6lS, 253.
losses S415, S43, showing that Maine is of all
States the very safest and best field for insur
ance. The allegation that the large compa-
MES would withdraw from the State in case of
taxation, was secuted at by Mr.. Paine as too
absurd to need refutation. They could not
be thus driven from so good field. The fact
was farther shown that they do pay tax in
almost all the other leading States in several
Of which the companies already pay tax to
their own States on premiums collected in
Maine, which by their laws will be suspended
when the laws of Maine require the tax to be
paid here. He claimed that no exemption
from the common burden of taxation should
be granted to these companies from any par
tcular hazard attending the business, as in
this respect it is scarcely more hazardous
than other business engaged in by the commu-
nifty. Their ability to pay the tax asked for in
the bill is shown by the vast amount of accu-
mutations which some of these companies had
rolled up, amounting in the city of Hartford
alone to almost 500, 100000.
In closing, Mr.. Paine alluded to the large
number of circumstances from all parts of the
State which had been placed in the hands of
the committee, signed by men of the highest
responsibility and information. To illustrate
the manner in which these names were pro-
cured, he read circular which had been sent
out by the committee of underwriters in Port
land, in pursuance of which the remonstrances
had been gotten up, and also spoke of the rep
reservations which had been made by inter-
ested parties to procure signatures, all of
which he characterized as erroneous and in
many cases grossly exaggerated. He ven
tured the opinion that if these signers had
known the actual truth in reference to the
matter, not one disinterested person would
thus demonstrate against a tax which could so
justly and honestly place in the treasury of
the State from forty to fifty thousand dollars
annually.
The parties on the other side of the ques-
ton will probably have hearing before the
committee next week, in which case we shall
give an abstract of the proceedings.
The Presque Isle Sunrise has an article
giving the more noticeable products in certain
towns. The figures are very favorable to