Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-02-11

these circumstances, that no company should
be allowed to do business in Maine which is
prohibited by the laws of Massachusetts, and
New York where these valuations are made
| each year. Out of 100 life companies in the
United States, only 81 are allowed to do bust
ness in the State of New York.
The Examiner informs us that the life COM
panies received for premiums in Maine in
1868, 1868, 250.94, and paid in losses Sl35,-
937 70, showing as he would have you believe
that the balance was the profit of the COM
panies. He totally ignores and has suppressed
from his report all dividends paid to policy
holders in Maine. The total receipts of all
the companies doing business in Maine in
1868 was $55, 1875, s9s.90; losses paid, slO,-
1853, 93799; dividends paid to policy-holders,
which includes the amount of surrendered
policies purchased Sll, AT, 327.95. The bal
ance is the amount needed for reinsurance
and other liabilities. AS regards the New
York Life, which Mr.. Morrill, said he repre-
scented, the premiums received in Maine by
parties insured here in 1869 were S97, 49,
losses paid S6,lsG.0O; dividends paid to
policy-holders in Maine, 1927 ,622. 23. Does
Mr.. Paine propose to tax our dividends? If
the bill passes and the tax is levied it must be
deducted from the dividends paid to policy
holders. The Examiner says the percent
age of expenses to receipts of all the com
panies doing business in the State, is 1862.
He has included in the expenses all dividends
paid back to policy-holders. Mr.. Morrill,
quoted the true expenses of companies doing
business in Massachusetts,, from the report
that the total ratio of expenses to receipts OF
all the companies was 1920.
Mr.. Morrill, referred to the insinuatons of
the examiner as to the procuring Of the
numerous circumstances against section thir-
teen. Nearly every business man in Augusta
had signed the remonstrance, with a full
knowledge of the nature of the remonstrance.
Not solitary person has asked for this tax,
but he had before him the names of nearly
230O of the leading citizens of Maine opposed
to it.
The examiner stated in his remarks yester-
day that the companies statements as pub
lished in the newspapers, were ''false half Of
the time" He would challenge the gentle
man to put his hand on published statement
of the company which he represented for
the twenty-five years in which it had done
business, that is false. If he cannot, he de-
manded withdrawal of the charge as far as
that company is concerned. In reply to Mr..
Pane's assertion that the companies pay 40
or so per cent commission to agents. Mr..
Morrill, stated that the Mutual Life and New
York Life paid only one per cent. commission
for the collection of renewal premiums, with
the exception of few old contracts.
Mr.. Maxcy of Gardiner, spoke briefly of
the burdens which would be imposed on the
policy -holders of the State, in the event of
taxation. 1t was his experience that those
who obtained insurance on their lives were
persons of small means, who could ill afford
to pay the tax.
Mr.. A. J. Chase of Portland, then proceed
ed to discuss the general business of life in.
surance, producing very extensive. documen-
tary evidence to sustain the position which he
took. The workings of the various systems
Of insurance in the principal States of the
Union were carefully and ably examined, and
he entered into critical examination of Mr..
Paine's report. His principal argument was
that the business of life insurance should be
exempt from taxation on account of the bless
ings it confers upon society.
After the close of Mr. Chase's remarks,
the committee adjourned to this afternoon.