Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-02-10
HEARING ON INSURANCE.

Hc JOliib stnhuAhS Va thS LSSlS~
lature on Mercantile Affairs and Insurance,
gave audience yesterday afternoon to gentle
men DESTROYS Of presenting their views con-
corning the proposition recommended by the
Examiner of Banks and Insurance, to tax to
a small extent those insurance companies
chartered outside of the State that do business
within the State. The hearing was given in
the Representatives. Hall, owing to the num-
Der of gentlemen in attendance.
Mr.. Paine of Bangor, Examiner of Banks
and Insurance, opened the discussion, stating
that his object was to see an Insurance De-
partment established, through which the rights
of insured parties might be more effectually
secured. He cited legislation in other States,
and quoted from Insurance publications, in
support Of the propriety of this State looking
more to the security OF the insured, and re-
quiring trivial tax on premiums from the
foreign companies. He explained the bill now
before the Legislature, which was drawn up
by himself, and argued that its provisions, if
it becomes a law, would prove highly salutary
and satisfactory. He held that it was wholly
proper as well as desirable that the foreign
That it is no more improper, either as prin-
ciplc or expediency, to compel them to pay
such tax, than it is to compel manufacturers
and others to pay taxes on goods He hoped that
the bill recommended, would become q law and
an Insurance Department founded, assured
that by its supervisory character, great bene-
fit would innure to the State, and injustice
done to no company. Mr.. Paine's remarks
comprised substantially the points made by
him before the same committee last week, and
which were reported at length in this paper.
Hon. J. H. Drummond of Portland, said
that the people of his city had been forced by
their experience to give good deal of atten
ton to the subject of insurance. He found
good features both in Mr.. Paine's bill and the
one recently introduced. The question arises,
is it best to discourage people from nsuring?
Next, what are the facilities for insuring?
The small mutual companies cannot be count
is insurable property to the amount of between
500, 600, 600 and $500, 900, 600. We must
necessarily depend upon foreign companies
to do this business. Go into all the large
towns and you will find this to be the fact.
Thought the State did not need the new de-
partment asked for. We can derive our in
formation of the standing of companies with
which we do business from the reports of other
States. He did not object to the Office of Ex-
aminer; would have him paid by salary in
stead of by fees. He then proceeded to ex-
anime in detail both bills. The provision in
regard to the Examiner having power to
examine papers Of agents. is great wrong;
it is an infringement upon the spirit if not the
letter of the constitution. The Examiner is
to be granted the same power that is lodged
in the courts. He would not risk such
power in the hands of any one man. Would
allow Examiner power to suspend companies
temporarily in their operations, but not have
full power to close up their affairs. He be-
lieved that the main duty of the Examiner
should be to give accurate information as to
the standing of companies, and let the people
put their property in the companies they pre-
fer. If certain provisions of the bill proposed
by Mr.. Paine becomes law, it will complete
y cut off the marine insurance business of
Portland. No one can effect an insurance
through an agent, and must attend to the mat
ter himself or go uninsured There is no
propriety or justice in this.
He then proceeded to give his reasons for
opposing the taxation Of insurance companies.
1t will act as a encouragement to insurers,
and the tax will come from the pockets of the
people. Is there duty levied, the consumer
must pay it, is there tax imposed, the con-
sumner must pay it. Although Massachusetts,
has received revenue from this source, it
las come from the people, and we in Maine
cannot afford it. Massachusetts, raises from
taxes on premiums paid in Maine about $1,000.
1t is no more than justice that some law
should reach this case, and divert the tax to
our own treasury. To this extent he believed
in taxation. The system is wrong in itself,
but of two evils he would choose the least.
Mr.. Munger OF Portland, then claimed the
attention of the committee in lengthy argu-
ment against the bill of Mr.. Paine. He said
that this was the second time the bill had been
before the committee. Last year the commit
tee, after due consideration, were satisfied to
refer it to the present Legislature. The great
need of this State is foreign capital for reli-
ance and safety in the insurance business.
By statistics it appears that we have in this
State about $500, 0oO, 900 worth of property
which must be insured by companies or by
the people themselves. We have no home
companies to insure this vast amount of
property. In Maine we have about SIS ,0O0,-
600 invested in vessels and their cargoes.
Our home capital is not adequate to insure
this. lie referred to the various insurance
companies that had been Incorporated in the
State. People that had trusted these COM
panies were the sufferers. They had started
well but in the day of trial had been found
wanting. We have not now a single dollar
of capital invested in such companies. Why
is this2 Why don't the people of Maine put
their money into insurance companies? They