Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1870-02-14

taxable by the State. Mr. Loring said,-I do
not speak too strongly when say that sound
insurance is the handmaid of prosperity and
commercial growth. How great are the trans
actions with i'll How limited they would be
without it Aside from all losses paid, Maine
is large debtor to foreign insurance COM
panies for much of her taxable property. If
correct estimate could be obtained of what
wealth and enterprise have accrued to the
State, directly or indirectly, through the fos-
tering protection of these foreign insurance
companies, and then on the other hand Of
what would have been the result had the
State been obliged to depend solely on its own
limited insurance capital we should have no
need to appear before you, protesting against
a tax. If Maine had TO- 20 or 80 insurance
companies Of its own, ready and able to alb
sorb its own business and to reach out their
hands for the business of other States, the
case would be altogether different. What is
the spectacle which we presen. ?-$2OO,O 0O,-
900 of property to be insured; and what
have we to do it with? But five small COM
panies-none of them doing exclusively a
fire business The capital which they repre-
sent il in the neighborhood of $500 oOO,-
and yet it is proposed to tax the foreign in
surance companies! Before we follow the
lead of those States which force such taxation;
let us wait for our own citizens to invest their
capital in the hazards of the business in which
the citizens of those States have invested
theirs, that we may prevent the exhibition of
a spectacle so absurd as that contained in the
provision taxing others for furnishing a ben
eft which we want and must have, but which
we are unable or unwilling to furnish from our
own resources.
In view Of these facts, I believe the fair
name Of our State for discreet legisla-
ton, would suffer from the criticism of those
who know from larger and longer exper-
ence than we, the origin of, and the time and
necessity fol-, taxing foreign insurance capital.
Is it, said Mr. Loring, to such legislation as
that we must look for the bene fit of the State
Why do we say to new corporations, "If you
will come and locate among us you shall be ex
empt from taxation for five or ten years." Is it
not to invite foreign capital to develop our
water powers and other resources? Why
then criminate against foreign insurance
companies, which leave the capital of the
State free for other less hazardous investment
within its own limits, developing its own re-
sources? In summing up his objections to
Mr.. Paine's bill, Mr.. Loring said that several
of its provisions place too large and exclusive
powers in the hands of the Examiner, even
though he be SO upright, intelligent and cour-
tious as Mr.. Paine. tax of two per cent.
on premiums received by foreign insurance
companies doing business in this State, he
declared to be ungenerous, in view of our dim
inutive amount of insurance capital and the
disastrous results of the business, reaching
| over long term Of years; showing loss to
twenty leading companies, carrying three
| fourths of the insurance of the State, of near
| ly 81, 900 900 over premiums paid He said
| the tax is uncalled for-only the Examiner
asking for 1.-THE people opposing it. Such
tax must fall on the people, for the companies
| cannot and will not do business at a loss and
| then be taxed for it without retaliatng. No
| sane man would do otherwise. 1t is inexpe-
| dent and inconsistent ;-inexpedient because
| the interests of the State and the people are
| not to be promoted thereby, but rather him
| dered; and inconsistent because in the matter
| of insurance, we, as a State, are in a position
| (unlike many where taxation is enforced) re-
quiring US to invite instead of repelling insur-
ance capital.
In closing, the speaker said he merely
| wished to ask the committee, that in the sum-
ming up of the merits of this matter they would
appreciate the great interests involved, and
would give them that discreet considera-
ton which characteristics intelligent business
men, in the management of their own impor-
| tant affairs.
| Mr.. Lorings remarks were listened to with
marked attention, and seemed to have much
| weight with his auditors.