Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-02-19
Taxation.
ComIinuatiou of he Hearins: the Re
port OF The Tax Commissioner.

|
eoh'tn"a''oh Oh 'he hea1in'. on 'hs ne
| P"Ts OF tne lax eoihi'iss'oheH'
The hearing on the report of the special
| Tax Co,nr;saione- wa continued n ,ba
IT
| 'A@i "a '"e iiouse u "et'ieseH'a'Nes Ses'e'-
| day afternoon, the time beng given up 10 the
| examination Of tie insurance feature Of The
| ro,o-+
|
LON 'osh"a -'9t' insurance Noih'I!<sIoh-
| er OF tie State, was the first speaker. He
said that the question of taxation is a delicate
| one from which many shrink. and very natur-
| ally. He presented in brief what Maine has
| to RELY upon in home companies. so that the
| committee NAV iudee how much we denend
upon companies outside Of the State There
are SO mutual fire companies in the State, %
of which are town companies; three are
| purely marine COMPANIES, and one stock
! companv. Tire stock Of these comDanies i.
| REPRESENTED by $500, 900. One COMPANY, re-
| Gently formed, failed to get its stock taken.
He smoke of the condition Of several of these
| COMPANIES, showing the small reliance that
NAV be placed upon our own State cornpan-
les. He read from the reports of Mr.. Paine.
establishing the same fact. There are 10
foreign fire companies doing business in the
State; So 600 600, worth Of risks were
/ " +.
Paine's figures have been gathered since the
Portland, Augusta and Belfast fires. Go back
of the time covered in Mr.. Paines report.
and we will find that ia the great Portland
fire the foreign companies paid $3.50, coo in
| losses-S592, 444 II more than was received
| in premiuns by all these companies during
| the five wears Of MIR. Paine's connection with
the insurance department. Paid ont for Bel.
| fast fire, Sl97 coo; Augusta fire, $50 600
| The domestic companies lost in the Portland
fire $50, coo, and it ruined nearly all of them
| Premiums received by foreign companies in
this State in 1873, SS4s, 623.7 10. Deduc,i8g 30
per cent. for expense from premiums received
| leaves S594, 0SG59. Losses paid by these
companies during same time, $3.50. $40. 10.
He then read the premiums received and the
losses of the principal companies, in detail.
showing that the companies have TO nav a
premium for the high privilege of doing bust
ness in the State of Maine. The compapies
have been honorable in their business and
have paid their losses promptly. A tax on
gross receipts would be extremely oppressive.
lie read extracts from Mr. Paine's report
wherein the author assumed that the question
of non-taxation had apparently been settled.
He had invited companies to come to the
State without taxes or odious fees. Even in
his report as Tax Commissioner he assumes
that the quetion has been settled. Should
the tax be levied, it would come out Of the
policy holders in tho end. The larger part of
The policy holders in the life companies are
poor men. To these the tax would be very
oppressive.
The speaker claimed that insurance was
business and not property. and should not be
taxed as such. The Governor had in his an
nual address referred TO the resources and
products of the State, of which every ci,iz n
may be proud. If the receipts of the insur.
lance companies are to be taxed, why not
tax these products-whv not require every
trader and manufacturer to keen an account
of all their sales, and pay tax to the State ?