Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-02-19


| our legislature twice within five years, and
also, he believed, in 1860, and each time was
promptly and with general consent declared
10 be lnexpedient. The results of the last two
Efforts were so conclusive that Mr.. Paine
then Insurance Commissioner--in his report
for 1871 says: "The distinct expression Of
the last two sessions not to tax foreign conf
panles doing business here has been regarded
IS decisive of that question, and also as indi-
eating that the system was not established for
purposes Of revenue, but rather as 2 protec-
ton Of the people"
Those who are familiar WIKI the thorough
ard candid manner in which in those two
years the claims and arguments on both sides
were pressed, and the marked unaninity with
which The legislature, the citizens OF the State
and TIE press sustained the conclusions then
arrived at by the Committees having the mat
ter m hand, are led to inquire why this pro-
position IS again urged, especially by one who
NOT long since, as Insurance Commissioner,
stated that the action oftwo previous legisla-
lures "ha3 been regarded as decisive CT the
question"
This being so, it is fair to ask if there has
been such change in the conditions of fire
insurance business in this State as 20 warrant
reversal Of that decision. If not, the argu-
ments and reasons which had weight then
have equal value now, and should lead to like
conclusions. 1t is worthy Of notice that not
single petition from the tax payers or in
surers Of the State is presented in favor of
this measure, and we mag fairly presume that
it is not demanded or desired by those whose
interests are involved and whose practical
action in the premises should be more potent
than any theory.
The taxing OF gross premiums of fire insur-
ance companies is wrong in principle and un-
just in lis results; for it virtually levies tax
on the very large proportion Of tie receipts
which returned 10 the citizens OF the State
in loss claims. This would be n more rigid
exaction than that demanded by the Internal
Revenue requirements in relation to incomes
of individuals and rporations-now happily
among the things that were. It cannot DC d.
Tended on the basis of justice or equity. No
argument or sound reasoning can ever lead
20 the reSaI; that money paid for losses in
State, is proper or just subject for taxation;
and Tie day is net far distant when States now
holding that system of taxation, will substi-
tutc for it another more righteous and eQuita-
bic. If insurance companies are 10 be taxed
for the privilege Of doing business in State,
it should be only when it has been demon-
strated 10 be privilege. and the value of that
privilege can be determined by the results of
the business, not for one year, or two, but for
term. Now, what is true as to the State Of
Maine? What are the conditions here? What
is the value of the privilege here?
First, Maine has to-day only ore stock in
surance company (and that fire and marine)
takiRg fire risks. Every stock fire insurance
company ever organized ia Maine has failed.
Il is almost an absolute inlpossibilily to Sc
cure the investment Of dollar in the business
of fire insurance in this State. This is a most
practical determination of the value of this
field BY cur own citizens.
Our former Insurance Commissioner, with
a laudabie desire to magnify his Office" tax
ing the statistics of two, three, or FIVE years
has persistently claimed that Maine is
profitable field for Are Insurance. while the
companies which have been doing business
here for ten, twenty, fifty and even sixty
years, as persistently claim that the opposite
is true, and furnish official statistics to prove
It, Now, TO which testimony is the greatest
weight to be given? In Mr.. Palne's official
statements as to what FIRE insurance compaa-
les ''have carried out Of the State he neces-
sarily has confined his statistics to very
limited period, and he avoids mentioning the
expenses incident to the business and materi-
ally changing its results, often giving absolute
loss instead Of apparent profit In his re-
marks yesterday he said that sit is no use 10
argue" "Maine is a profitable field" ''tut
To show that Maine is not profitable field
for Insurance, Mr.. Loring gave a list OF ten
companies, well known throughout the State,
and iransacting very large proportion of the
fire insurance in Maine, that have been doing
business here from to co years, making an
average of % l-2 years, the losses and oX-
penses of which exceed the premiums re-
ceiyed By 1920, 92S.5s. These figures lie
considered formed a solid and conclusive
argument why no tax should be levied for a
privilege of such doubtful value. Mr.. Lor-
ing continued at length, Occupying nearly an
hour.
Mr.. Paine made some explanations in re-
gard to the expenses of the companies. There
is great deception used in stating the expen-
ses.
J. NJ. Palmer, Esq, of Portland, appeared
for the life companies. There is no resem-
blance between the fire and life business.
Life insurance is benevolent institution.
purely, as much so as the savings banks when
they originally started. 1t combines savings
and insurance. The savings banks have be-
come corrupt, but not so the life insurance.
The large proportion of the people who get
Insured are those who can least afford to pay
the premiums. I, makes a mans blood chill
to think OF taxing this money of the widows
and orphans. He showed in a very clear
A taxation would result in Withdrawing bus
mess from the State nearly hundred fold.
Mr.. Paine made few closing remarks,
taking up the several topics. In the mat
ter OF ice, he alone was responsible for the
recommendations. From the best intorma-
ton he could get from disinterested persons,
he had ventured to make the recommended
ton; from the information that had since
been given he thought that perhaps the sug-
gestions were premature, and had no desire
to press the matter. Indeed, since learning
the facts in the case, he would withdraw his
proposition to tax ice. Iewss here asking for
nothing in his private capacity, but merely as
an officer. All he desired was a fair presen-
tation of facts on all the subjects. In regard
to railroads he sand they would help to pay
the expenses Of the government that protects
them. La no other case is the question of
profits raised why property should not be
taxed. He showed the desirability OF impos-
ing State tax instead of municipal tax.
lie spoke of the magnificent property 10
buildings, etc, OF insurance companies.
There are evidences of success ION every
hand. Their surroundings show this. He
regarded tax on insurance companies as
So u, L. aE,,