New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-04
TAXATION or INSURANCE COMPANIES

THE PROPOSED LAW NOT NEW PRINCIPLE IN
STATE LEGISLATION.
To the gdftOr Of The FrttNHe.
SIR: TIE TRrBCNE, usually so well informed,
msapprehends think, the provisions Of the bill passed
Friday Lost In tho Assembly providing for the collcc
ton OF assessed against fire, fe and marine IN
surancc companies. =.
1t has been the Of this state for than quarter
Of century that the capital Of insurance eomponies
shall b. taxed The bill nauguraes new principle In
tbs respect The statute provides that all moncycd or
stock corporations deriving income or profit from
thcir capital otherwise shall be liable 10 taxation
their capital tle 1, Chap 49, First Part of the Re
vsed statute) There trouble in collecting taxes
assessed the capital Of insurance and other moneyed
corporations before the but since the large issue Of
Government bonds exempt from taxation. the capital
stock ~ bani Insurance. tust companies, &C., has been
invested in these bonds The result Is that while the
companies have largely prOed ny the change they have
escaped taxation also.
The TRIBUNE Of the Odd ult contained addrrs. de
hvered by President Oakley OF the Howard Insurance
Company before the National Board of Fire Under
writer's wherein he says:
The business OF 1874 as is well known TO ALL has not
OF announcement 10 either merchants
from whom We derive 80 large share OF our patronage
while the Agricultural has been barely compensated Tor
his outlay for although the crops have been abundant
Lack OF market and low prices have resulted IA put MOD
crate profits then. again. had 10 contend with large
shnkage IN the value or real properly - compared Win
former years. Under siIrar circumstances heretofore
have had hook for diminished profits TO the capital
employed ia fire. insurance We find this year, as VIII be
increase in the dividends decrease III the
losses an increase in the expenses and an increase IN
tho assets held by the companies the capital
employed for the year was S53Oj2,l9O, an in
crease $7l5l24 1873 and IN o! any year
comprised in the tables The dividends OF the year
this capital averaged l2'aoO per cent Hew-YorA state
companies making 10000 yer cent; other state com
p,uies 10000 cent As compared with s73 IL shows
tc large gain VI $500 per cent kew-Iork State COM
pnics gaining 3o per cent and other state companies
per cent While the average Of dividends for the 10
years l0oIoo per cent per annum against lO+t0o per
tue average of the ID years. gain Of 1900 VI
Ii years amounts to 81 ,62l 4S3 or an excess Of
S4423I O5 beyond legal interest on the capital stock.
When is considered that the Chicago and Boston fires
occurred within DC period here Indicated and such large
returns being made 10 stockholders, there is little dill
entity IN arriving at the conclusion that insurance is
reasonably profitable. Again the heavy expenditures by
all the Large cities and villages for the maintenance OF
efficient department. greatly for the benefit of fire
Insurance companies Why should they not contribute
their quota tighten the geneis burden Of taxation
The proposed legislation simply accs insurance capital
the footing bank capital invested IN the
way and provides an Identical mode Of collection.
Foreign insurance companies pay two per cent on their
premiums to the e departments OF the cities and Villages
In which such premiums received, well as
other largo exactions 10 support the Insurance Depart
Of the state, in all amounting TO about cent
the gross receipts Of such companies. am ut loss to
comprehend how proposition providing for the e0llec
ton OF taxes bch the law imposed when most Of these
companies organized be denominated de-
structive legislation" JUsTICE.
Albany, May 3, 1875.