The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-05-01
Taxing Insurance CAPITAL.

There are few departments OF legislation
in which there is more chance for folly than
in levying taxes; but among the few in
which our lawmakers perpetrate even more
hideous blunders are the annual crop OF
measures respecting insurance companies.
This year the gentlemen at Albany have
doubled their probabilities OF dong stupid
thing by proposing to lcgislate on taxes
and insurance together. Usually, it is the
life insurance companies Oh whom the rural
lawgiver, fresh from the study OF the sub
ject that is afforded by the conversation OF
some insurance "agcnt," puts his reform
ing paw. OF late years the fashion Of this
sort of measures has generally tended to-
ward fixing by some caSt-iron rule the
amount that shall be paid to policy-holder
when he backs ont OF his bargain with n
comrlny. There IRE one or two OF such
bills now on hand at Albany, but the bust
ness in thcIn is not so tl0,lrishins as it used
to be before the companies combined in II
Life Insurance Chamber to protect them
selves against this class OF legislation.
This wear il is the fire insurance compa-
mics thnt are under fire. They have, too, a
united organization, and its president Is
struggling with the foe at Albany. But they
do not stand by one another as the life in
tu tliIa iiShSS otNi -
more vulnerable target In another column
we present IN underwriters view OF the
measures now urged by Mcssrs. Hammond
and Starbuck. The Hammond bill, how
ever. after IN easy success in the Senate, has
met sudden check in an adverse report to
the Assembly from the Committee on Ways
and Means. The most important feature
OF these bills is the proposition to tax
insurance capital. Our correspondent shows
that there is good foundation for the rumor
that the companies may, II taxed rs pro-
posed, withdraw from this city and re0r-
raniZe under New Jersey laws; though so
extreme a step does appear Mt lrst slSht as
almost out of the question. 1t is clear that
great misapprehension as to the profits OF
fire insurance is possible to hasty inVestl-
pator, who only takes into account the divi-
dends Of very recent years. Taken rs a
whole. investments in fire insurance stock
in this country are shown not to have PAID
simple interest to the capitalist. Whether UNI
der such circumstances this form OF property
should be subjected to further taxation is,
to saw the least Of it, question not to be
settled by guesswork or in haste. One OF
two consequences (either OF them deplora-
blel il likely to result from such tax. Ii
in the long run the owners OF capital IN
vested in insurance have to pay the tax the
tendency will be to reduce the amount oil
available assets which companies keep on
hand to pay their losses. BY this means the
security OF insurance will be diminished. II,
on the other hand, it is found practicable
to squeeze the tax out OF insurers by an IN
crease In some form or other OF the rates
they are paying-and this seems to be the
more likely result-the new impost Will re
added to the burdens of general business.
In either event the mercantile community nj
large must suffer, and it is for them to say
whether the proposed measures meet their
approval. Our merchants will make grave
mistake if they suppose this to be matter
which only concerns the holders OF lnsu-
rance stock.-Nelp York Tribune, 2Sh.