, 1876-02-18
INSURANCE..
Considering tho Proposition TO
lax tho Foreign Companies.
Tho President Of tho Board Of Under
writer's Protests.

AID. Cullsrton Explains tint tic City
Needs the Money.
Tic now city chastor provides for tax On Tho
promiums Of foreign insurance co1npanses doing
buainsss In eiuss working u1l1cr that charter.
At regular meeting of tho Common Council
held Feb. a, 1870, tho following resolution Was
introduced By AID. Uullcrton, Of tho Seventh
Ward.
to support Fire Department, at annual cost of
.bont to rrotccs tho interests Of ths wealthy
to.s,Gn insurance companies In thlH city; and.
aseo comnsnts. soua b. - copesd M 10 p.y ther a.t
rfoporson of Tho city ta1cs or ba compelled tn my
Firo Department until tho adoption Of lilo present
WnExEss, sec. Ito Of ths s..d cha.tor provides that
Treasury the of "a upou the sioo Of their not r.
cepta, ths saoant Of such roceipfs to 10 randorol
evory ax mouths under oath 10 tha Comptroller, un-
1nE s1 months; and.
70 comply with this law thus FIR, when they a'tould
hare douo 80 on tho LIT day OF January aat therefore
10 II
Jatso:rtd, Th.. sreosl committee Of lso be sp..
pointed BY Lbs Chair whoas duty it shall be TO that
tue G5oT'sm' Of s,d .eeton Of the d:y chsrter are
complied with by anll 3nsur4tco companies.
msttse to consider tue resolution, and tho preHt-
deut responded by appointing AID. Culerton.
Was1en. O'trien, T. @. Clarke, and Hoath. Yes-
&orday tho Committee met in the City Clerks
ot1oe, Aid. Cullertou in the chair, who proceeded
to read the above resolution and also tue heo-
tion roiorrcd to in tho City Charter. Hothon re-
marked that he saw no alternative hut to enforoo
tho law, ~ Il Was 50 plain AZ to be ibdiHputallo.
AID. o'Drion inquired II no lad consulted tho
Law pepartment Ia rotation to ita legality.
AID Gullorton replied that he had, aud that
they woro Of tho same opinion aa himself.
Comptroller Unyes was. le said, anxious to aid
tho Committee in tho andearo1h to do Justice to
no seriouB = matter, but that fllnctlonary Ind
been compelled to rotite holno on account OF Ill
1,css. It was his ntividual opinion that tho ID
tetcstea iusul ance agonts in this city ought to
bn
OFFICIALLY NOTIFIED
Of the intended actIou, and ho moved the fol-
loving:
H4,oEetd Ths+ the Ctr cltrlt b and hs = harchy
directed to csuse to be ,rnah and delivered 70 each
of s Insurance companies doing business sn this city,
that not incorporated unfcr tho lAws Of la asae,
COPY Of soc. liO Of thn present city charter, with
rtqnest flint they comply within TIN days ID Tho
Gnsc'nsaa1ss Of ssa 'ec0n fer tho hs'f year ending
AID. Warren moved tho passage Of thn roaolu.
tion.
AID. Clarke desircd to hear aome Of the insur-
apco men present. aud
GEORGE Z. CLARKE, ESQ.,.
representing !he underwriters. ret1ily respond
ed. 8rch law. he said, rns first passcd about
1913 nj o tn0fe protective measure for the old
Fire Department.. then run on tue independent
system, and wAs neyer intendel for later days.
However,. the section In tho present charter was
almost identical with 1t. It waa discrimination
agaiaet foreign companies, and gave homo ones
M unluo advantage in extending low rates. In
Ills opinion It waa poor tirns to make such y
diao1ininatiou- II thoro WIS city in the Unfon
that uesded foraign capital that city was Cbica-
GO; and II auy busness needed foreign
capital mora than another, it wns the insurance
cond be started IN tllih city NTH solid capt. al
of 5000 0002 Wore there fnoro than 100 men
who could contribute moro thAu Sl0, 900 ach to
auoh enterprises Ho thought there wore not
and ouch Was tho case with every other city
whose accumulation Of trado was 30 far IN sd-
v1noo OF Its accumulation Of capital. All tho in
anauuo companies had lost heavily by tho re-
cont heavy fires. The homo companies failed
utterly, and many foreign ones were shattered.
but nearly alt that was gained By Chicago was
from foreign companies, one company none, for
$50, ,n00.
Anotl.or point 10 be made aga,nst tho cnsoroo-
mont Of tue law WAS tho fact that ali Huoh taxes
went into tho premium8, and, instead OF tho
burden falling upon tie wealthy Btockholders. 1t
foil directly Upon the parties iuauring. The
companles, and the one now in :orce
required all insurance companies to ltst proml-
unis ~ personal properly. and on this total to
make returns and submit to taxhtiop, thus plnc-
ing them on an equal footing With every other
law making It obligatory upon ever7 insurance
comnany doing business In this o,ty to pay tux
Of II per cont for the maintenance Of tho Fire
Patrol, Ap institution which had through it's
oftlcieuy come to be regarded ~ = neceaBlty. Al
AID. Oullerton had stated, be agroed that tic
law was 30 plain On tho sthtuse book as TO be
tncxorab'e. bat be would suggest that nothing
bo done with It, and Il bo allowed to remain
upon the statutes q dead letter. Timoa wero
particularly hhtd for 1nBuranoe ulen. Al Into ~
lnst fall there waa reduction Of about 391SS
per cent Ia their rates. aud III many instances II
Lad been oven groater.
Col. J. Il James gave few figures
as to tho amount Of not receipts. rAo
total Ieceip!s from this city annually woro about
81, sou, 600, and out Of this only about a90o0G0
belouged 10 local companies. Flo followed in
tho sasne llno Of thought ~ M1. o!ashe.
AID. CuLLERToN
replied TINT the City Of Chicago was In + much
wussa condition than any ipaurance compxny,
for tho latter could collect premnmn before In
surtng, while ths city could not collect but :
might ba considered a little Cmnmuuiatio in his
ideas, he really bahoved that tho Fire Depart
at.cnt ought to bo Tun BY tho insurance. cotnps-
ulcs, aud TO this end tho citv ought to mako
out 1utt-cIRim doud to thnn OF all tho property
owned in als Department anu turn 1t over to
tho tnsurAnoe. tuen for aafa-kecpiug. At present
the amount that foreign inAurnnco companies
pad IN laxes was Vosy nn1sll indeed. Ho thought
tho law just one, and II it wora not enforced
lie would not hesitate 70 Say that tho aity officers
had been dsrolics iu thoir duty.
Mr. Ulaske again cited tho fkcs that after the
great are foreign cspital was tho ou.y thing .hat
rebuilt md austasncd ths city.
AID. Warren also put In good word tor tia
conduct Of tha foreign Insurance companies dur
ing those trying titnoa.
Mr. Glarkc citod the condition OF tho City OF