New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-04-28
BILLS FOR TdXJNG INSURANCE.

EFFECT OF THE MEASURES NOW TENDING AT ALBANY
-AREMovAL OF THE COMPANIES TO NE"-JEissEf
WOULD FvADE THE TAx-LossEs by INVEST
MENT IN INSURANCE CAPITAL COMPANIES
SHOULD BE ENCOURAGED TO STRENGTHEN
THEMSELVES.
To the Editor Of The Trtbune.
SIR 1t is quite certain that no concerted
action has been taken by the NewYork insurance com
pan,es in respect removal 10 NewJersey or TO any
other State for the purpose of escaping the onerous ana
unjust taxation which it proposed tO nct upon them
by Albany legislation but it is equally certain tat inc
possibility of seeking such relief has been ente tanned py
some Them and that the attention OF others has peeh
drawn to tho matter by recent publications. III Is
safe to say that general movement VIII
take place unless it shall plainly appear that the
interest OF stockholders and policy demands
radical q measure. With this preliminary, permit me
call attention the letter of your Albany corcp"n
dent published on Monday morning From tnat u aP-
pears evident that neither Superintendent smyth nor
Senator Hammond fully comprehcnds the facts in the
ease The superintendent speaks OF the starbuck bl as
being much worse than Senator Hammonds bill This is
only in that il embraces more extended CLASS OF
companies in its provisions. IL MI StarbucKs measure
becomes law, the companies local to the state
OF New-York will be compelled TO find refuge
elsewhere or to suffer under severe and unjust
discrimination against themselves as compared with the
companies OF other states doing business here But
exactly tire hardship which all companies will suf
fer under this bill, is imposed by Senator HainInonds
measure upon all New-York fire and marine insurance
companies having stock capitals They are to he taxed
upon the Government bonds they hold. and to be
taxed upon the stocks OF other State corporations hcid
by them, and upon which they have as stockholders
already paid the tax
SUPERINTENDENT Smith in saying that the raid upon
the companies is very wrongful one and they would be
right consider the enactment OF the bill into law as
very severe blow correct but he when he says
but going NewJersey would not help them in any
respect" NewJersey docs not compel its companies to
pay taxes upon their United States bonds does 1t
compel the ayment OF double tax npon the bank, rail
road. trust company and other stocks they hod, All
which senator Hammond's bill does compel BESIDES
these appears 10y recent laws Of NewJersey that II may
De provided by conditions agreed upon Mt the time oil
making loans bonds and mort i'll that state that
the tax upon such loans shall be paid by the borrower
This course will tend to enable Jerseymcn to borrow
money at low Of interest, well as to make Their
State attractive to capitalists and corporations
From what your correspondent says respecting Senator
Hammonds statements, 1t appears that the Senator mas
altogether misunderstood the statistics OF Mr. Oakley
President Of the National Board OF Underwriters lie
saws that Mr. Oakley showed that the companies had dis
trbuted Is per cent dividends 10 their stockholders IN
1874 Would that The Senator's inference that TINS rep
resented all there ia TO be said upon the statement were
Just! Then would many depleted bank account ne
largely sweed aud perhaps even the dead companies
to companies living, and to their capitals as they
then stood But 81 companies died in the Boston fire,
6S died the Chicago fire. and larger numbers Died In
the fires OF New-YOrk in 1885 and lc10, IN Portland
Troy Pittsburgh ST. Louis, aad in other Places Besides
the deatroil there is the list OF wounded large pro
portion OF the companies living III ls14 had been ODS'
after great fires and large losses to great sums to
make their CAPITALS whole; varying from 40 10 70
per cent Of their capitals. One company OF this city
called In 81 100000 after tie Chicago fire, ana
waited without any dividends for weary
time airer the Boston fire to repair its damages
another company called IN TlJoOGo on capt., o.
500 O,;6: another having capital OF 81 100000 paid
CUT one-af Of That CAPITAL and, tired OF such sacihces
pany represented by Mr. oakley has three times suffered
very severey-Once 10 the extent OF It's entire capital
ccntage upOn II. These samples SHOW, what
rs ne cent means. The comIanes would gpoI'
the past Senator Hammond docs, II me! coui1; bal
unfOrunst ely fOi them, they see IN te l5 per cent?
very sc2nty per cent upon what their Investments IN
fl insurance stock have really been. Tue INSURANCE
compaacs do not hold Government; bonds nd the stock
OF Incorporated companies because they MAKE money
Of then but because the Interest OF those Wo tc
insure IL best promoted by doing so. Loans Of,
bond ami mortgage cannot DE rcadN mine u
and In 1aany other stocks be changed into
money at days notice and THIS may AT any moment "
Senator uinonds BIZ becomes a law, The companies
beisr ie slatiye sense prevails NGt year passes
without introduction OF such crude and unwi.e
legislation at Albany the most oi u probably noi
ignorance OF present nut some Of IL IRON eS- eAc7
able mot re- The business Of fire insurance from
has been done at lose. That is, It has not tak.n
together, returned 10 stockholders INC interest they
would have received If the amount invested in ii had
been oht upon bonds and mortgages Tie Interest Oh
policy -icltcrs requires that the companies gro"
meet the saster sure TO oycrlake them whether New
York State with vast number OF legislators Inc Inos
70 promote such results by udicious legislation seems
now moro than ever doubtful. FIaE INSURANCE