New-York tribune., 1876-04-24
TAXATION OF INSURANCE COMPAYIEs

REPORT THAT CT COMPANIES WILL REMOVE IN
NEwJERsEY IP TIE BILL BECOMES A LAW
THE STORY REGARDED AS DESIGNED To IN.
FLUENCE LEGISLATION.
lFBoA REGULAR CORRESPONDENT THE rEnusr
ALBANY, April 22.-The report of a proposed
exodus OF the Insurance companies Of NewYort to New
Jersey. in order tho payment of taxation in.
yolved In Senator Hammond's bill which passed the ss,
ste recently, Is received here with general dersiop n
is considered, by Mr. smyth acting Superintendent,
OF Insurance, very palpsble Affect legislation
The raid made upon the companies, ho says Is a verv
wrongful one, and they would DO right 70 consider ths
enactment Of tho bill into low very severe blow.
but going to New-Jersoy would not help them In anv
respect. In that State they would be uab.
TO the regular 2 per cent fire tax, and womb
fall at into the tax of per cent uoop
gross receipts now demanded by New-York State from
all foreign companies They would, besdes provoke an
aggressive spirit in NewYork which might result IN IN,
establishment OF home offices, and possibly seu,.
tho election OF Legislature irmical to crush them
with taxation than the present bill proposes TIA
passage Of the bill In one house Is BY indicative
OF its safe passage through tho other through ths
Governors hands, and it stands low the list OF Gen.
eral Orders that cannot be reached for long time yet
Senator Sarbucks bill, said Mr. smyth "for the ju,,
assessment OF insurance companies" is much more
sweeping measure, far the depletion aud Grip
in everything that may he taxed and in one cloudy
clause provides IN the OF mutual companies tU thu
taxation Of United States bonds The companies seem 10
have expended their indignation upon the passage Of the
Hammond bill, while they do not appear to have been
aware OF the presence Of this greater danger.
Senator Hammond, who introduced the bill says this
method Of trying TO influence legislation IA very ride.
uous. Tho com panies would Instantly fall into the diff
GUILTY which they profess to be fleeing from and which
they have evaded for years by the OF legislative
influence. AS foreign companies they would at BE-
required to pay tax u this state OF per cent their
gross receipts which they avoid, besides their quota
for tho support OF the Insurance Department As to the
statement that they Will be taxed out Of exist
enco by this bill, Mr.. Oakley, the President Of
the Board OF Underwriters who now yehe
mently denouncss the BILL showed to that Board Ia
1874 that the fire insurance companies have pal
S4 00O, 900 beyond the legal Interest TO thef stock
holders, distributing about 13 per cent 10 diFidends
beside making large sccnmulatlOns 70 Their surplus.
The Department report OF 1873 shows that they paid
dividends ana accumulation OF capital over 80 per cent
an enormous TO urn and the few years previous TO these
returns included the losses 10y the disastrous Chicago and
Boston fires.
provisions ~ Cne Hammond bill, would have been 2os
per ceutbut little thal the Ncw-Jersey tax, and
OF tho State assessment ana tue scnera
wealth would probably be much less this year. Ine lacs
o, the nontaxatiOn of these panes especially OIL re
companies, Is the astonishing, n&snucu hs tct
their benefit alone, two prominent committees ol
the Legislature ars Kept In existence while also ae
Fro Departments in every municipality are saiegnars
for the re insurance companies Ie. the TAX PAID oy
the companies does not approx innate TO payment
f the cost OF the Department in Albany last year
the cost Of the Fire Department WAS Sl2OOOO We the
firo tax upon the insurance companies was less than
81 LOCO