The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-09-19

Tho second meeting of holders of policies
In the various life insurance companies was
held at the Board of Trade rooms In Wash
ington, on Monday when an organization for
] mutual protection was formed. Another
meeting will be held on Thursday evening to
elect permanent officers. 1t Is proposed to
have similar organizations started In all
large cities. They will be requested to send
delegates to q convention TO be held here
during the winter. at which some kind OF q
law to protect the insured will be drafted and
Congress urged to pass it, Baltimore I'm
derwriter.
Now lot all those unhappy people who have
suffered losses by giving credit to persons
who cannot or will not pay organize and APP
peal to our "paternal" national government
to protect them by law against impecuDious
debtors. When will men learn that insurance,
life. fire. river and marine is pure matter OF
business and nothing more, and cease to
whine over losses for which they are them
selves principally to blame2 1t Is just rs
much business blunder for q man to pur-
chase insurance Of any kind, from q rotten.
badly managed company, as 1t Is to extend
credit to an individual beyond the power or
will Of that individual TO pay; and it is right
and just that the blunderer should suffer for
his folly. The truth is men will and do In
vest in Insurance. and particularly life insur-
ance, and 1t Is ,,nmanly for them, under such
circumstances. to whine over their burnt
fingers
Pennsylvania experience in the matter Of
taxation of insurance companies upon their
gross premium receipts Is thus summed up
and sensibly commented on by Commissioner
Foster In his last report:
IT will not be questioned that taxes should
be imposed upon some rational system, which
at least aims at justice and equality, II these
consists the Justice or equality OF taxing
gross premium receipts, which In one conf
pany represents BEL per cent of profit, in an
other 10 per cent of profit. and in third COM
panIy no profit 81 al put actual loss i, ,,s
State during the past year deepens the i'm
preston against the propriety OF this form OF
taxation. These companies received In pre-
miuims, on Pennsylvania business, the gross
sum of "a. 64O, 6A 81 and incurred losses in the
State amounting to 49, ,a41 CD. Estimating
the expenses of procuring these prenius at not
less than 30 per cent and we have total OF
s3,5O2, 535 10 Of losses and expenses. against
s3,64O,GA 81 Of gross premiums, or an apparent
profit Of $13s, 10a 81, For the privilege of earn
Ing this profit within the Boundaries Of the
state Of Pennsylvania, these companies were
taxed $1oa,2l9 81, that being three per cent
upon the gross premium and 10 per cent up
on the profit It would certainly be start
ling proposition to ask the Legislature Of this
or any other State to pass law imposing a
tax of 10 per cent upon the profits OF any class
of corporations, domestic or foreign; and
still more startling to have the. Legislature
entertain with approval any such measure q
eonfscaton; YET this Is precisely the result
attained by Che apparently Innocent tax o.
three per cent upon the gross premiums Of
foreign insurance companies. And, as before
stated. the mischief does not end here. The
foreign companies are not the only victims
Other States enact retaiatory laws and oul
companies suffer the consequences of our un
wise and oppressive system of taxation.