New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-04-17
a PROPOSED INSCRANCE TAX.
A BILL PENDING IN THE MASSACHUSETTS LEGIsLA-
TURE TO DOJBLE THE TAX On FOREIGN CON-
PANIES.

A BILL PENDING IN THE MASSACHUSETTS LEGlsLA-
TURE TO DovBLE THE TAX On FOREIGN CON-
PANIEs.
lBY TELEGRAPH TO THE TRIBUNE.l
BOsTON, April 16.-The question of taxing
foreign insurance companes-that s all companies not
chartered in Massachusetss attracting considerable
attention at this time The Journal says that at the
present on application made to the Legisla
ure by home companies for reduction in the rate
of the they required to pay 1t being claimed
that the present rate Of cent on the gross amount
of premiums was too much the companies were also
obliged pay all other property owned by them
and liable to The representatives of some OF
the home companies the only persons heard In
stead OF giving the relief asked for the committee
reported which repeas previous provisions OF law
relating foreign National insurance companies ana its
effect double the that class OF companies do
ing business in this Commonwealth The bill passed the
House without objection and without attracting the at
tenton OF the representatives OF the foreign companies
but it's presence in the Senate noticed and it has
been sent back committee before whom on Thurs
DAY persons interested will appear and present their
views against the proposed act.
In 1873 the Legislature provided that foreign nsur-
ance companies organized in other States but doing bus
ness In Massachusetts, should pay tax of per cent on
the gross amount OF their premiums, and the same
statute also provided that companies organized under
any Government or State other than the United States
should pay tax of per cent the gross amount OF
premiums unless such foreign companies had deposited
with the Commissioner securities TO the
amount Of 100000, to be at all times available for
| losses In risks which the companies incurred In
Massachusetts, in which they should only be re
qured to pay of per cent the gross premiums
In 1873 the law passed did not require deposit as
condition for foreign National companies to do business
wealth. but in 1873 another statute was
which compelled that class of companies TO make
deposit 5000 aud also required them TO appoint
trustees for the security of policy holders. Acting under
| this law some of the large foreign companies,
besides the deposit OF 100000, have placed in he
hands of trustees who are well-known and honOrabe
men in Boston, sums amounting to $40O0,000, which
security s collateral the obligation OF the compan. On
| the face of each policy issued
1t will be claimed at the hearing on Thursday that e
proposed repeal Of the provisions OF law referred WIN
the consequent increase of tax is unjust dscrmlnA
ton against foreign insurance companies and Is the
| first attempt OF the kind in the United Statca;
and also that tho proposed legislation does not
| benefit any OF the Massachusetts companies, eA-
cept indirectly by compelling the foreign
conpanes raise their rates. in which event the enect
would be felt by policy holders II will also be shown
that there never been instance when the foreign
National companies have not paid their policies in full
not even after me great fire In Boston in 1872, when the
home companies paid an average OF thlrysx cents on
| the dollar.