Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-10-27

ed in my report Of the meeting Of the Bar
Association, the following are present to.
day, many OF them called here by the hear.
ing before the Ways and Means Committee :
John w. Hobart, Esq, of St. Abans, gen.
eral super,n,'endent Of the Central Vermont
railroad Warren Gibbs Esq, president of
the Vermont Mutual Life insurance com.
pany, W. II. Whitcomb, Esq and the Hon
Henry Ballard of Burlington the Hon. John
Prout, James E. Barrett, Esq, Of Rutland I;
Fayctic p. Brown, Esq of Yonkers, New
York the Hon. Fred Il. Woodbridge of
Vergcnnes; Asa NJ. Dickey, Esq, of Brad
ford l.. f. Wilbur, Esq, of Jericho: the
Hon. George II. Bigelow of Burlington.
General Grout is also in town, in attend
ancc upon the Supreme Court. lie seems to
have fully recovered his health, and received
the warm greetings of his many friends
The bill which Senator Howard of Fair
haven introduced by request, providing that
towns might raise money on the grand list TO
celebrate historical anniversaries, and erect
monuments to distinguished men, has been
killed in the Senate
The committee on Education continued
the public hearings upon the public school
system in the evening Representative
Gray OF MiddctOwn addressed the commit
tees against the bill making the town system
compulsory. The committees ON railroads
heard John w. Hobart OF st. Adams, gcner-
al superintendent of the Vermont Central.
against the passage of the hill obligug rail.
road companies TO give notice of changes of
running time six days in advance. f. 4.
Brooks and Albert Clarke Of Boston argued
against the passage of Senator Burnap's bill
| to permit the reorganization of railroad com
panies after the foreclosure of an equitable
mortgage. James G. Barret of Rutland also
suggested some notifications in tue hill.
Taxation of Corporntions.
The House committee on Ways and Means
which has been wrestling with the question
Of raising money for the support of govern
ment by some tax on corporations considered
the feasibility of taxing insurance companies,
at the hearing on Wednesday forenoon
There was good attendance of interested
parties, chief among them being Charles =.
Frisscll and W. H. 5. Whitcomb OF Bnrl:ng-
ton, president aud secretary of the board of
underwriters of the city +. b. Brown of
Yonkers, N. Y, general agent OF the Mutual
Life insurance company of New York
Warren Gibbs, president Of the Vermont
Life insurance compa" Burlington W.
j. Francisco Of - Irll known fire
> - h of Hartford, |
COM ;Cticut General
life insurance Comwu, -. Charles Dewey
OF Montpelier president Of the National
Life of that place, with {. II. Pikin, Esq
attorney of that corporation, General p. I.
Pitkin of Montpelier a. =. Chlds agent of
the New York Lite and several other repre-
sen,ativcs OF different fire aud life companies.
besides, Maj. Henry Vim of Greenfield,
Mass, in the employ of the committee. and
Col. L. X. Fuller OF Brattlcbcro, who is in
favor OF stringent taxation Of corporations
Col. Hooker called the meeting to order and
A. u. Childs briefly addressed the committee
against the policy Of taxing foreign insurance.
companies. He coltendcd that by taxing
such companies there would result double
taxation, inasmuch as the property OF thes
companies was taxed IN the several places in
which ii was situated and another tax on it
would result as alb we stated. He gave a
list of the taxes paid 10y several companies in
the States where they were located aud con-
tended that was certainly all they should ray, !
and thut the idea Of taxing person or cor
poration for the privilege of doing business
was all wrong. lie further contcnlcd that
AS it would affect existing contracts by rails. !
ing the rate III insurance, such an act would |
be er pos, fdcto He also claimed it was I'M |
possible by the rules Of taxation to tax insur- |
ance companies On their assets, As they owed |
1t ALL and no man or company should be tax
ed on what was owed, either in tact or
dependent on "A contingency
At the close of Mr.. Chi!ds' address, c. H. |
Piikin, attorney for the National Life Of
Montpelier made IL most admirable argument |
He SAID that as the company he represented |
was mutual one his remarks would have to |
do with that class of life insurance. He was |
glad that the committee had no definite meas
urc before them, us the question could be |
discussed without bias and he should feel |
that the committee was only seeking TO do |
exact justice. In the first place life irsur-
ancc is not understood, especially the mutual |
plan, and when II company like the National |
Life, with 5000 policies, insuring $1,000 |
OUO and with gross assets OF - 800 O00 pres
ents itself TO the view OF The legislators it is not
strange, that it seems II tempting chance |
to levy tax. He proceeded to explain
what was meant by surplus and reserve in
insurance parlancc, doing it in SO concise
manner us to make it perfectly plain to all.
lie commended that Meth r the business done
IN or out OF the STATE. or that to he done,
should be taxed and went on to give
his reasons first as 10 that done any
where. The National life docs a m,i-
tual business, has reserve AMI sur
plus, but does business under a charter which
eNempts the company from taxation. 1t is
that person or company can not
be taxed until its actual or contingent liabii-
tics are less than its assets and he made the
point tina, this surplus was not an asset, hut
was held TO pay excuses and losses MS cal
culatcd on standard tables of mortality and
the basis being four per cent compound in
terest, ii the money market was weak there was
a drain in the surplus to meet the demand and
there was in fact no knowing when the en-
tire surplus might not he called out. This
surplus was explained by comparing It tot an
association of men, who, when one dies,
pay to his widow or relatives II certain
sum. The first payments would be small,
but toward the last they would increase, md
in Mutual insurance it was the same princi-
pie except the pnymcnts We're averaged so as
TO he nearly even throughout the whole
course. There was no cqully in saying the
mau who collected and paid over the coutri-
button in the case of the association of men
should be taxed on the money and in the
same way there would lc no justice in tax
ing the company on this surplus which is
just the same as the money in thu hands Of
he one man, it is simply held to meet losses. ,
On business outside the State, taxes should ,
not he paid as in nearly all the States. The
already pays taxes its charter no.
il outside its own Jurisdictions,
md il il is taxed in those States on the =
business DONE then it should not pay here on :
the same business. He explained the differ
cncc between life insurance and deposits in
savings banks In the latter the money is ut
he disposal of the party while in insurance
/ is for the benefit of other insured parties
who are so unfortunate as TO Call for it. In
stead of being like n bank, he considered it !,
more like charitable institution, a church or
chool all OF which are exempt from taxes !
because they are for the moral good OF the I
)cople OF the State, aud life insurance, by
avng families iom paupcrism aud crime \