Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-11-22

Mr.. Editor Il have read with considerable
interest and amusement the communication of
d" One of the Insured He seems to think that
to tax mutual insurance companies, as the reve-
nue. bill now before the ways and means commit
tee provides, is a " singular proposition" These
companies, he says, have no capital and of course
no investments from which to derive ncome-are
associations of individuals for mutual indemnity
against loss by fire. Nevertheless, these associa-
tions have the protection of the laws, they occupy
the time of the courts, they ask for legislation,
and in various other ways contribute to swell the
expenses of running the state government, as do
companies or corporations or individuals VINO
have specific capital. These insurance COM
panies support boards OF officers, with fat salaries,
they have regular organization, they have
money to loan, do kind of banking business,
and why should they not pay the state whose
protection they enjoy, whose laws give them Sc
curity, fair and equitable sum towards support
ing the state government? To all intents and
purposes they are corporations, The argument
of - One of the Insured who talks as If he were
an Insurer in disguise, sounds like weak piece
of special pleading He says II the companies are
taxed they will have no alternative but to
increase the annual assessment to meet
the tax, and wants to know where is the
equity of placing this extra burden upon the
shoulders of the individuals who make up the
mutual association. Anything more inequitable
in this than in taxing farmers and real estate own
ers on the full amount Of their property though
il may be mortgaged for halt two-thirds or all il
know, is practical, not an equitable question.
The widows and orphans and laborers who by
dint of hard work and economy have saved hun
dred or more of dollars and put it in savings bank
are taxed thereon, and pay large revenue to the
state Is 1t equitable to tax these poor people and
let these rich insurance companies go scot fres?
Theoretically these mutual companies are associa-
tons of all the individuals holding their policies
but practically they are combination of few
individuals in a centralized power which controls
everything and the average policy holder and
citizen so regards it, They have all the attributes
and reap all the benefits of close corporations
81 One of the Insured " adroitly addresses himself
to two-thirds of the legislature whom he presumes
are insured, and wants to know II they will volun
tarily increase their insurance one hundred dol.
lars less for the benefit of the other third
who are not insured. Probably the whole tai
levied upon the insurance companies divided pre-
rata among all the policy holders would add NJ
appreciabe or grievous amount to their burdens
But whatever 1t may add, if 1t is proportional,
and reasonable contribution to the payment of the
expenses of the state, the protection of whost
laws and institutions they participate in, it is right
The plea that in some individual cases this insur
ahce tax would work uneqnally, II allowed to pre-
vail would disrupt the whole system of taxation
| Let the legislature stand firm on this proposal I,
tax insurance companies reasonably and proper
tionatey II It lets up here it must lose its gril
| elsewhere, on the railways, on the banks, and thu
whole scheme OF corporate taxation will fail. NJ
doubt busy lobbyists will try to pry over mem
beers, and whole graveyard Of hobgobins viii
be coniured up to Brighten the timid. Visions o
capital leaving the state II the listing law wa
passed exist only in the fevered imaginations o
the men whom 1t would compel to pay equab
taxes. Insurance at reasonable rates will still b
obtainabe II this revenue bill passes. No reason
able man doubts it, Pass the bill.
ANOTHER OF THE INSURED.