The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1884-01-24
The Tax On Insurance Compan!
The Deposit Law-Justiee Al
Fair Dealing Demanded.
Co1rMBus, Ms. Jan. Islh

=
son, Miss:
Srs: ~ The fact is al ia
the whole United States and for Il l6S&
ten years insurance capital has not I'd 81
its stockholders an average Of two p, Fesl
upon the business of insuring prope Iy. ia,
though the companies have been 81 t|
declare larger dividends, they hav htf
derived from their investments in sipt&
and bonds which would have paid Il salA6
interest without mourning the en- t1o41
hazard, always possible, OF being qlaIIi
destroyed by fires, 10 property insui
The State of Mississippi leyies ar uiissss
tax upon Fire Insurance Comps e -
OxE THousASD DOLLARS, a tax fror 1xs d
\ ten times larger than Is exaeted AIRY
other civilized State or government ~ f|se
world. Ityet permits BY its entils .ss'e
ten TO prevent the raiding upon 4 II fs@
of any and all companies upon its Be. ItIk
Tennessee. on the North. Louisiar ~ kAk
West, and.Alabama on the East v sf< q.
surance Companies are much NOR s|1iraE
ously represented because Of their io..l
ty from such onerous taxation.
Our State further requires DEF osIt. AHa
Ia deposit in Mrssrss1PpE BoSDs, a security
which as you well know is of no value in
the financial marts of the world.
am told that it is proposed 10 admit
Insurance Companies hereafter to do bust
ness in the State upon their depositing of
United States bonds, and have only to say
that while this security would be unques-
tionable, it would be a rank injustice to
those Companies that have deposited MIS-
sIssIPPI BONDS, unless it was provided in
any such legislation that the State Treasu-
rer be instructed to redeem the State bonds
on deposit at par, and the companies hav-
ing them on deposit in the Treasury be
allowed to use the funds now locked up in
such bonds, in the purchase of the United
States bonds.
| You will remember that the assets Of Fire
Insurance Companies are published TO the
world, and are relied upon in New York as
they are in Texas, and it will need no argu-
ment to prove to you that any company
would prefer to advertise its assets in a
security negotiable all over tho world
rather than in the promises to pay of the
State of Mississippi.
But to redeem the bonds of Mississippi
issued for the purpose of insurance deposits
would require an appropriation of at least
100000, and from what have read in the
Governors message respecting the finances
and the need for retrenchment, l have nc
idea that any such appropriation could be
thought of for moment.
should certainly expect to have yol de-
mand for me as a citizen of the State. that
if the new corners in insurance are to be
admitted upon the deposit of any Other
| 49, a H.
that we're demanded of me-that my bond:
be cashed by the Treasurer, and be oil
lowed the same privilege that was accorded
to any other person or corporation.
If the State wishes to do any reasonable
thing in the way.of progress, let it take OF
the enormously inequitable license tax o.
$1,000 from insurance companies and Sc
make it possible for new corners to entel
upon the same terms as those now ad
mitted, and yet not have it probable tina
all their income, for year or two at least
would have to be paid in advance to tn,
State for the privilege of affording indem
nifty to its citizens against ruin by fire.
am free trader by principle, and
should be glad to see the doors of the Stat,
thrown wide open to all honorable com
petitors for insurance, or for any othe
business, but that, am satisfied, is out o
the question for the present, owing to tn,
financial condition of the State, but a
least this thing coulds be and ough
to be done: Change the license tai
on insurance companies (Fire) from
the practical prohibition of new capital, al
it is now, to a tax upon profits. Let every
company report annually to the Auditor
the amount of its premium receipts
in the State of Mississippi, the amount Of
: its losses and the amount of the taxes, cos
of adjusting losses and other expenses, in.
Guiding agents commissions, actually paid
to citizens of the State, and upon the bal.
ance let the company pay the same tai
that other citizens pay upon their property
or business.
, That is to say, and will give you for il
lustration, the actual figures of the Missis.
sippi business of certain company foi
the year 1882. If an insurance company
receives in premiums IN Mississippi
$4673.00 and pays out in fire losses to Mis-
sissippians, not including taxes, commits
sions and other expenses, $13,44G00-in q
word, pays out in the State more money in
the Estate than it receives, is it right tc
charge such ''public benefactor" any tax
at all? On the other hand, there were com
panies whose experience was the reverse Of
: this, and such companies would be entirely
} willing to pay proportionally to theii
profit in the State.
send you the May 18th number of the
Insurance Chronicle containing the address
of President Head, of the National Board
of Fire Underwriters, and have marked
the balance sheet he makes from the off
cial figures Of 1882, embracing the entire
American business of all companies re-
porting to the Insurance Department OF
New York State. These show that the in
surance companies made but little over one
cent on each hundred dollars of risks GOV.
cred by them, and further that on the pre-.
miums actually received their profit was
less than one-and-one-half per cent. (.014s)
also send the October LIST, number Of
the Atlanta indicator, containing the off
cial report of the Insurance Companies Of
the State of Georgia for the years 1882 and
1883 Ito April 1st).
Here results are:
: FirePreminms reed in
Georgia in two years $2,31e,S5C
Fire losses paid in the
same term S1,675,143
Fire expenses paid in
the same term. 692,s7S 2,36s, 12l
!,
Leaving net loss
: to the Companies in
: Georgia of ....... s 1871
Louisiana, Mississippi and Alabama de-
] az