The clarion. [volume] (Jackson, Miss.) 1883-1888, 1884-02-06

EDTToEs CLARION: Tread in your val
liable paper an article on the subject o
the deposit law and tax on Insurance Com
panies. So sfragIing is il logic, and in
struetive its statistics, that it disproves ths
writer's Own theory. Being on the othei
side of the question. ! could therefore af
ford TO let It pass on a. generatZins
essay on that subject, without comment
Insurance in this part Of the country Is MOI
generally very well understood. Hence
some Of the writer's errors should Be
pointed ont.
1. lie is wrong in this, that the Missis-
sippi per cent. State bonds, as security
is Of no value in the financial value Of the
world. Com Iimentary TO our good State.
1 that. This assertion is not based on the
/ present financial status Of Mississippi, but
On her unfortunate past. when issues of the
validity of the Planters and Union Bank
bonds divided the people. Is his assertion
+ true: If so. good bank In his own town.
( Columbus, stultiies itself In holding some
of these bonds, and will not part with them,
even at par, keeping them as an invest
ment and reserve. Messrs. Britton & Kuntz,
of Natchez, a banking institution of high
credit in the financial marts Of the world"
say Mississippi per cent. bonds are worth
dollar for dollar with gold and silver, and
cannot be had at discount. Citizens of
Northern States, shrewd money lenders.
have invested in them. Experienced mon
led men IN orr own community have in
vested the funds of minor heirs in Missis-
sippi 4 pr cent. bonds.
As good citizen. the author of this arti-
Gle ought not to join these of an unfriendly
latitude, in deFreciating Mississippi securi-
ties.
2. He is wrorg in his gratuitOus advice
to the Legislature, when he says if the
State wishes to do any reasonable thing in
the way of progress, let it take OF the erro-
neously inequitable license tax of $1,000
from insurance companies, and so make ii
possible for newcomers to enter upon the
same terms as those now admitted" Ger
tainly all companies are required to pay
the privilege tax. Where, then is the in |
equality?
This ! goo tax is in lieu Of all other |
taxes, county or corporation, and opens |
the doors absolutely to every village and |
town in the State. When we consider the |
hundreds of thousands of dollars, and mil |
lions, clained as capital by our strong com
panies, they pay no more in taxes in pro |
portion than any other calling in life-the |
merchant, lawyer and doctor, hotel-keeper,
hackman.
He not only wants the 800 tax abol-
ished, bat "a tar on profits" substituted.
His argument runs thus: IF an insurance
company receives in premiums in Missis-
sippi $4,000 and pays out, in fire losses
to Mississippians, not including taxes, COM
missions and other expenses, S1344.60O-
N word, pays out more money than it re-
seives, is Il right to charge such, any tax at
all?
Of course It is right. When the State
grants license, it does not insure the party
licensed TO make money. That is the bust
1es5 Of the licensed. A certain Other
company. last year, on its Mississippi
business, made net $4,000 on premium
receipts of $4,000. Must you have one
ale for one company and another for a
litferent company Apply this rule to
other yocations taxed, the merchant, saloon
keeper, etc, and the absurdity of his rule
IS apparent.
The author shows from documents that
N 1892. and 50 Insurance Companies
LONG business in Georgia lost, $49,770; in
Arkansas in 1882 lost, $27, sos; and in
Texas 1882 they lost $593,046. Now if the
enormously inadequate" privilege tax OF
$1,000. is to be abolished, and the tax on
profits" substituted, how much revenue
would Georgia, Arkansas and Texas receive
from Insurance Companies? And if SO in
hose States, why may not the same result
n Mississippi: A proposition of that kind.
By the gentleman, to
earned Senator, as a financial reform, ''in
he direction of progress" is the climax OF
.bsRrdity. measured 10y his own statistics.
Our reformer, wantingly proclaims him
elf free trader in Insurance." and wants
the doors of the State thrown widely open
o all honorable competitors for insur-
nee"
All companies '.are honorable" till they
all No. Tie $1,000 tax. and $4,000 depos-
t, are somewhat of protection. They keep
nut s!ioddy companies. Break down these
arrie~s, though not Alpine, and the State
7ould be filled with impotent companies.
iates would become demoralized. So much
nsurab!e property would be pretendedly
ovefed, with s3-callel insurance that fires
'ould reign supreme, involving good citi-
ems, AMI good companies with bad citizens
nd bad companies n tie in1iscriminate :
,ss Of thousands if not millions of proper
: before reformatory legislation could come +
the rescue. OBSERVER
Jackson, Miss, January 81, 1884.