New-York tribune., 1890-07-16
Unwilling TO PAY TAAES
p. FINE LAW FOR INSURANCE COMPANIES.
THE COSTLY MISTAKE OF DENIS QBklhN Al
ATTORNEY. NERAL-coMM1ssIoNER
COLEMAN WANTED TO KNOW
THE WORST AT ONCE

THE WORST AT ONCE
Another evidence Of the weakness o. ,"c op',.., p,
~ Denis O'Br4en Attorney -"cHerai mas ''o,''"'
bcon brought 10 light and in TINS instance u VIII u"
dmlbtedlv cost this city a large sum Oh money "oo
.b mischief caused by Mr. O'Brien's ignorance mas
heen overcome In 1850 a bill passed inc Lesi'
I.,,s roo,irinr all fire and marine Insurance com
onios doinc busness in this state 10 pay tax 'i
echt +entbs of one per cent on the premiums rcccNeo
in addition 10 the Fire Department tax OF two per ct
maid bv non resident companies. The insurance ooh
nanies did not like this and in 1856 Willard Brown.
tbe LAWYER took to Albany bill reducing the ra'e oi
taxaton 10 one half OF per cent In inc ne" Ol'
introduced and passed, was this clause;
The lands and real estate OF such insurance cont
mamie, shall continue TO be assessed and taxed where
situated for state. city, town. county, village sch''i
or other local purposes. but the personal property
franchise and business Of all insurance companies IN
coporated the laws Of this state, or any other
state or country and doing business in this state ana
the shares OF stock Of said companies shall hereafter
be exempt from all assessment or taxation except as
f. this act prescribed; provided that TINS secuoh sni'
not affect the Fire Department Tax oi TWO per 'e"V
on all Insurance companies incorporated uilue' "o
lsws Of this state any other STATE or oonluF'
doing business in this state and the shares OF stock OF
said companies Shall hereafter be exempt from all as
sessmcnt or taxation except this act prcScn6cS'
provided that this section shall not affect the Fire
Department Tax Of two per cent now required 10 DC
pad"
In looking over the tax bills that year Michael Cole
man. Tho president Of the Tax Board. ran across TINS
clau,c I'm the insurance tax law. \ haSy reading Of
il led him 10 believe that under its peculiar wording
the insurance companies cOuld claim exemption en-
irolv from personal taxes. 50 strong was his bciief
al the time that he called meeting Of the Tax Bo;u
before which his views were expressed. 50 clearly
was il then demonstrated the members OF the boards
that the clause would let the companies ont Of paw
NJ iuNf Nf1vlCf I'd 10
Albany and appear before the Governor and get MN
TO veto the BIZ. The Governor assured Mr. Coleman
that there nothing IN the bill which would allow
tie Insurance company 10 escape t1Naton, and 10
satisfy Nr. Coleman obtained from Attorney General
O'Bricn an opinion in support Of his views. AZ the
same time Mr.. Coleman obtained a written opinion
from the Attorney Gcneraj which was rs follows:
y am of the opinion that the act Of 1856 is only
substitute for the provisions Of the act of $50, ap
pointing fire and marine insurance companies, ana that
he latter statute docs not in any way relieve such
corporations from taxation of personal property for
local and municipal purposes i'll the manner pre-
Icribed by the revised statutes and later amend
menS.n
some time ago the Commonwealth Insurance Com
pany began slit in The coults 10 be relieved from
paying taxes asserting that the clause in the act OF
1855 exempted them from IT, and two weeks ago the
Court OF Appeals decided The point in favor Of the
COMPANY. 1t came the Of President Coleman
vantage Of this decision and refuse to pay taX"> and
lie invited the representatives. Of the companies 10
meet him Yesterday and say what thev intended doing
lie also invited the LAWYER who succeeded in passing
the bill through the Legislature and who at that
time explained Mr. Coleman that ii was rot the
intention Of the companies 10 avoid paying their
taxes under the new bill Mr.. Brown replied that
he III at home, and in place Of coming sent a
letter saying that the intent OF the bill only e.
exempt The companies from local taxation for state
purposes only. some time after the bill had become
a law. he was told BY Daniel a. Head. Of the Home
Insurance Company, that the companies would not
make any clam for exemption for local taxation under
th'S doubtful cause
Al Tie meeting yesterday were f. T. Fellows Of
the Rutecro i4rr Insurance Company President Nor
rs, Of The Merchants lu,urtuc, Company. !. Jay
Nestcn. secretary Of the Manufacturers and Builders
Insurance company J. r. Miller. attorney f'r The
stGsSs NJ ,r 94gG M GGtan{ ana W. n La;o3
ihemen 5: Gernania Hanover, howard KnGker-
toc.el New 2rG, EIGi'a5e N9rth River. oering ring
Mr Coleman asked the representatives. of the com
pauieS present what they intended TO do. Mr.
lathrOp. who acted spokesman for the party. de
MED all knowledge and responsibility for Nj Brown
perhaps three exceptions. the insurance cOmpanie'
should be exempted a"y way, N & Mr Toem4n p2in}s IT,,
year would be s3.I3e.543 while the total whhci
$4,000. The Fire department was great bene1
10 thr insurance companies, and he thought that
evadc the payment Of this small amount.
We don't make the laws was Nj hthrop'
reply; We only 'ane advantage of item aS Tn
Veil replied PRESIDENT Coleman, owe snail NOV
to have thc law repealed the session. and vii
Try 10 get more stringent legislation regarding the
companiCI There shGud be some loc2 At tax on non
resident shares Of stock which obtain their value an'
income from business done here We Will reach yo'
In the lat four year, tho Surancc companie
have paid taxcs on only S7,494..J9 Of shares, whit
tic capital stock amounted to $26;''5l743d.