Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1895-02-02
The Proposed Insurance Law.

Santa Fe, Feb. 2.-There has been
great deal of talk about the Hinkle in
surance bill, but it is altogether likely
that some even of those who voted for it
in the house do not thoroughly under
stand its provisions.
Under the present law, which has been
in successful operation for twelve years,
the territorial auditor has performed all
the duties of insurance commissioner and
has, satisfactorily and without ..pnneces-
sary cost to the companies, exercised over
them precisely the same supervision that
the new law would give to the superin-
tendent of insurance, the words of the
proposed law defining the duties of that
officer being copied almost verbatim from
the old law, except in those parts relating
to the creation of new offices and the
stipulations with regard to the deposits
to be made by the companies.
Under the old law the auditor collected
from the companies during the year 1894
the sum of nine hundred and eighty-six
dollars 1885,. Out of this sum he paid
the expenses of clerk hire, printing, post
age, etc., and had left over for his own
fees the sum of five hundred and eighty
SIX dollars ($5S6). During the same
period he collected as licenses from agents
the sum of nine hundred ($900), ten per
cent of which he deducted and the balance
turned over to the school fund. A simple
recital of these facts is sufficient to show
that the business has been economically
conducted.
The new law proposes to raise the fees
for filing charters, annual statements,
agents certificates, etc, to such an extent
that there will be Immediately raised a
fund of over seven thousand dollars
$4,000; and then the Office of superin-
tendent of insurance is created at salary
of two thousand dollars year, deputy
superintendent at salary of twelve hum
dred dollars, and two clerkships at nine
hundred each, making total in salaries
alone of five thousand dollars, which, in
case of the uperintendent, is to be in
creased by ten per cent of all excess at
any time in the fund over and above five
thousand dollars. Besides, there is an
allownce of two hundred and fifty dollars
per annum for office expenses; and fees
are to be collected for filing papers, etc.,
thus in MI probability increasing the fund
to not less than eight thousand dollars.
In addition to the foregoing, the com
panies are each required to deposit fif-
teen thousand dollars with the territorial
treasurer, which will create a new fund in
that officers hands of nine hundred and
seventy-tive thousand dollars there being
sixty-fve companies doing business in
the territory; and the treasurer and his
bondsmen are made responsible for its
safe keeping.
Besides all this, the bill provides tax
of ten cents on every thousand dollars of
life insurance written in the territory,
which is Just ten times the rate charged
in Ohio and forty times the rate in Massa-
chusetts; and this tax is in addition to
that now levied in the various counties
upon excess of receipts over expendi-
lures, which is a considerable contribution
to the funds of each county each year.
Now all this expensive machinery for
new department of government can be
for but one purpose, namely, to create
Offices and tax the cost of maintaining
them up against the insurance companies.
There is no important duty required of
the new officers except those now per-
formed by the auditor, barring the duty
resting upon each of drawing his salary
monthly as provided in the law, duty
that will be cheerfully and faithfully per-
formed, of course.
So that the work, satisfactorily per-
formed for the past twelve years by the
auditor, at an expense to the companies
of less than thousand dollars year is
under the new law to be confided to four
new officers, the salary of the poorest
paid of whom is fixed at nearly double
what the auditor has received for the
same service. And, be it remembered,
every dollar of this expense of eight or
ten thousand dollars is to be paid by the
people Carrying fire policies and the less
than three thousand policy holders in
the territory who are striving to save ex-
pense to their counties by leaving be-
hind them after death an insurance on
their lives to keep their children out of
the poor house; for the companies charge
up all taxes imposed upon them to the
policy holders, either in increased rates
or decreased dividends.
This is an out line OF what the new in
surance legislation proposes; and if any
person can see in it any other object
than to provide salaries for officials
at the expense of the policy holders in
the territory, it is to be hoped he may
be able to show it to the members of the
council, who will shortly be called upon
to vote on the bill. 1t is not generally
considered that insurance companies re-
ceipts are legitimite subject of taxa
tion. Very few states in the Union tai
them; and whenever it is done the amount
of the tax is by the company charged uE
to the policy holders in such state. II
twenty three of the states and territories
there is no insurance department and nc