The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-12-28
BLOW To THE STATE
And it Would Almost Kill
DR.. Thompson.
WOULD CUT SALARY HALF
THD NATIONAL INSURANCE
COMMISSION.
WOULD INCREASE BURDEN OF TAXATION.
North Carolina Would Lose $4,000 now
Paid in by Insurance Companies
and Tax Payers Would Have to
Make up the Amount.

Make up the Amount,
$4,000 from the Insurance companies
doing business in the State.
At least that is. in round numbers,
the amount it got in the way OF lnsur-
ance taxes and license fees during the
cast year. Twenty years ago 1T amount
ed to only about $4,000 year; since
then it has steadily grown from year
70 wear. until now it is almost certain,
within the next year or two, to feacn
Ahe sum of 100000 annualy-n the
present method if supervising insurance
companies doing business in the State
Is not disturbed.
Rut this is Just what is now threaten
ed: and if the threat is carried out the
State of North Carolina will lose the
$4,000, or more, t at 1t is now gettihs
annually from this source; or ratner
this SUM will have to be paid by the
taxpayers of the State, in addition 10
to what they now pay, in order TO run
the State government.
Some ten days ago Senator flatt, CT
Connecticut, introduced in the United
States Senate bill providing Tor the
establishment of national bureau OF IN
Gurance supervision.
The bin provides that after an insuf-
ance company has been licensed by the
government it has authority to carry on
a general insurance business without
having to pay taxes on receipts or pre-
miums, or licenses, or fees, or charges
for the privilege Of doing insurance
among the several States and the Com
missioner shall annually notify the insur-
anee officers of each State and territory
Of the issuance of these licenses.
The provisions of this act are to APP
plv to all corporations transactIng the
business of insurance outside OF the
State that incorporated them, and under
whose laws they are authorized to DO
the business of insurance, and all such
are declared to be engaged IN inter-
State or foreign commerce.
For the proper regulation of the in
suranee business of the United states
separate division is to.fbe established IN
the Treasury Department, charged with
tha execution of such insurance laws as
Congress may enact. The chief officer
of the division is to be appointed by the
President and known as the United
States Commissioner of Insurance, ana
shall be under the direction of the Sec
rectarv of the Treasury. first assist
ant commissioner, appointed by the Sec
retary of the Treasury, is to have charge
of all fire and marine insurance COM
paries. also a second assistant who shall
have charge of the companies engaging
In other branches Of insurance business.
It shall be the duty of the Commits
sioner, with the approval of the Sec
retary of the Treasury, to, from time 10
time, establish rules and regulations Tor
insurance companies.
After the first of January, 1S99, ne
must demand of all life insurance COM
panies a full and complete list or all
policies in force with their valuation, ac-
cording to the laws Of the State under
which it was Incorporated; and then an
nually thereafter the valuation OF the
policies must be based upon the Ameri-
can table Of mortality at per centum
interest. even those issued prior to
january 1st, 1S99 For making this
valuation the Commissioner is authoriz-
ed to appoint an actuary and the neces-
sary assistants; the expenses OF these
valuations is to be paid by tax OF one
fourth of one per cent for each thousand
dollars of insurance valued.
The Commissioner shall also require
each and every company. licensed and un-
licensed, to make to him annually a
statement of it's financial condition.
This statement must be verified by actu-
al examination. If it shall appear that
the liabilities of any company are less
than it's assets, it shall be the duty of
the Commissioner to notify the officers
of the company to make good its finan-
cial condition, and If this is not done
within thirty days after notice the Com
missioner shall refuse the license or re-
woke and cancel it if already issued and
publish the fact in one newspaper at
least at the capital of each State and
Territory and in Washington city.
Any company or agent doing an insur-
ance business without license shall be
subject to fine of $500.
Discussing this bill yesterday Secre-
tary of State Thompson said:
"The matter is one Of vital interest to
the people Of this State and to-day /
wrote to both OF our Senators telling
them of the effect the hill would have
upon our Treasury should it be passed"
In the course of his letter to Senators
Pritchard and Butler, Dr. Thompson
said:
II do not know what the probabilities
Of the passage of this bill may be; but
desire to say to you, as representa-
tive of the people of North Carolina
that the insurance business, as pro vId-
ed for under our own laws, now brings
into the Treasuryof North Carolina some
10000 vo"r: IN amount which we
could iii afford to lose from onr revenue,
and which. under the bin referred to.