The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-11-20
POLICY HOLDERS OPPOSE 1T.
ALL PETITIONING AGAINST A TAX
ON LIFE INSURANCE.

Savannah Life Insurance Men Organs
ize the Life Underwriters AssOeia-
tiOn of Savannah VIII Promote
Harmony Among the Agents-Thc
Committees Appointed Find All
Policy Holders Ready to Sign the
Petition to the Legislature-Whnt
the Adverse Legislation COntem-
plates.
The Life Underwriters Association of
Savannah has been organized, and the
prospects are now that the life insurance
men of Savannah will be on the friendnest
of terms and that their competition will
be on strictly a business basis.
The organization was perfected at a
meeting of which Mr.. Julian Schley was
chairman, Mr.. B. J. Apple vice chairman,
and Mr.. A. r. Elliott secretary. The or
ganization was brought about at the same
meeting which discussed the legislation
adverse to life insurance companies and
policy-holders, now contemplated by the
legislature
a bill was introduced in the House by
} Representative Dodson providing that
when a policy is contested after the death
of the holder, the company must deposit
in the registry of the court the full
amount of the premiums paid in with in
terest In the event the company wins
the suit these premiums must be paid
back to the defendant under this pro-
posed law, but in case the company loses
it takes back the premiums, but has to
pay the amount of the policy. This. it is
argued, is putting a premium on fraud
as a policy holder contempla ting fraud in
the procurement of a policy would have
the satisfaction of knowing under such a
law that in any event he would lose moth
ing. If the fraud should be discovered
his family Bvould get back the premiums,
and If not it would get the entire face
of the policy.
The other measure was by Representa-
tive Moore of Carroll, and contemplated
taxing all life insurance policies upon their
face value. 1t was soon seen by the conf
mittee to which 1t was referred that such
measure was out of the question. The
committee, therefore. prepared a substi-
tute providing that policies he taxed upon
their cash or surrender valae just as other
personal property. Another section of the
act provides that all persons holding paid
up policies which draw dividends shall be
taxed on the face value of the policies,
and in cases where they do not draw divi-
dends they shall be taxed on the cash or
surrender value of the policies
The objections to this legislat ton have al
ready been stated in the Morning News.
It would be putting a double premium on
insurance, sufficient in many instances TO
make il prohibitory. Indiana tried to put
through some of the same legislation, but
failed for the very reasons that are urged
in objection to these proposed laws.
AS to the proposed law with regard 10
contested policies, which has been made
the special order in the House for next
Tuesday it affects both the policy holder
and the coApany. while the other measure
affects the policy holder alone The
amount Of the contested insurance, how
ever, is comparatively small Out Of s135.>
179,O0S paid out on policies last year. tbs
claims which were resisted by the COM
panies amounted to only $1,1O7, $685.
Committees were appointed at the meet
ing of the life insurance men for the pur-
pose of taking in hand the matter of this
adverse legislation, and securing petitions
against it. 1t is the place of the insur-
holders, as an organization on the part of
the latter would be impracticable, not to
say impossible Nevertheless there is not
q policy holder who has been seen but Of
fers strenuous objections to such legisla-
ton as is proposed, and they are all eager
to sign petitions against the passage of
such measures.
The members of the committee have been
at work only for a short time
but succeeded yesterday in securing
more than 500 names Of policy
holders on the petitions against the
passage of these bills Policy holders in
every instance were eager to sign the petit
tions as soon as the matter was explained
to them. They are DESTROYS of holding on
to their insurance, and they do not want
to be doubled taxed upon 1t. 1t is expect
ed that great many more signatures will
be secured to-day, and the petitions will
be in Atlanta before the measure come up
for discussion i'm the legislature
The association also appointed a commit
tee to draft a constitution and bylaws
composed of Messrs. George w. Drum
mond, B. ]. Apple and Edward s. Stod-
dard. This committee will report at a
subsequent meeting, a which permanent
organization of the assoclat ion of life in
surance agents will be perfected.