New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-31
TAXING AMERICAN FIRMS.
EFFECT OF, oNTARIo's LAW ON lNsUR-
ANCE COMPANIES.
AsrAsrrRE TO ACCOUNT FOR THE SHRINK
AGE IN TIMBER DUEs-RETALIAToRf
TAX WHERE DISCRIMINATION
AGAINST CANADA is MADE


1o-on,o March 30 (SpeciaD.-Certain American
.r,orests doing business in Ontario will feel 'he
cneration OF the Provincial Governments ne"
revenue Law. 1t applies exclusively 10 connei
cial and financial corporations. suo)ecuhs o""N'
crust loan insurance. railway. express ana nature"
rss companies to various taxes. which are assessor
in some cases capital. in others on ihco"'e' ~
IN stilI others a different element.
The measure. the Provincial treasurer s'S'eu
1, b,s s,ecch Introducing t. is founded on n STUDY
=. tho practcc in several States Of the Union lie
ouo,ed Professor seligman's work on corporation
taxes as his guide but to any one acquainted WIN
80. aufho-itv ~ is manifest the first glance
into the revenue bill that the Provincial treasurer
entirely missed tne point OF II. IL Is interesting
also 10 noto that the reason for the new taxes -
moi unrelated 20 the United States. Tho treasure
spolosized fer them by saying that they had ooeh
rendered necessary 10y the act passed last year
recurring that all pine GU; Crown lands must
re manufactured. If manufactured nj an III N""-
ada or course. the meaning. intention ana ene0t
~ that act was to prohib; the expectation OF
rs--lors from tho Georgian Bay District TO tne
United States \ years grace was given 10 e"1o''
the American limit holders 10 adapt themselves 10
st. Consequently. the expectation OF logs went o'
as usual throughout the last towing season. nu
a. can 60 on no longer unless the law is repeAle".
consequently Treasurer Harcourt appr'hends tha'
there will be q material shrinkaSe In the recelp's
from timber dues collected tho Crown iands.
There seems no probability that the Michigan iu"-
oermen will Immediately accommodate them-
selves so far TO the restrictions on their supply "
material as their mills to TINS side' i'ie,
cut Of logs therefore is longer 10 be calculated
or in tho est!matos OF revenue for the coming
year. ..
FIRST DIRECT TAXATION.
This means that some substitute for the large az
erecate OF stumpase dues they paid had |" w
found and Mr. Harccurt provided it in TINS rev
enua hil which will yield upward or S"'NP "
pf
d,rec. taxation Heretofore the Grown lands par
,tcu,or1v the timber turned into merchandise on
those lands. kept the Province in nearly all '"e
funds Il wanted for current expenditure
The American share in the new taxes VIII oe
ynaIn1v in relation TO the capital invested IN Amer
.,.r insurance companies doing business in ON
tsrio The bill provides that every me-itsu'a"Oe
company which transacts business IN the t'o''-o'
shall pay a tax 81 per cent on the gross I'''
.,o,uns received from here In the previous Ncd''
that every other insurance company shah pay "
tax OF two-thirds Of l per cent on its gross pre-
,,o,rrs on It's Ontario business OF the previous
veer bu, that TN the case of mutual hTe-ihsu'
companies which receive premiums IN cas-" NV
tax shall be collected the gross premiums to
;ce,ved by such company in cash in respect 10 VIC
business transacted a cash basis II iu,'"''
.,,,o,idos that where the receipts from premiums
~ a ufe.insurance company whose heao once 10
elsewhere than I'm Ontario are less IMAM F-'V''' CO
where such company lends money on security ""~
ste1i II this Province sl''VOv VI i''''Nf '
couoaov shall pay a tax OF per cent caicu'd'ou
- ,ha cross premiums and one-fourth or per
cent on the income from investments recelNcu ~
,nch company in respect TO the business ud"S
here in the preceding year
S,ronc obiection has been made to the per cent
- -em,,rns by Canadian life insurance companies
NV American companies operating III Oh'ario eqN'
6,.sa,,sfaction OF course. is felt There IL COZ"
siderable number OF the latter, many OF 'nei' uoi'
9 large business in this most poPnlous ana Wedi'nS
OF the Canadian provinces. The foiio"lhs me III
.urance companies from the other side OF the line
do business he-e: - ,,,
rns Aetna Life Connecticut Mutual, Equitable
Cermania Metropolitan. Mutual LIE NauohaI Inc
NeU-york North Western, Phrnix Mutual fioN'-
dent Savings Travellers. Union MUTUAL anu Cn''eu
states OF assessment companies in TINS held '"o
,ollovi,t. a,~. American: Covenant Mutual MUTUAL
Reserve Fund and Massachusetts, Benent IAte Assn
citation.
LARGE BUSINESS OF AMERICAN FIRMS
sone idea Of the amount Of business done in can
ada bv American life companies under the insuI-
snce ACT IS afforded by the fact iha IN 1891 'eso
companies paid in Canada &'6S22N a. OUT ol
total OF S7O76s63 to pocy-holders' inns sum uo.S
not include the amount paid out ~ A"'''O"' a.
xessment companies.
AS 10 fire insurance the following are the Amer
1can companies working here. Aetna Fire. Asrlcu'
ural OF Watertown. Connecticut Fire hartford
rrrs Insurance Company Of North America. Phe-
x. H.
1nsurance Company Of America. In 1881 American
ere companies paid out losses In Canada AlleVl
ont OF a total Of ss..,5G si. Thus to the revenue
derived from Insurance companies American cor
rorations will contribute no small share
This does not exhaust the interest or the SUBJECT
10 American insurance companies. On Tuesday.
when the bill was in its last the Premier IN
the absence OF the treasurer introduced the follow
.ng amendment providing for A retaliatory tax
apon companies having their head offices in states
lN.ttn dian nm n DC
s. main ained
Where any country or any State Of any country
imposes a tax license fee. which has the effect
OF Imposing on discriminating against insurance
companies against any classes OF insurance COM
Yanies organized under the laws or Cahada OF OF
n ohIario ana which has the effect OF placing tax
license fee which Il higher OF 2Teater man ths
State country are made TO pay. the Lieutenant
Goyernor-in Council may by order direct that any
insurance company or companies 10 De named III te
-order-n- Council. and which are organized in or
which transacts insurance business in the province,
snail pay in addition To the tax under this act any
Clause II (a) OF Section OF this ac; calculated on
the gross premiums received by such last mentioned
transacted IN the said province during the preced,
ing year but that such increase sna no, eX N
imposed in such country or state on OF AGAINST the
company or companies or class or classes of COM
panies first referred 10 in this section.
AIMED AGAINST NEW YORK COMPANIES.
Asked by member OF the Opposition n there was
suy country or State 70 which this clause was
known TO apply. Premier Hardy said that both IN
Connecticut and New York the license fees charged
showed a considerable discrimination against Cana
dian companies. II will therefore be In the power
Of the Government 10 impose OH companies trading
here whose head Office IS IN NeS-York or Connect.
cut an extra dferoHtial tax equal 10 that imposed
on Canadian companies operating in these States.
Another OF the taxes laid on by this measure vii
deyoive OH American enterprise here This is the
tax natura! gas companies and natural Sas eX
porting companies. 5 company that merely pro-
duces gas IS 20 pay SEQ year. n II also exports
gas u shall be subject a $500 rate "a year. max
Ing the tax for companies that both produce and
export 800 a year As the greater part of the gas
produced IN the Welland field IS exported 10 Buffalo
through pipe lines tTavcrsing the bottom OF the Nj
RlNDr .La rnosf of fhaf drawn frnm