The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1900-05-11
100000 MORE TAXES
Insurance Departments Growth
Since Fricke's Time.
LICENSES FOR 10000 AGENTS.

To Do Business in Wisconsin Must Be
Authorized-Assessm Life Compa-
mics Changing to Old Line Basis, or In
creasing Assessments Foreign Fire
Companies in High Favor-How Farm
ers Get Cheap, Safe Insurance.
Madison. Wis, May S.-William A.
Fricke, the commissioner of insurance
under Governor Upham and until Oct.
Is, 1898, under Governor Scofield, did
notable service in that department. Be
fore he took hold the department is
sued once in two years booklet of 200
pages. Within its covers were the en-
tire doings Of the department. Now
the department issues three monster
volumes every year. The one devoted
to fire and marine insurance carries
LOO pages: the record of life and cas-
ualty companies nearly as many, and
the third, the story of the Local
Mutuals" (fre) nearly as many pages.
Until this energetic Republican man
ager, Fricke of Milwaukee took the Of
fee the business was all done by the
commissioners, deputy, and a clerk.
Fricke forced a bill through to enlarge
the staff, and now Mr.. Giljohann, the
commissioner, has his deputy, E. &.
True, of Portage Ca nephew OF the ag-
ricultural EXPERT; a chief clerk, MIR.
J. L. Henderson, six clerks and
StenOgrapher.
Men Who Have Headed the Office.
Originally the insurance department
was a branch of the office of secretary
9 +c icS,in N.
the reorganization was Philip L. Spoon
er, who served from 1878 for nine
years. In the middle Of his term the
office was made elective. He was fol-
lowed by Phil Cheek, Jr., Of BarabOo;
W. NJ. Root, the Sheboygan editor Gin
Democratic times); then by Mr.. Fricke.
Mr.. Giljohann, the present commits
sioner, is nearly SO years old, quiet
man Of medium height, with a good
face, surmounted by iron gray hair.
Every insurance agent in Wisconsin
must operate under an annual license
issued from the department for every
company he represents. The card
catalogue shows every agents name
and address, also the names Of the
companies he represents. Every day
there are questions from individuals as
to the strength of this or that COM
pany. Disputes over claims are re-
ferred to the office. Sometimes if
company is trying to evade a just
claim the department can brighten the
company by threatening to withdraw
it's right to do business; but as a rule,
the department tells the citizen to first
get his judgment in the courts.
Much Bigger Tax Revenues.
Under the laws which Mr.. Fricke
urged and especially the Orton law
of 1899 the revenue from the taxation
of insurance companies has been in
creased some $23O,000 every year. OF
the $275,OOO a year taxes from this
source the great Northwestern Mutual
Life pays $4,000 The theory of this
taxation Is that the department and
state assure safety to policy holders;
and If people will read the reports Of
the companies they will be surprised
at the searching questions the compa-
MES must answer. Even a 1ayman
can by comparing reports find the best
companies in which to insure and the
weak spots in other companies.
The tax on the Northwestern Life.
being home company, is on the gross
income, mainly made up, Of course, Of
the premium money. This is tax Of
1 per cent, real estate rents being eX-
cepted Ton which taxes are otherwise
paid; also United States bonds are eX-
empt. Companies of other states are
taxed on the premium receipts col
lected in Wisconsin. This is compare
lively small; the Northwestern must
pay on premium receipts from what
ever state collected.
AS for fire companies, they are taxed
on the Wisconsin income only. Com
panies not taxed in these classes, as
assessment companies pay an annual
license fee of $500. This allows them
to do business one year.
Safe European Methods.
The old world companies are in high
repute They are all fire. One Hol-
land life company, formerly did bust
ness in Wisconsin and still has policy
holders, but is doing no new business.
These foreign fire companies under the
law Of New York state must deposit
100000 in securities to protect Ameri-
laws recognize this practice These
foreign companies are conducted more
economically than our own and most
wisely.
One of the strokes Mr. Fricke made
was to recover $4,000 from nineteen
casualty companies. These companies
protect against accident and the like.
The big Travellers association (Which
does accident and life business both
was paying the life company license Of
$500 year but doing an enormous &C
cident business. 1t was getting off
very cheap and Mr.. Fricke maintained
in the courts that it was unjust. The
decision forced a payment of per
cent. on the receipts for accident pre-
miums for a number of back years.
AS to the other companies, the issue
was that they were paying only the 2
per cent. tax and should pay in addi-
ton the $500 license fee for each of the
back years. The companies resisted
and threatened to leave Wisconsin, but
they finally surrendered and the back
license fees, taxes and interest aggre-
gated $4,000.
Assessment Insurance Changing.
The passing of the assessment life
companies is noteworthy. There are
classes of assessment insurance: first,
what is known a assessment life as