The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-08-27

|
| F1rSt-F'rom an examination of an
ordinary participating life policy, the
| premiums on which are required to be
paid during the life of the insured, at
! the end of ten years, if taken out at
| the age of thirty-five years, for $10,-
| 600, the State requires said compan
les, for the protection of the insured,
| to hold in reserve for the payment
thereof $1,357.20; said companies will
| lend it its holder on the pledging
thereof approximately $1,000; that
said policy at the end of said time has
a cash surrender value of $1,400; or
that said companies will issue to the
holder a paid up policy for $4,000; or
Will extend the time on said policy for
about eleven years and three months
without further payment of premiums.
'Second-On a like participating
policy taken out at the same age and
at the same time, with the same re-
serve fund it will be seen that said
companies will loan to its policy hold
err on the pledging thereof the sum of
SLIGO that said policy has a cash sur
render value of $1,000; or that said
| companies will issue to the holder a
| paid-up policy of $3.50, or extend
| said policy for nine years and ten
months without further payment of
premiums.
|
twenty payment participating life in
surance policy, taken out at the age of
thrty-five years, for $4,000, at the
end of ten years, and for the pro-
| lection of the insured the State re-
quires said companies to hold in re-
serve for the payment thereof ~, 1873
/ so: SAID companies will loan the hold
er thereof $2,340 on the pledging of
| said policy: that said policy has a
cash surrender value of $4,000, or that
said companies will issue to the hold
| er a paid-up policy for $4,000, or eX-
! tend the time on said $4,000 policy
| for seventeen years and ten months
without the further payment of prem
| iums
"Fourth-On a like nonparticipat-
| ing policy for the same amount, taken
out at the same age and at the end of
the same time and with the same re-
serve fund, it will be seen that the
said companies vii loan to the holder
thereof on pledging of said policy
$4,000; that said policy has a cash
surrender value of $1,7S0 or said
companies will issue to the holder a
paid-up policy for sixteen years and
three months.
"Fifth-From examination of a ten
| year participating endowment policy,
| taken out by the insured at the age
| of thirty-five for $4,000, and which
natures at the end of ten years, the
State at the end of the ninth year re-
quires said companies to hold as re-
serve fund for the payment of said
policy $S,603.20; that, at the end of
said ninth year said companies Will
loan the holder thereof, on the pledg-
ing of said policy, $4,000, and said
policy at the end of said year has a
| cash surrender value of $3.50, and at
the end of the tenth year the State
requires said companies to hold in re-
serve for the payment of said policy
| $4,000, and it then has a cash sur
render value of $4,000.
''But the policy under consideration
was Issued to Mrs. Martha j. Stafford
in June, 1908, for $4,000, payable to
her children at her death with an an
nuity of $140 during her life, for
which she paid a single premium
of $4,210.40. An annuity of $40 rep
resentS an investment of $2,333.33 Is
at per cent. interest. This policy, in
addition to its cash surrender value,
whatever that may be, represents to
Mrs. Stafford an Investment of $685.
33 Is.
"In the face of these figures, will it
be, contended that life insurance poll
cies are not property? TO say that
such policies as these are not only
property but property of great value,
| is a reflection upon the intelligence
of an impartial public.
/ THE policies mentioned and herein
referred to, have q cash surrender
| value but we are of the opinion that
/ paid-up policies which have no guar
anteed cash surrender value, are prop
| erty of value and are liable to taxa
| ton. For instance, said companies
are required by the State to hold q
/ ,rsnl,
policies. the amount of which depends
on the age of the insured, the amount
of the policy and the kind of policy
whether it be life, endowment, or
some other kind, and the value of
| such policies might he determined on
the basis of said reserve fund, but the
| manner of assessment is not before us.
Then if they are property. what is
! their fair cash value, estimated as re-
quired under the Constitution and laws
of the State? If these companies will
pay specified sum as q cash surren-
der value for them Will it be contend
ed that such sum is not fair cash
value of such property for the pur-
poses of taxation. But we are told,
| that, in order to encourage the insur-
ance business, these policies should
not be subjected to taxation. If such
was the intention of the trainers of
| the Constitution, they should have
named them along the list of property
exempted in section 10; nor should
they have required that all taxes
should be equal and uniform.
Hence, we are of the opinion that
| the policy of Mrs. Stafford is subject
! to taxation; and that all life insurance
policies are also subject to taxation
in the hands of the holder at their
cash surrender alue."
The first district will be ably rep
resented in the State Senate. Mr. G..
S. Vann will return for a fourth con-
secutiVe time-a rare honor in dis
trict which has had the habit of ro-
tating between the counties. 1t is as
deserved as it is rare. His colleague
this year will be Mr.. S. M. Beasley, OF
| Currituck, who has twice represented
his county in the House most accept
ably.
Folks who talk most about setting
the negro problem know least about
| it The negroes who do the talking