Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-02-23
State Auditor Carols Statement
In Regard to Suits Begun by
Insurance Companies
CLAIMS THEY ARE NOT EXEMPT
Sees No Reason Why the Insurance
Companies, Mutual or Otherwise,
Should be Exempt From Assessment
Advises Managers to Cut Salaries
and Pay Just Dues.
Special to Times-Republlcan

| Des Moines, Feb. 23.-Audltor Oh
State b. +. Carroll accepted service of
notice this morning in the suits which
have been commenced against the
| treasurer and auditor of state by some
of the state mutual insurance assoc
CATIONS who resist the payment of
their taxes. The auditor does not re-
gard himself as a party to these suits
since the taxes are payable to the treas
urer and not to the auditor, and in
discussing the matter made the fol-
lowing statement:
."rhe law provides that the auditor
shall not renew the annual licenses of
any company or association until its
taxes are paid and for that reason some
of the associations are paying their
taxes under protest in order that their
certificates may not be withheld' and
have instituted suit to recover the taxes
thus paid:
The morning paper contains an arti-
Gle which conveys the idea that GER
tain assessments are made against the
associations each year which is mis-
leading as the matter in controversy
is not on assessment, at all. the state
makes no assessment against any as
ISOLATION. The real controversy is
whether these companies shall pay
their taxes as provided In section
1333-d, supplement to the code. The
idea is also conveyed that these assoc
Citations pay a large amount of taxes
to the state and that the treasury
would suffer considerable loss should
these associations be exempt from pay
ment of taxes The truth of the mat
ter is, that the thirty or more associa-
tions which have protested the pay
ment of their taxes will not pay, this
wear. an average amount in excess OF
500 each or total of perhaps not to
exceed $4,000 Some of the associations
will not pay as much as 81 taxes, while
not more than one will likely pay as
much as $3.50. The two associations
which have already instituted suits
are the Iowa Mutual Tornado Associa-
ton and the Town Mutual Dwelling
House Association. both of this city.
The law provides that associations
shall pay, as taxes, sum equal to
per cent of the gross receipts from
premiums. assessments, fees and prom
issory obligations, after deductlng the
amount actually paid for losses and
amounts returned to members upon
cancelled policies and rejected appli-
cations The taxes practically are paid
only on the amount paid as commission
to agents, salaries to officers and en-
ployes and other expenses of the assoc
citation and not upon any sums paid
for losses or otherwise returned to the
policy holders
The Iowa Mutual Tornado Associa-
ton collected In assessments. fees. etc.
last year $51,56157 and paid for losses
S1O,269.32, leaving $41,292.25 as the
amount upon which to be taxed. max
ing their taxes $412.92. There was
paid as commission to agents $4,000
and as salaries to officers $1,000, and
as salaries to employees $1,000, making
total for these three purposes of more
than $4,000 The Town Mutual
Dwelling House INSURANCE Association
received as assessments, fees, ETC.,
s5O,2S9,23 and paid to it's policy hold
ers $1S,6361S, leaving $31,653.05 upon
which to pay taxes amounting to $316.-
So. This association paid to agents
QuIlllS lIlc year Po,oVo' " oiliNNAS %o'
900, other employees 1926, making
total in round numbers of more than
$4,000.
There is certainly no reason why in
surance association should not pay
some taxes, at least, to the state, and
the two referred to above are two of
the largest and heaviest tax payers
of all the associations, which have pro-
tested In fact, there are no two 9TH
ers in the state which pay as large
an aggregate amount of taxes as these
two, and from the above statement it
would not seem that these associations
are burdened by the payment of taxes.
1t is also very apparent that the a.
mount paid to agents, officers and en-
ployes might be sufficiently reduced to
more than compensate for all the tax
es paid to the state and not in any
wise interfere with the practical OPP
erations of the association. Since it is
we'll known that several of these asso-
CITATIONS pay salaries ranging from ST.
500 to four or five thousand dollars
to their officers it would seem that the
proper place for these particular assoc
Citations to begin to economic is not
on the resistance of the payment of
the small amount of taxes which these
concerns contribute towards the sup
port of the state government.