The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-08-29
INSURANCE. REBATES cur orr.
FIRST DECHgEON or GROVER
CLEVELAND, REFEREE.

EnGligh Poiicyfl010eFD WIN No Longer
Get o Reduction IN Premiums on Ac.
count Of the Income Tax Lsw-W1Il Cut
Eoreign Business but Save Money.
Grover Cleveland has handed down his
first decision 40 rebate referee for the three
big life insurance oompanies. His do
oision will result In q big saving for tho
companies, but win decrease tho amount
Of businees written BY the American COM
panies In Great Britain.
Tho income tax law Of England, under
the Interpretation given Il by the English
courts, allows those who are subject to
the payment Of this tax to deduct from
their taxable incomes the amount paid by
them for premiums on life insurance policies
issued by Englsh companies. In tho oase
Of premiums paid on policies In tho Ameri.
can companies, however, the law has been
construed 10 not permitting such deduc-
lions, and It has been the practice Of most
Of the American companies to absorb this
tax. This was done by granting to the
Engheh p~ohoyholder q rebate equal to
the amount which he paid on the premium
as an income "a This was the only way
b American companies could compete OF
equal ground with those Of Great Britain.
Mr.. Cleveland holds that this can no longer
be done by the American companies, as o
continuance Of the practice would constitute
a rebate under the new law. To give or
receive a rebate under the Armstrong code
Is a m~isdemeanor. Mr.. Cleveland's de-
oision will 60 into effect at once and all re-
batting on English policies will cease.
The officers Of the big companies would
not express an opinion yesterday as 10 what
the probable result would be on the business
of the American companies, except that
the decision would accomplish q very con-
siderable saving. The business OF the
Mutual Life In England is none too good
at present. That company has had a lot
Of trouble there, and Vioe-President Emory
McClintook spent several weeks in the coun-
try recently trying to reassure the English
p~olicyholders and get the company's agency
affairs on a good basis.
Mr.. Cleveland has had the English situa-
ton under confederation for the last six
months and has one carefully into all the
intricate questions involved. The ex-Presi-
dent was appointed rebate referee early In
the spring. He gets a salary Of 81. 900 q
year, the New York Life, the Mutual and the
Equitable each paying one-third.
The officers Of the international policy
holders committee have received a letter
from Julius Ullman, a lawyer in Vienna.
who Is heading the polioyholders' move
ment In Austria, complaining that the New
York Life Insurance Company Is placing
every possible obstacle In the way OF the
Austrian committee copying the policy
holders lists filed in Vienna. The law
required the lists to be filed In the branch
agencies On July 10. and the Austrian COM
mittee had been unable to obtain the names
up to August II.
Mr.. Ullman says that when he called
at the New York Life Offices In Vienna
prior to July 10 he was informed that seven
teen other polioyholders had already been
~"prenoted" for copies, Mr.. Ullman de-
manded the names Of the p~olioyholders.
He said he found the names of lawyers
and agents, friends Of the general agency,
who had apparently been requested by the
general agent to sign the list.
1.-Two Clerks says Mr.. Ullman, were
occupied In copying the lists on behalf
of the first promoted dummy"
Mr.. Ullman says that 1t will be necessary,
In order to obviate a long lawsuit, to havea
copy of the list Of Austrian policyholders
as fled In Now York forwarded to Vienna as
soon as possible.
Louis Marshall, representing the law
firm Of Guggenheimer, Untermyer q Mar
shall, and General Manager Sorugham Of
the International ~Polioyholders' Committee
went to Albany yesterday and had a talk
with the State Superintendent Of Insurance
regarding the form Of ballot to be pre-
scribed by the Insurance Department for
the election Of trustees Of the life oom-
panies In December. They favor a simple
ballot which can be readily marked and
one that will show up the polioyholders'
ticket as we'll as that Of the administration.
There was q suggestion that the regular
election ballot and form Of marking be
adopted, the tickets to be In parallel columns
supt. Kelsey said he had received many
suggestions from the insurance companies
as to the form Of the ballot. 1t will prob
ably be q week or two before he decides
definitely.