Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-06-02
BIG FEES FROM INSURANCE
Report Of Auditor Shows Sll8,890 for the
Past Six Months,
FIFTY THOUSAND OF THIS BACK FEES
Secretary Bennett of state board
of Assessment Issues some
Instructions to Local
Assessors.
cFrom a star Correspondent

LINCOLN, June 1.-(special. Estate Audi
tor e. NJ. searle the head of the state in
surance department. today completed his
semi-annuai report to the governor, showing
the collection Of fees. From all sources,
including the reciprocal tax, amounting to
$4,000 due and unpaid for the past three
years, the auditor has collected S1lSs9O in
the past six months. The income during
the next six months will not exceed 5000
This showing is the best that has been
made in the history of the state by the in
surance department. Ten or fifteen years
ago the total income in the form OF fees
from insurance companies did not exceed
$4,000 year. Now the revenue Is more
than double that amount and is enough to
materially assist In paying the current ex-
penses Of the state. For the corresponding
six months last year collections were ss4s4S.
The reciprocal tax, which the insurance
companies resisted TO the last in the state
courts, was unpaid for three years and its
collection by Auditor Searle after prolonged
litigation has swelled his total receipts.
His collections include all fees from in
surance companies, per cent tax on
life companies of other states and the
reciprocal tax.
Taxation OF Insurance Companies.
Two fire and life insurance companies Of
Lincoln were represented this afternoon
before the State Board of Assessment to
protest against the Interpretation, placed
by County Assessor Miller of Lancaster
county, on written instruction given him
by the board. The question of assessing
companies not only gross premiums.
but also upon other property. was upper
most. After an earnest discussion, the
board adjourned for the day without action.
The matters before the board apparently
involve the assessment of insurance COM
panies in Lancaster county. the assessors
OF other counties not having borne down so
heavily upon the companies. However,
the same question may arise in Douglas
and other counties before long
Secretary Bennett. after consulting with
Deputy Attorney General Thompson, sent
TO county assessors letter directing them
to assess property of certain companies as
well as gross premiums. Mr.. Miller in
terpreted this to mean insurance companies
should be assessed upon their capital stock,
mortgages, notes. bonds and in all respects
the same as banks are assessed. A member
Of the board explains that the board in
tended merely to instruct assessors to
assess the reserve funds of fraternal COM
panies the same as had been ordered last
year and not carried out by County Assessor
Reed OF Douglas. The letter contained
t other matter relating to other companies,
and II the order is obeyed, insurance COM
panies Of all kinds will be assessed much
heavier than they were last year. The let
ter Of the secretary, which still stands, Is
as follows:
! 1t has. been taken for granted by some
assessors that insurance companies are to
4 he assessed only upon their gross premiums
for Nebraska business during the proceed
ing year. This Is erroneous. The assess
I nent Of the gross premiums is an assess
: ment. not upon the valuation of the prop
their business 1t is not In lieu of the as
sessment OF property which they own In
the state and county, but in addition
thereto The assessment upon the busi-
ness or gross premiums shall not be made,
however, against fraternal beneficiary as
sociations and mutual insurance companies
having no capital stock and make no divl-
dends and whose scheme Of insurance
earnings or profits 20 the policyholders.
Tho last named class of companies and
associations shall be assessed only upon
the valuation of all their property. Their
and fixtures or any other personal prop
erty, such as credits due or to become due,
notes, bonds miortgsSes' moneys moneys q p1Ssited
such associations and companies as re-
serve funds, contingent funds or In any
other manner s9ch properly go Is subject t
and shall be listed and assessed by the
assessors.
Lumbermen Answer.
The Perry a. Bee company, A. v. Perry
and c. w. Keys & Company, lumbermer
Of Cambridge, have filed answers in the
supreme court in the suit instituted by
the state to dissolve the association, or
the ground that it is operating contrary