Daily capital journal. (Salem, Oregon) 1903-1919, 1907-03-01

DEFENDS
ORDINANCE
Raising License Fees OF In
surance Companies TO
Fifty Dollars

self I was informed yesterday hOIh
ing that one of the special agents
had secured promise from the may
or that he would veto the ordinance.
However, do not think the council,
being composed of business men,
and some of them heavy taxpayers,
will sustain the veto. ] have this
IN gay. that | am writing fire insur-
ance. but was not elected by them or
any other corporation, and as long
as I am one of the aldermen of the
council shall stand for the people
that / represent, regardless OF my
own interest, or the interests of cor
poratlons, and | am willing for the
public TO say who is in the right in
this matter, myself and nine other
councllmen who, voted for the ordi-
nance. or the mayor and the two
aldermen who voted against Il.
II note in his message to the coun-
ell that each iite insurance company
pays SIS per year for taking out of
the city total amount of about $45.-
900, but he does not state that life,
accident, surety and plate glass
companies do not pay one cent to
the city, and still we have an Inter-
view from an agent of one OF the life
insurance companies, published a
few days ago, in which he states that
his company paid TO the state $500
as per cent tax on the business
done in the state last year. In maxi
ing this statement he probably did
not consider the fact that Si700 rep
resents SS5. 900 that has been taken
out OF the state and Salem has not
been slow In contributing her part.
and yet Il Is claimed to be unjust to
ask the poor. much-taxed companies
10 cooperate with the. taxpayers
that are paying taxes TO maintain
the city, TO ask them to pay the small
sum OF $50 per year. am interest
ed in Salem, and what little proper
~ have is here, and / would only
be too glad to pay the city a license
OF $50 per year for the privilege OF
doing an insurance business here,
although my business is very small.
The mayor makes the statement that
4 would force the withdrawal OF
some OF the companies from the city.
| beg 20 ask II the assessor. when he
is assessing the individual property
holder II he considers whether he
viii have to withdraw from the city?
Why should insurance companies
that oyerrun the city have any more
favorable consideration than the man
who labors by the day, and has his
tax 20 pay?
Regarding the reduction OF the
25 per cent any Insurance agent OF
the city knows that II is very arbi-
trary. and in short rating Il is 25
per cent In policies that were issued
during the first part OF the season
the small percentage is paid to the
insured, l do not think the fre in
suranee companies should be COM
PEELED to pay license and the life and
other insurance companies that are
taking the money out OF Salem
should have nothing 20 pay whatey-
err hold that II one company
should pay license an should. II
do not believe there Is a city In the
Pacific Northwest where the insur-
anee companies are making the mon
ey they do In Salem, know OF no
city where rates are as high aud as
few losses as there is in this city. II
10 well known that the citizens OF
our neighborlng state, California.
tell US that Il rains nine months IN
each year and yet through that
board OF hre underwriters OF that
state. the rates are raised almost
every three months. l claim that
the nre department, the streets and
alarm systems. are maintained more
directly In the interests OF the hre
Insurance companies than OF any in
dividaal. and they should pay their
part OF the cost 20 maintain the
same. They do not have one dollar
of property In the city that is reached
by direct tax.
He also stated that the companies |
would Increase the rate In order 10 |
meet the additional tax. I do not
understand that the rates are ar
rived al ON this basis. A building ls
rated according 20 the construction
and conditions ot the adjacent |