Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1908-06-04

on matters of general policy Is more apt
to he sound than the Judgment OF one.
As both commissioners do not retire from
office Mt the same time. generally. there
is a certain continuity of service not
otherwise obtainabe.
STRAIGHT SALARY URGED.
The fees now amount to $4,000 per year,
and In lieu of the 900 each, now APP
propriated as a salary as insurance COM
missioner to the secretary of state and
state trea surer. and which is the only
provision for clerk hire in either OF these
offices, the commissioners recommend
that the salaries of the secretary of state
and state treasurer he fixed Mt such
sums as will fairly compensate such Off
GERS for all the services to be rendered.
including those pertaining to the insur-
anco department and In accordance with
the salaries now paid other State officers.
and that, in addition. provision be made
for such clerical, actuarial and steno-
graphic assistance as may be necessary
for proper discharge OF the duties
pertaining to the several offices under
consideration.
Some years ago the insurance commits
sioners. in their annual report. called
attention to the necessity of providing
for CT ua ria | q ssistance In this dcpa rtnent
This requirement was met In part by the
Legislature OF 1904. which made provision
for the payment OF such expense In the
valuation of the reserve of domestic life
companies With the changing form OF
lfe policies Issued by the old limo com
panies and with the different kinds OF
| policies issued by other companies, 1t Is
necessary for the commissioners to avail
| themselves OF actuarial assistance In order
! to act intelligently upon these. matters.
TAXATION OF COMPANIES.
The matter of the taxation of in
| surance companies is now being con-
sidercd by committee OF the National
association. which will, doubtless. have
something definite to report at the
next meeting in September While
| this is a matter primarily FOR the
| Legislature. It Is subject which
should receive the careful attention of
officials charged with the conduct OF
insurance affairs everywhere. tax
| on insurance is in sense, tax on
| thrift and economy, and so Is taxation
| of deposits In savings banks the
| homes of wage earners, and other sub
jects of taxation. And we believe that
| the business OF insurance should not
go untaxei. Insurance companies. like
| individuals and corporations generally.
need the protection Of government and
! should bear their proper proportion OF
| the expense Of government. and when
| We consider that our insurance taxes
amount to 100000 a year; our tax on
| deposits IN savings banks. 100000;
on savings deposits in national banks,
| $40, 900; on railroads. $4,000; on col
lateral inheritances, $4,000; the an
nual license tax on all corporation
taxes. $50 900 more. II appears that our
insurance taxes are not moro than one
eighth Of all our State taxes.
PRESENT TAX is FAIR.
About forty-flve per cent. Of our total
insurance tax is paid by the National
Life Insurance Co. and about four-ifths
of this tax is one per cent. of its sur.
plus, after making deductions for real
estate taxed locally, and the total
amount of taxes paid annually by this
company throughout tho country Is about
100000, Of which 100000 represents the
tax on premiums collected in the several
States Our State has made tho rate OF
taxation two per cent. on tho gross
premiums collected. after making deduc-
lions for dividends paid to resident
policy holders, and this tax Is required
Of all companies. except In cases where
the reciprocal insurance law calls for
large taxes on companies from other
States by reaso of such other States
having higher rate of taxation on our
| AIT. ho, 1nI nd
while we do not wish to prejudice The
action of the committee OF the Nationa
association. having this matter In charge
we feel that our premium tax OF two
per cent. on gross premiums collected II
this State, less dividends paid to policy
, holders. in case Of life companies, anc
less dividends and reinsurance In ad
mtted companies and such deduction:
as are now made by law for other com
, panies. IL fair to all classes Of insur
, ance business now being carried on II
this State.
t FIRE INSURANCE.
The losses incurred by fire insuranc
, companies in this State In 1907. wer
54,lOs7S. This amount !s smaller thai
. | the figures for any year since 1902 ex
ceptng the year 1909, when the amour
was $3.50. 76O.ll. The per cent of losses In
. CURED to premiums received in l9o
was 49, per cent, as against 6S53 pc
. cent. in 1906: Al. bs per cent. In 1905; $40
. per cent. in 1904: and 10 per cent. i
=. 1903 and as the proportion for l%
6 is about the same as that for tn
~ years 1903 and 1902. this may be con
n sidered a normal amount. 1t Is prob
able, however. that the figures for in
p more nearly approximate the total FL
10 loss in the State than the figures for ~
i and 1902 represent the total fire loss fc
IL those years, for 1t Is probable that
v larger PERCENTAGE OF the total fire loss
d reported to the department at this tin
10 than was reported in those years.
T. Domestic mutual fire insurance con
Il panies stlll carry more than one-third I
l. the total Insurance in force, and frol
l. the nature OF their business, leVylI
assessments to cover losses, higher lo
r ratio Is shown than on the business
stock companies, so that the percentage
re for stock companies are more favorab
IN than than the above figures indicat
ne as will appear from an examination
g. the figures The number of compan
T. during the year, the figures for 1907 cor
II prising sixty-nine companies again
- sixty-six in 1905
Id LIFE INSURANCE.
rs Although the amount of new bus
oil III