The San Francisco call., 1908-11-18
WOLF IN FAVOR OF
TAX ON PREMIUMS
Insurance Commissioner Sug-
gests Rates Should Be Graded
in Different States
Public Indifference Blamed for
Big Waste of Lumber and
Property by Fire

The subject of taxation upon the pre-
main subject treated by Insurance Com
missioner L. Myron Wolf in his annual
report TO the governor, made public
yesterday.
The argument against the taxation
of premiums comes primarily from the
life insurance companies, the report
states. They urge that the tax upon
their business is a tax upon thrift and
comes from the pockets of the policy
holders. The missioner -~acknowl-
edged that this argument had certain
amount of merit, but said it was not
sufficiently meritorious to warrant the
removal of the tax.
In his report Wolf recommended that
the most effective means of equalizing
matters would be to grade the insur-
ance rates according to the taxes i'm
posed by the different states suggested,
and the apportioning of dividends upon
a similar basis.
recommendations for regulation of
fraternal insurance organizations We're
also made by the commissioner, who
stated that the rates were not 1gured
on any scientific basis and We're in
variably too low. He recommended
that regulations should provide the
fullest publicity, the maintenance OF
adequate reserve funds and the right
to enforce the collection of proper
rates.
FIRE WASTE ENORMOUS
The destruction of forests by fire,
representing a loss which proper
precaution against mere carelessness
would largely obviate, was also taken
up in the report, which recommended
an effort to check the waste through
he tn n
serve the national wealth Safeguards
from fire, by the use of the sprinkler
plants, were also recommended.
The report called attention to the
tremendous drain upon the resources
of the country through fire waste. 1t
was said that the losses last year were
5000, 900. 900, and the indifference on the
part of the people upon this subject
and their failure to appreciate its i'm
portance were pronounced surprising.
The lack of preeaution on the part
of the people of this country was dem.
onstrated in one section of the report,
which says:
This country makes very unfavor-
able showing in comparison with Eu-
ropean countries 1t is claimed that in
Europe fires seldom get beyond the
building in which they originate. The
people are schoo1ed and educated
in the thought of taking great precau-
tion to guard against fire damage.
LANDLORDS HELD LIABLE
I'm some of the European countries
the law makes landlord responsible
to the tenants and neighbors for neg
ligence if fire starts from a defect in
the building, and if the fire is due to
carelessness of the tenant he is held
responsible to the landlord and his
neighbors."
Conditions in this country, the report
says, are different to a large extent.
Wood is much cheaper and more gem
orally used and the growth of the
cities and towns is much more rapid.
The water supply and fire fighting fa-
cilities do not keep pace with the
growth: there is a failure to enact
proper building regulations, and a lax
ity in enforcing those enacted
The report follows generally the form
of the last report, which was more
voluminous, because the legislature had
made adequate provision for the depart
ment. 1t contains % statistical tables
and extracts, giving in detail the assets,
liabilities. income and disbursements
and miscellaneous information concern
ing the 217 insurance companies au-
thorized to transact business in Cali
fornia.
OF the 217 companies 11s were fire
and marine, 34 legal reserve life in
surance, two assessment life insurance.
one assessment health and accident, as
miscellaneous insurance companies, and
16 county fire mutuals.