New-York tribune., 1908-05-24
uTrGHFS EYPL4INS TEIO
Files Memorandum on Fire InSF-
once Measure.

.,,.,r May a2-The veto by Governor Hughes
Of the bill of Assernblyman e r FoieE. oi q
County Gntroduced also IN the Sehaie ID
s-,i4b Of Colurnbia), which would have arnehoeu
,.e 5rs,,rsrre law so as permit nutuai IRE III
s-rance companies or associations OF olher s'a'eS
IN do business within this state under certain Ie
str1ctions and taxation. and 20 prohlbit 'he i'su
.s Of property located in this state in unauthorl%eo
,orapanes is explained by the Governor IN d iie'1i
.s,-sv-7,,r, fled with the vetoed bill to-day.
TIE Governor announced this veto last nisht IN
connection with his disapProvai or an item oi
xs1l 65 fer salaries in the bureau OF the 1hsui-
anoe Department which was to be organized In
case of the approval by the Governor OF fhe oieS
bill The memorandum is as follows;
This bill provides for the admission OF foreign
,1lItusI fire Insurance companies to do business IN
his Ssse up 9Pon S9pyfs Of Tas tax Of per cent upon
gross premiums for the benefit OF associations OF
Il has long been the policy the state to secure
TO volunteer fire1nen the proceeds OF tax on nre
srsnrance premiums in recognition Of the impor-
tart public services which The fremen render' IL
appears that owing TO the extent 10 a-9o "LrIcIa
called factory Inutu4; ire insurance companies @
organized in other states write insurance upon
do business here, practically the aTnount
And the purpose Of this bin facilitate the ad-
mission OF such companies 10 &c pusinies pii of tax
F3ii4 here are fatal objections to this bill While
the intent vas to admit 10 TINS sta5e ate ee san "a aTeIT
gABes OF excellent stafoiIls the Dl Is r,lS 80 a
do business here. under certificate OF the super
lDfFnQGnI
Thus it is made mandatory. upon the superin7;
1enGerI Of Insurance to permit q foreign ihutual
his state without other safeguard as to it's
sources than an affidavit that il maintains re,
serve fund equal to % PeT cei5 fcien Of M Other
companies doing business here are charged; N IN
estimating theiI lapiigS WIN On ts Sum oIiees in
force And stock companies from other states. IN
csPtai rit5i'5 OF not not less than :2oo eoo-
II IS Impossible 20 avoid the conclusion that ms
Sfs VOL
without proper financial responsibility. to the great
che year the Superintendent Of Insurance shall re-
the au1hoIity If he is satisfied that the com
pany may be trusted But he mas no alscItLoa a.
the first year. II the required papers are hied
subsequent Years would not iL3pro,naby ,a be COY
latrre itself had IMPOSED for original admissions
Assuming that il is advisable 10 admit mutual
soiici1ous 10 secure the advantages OF having the
safe companies come in tha we snail open me cor
al sorts Of Irresponsible concerns and invite
them 10 prey upon the public 49,. - oa+,,r
The bill further provides that no corporation
organized OF doing business within this state.
and no partnership shall suffer or permit us prop
suFsfce y,qeIs If shows
(in a prescribed nnanler) that il has been unable
obtain its insurance from mutual companies
lawfully doing business here In other WORDS.
The members Of New York firm made guilty
of a rnisdeneaRor if. they make contract in
Massachusetts with a Massachusetts corporation
for the insurance Of their property in this state
unless they comply with the prescribed condito.ns
20 Do with me restrictions which the Legislature
psnies. their agents. or brokers, from doing an
unauthorized business in this state That is
oinerent matter The bin undertakes 10 deal
directly with concerns insuring their property and
entitled make contracts for that purpose IN
other states with companies there lawfully doing
business. The provision was doubtless regarded
IS essential the purpose Of the bill because
the object is 1xofold. 20 wit TO have the foreign
rpurual conpanieS into the state and TO
prevent New York concerns from insuring in them
If they do not
However desirable il may be TO secure adequate
support for firernen's organizations that re-
suit rnanifestly carnot be obtained by a measure
OF sort. which IN the scope OF its restrictions
plainly r-anscen6s constitutional limits.