The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1909-01-21

I Of salaries above $1,000: Of TIE amount OF
all the commissions to general agents; WIS
/ consin policy and real estate loans ana
/ the separation Of gains and losses or par.
| ticipating and participating business OF
ordinary and Industrial insurance, and for
| voting by mall, prohibits misrepresentation
and the use Of non participa, -ng contracts
! bv mutual companies; the diversion Of de
! ferred dividends; the making OF so-called
! board contracts. rs wei! ms the SAFE oil
! stocks and bonds with policies, ana proxies
! in elections by domestic mutual companies.
The purpose for which these statutes
were enacted met, at the time, with my
undualined approval. and nothing has since
| transpircd which changes my opinion of
! their practical value to insurance interests.
! Several life companies withdrew from the
| state, giving AS reason therefor that Il
! rompauy should not do business in n state,
/ the laws Of which require a maximum lin
/ itation Of premiums or n method Of valu-
| alton which includes expense factors or
| the setting aside of specific portion Of
/ EXPENSE. | think these statutes are in the
interest Of policy holders and of Of
| of life companies doing business In the
! state IT, however there Is uncertainty In
/ the meaning Of any of them as claimed by
/ some Of the Withdrawing companies, which
| can lac made clear. so as To remove the oh.
jectionable features thought to exist with
/ out affecting the essential purposes OF the
! laws Il would Ice well to do 50, TO the end
| that conservative companies of other states
! them But no sacrifice Of the principle Of
these acts should be made for that pur-
I pose
The failure Of the last Legislature to
! enact n lazy for the valuation Of policies OF
( llfe insurance has left in doubt the maxi.
mum rate of interest that may be used.
! Resides the organization Of the new com
| uanioS has disclosed the deSiraDility OF n
more elastic system of valuation than that
| heretofore specifically authorized by law.
| The bill recommended by the insurance In
vestigation committee AZ amended ana
! pasScd by the Assembly at the session OF
/ 1907 would make the law certain. ana while
( FULLY protecting the policyholders would
! give the elasticity necessary to permit the
/ organization and growth of new companies
| on an honest and solvent basis.
Complaint Is made that the present law
/ taxing fire insurance companies results IN
/ imposing upon our domestic companies uh-
/ due burdens by the operation of retaliatory
! laws of other states. The law now imposes
! a tax OF 4 per Ccntum upon the gross pre-
/ miums received in the state, deducting
| amounts paid licensed companies Tor re
| Insurance return premiums, and actual
| losses less reinsurance losses. NO other
state collects It's taxes upon TINS basis. AS
consequence under the retauatory Jaws
Of other states, our companies are com
pcllcd I'm many states having such laws, 10
pay the largest amount Of taxes which can
be computed on the basis Of either their
laws or orr laws. REIMBURSEMENT OF the
basis OF taxation to avoid this injustice TO
our home companies can be made without
loss Of revenue 10 the state. 1t Is recon-
mendcd that such change he made ut TINS
session.
Another matter in connection with our
insurance laws deserves consideration. For
many wears our statute has authorized the
commissioner of insurance to examine the
financial standing Of insurance corporations
applying for admission To do business IN
the state, also to examine Mt any time all
companies doing business therein. For this
service Il charge of 5000 per day and tray
.liDv O. ii cents mile Is al.
lowed; also compensation to be paid 10 the
commissioner by the company examined.
Formerly the commissioner was PAID Dy
fees. Later by fees ana salary very
large amounts have been paid by insurance
companies to the commissioners under inns
authority, and for Obvious reasons, the
practice permitted Is n bad one and should
hc speedily abolished. All expense and com
pcnsatiOu SO collected should bc paid INT"
The state treasury, and the commissioner re-
CURED TO file his actual expense account, ~
be- audited ana paid uS other accounts are
paid by the state. This viii insure JuStct
10 the companies examined ana discourage
unnecessary examinations. IN" CommiH
SiOncr now receives a salary OF Sb'S per
year. which compensation Is ms liberal as
that paid to any other state officer
TAXATION.
In mr message TO the Legislature Of 1901,
attention was called 10 the fact that the ct-
forts Of the tax commission to assess ana
successfully. tax personal property nad
goal now than we were several years ago.
EspuciaiIy Is this true of cash and intangI-
bI" property, which may Zee said prac.
tirNN to ESCAPE taxation. The ap-
parent impos,iIdltty Of dealing WIN J1l
+ credits as a bIsI~ Of taxation caused
the majority Of the tax commission i'm 1908
( 10 recommend Tine exemption Of all cred
I it, This has not been done by formal leg
am forms Of credits are virtually exempt
| from local tHNatiuu. This is true also, ~