Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1909-01-22

were expended during the last campaign
preceding the primary, 1t is well to consider
vlsed by which expenditures by candidates
for Office may be limited. provision re-
curing candidates and committees to make
and file public statements showing the
amount expended and the purpose of the
expenditure, before the primary, instead OF
after 1t, and making the filing Of false state
ments a disqualification for Office, would
tend to discourage the excessive and i'm
proper use of money.
INSURANCE DEPARTMENT.
The enactments of 1907 amending the
insurance laws of this state were designed
to reduce the cost of insurance to the pol
icy holders, and to secure the solvency of
insurance companies. The new legislation.
among other things limits the expense Of
doing business to such amounts as shall
be provided in premiums collected for that
purpose, the salaries Of officers In domestic
mutual companies to $4,000 subject to In
crease by policy holders; requires state
ments to policy holders Of deferred divi-
dend holdings, of the amount Of annual
dividends Of stock life companies; Of the
rights of policy holders and stockholders
in surplus; annual reports to the insur-
ance department as long as companies have
policies issued or delivered in Wisconsin;
provides penalties for the violation of in
surance laws; for publicity in statements
to the insurance department of political
contributions and legislative expenditures;
of salaries above $1,000; of the amount of
all the commissions to general agents; Wis
cOnsin policy, and real estate loans, and
the separation of gains and losses of par
ordinary and industrial insurance, and for
voting by mail; prohibits Misrepresentation
and the use of non-participal contracts
f BY mutga ties hs GeraoR 9f Is
board contracts, as well as the sale Of
stocks aid bonds with policies. and proxies
IN elections by domestic mutual companies.
were enacted met, at the time, with my
unqualified approval, and nothing has since
transpired which changes my opinion Of
their practical value to insurance interests.
Several life companies withdrew from the
state, giving as a reason therefor that a
company should not do business In a state,
the laws of which require a maximum linn
itatton OF premiums, or q method Of Valu-
alton which includes expense factors, or
the setting aside of a specific portion of
premiums in the several policy years for
great benefit in insuring the solvency
of life companies doing business in the
the meaning of any of them as claimed by
some Of the withdrawing companies, which
can be made clear. so as to remove the OBJ
jectionable features thought to exist with
out affecting the essential purposes of the
laws, it would be well to do so, to the end
that conservative companies Of other states
may be willing to transact business under
them. But no sacrifice of the principle OF
these acts should be made for that pur-
pose.
The failure Of the last Legislature to
life insurance has left in doubt the maxi.
mum rate Of interest that may be used.
Besides, the organization of the new COM
pan1es has disclosed the desirability of
more elastic system of valuation than that
heretofore specifically authorized by law.
The bill recommended by the insurance in
vestigation committee as amended and
passed by the Assembly at the session OF
1907 would make the law certain, and 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 I'M
due burdens by the operation of retaliatory
laws Of other states. The law now imposes
tax of per centum upon the gross pre-
amounts paid licensed companies for re-
insurance, return premiums, and actual
losses less reinsurance losses. No other
state collects it's taxes upon this basis. AS
a consequence under the retaliatory laws
of other states, our companies are COM
PEELED in many states having such laws, to
be computed on the basis of either their
laws or our laws. A REIMBURSEMENT Of the
basis of taxation to avoid this injustice to
our home companies can be made without
loss of revenue to the state. 1t is recon-
mended that such change be made at this
session.
Another matter In connection WIN our
insurance laws deserves consideration. For
many years 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 at any time all
companies doing business therein. For this
service a charge Of $500 per day and trav-
cling expenses at cents per mile, is al
lowed; also compensation to be paid TO the
commissioner by the company examined.
Formerly the commissioner was paid by
salary. VERY
large amounts have been paid by insurance
companies to the commissioners under this
authority, and, for obvious reasons, the
practice permitted is a bad one and should
be speedily abolished All expense and com
pensation so collected should be paid into
the state treasury, and the commissioner re- e
be audited and paid as other accounts are
paid by the state. This will insure justice
to the companies examined ana discourage
sioner now receives a salary OF S0OOO per
year. which compensation is as liberal as
that paid to any other state officer
TAXATION.
In my message to the Legislature of 1907,
attention was called to the fact that the eff
forts of the tax commission to assess and
successfully tax personal property had
proved a failure We are no nearer to the
goal now than we were several years ago.
Especially is this true of cash and intangi-
BILE property, which may be said prac-
ticaly to escape taxation: The ap-
parent impossib1lity of dealing with
credits as basis Of taxation caused
the majority of the tax commission in 1903
to recommend the exemption Of all cred
It's This has not been done by formal leg
islative enactment. though the fact is that
all forms Of credits are virtually exempt
money, the most substantial form Of per
sonal property.
An attempt was made in 1903 to provide
for the taxation of mortgages, but the act,
in fact, resulted in their exemption. This
leaves the best securities not taxable while
other credits are made taxable by law. 1t
is hoped that with the inauguration Of the
system Of income taxation these inequal-
ties may be righted and that If it shall be
found desirable to exempt credits and
money, that the same may be reached
through the income tax. However, If mort
cages are continued to be exempted from
taxation, it requires no argument to dem
onstrate that all other forms of credit
should also be exempt. In this connection
I call your attention to a matter which
appears to require remedy in some form. It
must be admitted at the outset that so far
as credits are concerned, they escape tax
Rx-5y1 %EnO