The Democratic advocate., 1909-02-12

pany Incorporated under the laws Of any other STATE m
country and doing business in this State to make or
permit any distinction discrimination in favor of in
dviduals OF the same class to grant any nducement
whatever to any person to insure allow the payment
OF any rebate policies issued but there is no provision
OF this character applying to our own domestic connan
les 50 that say by this Statute that that which i
unlawful, improper and wrong in companies incorno
rated outside of this State may be done freely b our
Maryland corporations If rebates and determinations
are improper and harmful to the business when done
within the State by outside companies can SEQ no
reason why such conduct the part Of our home com
panles should be permitted and think that the law Of
this State on that subject should be very materially
changed IN order that every company whether foreign
or domestic should stand upon equal footing lust as
1t is proposed that every poicyhoder should stand ON
an equal footing under that law trust that the Com
mission will take very decided action on this subject and
recommend the passage of such laws will effecualy
eradicate improper practices in this line from the bus
ness OF insurance within this State
Insurance is a contract whereby one for a consider
alton undertakes to compensate another If he shall sr
loss All that is requisite TO constitute such contract
the payment OF consideration by one and the promise
0f the other TO pay the Of loss agreed upon nv
e contract TO the person entitled TO claim upon tho
happening OF the contingency contemplated in the CON
tract business of this character needs no special IN
duceIneDt 10 recommend IL the pope II il not neces
sary that agents should carry around with them eroo
special board contracts stock options in order that
people BE- persuaded enter into contracts az nsr
aneeand every such device and scheme should receive the
severtst condemnation from the State and from those
should he prescribed 70 make such practices entirely nm
profitable and danergous While / am rather doubtful
whether the practice known Twisting can be- str
efsSinly dealt with by Statute should nevertheless
be No unpopular be frowned upon by every renpec
able agent that the evil may be- broken mn md en-
nrey driven from business here want 10 say that
have not emphasized the matter Of rebatng or twisting
because they have been carried within this State 10
any great extent but in order that we may guard the
business in the future against their evil effects and IN
this respect feel sure that have the entire sympathy
and support OF every member of this Association
There are quite number of otfer topics that might
Wen receive the attention of this Association and which
might mention with propriety at this time but In doing
70 would be- trespassing upon your patience much
longer than should There is however one very inn
porant subject which desire 60 discuss little more
imly than have some Of the Others and therefore |
shall pass by other matters that may devote the rest
OF my remarks 10 the consideration Of Taxation Of In
Companies
The Special Committee ~ Insirane. Commissioners,
appointed 20 investigate the subject of the taxation of
life insurance, Of which had the honor 20 be mernber
IN is report laid down four propositions which appear
quoting them entire
lst The State should insist upon the faithful eon
servatlon OF Life Insurance funds and their application
to their intended II should be ~ reluctant itself
70 divert them from their intended use A. 10 permit in
dyiduals 10 employ them for political purpo or In ~,
trayagance OF management
md Life Insurance taxes either increase the rns,
of insurance or diminish the amount of H. In tho ,c
ease, they fall the poicyhoders in the other on te
benefciares Of the insurance
3rd Having taxed the real estate and other prop
ery OF THESE corporations on the basis rs other
property taxed and imposed upon them in the form
OF fees the payment of their own supervision further
and additional taxation s njustifabe The mere de-
sire 10 raise revenue docs not imposing npon
Lh' insurance special form Of premium income tay
4th. IL premium income tax did no, corr..nond
ng increase the cost of insurance or reduce the amount
oi IT. and II II could be justified any ground yet it is
discriminatory to impose this tax life insurance alone
and the rate imposed is excessive
III II were necessary would serve. any good nnr.
pose at this time each Of these propositions conld bc
Ferhed and sustained by almost endless array Of facts
and figures but il would simply be repetition of that
which IL 10 well known 10 all of you
However win give you a short statement of the
business IN this State for 1907 There were paid 10 Life
insurance Companies Of other States and Foreign Cou
tries nearly $s0O00O0 by citizens an premiums and
these same companies paid to the State in varions forms
OF taxes during that year S136 44217 in percentage
one and seven tenths, which is somewhat below the
general average in the country at large
III this Of - 1000 600 had been invested in mort
cages or Judgments the State would have collected no
taxes from II whatever.
Why should there be this discrimination against
IRE insurance II surely is neither fair just 10 those
VINO adopt this means To lay by fund 10 provide their
loved ones the necessaries Of life when death shall re-
move all other support for the State to place upon their
prudent efforts this extra burden Of taxes
But why give further consideration TO this view of
the matter III injustice is being done there should be
an ehort made at the proper place 10 it and
waste all force in merely talking about il at conven
tons and gatherings of this character II insurance is
paying more than its fair share of that fact should
be orciby called to the attention of the people who are
paying the money the pocyhodefs in order that their
influence may be brought into action upon the
members OF the legislature many of whom doubtless
have policies their lives 10 so modify the law in
this regard that equal and justice should be meed
out TO all alike
On account Of the great and ineessant appeal for
appropriations from every source upon the Legislature il
Is svery difficult and indeed almost impossible to have any