Daily press. [volume] (Newport News, Va.) 1896-current, 1910-05-29

! believed the insurance rates In the
city we're too high, ana that he had
rot regarded the license tax imposed
by the council as excessive. IL the
rate was excessive. he said, he DeiieV'
ed the matter could be adjusted < q
Committee Acted Hastily.
He did not think the community
could be expected to be otherwise
than indignant when the rates had
been advanced ten percent on hair an
hours notice, and he thought the
Virginia committee acted hastily, TO
say the least. In sending this new
rate slip to Newport News I'M
mediately after the conference In
which representatives of the finance
committee had assured President Har-
lis that II the council had done the
companies an injustice, the wrong
would be corrected.
MIR. West asked whether the as
ISOLATION would remove the rate IN
crease IL the council reduced the
license tax to S25 and percent Mr..
Prescott replied that. while he thought
the tax mentioned would be excessive,
the association would do whatever
was fair. and that II the council want
ed 70 submit a proposition the body
would be glad to name committee TO
confer with the councils representa-
tives.
Favors Adjustment.
Mr.. Cottrell discussed the situa-
tiOn at some length. He thought that
a great deal OF this trouble was re-
suit OF the people not understanding
the insurance business. He said.
however, that the people felt that they
had not been fairly dealt with, and
that he believed that If the associa-
ton demonstrated that II desires to
make equitable rates and IS willing TO
stand reasonable tax, tho difficulties
could be amicably adjusted.
Mr.. Chaplin assured the visitors
that neither the council nor the CON-
mercial organizations had ANYTHING
to do with the institution OF criminal
proceedings. and he seemed inclined
to believe that a part of the public,
at least. does not approve of the COM
wcalth's attorneys course
Statements from Mr.. Warren.
Mr.. Prescott was asked to dictate
a statement for this paper setting for
the Insurance mems side of the situa-
ton here. Later, the following state
ment was made by Mr.. Warren. as
chairman of the Virginia committee:
THE impression exists that the
insurance companies have been
moved in this matter by spirit
of retaliation. That does them a
grave Injustice. The fact is that
the companies have for years act
ed On the principle that when
municipality has imposed an exs
cessive tax on them. thus increas-
ing the cost OF doing business
there, then, in justice to other mu-
inequalities which impose only
reasonable tax and in justice to
themselves, the companies-in no
spirit of hostility. but as a simple
business proposition-must In
crease the existing rate by a sum
that will, after deducting the ne
cessary expense. equal such ex-
cess tax; and it is only this prin-
ciple they have sought to apply
to Newport News.
According TO the published
statements in your local papers.
there are 6S companies doing busi
ness here. A fiat license of $500
each ($l.700.00) and percent on
the premiums (s6,000) as estimat-
ed in your papers make total
Of $4,000. or city tax of Gal
percent. Add to this the state
tax Of about percent and we
have a total tax of more than s
percent on our gross income;
whereas. the average combined
amount of taxes, licenses and
fees, state and municipal.
throughout the United States for
the past Is years is only 2.67 per.
cent
What other business In your
city. may ask. is required 10
carry such burden as ours?"
Oppose Continuance.