Omaha daily bee., 1910-05-29
OMAHA INSURANCE CENTER
Ought to Be Headquarters for q Big
Cluster Of Companies.
STRONG CONCERNS LOCATED HERE
decentralization Life an Example
Of what May he Done Ina the
way of Building ID -
Home InstitutIon.

''There is no good reason why Omaha
should not become one OF the greatest In
Rrance centers In the west" said c. l.. h.
E,ingbeil, president OF the German Ameri-
can Life Insurance company Of Omaha.
II am inclined to think that there Is a
tendency toward the growth OF insurance
concerns in the west and that they will
rapidly multiply In the not far distant
future. Tho same facilities OF capital and
integrity, to say nothing OF enterprise, exist
here in this great wealth producing and
prosperous west that exist in the east,
where the great Insurance companies have
become firmly planted and presume to
maintain themselves by some sort Of a
divine right.
Our company, the German-American
Life Insurance company, has been in ex-
istence but four years. 1t is what is known
as a stipulated premium company, and we
maintain q legal reserve just as do the old
line companies. We started in four years
ago with but S1.26O assets, and now we
have $4,000 in first farm mortgages or
slightly in excess Of 100000 in gross assets.
Record for One Company.
January 1, 1907, our total amount Of in
surance In force was S5S0,oOO. January /,
1910. our insurance IN force was 4417.5OO.
anu we expect 10 Tehtn tue NOtVJVtVvV w Nho
close Of the present year. We led the
world on gross volume Of legal reserve
life Insurance gained in Nebraska in the
years 1908 and 1903, and our business this
year will be much ahead Of last year.
This company is neither a mutual nor
is It an old line company, but Is simply a
stipulated premium company organized
under the laws Of Nebraska 1t is osten-
slbly Nebraska concern, differed and
capitalized by Nebraska men and Nebraska
money.
'Since the organization OF our company,
our total income from interest receipts
alone has exceeded the total amount paid
for death claims by 1910 per cent.
The amount Of new insurance we have
written during the year, as shown by the
official records OF the state auditors Of
flee. was S2,052,5OO We paid dividends to
policy holders in 1909, 50 167.T7 and since
organization we have paid policy holders
s26,O5s.62. which is not bad showing for
new company"
Taxation of Life Insurance.
On the question of the taxation Of life
Insurance. Mr.. Klingbell said: ITO my
mind the greatest problem that is today
confronting the buyer of life insurance Is
the tendency of the various states AMI also
OF the national government to tax life in
suranoe premiums more heavily than any
other line OF business. The system of tax
alton OF life insurance premiums In recent
years has advanced by leaps and bounds,
until today it' is becoming burde9some to
the person that buys life Insurance.
mo life insurance man will say that the
legal reserve value OF the policy should not
be taxed. believe that this part OF the
life insurance premium should pay its equal
share OF taxation irf the same proportion
that is levied on other property. both per-
sonal and real The public in general that
buy life insurance have not taken sufficient
pains to investigate the methods OF taxa
ton imposed upon LIE insurance companies.
II am sensible OF the fact that taxation
Of life insurance premiums is a problem Of
more than passing interest From a statute
devised for the purpose of producing
enough revenue to defray the legislative
expenses of an insurance department the
laws of most states have undergone grad
ual change until we have class legislation
In fact. IL not in name.
"A tax sufficient to defray expenses to
conduct every insurance department in an
efficient manner is necessary and legiti-
mate burden for all insurance companies
60 share. But such expense could be re-
IN duced to minimum by the creation OF a
national department Of insurance, thus
bringing all companies in the United States
operating in more than one state under one
common supervision and control This
would simplify the complex demands of
the various states and eliminate the present
unjust burden; provided the various states
would consent to surrender supervision and
base taxation purely upon the investment
portion Of each policy and so accept the
national department certificate of solvency,
Issued to each corporation as sufficient
qualification to transact business In each
state. Such legislation would remove a
multitude of defects, now 80 abundant In
ths insurance statutes of every state in
a the union.
1T is unjust to tex the premium paid for
term rate policy a whole life policy, or
the mortality and expense feature of all
other classes of policies, at a rate that
4 will create larger fund than is necessary
TO operate tho Insurance department in a
thorough m0nnel 1t is unjust to tax the
mortality provision OF the premium, be-
cause such is taxing benovolonee
Taxing the expense feature of a life in.
surance premium is virtually an income
tax levied ON the life Insurance business
Our supreme court has declared an in.
come tax levied against one class OF peo-
pie is unconstitutional because It Is class
legislation. l hold that tax on the ex.
pense Of tho premium Is an income tax
because It is class legislation.
COmDeIs Higher Rates.
THE tax sequence has been that all in.
surance companies were compelled during
the past years to increase the rate tC
meet this additional burden. 1t would b,
equally just to tax every corporation upor
tho gross salaries paid. and. In fact, tag
all moneys paid by them for advertising
ana any other management expenses On,
branch Of business certainly should not b,
held up at the expense OF the others.
am heartily in favor Of any movement
along practical lines that would eliminate
inc injustice perpeu9ted upon all life in
surahee patrons under existing laws. L,
prihg about such needed reform. however
tho lie insurance companies should maxi
tho IEst start in the right place, which 4
IN their own home office. Eliminate tn
fTlster' and then only WI public sentimen
change"
reflections OF Uncle Ezra.
Plank Purdy says he has got a lot .
OlAtaht relations but the most disIa ~ %
n.