The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-01-29
THE STATE TAX
ASSOCIATION
MEETING EIi;iSi;;: r.;
j. e Boyle Elected President,
A G. Lewis Vice President.
Felson, Secretary
MUCH VALUABLE INFORMATION
GATHERED 0UR|nG THE Meeting
Lewis Paper on Taxation of Farm
Land and City Lots Especially Inter.
csting-R. A. Nestos Discussed In.
teresting Phase of Taxation,

teresting Phase of Taxation.
When this afternoons session of
the North Dakota State Tax associa-
ton is adjourned, the first annual
meeting Of the organization will he
closed. 1t has been very good meet
Ing throughout. resulting in the COL
lection of a large number of impor-
tant points OH the tax question which
will doubtless have their effect upon
:aX changes should any be made in
the state.
The officers elected for the coming
year are as follows:
President--Dr. James E. Boyle,
Grand Forks.
Vice President-A. G. Lewis. Fargo.
Secretary and Treasurer-W. w.
Felson, Pembina.
This Mornings Session.
At this mornings session, which
was held at the university, William
]. Graham, vice president of the
Northwestern National Life Insur-
lnce company. read an interesting pa
oer on THE Taxation of Life lnsur-
ince companies" In opeping his ad-
dress. Mr.. Graham stated that since
almost every class had complaints
about excessive taxation, in order to
show that his plea was deserving Of
attention before the Tax association,
he must show unusual features and
unusually high rates. The speaker
defended vigorously the old line life
insurance companies and the follow
,ng fixed premium and statements
show why life insurance, to be worthy
VI the name, must be sound and en-
Turing. Old line life insurance differs
,nly from assessmentism and frater-
aalism insomuch as it is adequate
:ated at does not depend upon a
,pirit of fraternity, to survive radical
Increases in rates when necessary,
which increases perforce come later
n life in the days of reduced ability
20 meet extra assessments and Of in
creased mortality following increases
n age.
"Old line life insurance is insur-
ance at adequate rates, guaranteed by
he accumulation of proper reserves
upon scientific principles dictated by
:he state itself. 1t guarantees in in
1exible contracts that the benefits
shall never be reduced nor the premi-
an payments increased. These
premium payments may be equated
10 continue during the whole of life.
or for a definite number of years.
There is no magic in the mere name
assessmentism or fraternalism that in
itself will make for better or cheap
er insurance than can be supplied un-
Ter the name old line.'
Continuing to show the injustice of
saxation to old line companies in
comparison with assessment insur-
,nce, Mr.. Graham said:
Iowa Takes Heed.
"Iowa, taking heed of the dangers
of assessmentisnl, forbids the forma-
ton of any new life insurance COM
3anies upon the assessment plan, and
n common with many other states,
las statutes designed to encourage
assessment companies to adjust them
selves to the adequate level premiums
Ind reorganize under old line life in
surance laws.
Yet Iowa, like these other states,
exempted the payments on the assess
ment plan of life insurance from taxa
tion whilst it puts tax of IL per
cent upon the gross Iowa premiums
Of old line life insurance companies
Of other states operating in Iowa."
Taking up the premium tax on in
surance, the speaker said:
life insurance funds are taxed in
sofar as they are invested. Real es-
tate owned by life insurance pays the
same tax as real estate owned else
where. If the whole assets of life
insurance company were in real es-
tate or other physical forms of
wealth, the entire wealth would be
taxed under general property tax in
the communities where the properly
was located. in addition to the inde-
fensible premium tax. However, all
life insurance funds are not in ply
sical wealth, as it is desirable, they
should not he. Much of the money is
constituted in rights, such as mort
cages, bonds and stocks. While
these rights are not directly taxed,
they none the less in turn represent
physical property in railroads, plants.
utilities, land: all of which is taxable
as physical wealth. wit hindirect er-
feet upon the value of the shares or
mortgages.
"Old line life insurance companies
are paying at this time taxes and fees
to the several states at the rate of
nina millions wear. The amounts