The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-03-09
HAPPENINGS OF DAY IN LEGISLATURE
S PROVIDING COMMISSION FORM OF GOVERNMENT IN
FIRE INSURANCE COMPANY
PROTESTS AGAINST BILL

The Home Fire Insurance company,
of which Heber j. Grant is president,
Is opposed TO senate bill No. Us, an act
creating n firemcn s rehef fund, which
has passed the senate and is pending
in the house To this end, the company
has filed protest with the house. The
protest was received Wednesday and
filed. The communication follows:
ON behalf nj the directors and stock
holders OF the Home Fire Insurance com
panV OF Utah, az Well the Fire Under
writer's association. | desire to enter "A
protest against tho passage OF senate
bin No. 9S, My fellow officers and dircc-
tors agree with me that the measure is
enIinenlly unfair and is class legislation
which should not he placed upon our
statutes.
The total receipts from insurance from
April 1909. TO June, 1910, according TO
commissioner, were $685. II. OF which
amount the Ire companies paid S2b,-
1866. Tho expenses Of the department
For the same period were only @"i2'l"'
leaving q net profit of $50. SO3.01.
The taX is now "a per cent OF the gross
premium income regardless OF the losses
and expenses OF the company COM
pany may have loans and expenses OF
Sis. 900 and premium income OF $40
600. and still have TO pay the full tax OF
Ii per cent on their premium income.
Senate bill No. 9S proposes 10 assess
the Are companies an additional ] per
cent ~ their gross premiums In cittes
maintaining a hre department with equip
n.snt worth $500 or more. for fund 10
support sick or disabled ?repcp. Eleven
o. the states according 10 tGe 1909 cd
ton OF Fire Insurance Laws. Taxes Snd
Fees published by tho Spectator COM
pany Of New York have a arernan's re-
lief fund. but In each Of these srares
reductions are made in the regular TAX.
with the exception of three. The law ap-
pears 10 be class legislation. as it &c
qures the man who ipsUres TO pay the
tax for the one who does not. For eX
ample in salt Lake CITY there are a
number Of the larger and more desirable
risks from an underwriters standpoint
which carry no insurance at oil or II rs
placed In companies which arc not en-
tered in the state and consequently pay
no tax whatever, but II fireman is in
iured In ono Of these buildings. he IS
pensioned out of the fund created by the
companies doing a legitimate business in
the state and contributing TO the state
funds i'm the regular way. In such n
case the regularly entered companies pay
for something ON which they get no re-
turns. This tax would be Just if all the
insurahr values Of the district involved
were insured But statistics Will show
that less than 30 per cent Is protected
against fire and OF this amount a large
percentage Is placed in authorized com
same as Insurance companies are today
they would have 10 pay ID per cent on
their gross sales without reference to
what their profits might he and this
Mpuld ~, uiidll' as you WIN sS"Illt' sun
this is what insurance companies are pay
ing and liz Is proposed To increase the tax
about SO 2-3 per cent,
The Home Fire OF Utah in its entire
territory comprising nearly all OF the
western states only made sos net profit
on its insurance business last year and
paid S@6i2 in taxes and fees To the vari-
ous states. This is over five times as
much tax and fees as they made net
profit In Ctah their net profit for 1910
was S920G.i4. The net tax and fees paid
To the state for business In Utah in 1909
but paid In 1910 was slie2.f5. or 10 40
per cent OF the net profits in addition
to which thcV paid real estate tax of
SlS96. Although the state is only con-
ccrned with Utah the only way TO take
insurance is by average. as Utah might
he low in profits this year on account OF
excessive losses and one of the other
states high. The largest net profit the
Home has ever made In any one year
from its insurance department is Sl0,S00