New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-06
PROTEST INCOME TAX
PoIicyhoIders Will Suffer, Say
Insurance Men.
HULL CALLED PREJUDICED
Father of Bill Gives Amazing
Exhibition of Ignorance, D.
P. Kingsley Declares.

Heads of the Dig mutual life insurance
companies predicted yesterday that their
policyholders will be the ones TO suffer II
the income tax is applied to net profits
Of the companies. The premiums. they
say. are already sufficiently loaded" 10
meet taxation. and If the income tax Is
applied IL must be paid out II the dvi-
dcnds. Officers Of the companies say that
IL was a great mistake ever to have called
returns TO policyholders dividends.
They should have been classed us "un-
used premiums" they say.
President Day OF the Equitable Life AS
surance Society said the mutual com.
panics only asked Representative Hull. OF
the Ways and Means Committee. 10
square the bin with his original inten-
tons" which were to exempt them from
taxatiou. He added
The Tribune quotes Mr.. Hull this
morning as saying 4 can find no theory
even under all the facts by which the
policyholders would be In the least at
fectcd' II IT is not the intention to affect
the pclicyholders. then why not exempt
from taxation members OF the companies
doins business on the mutual plan?
As the bill now stands. IL would cost
the policyholdcrs OF this society not less
than $1,000. and considerably more. IL the
ambiguous conditions which the bill CON
tains should be- interpreted adversely To
such policyholders'
Juuge Day said he thought he had seen
all the circulars sent 10 the policy holders
by the mutual companies and he could
not recall any that were misleading" as
Congressman Hull minated
Frank l.. Allen. general solicitor OF the
Mutual Life. said the legal reserve
amounted to 50 per cent OF the total as
sets Of the company. and after adding TO
that All other amounts required to meet
its contracts the Mutual has only 2 per
cent Of it's total assets left as "A 'contin-
gcncy reserve" amounting. according TO
the last annual statement. to fl2.546,Mo
The new state law. Mr.. Allen said, would
permit the company TO carry n contin-
gency reserve Il per cent OF the legal
reserve. or t9io0O0o. to protect policy
holders from an extraordinary death rate
or unusual shrinkage I'm the values of
the company's assets
Representative Huns statement that
without having received its share of the
assets is Inaccurate" Mr.. Allen said. III
mutual savings banks. building loan as
sociations and fraternal benefit societies
are exempted under the income tax law.
certainly life insurance companies doing
business under the mutual plan are equal
Is entitled 10 exemption. Such companies
do not do business for a profit or gain.
The members. or policyholders. are sim
ply themselves contributing TO fund To
pay the losses as they occur"
Darwin =. Kingsley president OF the
New York Life Insurance Company. said
Representative Hull had limited at Illegal
manipulations on the part of the man
ayers of the companies.
IF his allegations are true, the matter
should be referred TO the District Attor-
nev." he said. IF the great mass OF
people now insured I'm these companies
are being denied their rights day by day
IL would be a proper subject for legis-
lative investigation. But what sort OF
craftsmanship Is It which attempts 10
Justify "A tax because these conditions are
allowed to exist? The fact is, Mr.. Hun
views are an amazing exhibition OF igho-.
rance and provincial prejudice