The weekly tribune and the Cape County herald. (Cape Girardeau, Mo.) 1914-1918, 1916-06-02
COUNCIL WILL
PROBE RISK co.
OCCUPATION TAX
May Repeal SIS License upon
Fire Insurance Companies
by July l.
TO GET $1,000 REVENUE
FROM THE MERCHANTS
May Lower Commercial Insu.
Rates Is Cents on S1O0-
Fire Bonds Described.

Simultaneous with their action in
receiving the result of the special fire
department $4,000 bond issue, the
City Council, on the recommendation
of Mayor Rage, last night authorized
the Judiciary Committee to make an
exhaustive probe of the fire insurance
company occupation tax.
The investigation will re conducted
with a view to learning if the So
occupation tax may be lifted from the
fire insurance companies doing busi-
ness in the city, and the license ordi-
nanCeS revised in such a manner that
the revenue removed by the repeal Of
the tax may be furnished from other
sources.
The members of the committee who
will have charge Of the investigation
will be Charles Armgardt, W. H. Med
ley and Charles kaess. At the meet
ing of the Council last night It was
made clear that all the members Of
the Council as well as the nIayor are
to take part in the probe in IN active
way through an advisory capacity.
The repeal of the fire Insurance tax
was strongly urged by virtually all the
fire insurance men who visited the
Cape at the Fire Prevention Day excr-
cises held here about a month ago.
Both Mr.. WaterwGrth and MIR. Hess,
managers of the Missouri Inspection
Bureau, made an active campaign for
the repeal OF the tax while they were
in the city that day.
the Council enioined the committee
to have the probe made by July 1, in
order that any alterations in the
licenses schedules may. be made before
the opening of the new fiscal year and
to have the new licenses charged be
ginning July /.
The revenue that IS gained for the
city through the fire Insurance ccau-
patton tax amounts TO between 5000
and $1,000. As i compensation for
this tax the fire insurance companies
charge an item of - cents per 500
valuation upon all commercial risks in
the city, and it IS estimated that the
insurance companies collect approx
mately S3GC0 in this way in their
premiums.
This item in the fire insurance rates
on commercial houses would be elimi-
mated Immediately upon the repeal Of
the occupation tax, the fire insurance
rate makers declare.
The Council will cndeavor to re-ad-
lust the licenses in the city upon mcr-
chants so as to obtain the same
amount of revenue without making it
return threefold upon the business
interests of the city. Many business
men and merchants upon whom such
a license reimbursement would fail
have expressed a willingness to bear
the tax for the city's revenue rather
than triple their tax in the guisc of
fire insurance premiums.
The Council last night determined
the description of the bonds which will
be offered for sale, following the cleo
ton. The fire department bonds will
bear interest at the rate of , per cent
and the issue will be completely
retired after 20 years.
Under the law, none of the bonds
may be retired until five years after
their issue. At that time the city
shall commence retiring one $1,000
bond each year and at the close Of H.
years the entire issue will be paid off.
City Collector George Fl. Meyer has
that a levy of cents pcr
800 valuation will be sufficient to take
,are of the bonds. and last night II
vas brought out that during the first
i've years it may not be essential to
evy the full ) cents.
The bonds will be advertised for sale
1t once to all the bonding houses, and
Iune 10 is the date set for the opening
# the bids. Each of the bonding com
'anies is to make sealed bid for the
'onds, each bid to be accompanied BY
certified check.
Because of the fact that the bonds
i'll bear interest at the rate Of ) per
ent, it is anticipated that they will
ring a premium. The Playground
ark bonds brought premium at the
ate of 5000 FOR each $1,000 bond.
AT the same rate, the $4,000 fire
apartment bonds should net a prem
am of more than 5000.