Evening journal., 1917-02-17
Insurance EXPERTS
favor TAXATION
Believe Matured Policies and
AnnuitieS Should Pay
Some Revenue
BANQUET AT THE
HOTEL DUPONT

various phases OF me ihnhAa hS'i
including it's taxation. sale and aims,
wero discussed last evening at the
annual dinner Of tho Delaware AS
sociation OF Life Underwriters, which
was held at the Hotel DUPONT The af-
fair proved one Of the most success
full in the history Of the association. /
There are eighteen members Of the !
Delaware association. and all but
three attended the banquet last night.
Together with guests twenty-four
persons were present The speakers
were Prof. Bruce d. MIDGET, of the
University Of Pennsylvania, and John
William Clegg, vice-president OF the
Philadelphia National Association OF
Life Underwriters. Professor Mudgett
spoke on 1.-THE Exemption Of Life
Insurance Funds From Taxation"
and Mr.. Clegg on Association Work
and Salesmanship AS Applied to Life
Insurance"
The addresses were preceded by
several amusing stories told by Mayor
Price, who was called upon as the
first speaker by w. w. Knox presi-
dent OF the association, who was
POSTMASTER
Professor Mudgett expressed the
opinion that life insurance should be
taxed TO a certain extent. For OK
amble, he said he believed matured
policies should be taxed in the same
way that inheritances are taxed, and
exempt up to a sum that is regarded
as a minimum for a persons needs.
Only an inheritance greater than $780,
600 IS taxed.
That insurance paid as annuites
also should be taxed. was the opinion
OF Professor Mudgett. He said he
did not see why annuities should not
be regarded the same as incomes. In
comes greater than $4,000 q year arc
taxed In speaking Of the income
tax law, however, Professor Mudgett
said:
"The Federal Government has re-
Gently enacted an income tax law. IL
has two weaknesses. In the first place
II has failed to recognize the need OF
life insurance provision by falling TO
exempt from taxation the premiums
spent for the purchase OF insurance
policies. IN tho second place, by an
ill-considered attempt to grant proper
exemption to life insurance IL has re-
Viewed from taxation all insurance
paid to benehciaries upon the death
OF the insured and all insurance in
excess OF premiums paid, when re-
. ceived by the insured on life insur
ance endowments or snnuites"
In speaking Of taxation Presiden
Knox cited figures which showed II
|, one year the state made a profit o
: approximately $4,000 on insurance
, taxation.
Mr.. Clegg told or the vast amour
OF good accomplished by the Phila.
delphia association in advertising ant
In an educational way. An advertis.
ing campaign was started last fall
with $1,000 and since October 106 new
members have been received The adj
vertlsements, Mr.. Clegg said. were
seventh human interest type and the
names or individual companies were
. not mentioned.
In the educational campaign a
series OF addresses was given before
the boys in one of the large schools
, Of Philadelphia Mr.. Clegg empha'
, sized the advantage OF educating boys
OF a high school age TO the necessity
! of life insurance.
e He urged cooperation and said
;, that every insurance man ought to be
Z member of an association.
n You and l." he exclaimed. "repre
u sent the power in the life insuranc,
Il business today. and il is only in tn,
y combined power that we can accom-
e plish things that will lead TO the up
+ lifting of our profession
Members Of the association ant
p their guests who attended the din
~ ner were w. W. Knox. president
Frank G. Hughes. yice-president; I
70 Blair Ely. treasurer: James =. Price
Frank Sheppard and Arthur "
ID Swarts. members OF the executiv
I'd committee; George ID. Kelley. Aubre
Y Vandever Frank Gates, ]. j. Dough
re erty. Leander r. Hooper. of EastoI
A. Md: Arthur A. Wilmot. w. r. Batch
t, elder. Louis Rosenblatt and John
5. Hyatt.
Id The guests included: Mayor Pric
s. Professor NIudgett, MIR. Clegg, Georg
n. Kelley. S. A. butcher, Jr.. II. c. PEI
e. nington and three newspaper me
L. Charles b. Palmer. secretary OF Il
II association, was unable TO he preset
r. owing to illness in his family.