The Tucumcari news and Tucumcari times. [volume] (Tucumcari, N.M.) 1907-1921, 1918-03-28

crease will not be included in any adj
visory estimates hereafter published,
either specific or flat.
G. w. Brinsmaid."
Reasons for u 10 Per Cent S~urcharge
Because of various reasons herein
afterafter set out, we think il neces-
sary to advise an emergency surtax
of 10 per rent on fire and tornado es-
Inmates.
Under the War Revenue Acts of
September, 1916, and October, 1917,
separate and distinct taxes are i'm
posed on the Companies:
(a) Capital Stock Tax.
(b) Corporation Income Tax.
(c) Premium Tax.
The aggregate Of these cannot he
precisely determined and will vary
with different companies.
This is in addition TO the present
taxes, licenses, and fees. Federal, Lo-
cal and State, which last will average
9 per cent on premiums received.
Under the same Act the business of
fire insurance is directly affected by
the following new items of taxation:
Letter postage increased; travelling
increased on railroad fares, including
Pullman charges, with u prospect of
their now going higher; telegraph and
telephone messages and many other
items.
In common with other employers
the companies have been Obliged to
recognize in a very substantial way,
by salary increases Or allowances, the
enhanced cost of living.
Manifestly, the amount of this can-
not now be determined, but is and will
continue to he n very considerable item.
Printing and supplies have increased
about 40 per cent.
Another item of outgo-perhaps the
most important of all-is the increas-
ed cost of replacement due to the adj
vance in the cost of labor and mater
ial. The adjustment bureaus who have
daily experience in these matters es-
innate the increased cost for material
and labor at 30 per cen as compared
with even one year ago. II is a mat
ter Of such general knowledge that
there has been Il sharp increase in the
cost of both labor and material that
any extended argument on this item
would seem to be unnecessary.
The aggregate of these items, all
of which are caused by abnormal con
ditions now prevailing, due to the war,
cannot in any case be less than 10 per
D ra,t md la4tlag M ,nfag 80 u,h.l,,1aa
now in use were arranged to include
any of them as there was no POSSIBLE.
: ity of learning that they were in pros,
pect. They have no relation to any
normal expense, and have nothing e
=. do with rates or underwriting, but ar,
purely II surcharge of 10 per cent or
. the expense previously borne, which
should be assessed and collected flat
, and be removed as soon as the war i.
y to make it possible.
1t should be observed that there new
h taxes and expenses are levied upon al
!, localities alike.
A tabulaton of the underwriting re
r suits of the 10 years ending Decembel
81. 1917, shows the average prof
from this source to have been but Los
The | per cent tax in lieu of the stamJ
t tax will equal on the net retained
{ lines of companies a tax of at leas'
t l.5O, and this item alone will Absorb
all the underwriting profits. Larg,
I losses of ~incediary origin are occurring
with unusual frequency and in many
r important localities it has been dem
o%nstrated that not only are fire de
partments undermined, but that 9th
er facilities for handling fires are no
+ now as effective as in times of peace
II is an established fact that des
I pite precautionary measures on tn,
part of municipal officials, the eff
r cheney of Fire Department service, es
pecially in the larger cities, has de,
preciated because of the loss of train,
men, due to the National Army DRAFT
y and due to the present high wage,
which induce firemen to leave the ser
g vice. In instances their places are
d not filled, but if so, it is by UNFRAMED
D men who can only obtain experience
at times of fire and consequently al
I emergency service, dependent so much
5 upon cooperation and unity, is rem,
i dered disorganized and ineffective.
r This deficiency is greatly accentu'
ated at this particular time due to in,
G cendiarism and on account of the high
rate Of the number Of fire resulting
4 from unusual industrial activities. The
d estimates for the year 1917 Indicate q
t $685. 900 increase in losses over the
same period of last year.
The s~hrinkage in the market valu,
of securities owned by the fire insur
ance companies during 1917 will be
much in excess of the entire interest
receipts for the year. For instance
the securities held by one prominent
New York Company alone have de.