Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-02-19

that I wanted = license to, do busi-
in this. state for. a fire insurance
company that had 100000 surplus
and was carrying &3S.000,0 900 in risk,
ne would very, properly deny me a Ii
n and would be justified in asking
for a commission to pass upon my
force on the people Of North Dakota
g scheme that has resulted after
fifteen years Of trial in just that. sit
uation."
Companies May Withdraw.
There followed q discussion be-
tween Mr. Wilbur and Senator Inger-
son as to the merit of the clause
practically limiting the insurance pre-
MUM accumulated fund to ten per
cent OF the risk, and then. in con-
cluston made q statement, not as
the representative OF any company or
ed he was not, but as q plain citizen
OF North Dakota that declared in ef-
feet that as an honest man he would
be compelled to advise an insurance
company manager asking his advice
to withdraw from the state.
II have watched with greatest care
the insurance program hat is being
enacted by this legislature" said MI.
Wilbur. mi. Paddock has stated
esSN w yVup wSSSAA ~ OK ucu I1OuSS
Bill 80. that companies might refuse
to share the risks. I believe he is
right. and l believe furthermore that
the companies would be more than
justified in Withdrawing from the
state and. as q natural and inevitable
consequence of such withdrawal,
call at once at the local war ONCE
in the state.
II am not the representative Of
any company or companies. am
not authorized to speak for them or
any n of them. But l have watched
a burden piling up on them under
which it is my honest opinion that
they cannot continue to do business
veloped when they were. forced. to
withdraw from Missouri. later from
Kentucky, and later still from South
Carolina.
Partially to IAfe Companies.
II can not be insensible to the fact
that marked Partially has been
shown to life insurance companies by
this legislature. Not a single bill
aimed at them has been introduced
in either house or senate. What is
more. their unearned income, repre-
sented by the interstate earnings on
their investment in farm loans. was
exempted from the income tax law.
Yesterday, the house amended the
income tax law further SO that all
mutual life insurance companies were
exempted from paying the income
tax on their net premium income.
This amendment exempted all Of the
big life insurance companies, and left
the smaller ones in, and remember
it is only the big n who are loan
ing in this state.
That amendment: gentlemen, ex-
empt the New York Life, which is
purely mutual. It exempts the North.
western Mutual. Best's 1918 report
shows that the Union Central Life,
loaned in this state and the interest
earnings on which are exempted. has
written NJ non-participating business
in the last eight years and that only
4.37 per cent Of its total business Is
non-participating. The participating
business is mutual, and under this
amendment, I believe. will be held
exempt.
"You,; gentlemen, may know why
this apparent discrimination is made
I am merely stating facts.
THE fire companies. like the life
companies, already pay 2h per cen,
of their premium income to the state
They were not exempted from the
operation of the income tax law. as
LuSy are Ill D." lSCONSlQ anu Ill OINel
states having a similar law.
The Growing Burden.
ALREADY taxed 2h per cent on
their gross premium Income, the fire
insurance companies are now to be
taxed 3 per cent on their net. M re.
member, gentlemen, it is the same
income that you are taxing twice
AS they pay the tax, they see the
life companies, operating right beside