The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-02-04
League Expert Does Not Believe
1t Will Drive Insurance
Companies Out
TO EXEMPT FARM LOANS
Believes Surplus Invested ir
Mortgages in This State
Should Not Be Taxed

the leagues tax expert, appearing be
fore the joint committee on taxes ant
tax laws this morning as reward tc
insurance companies which invest
- their funds in North Dakota.
Prof. Roylance insisted that the
three per cent tax on net incomes
should apply to insurance companies
whether their net profit be large OF
small, but he also argued in favor OF
exempting from such tax incomes de
rived by insurance companies from
loans made on farm lands In NORTH
Dakota. Quoting from his statistics
he showed that the Union Central
Life insurance Co. would save three
per cent on net income derived from
more than yo,0OO,G00 which this con
cern has invested in North Dakota
farm mortgages. He referred to the
Union Central because it has larg'
er proportion of its funds invested Iii
North Dakota than has any other com
pany engaged in business IN the
state.
May Drive Out Companies. +,
Harry Curren Wilbur, secretary OF
the North Dakota underwriters asso'
citation, appeared before the joint
committee to protest the application
of the income tax OF three per cent
net to incurance companies. he poin''
ed out that these companies alfeauy
are taxed IL per cent on their gross
REGENTS, and that three per cent
income tax would make the total tax
burden on their net receipts 3 ~
per cent. He expressed the fear that
this tax might prove SO ouiuensou.
that it would drive STOCK life '"Su'
ance companies from the stale.
Because Of such Dudensome taAa,
,iOn said Mr.. Wilbur, fire insurance
companies have ALREADY "..nu.a":'
from North Carolina ana Mlssuu.l'
The average loss ratio IN Nortn Caro-
lima was 81 per cent. IN NORM -
kota the average loss ~ 59;:o per ceht'
said the insurance man, VINO soluu !.
teered the further information ina.
during the last five years the iosses =
plus expenses Of operating IN NoItll
Dakota have averaged $3.50 per cyns
of the total premium inc income VI .n0
fir insurance companies faoInk uus.' 70.
ness in this state He. SuIoiai.tea Ionnn ~ nan M
ures showing that OF tne $aS.yvyoo9g
annual revenues OF all inc IT,, Hls."
States fire Insurance companlgs con -
their business In ~ stasess oSotan NJ ~ -
kota furnishes aDout $s'ooV'ooo y,
eight tenths Of one per cent, anu
that of this $3,Ooo,oOo al ~. Nv
tenths of one per cent IS aoeoi ,es ~.
expenses OF operatioh anu - ast;c
The taxable net income VI uo'Hoa. o".n
stock insurance compan'es CO..
Dakota would, therefore, De out s1l,
900 per annum' which, assesseo q.
three per cent unoea e tne an." n,,a,
law, would yield $3.50 per annu".
Roylance insisted tnat II tne sSa.s
were to exempt from the income h.ss .aA
all industries and enterprises anu Jus
inesses which do not snow v. an as t.eo
net earning, the farming lnuuo. n.,,ar
grocery business ana various osnet ..t
enterprises would pc entireiy eAo.p na'.
1t is proven iact, saiu flul. ~ nU ~,
lance, that farming "es. " tne @
souri, river in North Dakota mas ~, ~.
shown an average net ncone @
the organization OF DaKota terli.o.y
This condition., ne stated is ha'u' a,
during the period IN Wnlcn res'on
is being developed. mere ,,,Sere Mer not M
said, exceptlonai instances w." cont
earnings Of ten. to twenty per cen.
could be shown, but on the otner manu-
there were many cases wnele O."
earnings were ABSORBED IN pasmenr os
on the land or It's improvement -.
through crop failures, anu as .. resa..
there was no average net incone 80, on
the farming INDUSTRY as "o0
Only recently. he said, has farming