New-York tribune., 1920-12-28
Remedies for
Curb ON Marine
Insurance Seen
State Cooperation Sought to
Give American Concerns
Ability to Compete With
the Foreign Corporations
Taxation Relief Is Urged
Report to House Committee
Advocates the Removal
of Legislative Obstacles

Specifc remedies for conditions IN
marine insurance which operate against
American companies are suggested IN
the report just made to the House
Committee on Merchant Marine ana
Fisheries by Dr. S. S. Huebner, insur-
sncs expert of the committee and the
Shining Board. The report deals
chiefv with legislative distractions to
the DEVELOPMENT of marine insurance
in the United States.
"Probably the chief lesson to be de-
r;ved from, British success in the field
Of marine underwriting" says the re-
mort. "is the value of cooperation be-
tween insurance underwriters and be-
tween these and the nations banking
and shipping interests. Comblnatlon
and cooperation are fostered abroad.
In the United States, on the contrary contrary, !
totally different policy prevailed
nrior 10 1920 Cooperation between
American companies with respect to
the actual writing Of business existed
only in a limited number of trades.
State Cooperation Urged
The sdvisability of state cooperation
with the newly created American ;ssda marine me
insurance syndicates is pointed OUT
and the following recommendation are
made:
"That marine ins rance companies
ne oermitted to own stock in other
marine insurance companies. The
creation of corporations engaged ex-
elnsively in the writing of insurance in
foreign countries is also considered
advisable.
"That the several states cooperate
in, making their requirements. with
respect to the capital and surplus of
marine and fire-marine companies, ooth
uniform and reasonable.
"That any two or more companies,
organized under either the law OF the
same state or the laws OF several
states, be permitted to merge or CON
solidate into one corporation. Such
merger. however, should have the ap
proval of the superintendent of IN
surance of each state in which any OF
the merging companies may be domi-
ciled.
Extension of Activities
"That companies writing marine in
\ .surance be permitted to become parties
to any corporation, association or
bureau organized for concerted action
with respect to any one or more OF the
following purposes: The supervision
or performance of maintenance in
:,e...... and loss survey service, the
supervis.ot. conduct of saivag.
operations, the * -a1ulation, adoption
or enforcement Of pt.:cy forms and
conditions. the application "a correct
and just principles, the formation A4.a
enforcement of uniform, efficient and
economical practices, the recommends
tion, approval or making of rates OF
premium, and the safeguarding and
legitimate advancement of the business
in the interest of the members.
q
applicable to insurance, the states
enact legislation which will free syndi-
Gates organized to transact q marine
insurance and reinsurance business in
the United States . I'D or foreign coun-
tries and to reinsure or otherwise ap-
portion among its membership the
risks undertaken by the syndicate or
al. Of the col ponent members from
the operation Of such statutes. Such
legislation accomplshes in the states
What Section 20 of the Merchant
Marine act, 1920, does with respect to
Federal antitrust laws.
Would Tighten Tax Burden
Relief from the burden Of taxation
on American companies is said to call
Tor the following remedies:
That the Federal taX of / per cent
On marine insurance premiums be re-
pealed.
That with the exception of license
rees, real estate and other local taxes,
and a tax on investment income de-
lived from funds representing capital
stock and surplus, the several states
should tax marine insurance companies
only on their net underwriting profit
derived from marine insurance trahs-
acted within their several jurisdic-
lions.
Assessment on Income
THAT in addition to the tax on net
underwriting profit every marine insur-
ance company should pay to the state
wherein it is organized, or If an alien
company to the state in which it has
its principal office, tax on its in
vestment income from funds repre-
senting capital stock and surplus.
That in lieu Of the existing numer-
Gus license fees imposed by the sew
eral states each marine insurance
company should pay in any one state
only single annual fee graded ac-
i'm %n ~