on the reserve.
When we consider that these institutions are intended to encourage
thrift and to relieve the community from the care of numberless widows
and orphans, it seems a clear violation of the principles of political
economy to levy a tax on this business; still, whatever our opinion
may be as to the justice or injustice of the imposition, the tax is
maintained and must be provided for. Consequently a further allowance
of 1/2 of one per cent. must be added to the net premium to cover the
same, making a total of 1 per cent. of the reserve for banking
expenses and taxes. Considering this point as settled for the time
being, let us proceed to investigate the insurance expenses.
Here, again, we are fortunate in being able to refer to the official
reports of a class of corporations doing nearly, if not quite pure
insurance.
The assessment societies, outside of the fraternal and benevolent,
reporting in 1889 to the insurance commissioner of Massachusetts, show
outstanding risks amounting to $733,515,366. Losses to the amount of
$7,270,238 were paid during the year at a cost for transacting the
business of $2,403,053, which includes among other items "agency
expenses and commissions," which amount to about $1,203,000, or 17 per
cent.
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