Incorporation Fees. 
179 
tory . 1 These high charges have led a few states to paass retali- 
tory legislation , 2 providing that foreign insurance companies 
shall pay the same fees which their own state demands of com¬ 
panies from other states. For the security of policy holders in 
foreign companies, these are required to deposit with some state 
official securities sufficient to cover all risks. To ascertain the 
amount required for this purpose, the policies must be assessed 
by some competent state official, to pay for whose services fees 
are usually collected 3 from the companies concerned. In order to 
carry out the laws regulating foreign companies, it has been 
found necessary to require all insurance agents to obtain a 
license or certificate of authority to do business, for which an¬ 
other and small fee is often collected. The most common charge 
is two dollars, but some states charge less, while others collect 
as much as ten dollars for these licenses . 4 Some attempts have 
been made in a few states to have insurance legislation keep 
pace with the specialization in the business itself. The fees there¬ 
fore vary according to the kind of insurance, whether fire, life, 
accident, tornado, boiler, live stock, and many others. As a 
rule, the fees are fixed so as to discriminate in favor of mutual 
and benevolent associations. In consequence of this we find 
large organizations, fraternal in name, which are in reality 
nothing but life and accident insurance companies. The ten¬ 
dency of the later legislation affecting insurance companies, 
has been to increase the number of regulations, and at the same 
time to increase both the number and the size of the fees which 
are charged . 5 
1 Washington charges two per cent, of the total premiums collected 
within the state. Connecticut charges three per cent. 
2 New Jersey, 1872, p. 25. Ohio and Nebraska have similar laws. 
3 Ohio charges one cent per one thousand for such valuation, Texas col¬ 
lects ten dollars per million assessed. 
4 Ohio allows any company to pay a lump sum per year for permission to 
have as many agents as it pleases, without further license charge. 
5 The companies themselves have made frequent and decided objections 
to the collection of these fees, especially when their amount was more than 
enough to cover the expenses of the insurance commissioner’s office. It 
has been argued by some of their representatives that a higher fee than 
would be sufficient to cover actual cost, would simply be a tax on those 
who made use of the insurance companies, because these would necessa- 
