Mr. Blaine to Mr.
Pitkin.
Department
of State,
Washington, January 8,
1891.
No. 88.]
Sir: I append on the over leaf, for the completion
of your files, copy of my telegram of the 5th instant directing you to
protest against the proposed law levying an exceptionally large tax on
foreign life-insurance companies doing business in the Argentine
Republic.
I also inclose copy of the letter from Mr. George B. Williams, representing
the Equitable Life Assurance Society of New York, on which my telegram was
based.
The tax is stated in the letter to be—
A license fee of $10,000 with a deposit of $100,000, a tax of 7 per
cent on premiums, 7 per cent on dividends or profits, and, in the
absence of dividends, of 7 per cent, of the amount destined for the
reserve fund.
The tax seems excessive, and if, as alleged, the local companies are untaxed,
would appear intended to drive the foreign companies out of business.
I am, etc.,
[Inclosure in No. 88.]
Mr. Williams to Mr.
Blaine.
700 Fourteenth Street,
Washington,
D. C., December 22,
1890. (Received January 6,
1891.)
Sir: On behalf of the Equitable Life Assurance
Society of New York, I would state that information has been received
“that it is proposed by the Congress of Buenos Ayres to impose a license
fee of $10,000 upon-foreign life-insurance companies, to require a
deposit of $100,000, to levy a tax of 7 per cent on premiums besides 7
percent
[Page 2]
on dividends or profits,
and, in the absence of dividends, 7 per cent on the amount destined for
the reserve fund.”
I am requested to call your attention to this proposed legislation, and
to state that such an act would destroy the business of American life
insurance in Buenos Ayres—a business that has reached large
proportions.
I submit this matter to you for such action, if any, as you may deem
proper.
Very respectfully,
[Telegram.]
New
York, December 31,
1890.
To George B. Williams,
700 Fourteenth Street, Washington.
We have just received following cable from Buenos Ayres: “The legislature
will probably pass the bill. Am advised by my lawyer that if you resist
success is probable, because, according to the constitution, taxes must
be equal to taxes of local companies. The latter are untaxed. Please
telegraph instructions.” We have replied to employ best counsel to
defeat the bill. Can our Government be induced to cable instructions to
our minister there at our expense? This is the bill about which I
telegraphed and wrote to you on the 20th.
