xlviii I'EI'0Rr"PER L\"7EJ'DE 7 OFIAS/\('E /)El' .-1R7:11E.\7.

of the Senate and Assembly, an act was passed (chapter 699 of the Laws of 1887), repealing the act of 1880, and releasing "All Life Insurance Companies incorporated under the laws of this State" from payment of " any arrears of taxes under the provisions of said statute."

This bill received the hearty indorsement and support of this Department, as it in effect brought the State back to the wise and humane policy it had adopted thirty years ago, in the enactment of chapter 456 of the Laws of 1857, whereby it protested, on the statute book, against the principle, which would, as matter of public policy, subject to taxation the savings of depositors in savings banks, or the accumulations of its Life Insurance Companies, held for the benefit of the assured, other than real estate and for stocks owned. This position continued to be maintained uninterruptedly by the State down to the passage of the act of 1880, which, as stated above, was repealed in 1887.

A bill has been introduced, and is now pending before the Legislature, 'the purpose of which is to revive the principle of the repealed act of 1880, and to subject the franchises of our Life Insurance Companies to State taxation. It is still so short a time since the Legislature thoroughly examined this subject, and, after great deliberation, repudiated the principle now sought to be revived that it is hardly probable the pending bill will receive any considerable encouragement during the present session.

Respectfully submitted, ROBERT A. MAXWELL,

Superintendent.