PHILIPPINE ISLANDS.

The publishers were advised by the Executive Secretary of the Government of the Philippine Islands that, under the laws of the Philippine Islands, insurance companies are not obliged to and do not file reports showing their business transactions. They are required to pay an internal revenue tax upon their business and the Bureau of Internal Revenue has access to the agents' books; but upon application to the Collector of Internal Revenue, he raises the point that the information thus obtained is confidential and cannot, of course, be given out without the consent of the parties concerned. He further states that he has applied to various agents here and found in every case that they were unwilling that the information should be given out from Manila.

There is a tax of one per cent on insurance premiums. No tax on reinsurance. Original writing company pays tax.

"The Corporation Law" provides for the organization and supervision of corporations and contains a chapter relating to domestic insurance corporations, as follows:

"Sec. 147. Corporations formed or organized to save any person or persons, or other corporation, harmless from loss, damage or liability arising from any unknown or future or contingent event, or to indemnify or to compensate any person or persons or other corporation for any such loss, damage, or liability, or to guarantee the contractual obligations or debts of others, shall be known as insurance corporations for the purposes of this Act.

"Sec. 148. No insurance corporation shall be permitted to file articles of incorporation with the Chief of the Division of Archives, Patents, Copyrights and Trade-Marks of the Executive Bureau or to receive his certificate of incorporation unless such articles show, under oath of the incorporators, that the capital stock of such corporation is not less than 500,000 pesos, that 50 per centum of the whole stock has been actually subscribed, and that 50 per centum of the subscription has been actually paid in cash into the treasury of the corporation.

"The whole subscribed capital stock of any fire or fire and marine insurance corporation must be fully paid up in cash within one year after filing its articles of incorporation, and for a failure to have its subscribed capital stock paid up within the time prescribed the corporation shall not be permitted to take any new risks of any kind or character.

"Any officer, official, or director of the corporation taking or authorizing the taking of any risk for the corporation in violation of the terms of this section shall be punished by imprisonment for not less than one year nor more than five years, and by a fine of not less than 1000 nor more than 5000 pesos. "Sec. 149. No insurance corporation shall loan any of its money or deposits except upon the security of unencumbered improved real estate in cities and

PHILIPPINE ISLANDS.

385

enters of population of municipalities in the Philippine Islands, or on actually ltivated real estate in the Philippine Islands when the value of such real este is at least 100 per centum more than the amount to be loaned, or upon the ecurity of first mortgages on real estate not otherwise encumbered transferred o it as collateral security when the value of the real estate described in the mortgage is 100 per centum more than the amount of the mortgage with interst accrued, or upon bonds or other evidence of debt of the Government of he United States or of the Philippine Islands or of the city of Manila or of unicipalities in the Philippine Islands authorized by law to issue bonds. Proided however, that a life insurance corporation may loan its money upon the ecurity of a policy to an amount not exceeding the cash value of the policy.

"Sec. 150. No loan by any insurance corporation on the security of real estate shall be made unless the title to such real estate shall have been first regstered in accordance with the Land Registration Act.

"Sec. 151. Insurance corporations may purchase, hold, own and convey real and personal property as follows:

“(1) The lot with the building thereon in which the corporation conducts and carries on its business, which shall not exceed in value 100,000 pesos, or such additional sum as may be fixed by the affirmative vote of the stockholders representing two-thirds of the subscribed capital stock;

"(2) Such property, real and personal, as may have been mortgaged, pledged or conveyed to it in good faith in trust for its benefit by reason of money loaned by it in pursuance of the regular business of the corporation, and such real or personal property as may have been purchased by it at sales under pledges, mortgages or deeds of trust for its benefit on account of money loaned by it, and such real and personal property as may have been conveyed to it by borrowers in satisfaction and discharge of loans made by the corporation to them. Provided, however, that any real estate purchased by said corporation in payment or by reason of any loan made by said corporation shall be sold by the corporation within five years after the title thereto has been vested in it;

"(3) Bonds and other evidences of debt of the Government of the United States or of the Philippine Islands, or of the City of Manila, or of any municipality in the Philippine Islands authorized by law to issue bonds, at the reasonable market value thereof, and such other securities as may be approved by the Secretary of Finance and Justice.

"Sec. 152. No insurance corporation shall declare any dividend except from the profits of the transaction of the corporate business, and then only after retaining unimpaired the entire subscribed capital stock, a sum sufficient to pay all expenses incurred by the corporation, inclusive of taxes, and a sum sufficient to pay all losses reported or in the course of settlement.

"Sec. 153. No fire or marine insurance corporation shall insure on any one risk to an amount more than one-tenth of its capital stock paid in and intact at the time of taking the risk without reinsuring the excess."

A foreign corporation is required to obtain a license from the Chief the Division of Archives, Patents, Copyrights and Trade-Marks of the

Bureau upon the order of the Secretary of Commerce and Police. No order for a license shall be issued except upon the statement under oath of the managing agent of the corporation, showing, to the satisfaction of the Secretary, that the corporation is solvent and in sound financial condition, and setting forth the resources and liabilities of the corporation within sixty days of the date of presenting the statement. An attorney residing in the Philippine Islands must be authorized to accept service in legal proceedings, and in the absence of such attorney, service may be made upon the Secretary of Commerce and Police. The fee payable to the Chief of the Division of Archives, etc., for issuance of a license is 50 pesos. Acting for an unlicensed corporation is punishable by imprisonment for not less than six months nor more than two years, or by a fine of not less than 200 pesos nor more than 1000 pesos, or both. A company found to be insolvent or in such condition that its continuance in business would involve probable loss to those transacting business with it, is liable to have its license revoked. In general, foreign corporations are bound by the laws and regulations applicable to domestic corporations' regulations of the same class, and must possess a capital actually paid up equal to the amount of paid-up capital required of domestic corporations.

AGENTS DEFINED-Act of March 7, 1912. Sec. 2. "That the term 'agent,' as used in Sections 66 and 67 of the Civil Code, as used in this Act, and elsewhere unless the context otherwise requires, shall, when referring to the representative of any insurance company, corporation, association, partnership or individual doing insurance business, be deemed to mean any person who shall receive or transmit applications for insurance, other than for himself, or receive for delivery bonds, policies or certificates of suretyship or insurance founded on applications from this Island or otherwise procure, other than for himself, insurance or suretyship to be effected by them on bonds, policies or certificates of suretyship or insurance, or the bonds, policies or certificates of suretyship or insurance given to persons or corporations in Porto Rico." Penalty for acting for an unlicensed company, a fine of not less than the amount of all premiums paid by or through him, or imprisonment for not less than thirty days nor more than two years, or both.

ANNUAL STATEMENTS-Must be filed in the office of the Secretary of Porto Rico at San Juan, not later than March 15. Copies must also be filed in January in the office of the Treasurer of Porto Rico. ANTI-REBATE-Act of March 7, 1912. Sec. 18. "No company, corporation, association, partnership or individual doing an insurance business in Porto Rico, or any agent or representative thereof, shall pay or allow directly or indirectly, or offer to pay or allow, as inducement to insurance, any rebate or premium payable on the policy, commission or brokerage on any insurance made in Porto Rico, to any but an authorized agent or representative of a company legally authorized to do business in Porto. Rico. Any violation of this section shall be punished by a fine of not less than $100 nor more than $500 for each separate offense." ATTORNEY-A resident must be appointed to receive service of process. COMMISSION TO NON-RESIDENTS—Payment of commission or brokerage on any insurance made in Porto Rico to any but an authorized agent or representative of a company legally authorized to do business in Porto Rico, is prohibited. Penalty for violation, fine of $100 to $500 for each offense. DEPOSITS-All authorized companies which were doing business in Porto

Rico March 7, 1912, and continued business therein were required on or before July 1, 1912, to make a deposit valued at at least $50,000, and to increase such deposit up to $150,000, if original deposit is deemed insufficient by the Treasurer of Porto Rico. Foreign companies entering Porto Rico for business after July 1, 1912, must make an initial deposit of $100,000, which, if subsequently found insufficient, must be increased to a maximum of $200,000. Provided, that the Executive Council may accept, in lieu of all but $10,000 of such deposits, of any insurance company, a certificate issued under the hand and official seal of the auditor, comptroller or general fiscal officer of any State of the United States that such company has on deposit in such State for the benefit of all the policyholders of the corporation in

the United States and Porto Rico the lawful amount of securities required by such State and of the actual cash value of not less than two hundred thousand ($200,000) dollars.

DOMESTIC COMPANIES-Provision is made for the organization of do mestic companies.

FEES Act of March 7, 1912. Sec. 63a. "The Secretary of Porto Rico shal charge and collect, for the use of the people of Porto Rico, the following fees, which in all cases must be paid in internal revenue stamps, affixing the stamps to the documents and cancelling the same: (1) For receiving and filing the charter or articles of incorporation of any company or cor poration, foreign or domestic, organized for pecuniary profit, he shal charge and collect the sum of 15 cents on each $1000 of authorized capita stock; provided, however, that no company or corporation shall pay a filing fee of less than $25 nor more than $500 for filing its charter or articles o incorporation; and provided, further, that for every certificate of increas of authorized capital stock he shall charge and collect the sum of 15 cent on each $1000 of such increase, and the total amount so paid for filing the charter or articles of incorporation and for filing any certificate of increas of authorized capital stock shall not exceed $500. (2) For recording charter or articles of incorporation, or amendments thereto, 20 cents for each 100 words. (3) For issuing each certificate of registration or of cor porate existence, $3. (4) For filing and recording notice of appointmen of agent, $5. (5) For filing and recording a resolution of the Board o Directors for removal of principal place of business under the provision of section 17 hereof, $5. (6) For filing certificate of increase or of de crease in authorized capital stock, $5, in addition to the fee provided for increase of authorized capital stock. (7) For issuing certificate of in crease or decrease of authorized capital stock, $5. (8) For filing cer tificate of discontinuance of existence, $3. (9) For issuing certificat of discontinuance of existence, $3. In addition, companies are required to pay to the Treasurer of Porto Rico an annual license fee of $25. INVESTMENTS PRESCRIBED-The deposits required must be made in

the following named securities: Bonds of the people of Porto Rico or bonds for which the good faith of the people of Porto Rico is pledged, or bonds of the United States, or good local interest-bearing or dividend-paying securities in Porto Rico, or other good securities acceptable to the said Treasurer and to be approved by the Executive Council; provided that at least $10,000 of said securities shall be in local public utility, banking, in dustrial, or agricultural securities in Porto Rico, or bonds of the people of Porto Rico, or bonds for which the good faith of the people of Porto Rico is pledged, such securities to be acceptable to the Treasurer of Porto Rico.

LIMIT ON A SINGLE RISK-Act of March 7, 1912. Sec. 13. "No fire insurance company, corporation, association, partnership, or individual writing fire insurance in this island shall expose itself to loss on any one risk to an amount exceeding ten per cent of its paid-up capital and surplus.