ceiving and the administering of these deposits by the state treasurer that a vigorous branch of the fee system was sprouted. It was provided that the state treasurer should receive $10 for filing each certificate of deposit and for keeping the bonds and returning the coupons to the depositors ; he was to have one-eighth per cent per annum on all amounts in his charge. The secretary of state received a still better deal. He was to receive $10 annually for issuing licenses to agents or solicitors of life insurance companies ; also $25 for issuing and recording each certificate of deposit of bonds ; and five per cent of the proceeds of the sale of stamps that fire and marine insurance companies were required to affix to their policies in amounts determined by the size of the premiums. This stamp tax was in 1889 changed to a one per cent net premium tax. The annual license payment of $100 at first required of fire and marine companies, of which the secretary received $10, was in 1887 changed to a charge of $50. Life and accident companies were now for the first time brought under this tax, and the sum placed at $100. The secretary of state was at this time made "insurance commissioner," with extensive powers of control over the insurance business within the state. His compensation for various examinations and certifications was effected by a system of fees which he was allowed to retain. Forty per cent of all annual license moneys collected by him were also his.
In 1895, the net premium tax was extended to include along with fire and marine companies, life, accident, plate glass, and steam boiler companies, and the rate was raised from one to two per cent. Surety companies also came in for both annual license payments and net premium taxes. The secretary and treasurer continued to receive their respective quotas of fees and percentages until 1907, when a "flat" salary law went into effect. The significance of these fees as a feature of the state salary system will be discussed in another connection. The annual license charge, stamp tax on premiums and percentage tax on the net premiums of the different
