The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-01-28
Rnr Hnanrnnce Hn,vs.

Our insurance Laws.
To Ute EtilOT of The EUenin0 TcLegruph,
Sm:-Your article in last evenings TELE-
GRAPH, regarding the proposed insurance law
for Pennsylvania, is just aud timely criticism.
We have never had full, comprehensive, and
just law governing, protecting, aud encouraging
the insurance interests Of this state. The
present law is narrow in its scope, defective in
Its requirements, adverse to home institutions,
and directly in the interests OF foreign compa.
nies.
1t tshould not be expected that the Governor,
nor Auditor.General, nor any siugle officer OF
the State, nor member OF the Legislature can
understand fully and in detaii the needs aud re-
quirements OF the great insurance interests oi
Pennsy ylvania. None but men who are practi
cally engaged in the business, or intimately
identified herewith, are competent to draft or
30 shape n law rs TO meet all the points OF this
complex and diverslded interest, protecting
alike the companies as well as the i1sured.
Legislators, therefore, before attempting the
enactment OF any law IN this regard, should call
in the aid OF such meu, and largely rely upon
their practical knOwl ledge and experience.
The existing insurance law in this State bears
heavily upon home companies, especially IN the
tJe department of insurance 1t is not in mar
mony with the laws OF other states in wncu
this business has been more generally ana sue
Take. for instance, she matter of license.
PENNSYLVANIA requires for license from foreign
companies the payment OF five hundred dollars
last wear IL was S6O0) The consequence has
been that ohio, Wisconsin, and other States,
have adopted retaliatory law compelling our
com mpanies to pay the same amount to be ad-
mitted to do business in their respective iurIs.
dictions. Therefore the Mutual Life Of New
York, Mutual Benefit OF New Jersey, Connecticut
Mutual etc., with their immense capital OF
from fifteen to twenty millions OF dollars can be
admitted into OHIO, ETC., without the payment
of single dollar tor license, while the smaller
PennBy lvania companies must pay five hundred
dollars and this Will soon have TO be duplicated
in every Middle and Western State. Ofcourse, the
competing New York and New England COM
panles Will be glad to pay this license in Penn
sylvania so long as they thus compel our com.
panies 10 pay nve ten, or twenty times that
amount in the balance Of The States, as IL thus
gives them decided advantage in expenditures
and profits.
entire adjustment OF this clause, and the SUBJ
stitution of q percentage tax upon the cash pre-
miums received in tue State. This would be
more equitable to the various companies, and
could be made to produce 10 the State much
larger revenue than is now obtained by the
license plan. Over 81 100000 is taken out of
Pennsylvania every year by foreign companies.
One per cent. on this would Weld $40, 600.
Pennsylvania, by this one license section of
her insurance law, is dsCouragiug the enter.
PRISE and CrippOing he energies, influence, and
usefulness OF her own State institutions. There
are many other points OF reform which should
seriously be considered in the construction of "a
new law, but with the aid we have suggested
all can be made clear and satisa jlory.
We do not want a law that shall be narrow
and exclusive, doing injustice to foreign coul-
paUles, and only protective of the Interests of
our own institutions: neither wall the ipeoplo
tamely acquiesce in any new Law that snail
make competition unequal and tend 10 oppress
our own State companies.
The law that may be enacted should be simple,
plain, and such as may be easily understood aud
readily complied with Dg all solyen. companies.
1t should be free from the complications and
intricacles of detail pertaining TO the Massachu-
sets and New York State laws on this subject,
which are mostly the results of theories, whims
and abstract computations, rather than of
practical common sense; out, at the same time,
it should be so constructed with conditions aud
requirements, as most clearly to show the
financial condition and standing of all compa,
nies doing business in the State; and while
afording the strongest possible safeguards to
the insured, 1t should most elfectually guard
and protect the companies in their charcered
rights and privileges. II. L.
Philadelphia, Jan. q, 1869.