Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-03-08

ing thus divided among its policy holders.
4. In the economy of its system.
8. In having all the benefits of a strictly
local or home company, with the strength
and protection of a national organization.
Of course it is based upon the same
fundamental and scientific principles of
other companies, but its system of copart-
merry organizations by which the money is
kept at home, avoids the inequitable and
monopolizing feature common to all
other companies-that of accommodating
and using their entire capital at their chief
Office; thus depicting many sections to the
ACKNOWLEDGMENT of few. And while the
Association has its departments, it is a
complete unit of which they are distinct
components- By the terms and require
ments of its Charter, by which it is con-
trolled and governed, it is wisely guarded,
carefully protected and closely consoli-
dated-thus insuring harmony with its
branches and safety to all. The West
Tennessee Department of the Association
has loaned, within the last twelve months,
the sum of S49, 900, secured by deeds of
trust on unincumbered real estate worth
three times the amount loaned Similar
work we propose to do in the Department
of Middle Tennessee, and already have
funds on hand to be loaned.
The demand for capital in our midst is
now, and has been for years, urgent and
eloquent. Yet, in the face of this, mil
lions of dollars are annually sent from the
South to Eastern companies for life in
surance. And why is this Is it shown
that they are better managed or more sue
cessfully conducted, considering the age
of has haa
given each, than those of the South and
West ? 1t Is not, save in the imagination
of those who, for some reason % ur-
known to themselves, have always &C
guessed in the assumed superiority Of our
Eastern and Northern neighbors in the
management of financial institutions. Do
we concede to them a superior integrity, a
superior ability, superior morality, or a
superior religion? I think not. What,
then, is the difficulty? Simply, our peo-
| pie do not trust Themselves. Let us do this,
and l fear not that we will demonstrate a
capacity to manage safely our monetary in
terests in this respect as we dc
/ in others If the South and West
are not HOlo competent to con,
duct successfully these great moneyed
institutions, when will they ever be? How
much longer do they propose to be hewers
| of wood and drawers of water? How much
longer remain minors with their guardians
| in Boston, New York and Hartford? Con-
fdeHce is the first principle Of al business.
| Let US trust ourselyes-keep our money at
| home-establish our own life companies
1 and all other kinds of necessary local insti-
tutions, and use our surplus funds to assist
| local improvements and home;developmen
| 1t IS By self-de0el0pH1eRt that communities
mature their happiness and acquire their
| p0loer.
1t has been ascertained that the South
and West are contributing more than S25,
| 900, 900 annually to the East for life insur-
| ance. after deducting what Is returned to
them for death losses. Thus, we are fur
! nishinG them this immense sum to be used
in aid of their local development, and the
| effect of which is happily seen in the build
| ing up of their splendid cities. And more
over, the most of their State laws require
this capital to be kept there,
even if the companies were dis
| posed to distribute it for invest
ment among those sections from which 1t is
derived. In saying this do not mean to
disparage eastern companies per Sc. Not
at all. They have been great benefit to
the country. But We DO object to their
unjust and negotiable method Of taking
the money from one section to build uE
another. The Presidents and Representa-
tives of thirteen New York companies
have not only admitted, but voluntarily
declared the injustice and illiberality Of
this. These gentlemen, in petition sd
dressed by them to the New York Legisla
ture last winter, asking repeal Of the Law
requiring insurance companies to keep
| their capital within the limits of that State
declare that the law ought to be repealed
land l give their laDgusge).
'Becduse tie restriction 1t imposes IS en-
tirely unnecessary and superfuOuS.
| Because 1t is impOlitic and unloise.
Because 1t is materially injurious an
morally prejUdicEdI.
| Because IL is unfair, unjust and short
sighted.
| 1t is iUi5erGl, selfish, lRgrateful, contra
| m to the spirit of the age and of american
Institutions"
But in the face of all this, snd
notwithstanding the petitioners go or
to show ''that the insurance compa
MES In that State derive the largest
| portion Oh their premiums from othe
4
rates Of interest on their money by loan
ing it in other States than at home, thei
prayer was not granted. This Is unmltl
gated injustice, and the South IS begin
ming to feel it deeply and painfully IN he
depleted and enfeebled finances, and sucl
! ought not to continue.
} The new and liberal system inauguratet
} and practiced by the Life Association G
| America remedies all this, and makes a
} equitable territorial distribution of its cap
ital, thus meeting the just and REASONABLE
demands of every section IN this respect
What it has done in this way in littl
more than two years from its origin, let 1t
, unsurpassed results attest In the brie
! period of thirty months it has issued NOR
than 81, 900 policies, insured $40, 500,
| 73O, with a total income of "a, OOO,O o
J | which latter amount each department ha
, retained for investment In accordance
; | with the provisions of the charter.
Indeed the plan has been successful be
| yond expectation, acceptable beyond pre-
J cedent and practicable by demonstration
; And now, let me ask you to give it you
, | entire confidence and active support, an
| to assist US in making its successes and use
fitness still greater. Also, permit me t
insist that each of you actively exercise th
privilege attaching to your trusteeship an
: enjoy the benefits resulting therefron
| And if at first you do not realize the sue
cess you anticipate, it must be remembers
that sudden and spasmodic success in th
business do not now occur as they did
few years since, and that it has reduced
, more steady and regular process in il
I agency feature. And moreover, the final
! cial stringency now upon the country, an
which is so deeply felt in every dspartmer
of business, may not and probably will no
. allow as ready and large successes in life il
: surance for some time to come, as "