The Daily state register. [volume] (Carson City, Nev.) 1870-1872, 1871-12-16
ITO REGULATE FOREIGN INSURANCE
COMPANIES

nearly all Tic insurance |
of this coast the reasoning OF the I
editor of the Territorial Enterprise
against the Legislative act OF last
Winter requiring adeposit OF bonds,
is a little more plausible than IN
some former articles.
If the Legislature could have fore
seen the general smash-up 1t might
have enacted differently but even
in that case it is questionable,
whether. with that catastrophe IN
sight, the necessity forthls act would
not have been even stronger than
without il, as the dangers to be
guarded against would have been
proportionally enhanced.
As it is. certainly the people OF
this State have lost nothing by ma
billy to insure in a half-dozen Cali
fornia insurance companies that have
already proven their unsoundness by
suspending-to say nothing OF num-
herless Eastern companies that have
since gone up in smoke. The fact
that the people have been protected
against heimpositions of these swim
ding concerns, now shown to have
been insurance in nothing but the
name. is the best evidence IN the
world of the necessity Of some such
law These companies did not make
the bond deposit for the excellent
reason that they did not have money
enough in their treasures to puf-
chase the bonds-much less to pay
their losses.
To read the Enterprise one would
imagine that it is aterrible grievance
that the people of Nevada have not
been sWindled out of several hundred
thousand dollars. That is precisely
what it amounts to for had this
horde of irresponsible companies
had full. unrestricted swing thro ugh
out this State, long before their In
~solyency was shown by the Chicago
fire they would have succeeded III
imposing upon the credullty OF any
number of our people. What would
that insurance have amounted to
Our people could have stacked up
their policies in q pile as high as
Mount Davidson and set fire to them,
and not been out a cent. Indeed
that would have been the best thing
they could have done with them.
Some money would have been saved
and future security obtained in some
company that is responsible, M
can show that responsibility by 1t
acts as well as by loud declaration
d company that when it makes
losing can hand the money acros
the counter with neither growls no
DELAYS, according to contract.
1t : true that the State Is now Ii
boring under one of the dlsadvar
tages OF the Act a d~lsadvantaS
arising from the peculiar and extri
ordinary accidents of the past year
q combination of events Origlnatln
q condition Of circumstance
which might not occur again IN
century. A sort of insurance MOI
opoly obtains-not essentiallynece
sarv, for nothing but its own obst
macy prevents any company frol
openly doing business here. III
Treasurer's office Is as open to the:
as to those that have complied wit
the law. Instead of invective again
the Act the censure properly belon;
to the insurance companies. 1t
the companies not the Act, which a
really responsible for the monopol
The law affords a ready and CONVEX
cnt excuse for a monopoly whl'
really owes its existence to caus
which are judiciously kept III t
background.
Under the changed circumstanc