The Daily state register. [volume] (Carson City, Nev.) 1870-1872, 1871-02-21
FOREIGN INSURANCE COMPANIES

FOREIGN INSURANCE COMPANIES
WASHINGTON, Feb. 1.-THE defeat or
Judge Bingham'S bill. relating To life
insurance companies, was occasioned
10y the opinion held bv many MEM
beers that it proposed an uu~warrantable
interference by the General Govern
ment with the rights OF States to regu-
late the privileges of corporations.
The bill provided that no penalty shall
be imposed on any life insurance com
pany which is authorized by the laws
of the United States, nor shall any tax
or other conditions of doing business
he imposed III any such company
which is not by the same authority
imposed upon all insurance compa-
mics. Tho last clause would prevent Il
State from making any discrimination
in favor of insurance companies organ
lied in such State. In many Western
States there is talk of adopting leeisla-
ton to compel Eastern insurance ON
panies 10 invest the profits of their
business in the State whence they de-
rive il, and IL i stated that SS.OO0,O 900
are annually drawn ron Ohio and
81. 900, 900 from Indiana rs profits of
Eastern insurance companies, and
from all the Western States there Is Il
large and constant drain of money to
the East 10 pay insurancc.-lbispatch.
This proposed bill having been de
feated in Congress, the matter is left
rs heretofore, subject To- such legisla-
ton by the States as they may consider
proper. II will be seen from the above
dispatch that the experience OF the
Western States does not support the
Territorial Enterprises theory, cx-
pressed in an editorial a few days ago,
that these foreign insurance compa-
mics care not draining money out ot
the State Ii it Ice true as stated.
that eight million dollars are being an
nually drawn from the State Of ohio
AMI seven million from the State of
Indiana. some idea of the immense
aggregate drawn from the entire West
ern States can be formed. That asim-
liar effect must follow the operations
Of these foreign insurance companies
in Nevada, is self evidcnt-as we
charged a few days ago. The fact that
some Of this money is restored to the
citizens OF this State by payments
made on polirieS held in Virginia 10y
/ the sufferers from the recent fire in
that city, only modiCes the general
proposition. Insurance companies are
/ doing business here because they ex-
pect, in the long run, to make money
by il. If their gains did not exceed
their losses they certainly would not
desire To continue tie insurance bust
ness in this state. The fact that 50
many companies are competing foI
they find it profitable, and that they u,
drain money out of the State into theii
own treasures. 1t appears from tho
above dispatch that many OF tn,
Western states are finding it necessary
TO protect themselves, and To eompe
these Eastern companies 10 inves.
receive them. None of those States ar,
likely 10 devise any system, whicl
will mt the same time protect the in
sured, and measurably compensat,
the State Tor the diminution of taxabl,
property caused by the insurers, anC
vet so little discommode any really
sound company, as that proposed by
the bill now in the Senate Of thi
State. This State needs taxable prop
erty; and while even the miners ar,
required to pay a tax upon the pro.
ceeds of their labor, in developing In.
resources of the State and increasing
the valuation of property, it will b
difficult to show why foreign incor
porations should be exempt from an,
liabilities ON the proceeds of thei
operations which are having precisel
, an opposite effect OH the finances {
the State. The deposit of State bond
/ by the company proposing to do bus
ness here is no hardship to any r,
sponsible company. Their propert
is supposed TO be invested largely i
Government bonds, State or nationa
and it is not unreasonable that the
should invest in the securities of I'll
State in which they do bushes
These bonds will draw 10 per cent. il
| terest, and are as good and safe an il
vestment as any that can be foun'
a Both of the bills funding the State il
9 ~debtedness passed the Assembly we
terday, and both are likely to becon
a laws in "a few days. We shall need an III
n mediate market forthese bonds, and
these insurance companies are requir,
to deposit State securities to Il
: amount of $4,000 each, it will make
demand for this new issue which W
be of great advantage to the State
,e bring its credit up to par, and start
a upon a basis hcnceforth safe, perm
5? nent, and paying AS we go. The c
At perience of the Western States sho'
a. that we shall have to do this at sor