Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-02-27
LETTER FROM NASHVILLE.

Correspondence Louisville Commercial.
NASHVILLE, Feb. 22.--It is to be hoped
that our present Legislature will not fail to
revise the insurance laws of the State and
do something toward assimilating them to
the laws of other States under which the
great companies of the land have grown
and prospered. 1 doubt if there have been
dozen men in as many successive Legis-
latures who, during the sessions Of that
body ever gave an hours earnest considera-
ton to this important subject. Certainly
our laws do not indicate the presence, in
the bodies that enacted them, of members
who at all comprehended the subject on
which they were legislating, for they are old
fashioned and based upon entirely super
fetal considerations. Worse than that, they
are inefficient and positively injurious to
every interest. Their object should be to
conserve, protect and foster. For instance,
the exploded 'ideposit" theory finds yet
home in our law, though there are but
seven (and those not the advanced and
prosperous States) out of the thirty-seven
States of the Union which require any de-
post from American companies. Exper-
fence has taught more than four-ffths of
the States that the "deposit" system of pro-
lection in insurance does not protect.
In the first place, as the insurance legis-
lation of nearly all the States is retaliatory,
our law, which requires deposit of 5000
from all companies from other States doing
business in this, forces our own companies
which are not numerous, but though young
are strong and prudently conducted, and
with opportunity will croW-to make de-
posts IN each State where they undertake
to do business. This of course cramps them
and prevents their prosperity and growth.
Hence it is that the movement to have the
present "deposit" law repealed and good
law enacted in place thereof, proceeds from
our home companies, who can see how
greatly they and the people of the State are
injured by the present law. say the people
are injured by the existing law, because
there are actually not enough companies in
the State to do the business of the State on
a safe basis, and other companies are kept
from establishing offices here by the OBJ
noxious "depOsit" law. The injury to the
people may be seen by those who are not
wilfully blind as well as idiotic, in this
astounding fact that insurance in fennes-
see costs at least p per cent more than il
does in those States where our suicidal
System" is not in force. For every dollar a
kentucty man has to pay for insurance on
bis property, Tennesseean-t to the |
laws of his State-has topay one dollar and |
twenty-five cents. Where Kentucky pays |
s, 100000 for insurance on property, Ten |
nessee, for an equal amount of insurance, |
must pay an additional sum of S250,000-
twenty-five per cent more! What kind of |
protection is that? "Such protection as
wolves give to lambs" verify. The bare
statement is enough to satisfy any intelli- |
gent, reasonable man of the mischievous |
and injurious effects of the present law.
All experience proves, too, that G t'de-
posit" amounts to nothing as q protection |
10 the assured, and works only hardship in |
every direction.
Tennessee needs a law similar to those
Of New York and other States on this sub
ect-a law requiring each company pro
posing to do business in this State to first
make compiled and detailed statement as
o their condition, and annually thereafter
lnder the sanction of an oath-a law COM
,elling all insurance companies at all times,
when called upon, to submit their cOndi-
ion, books, papers, ETC., to such persons as
nay be designated TO make the examina-
ion. The examiners should have power
.sO to examine under oath all of the officers
md clerks Of the company if necessary, and
hen he should be required to report in de-
all and under oath tie result CT his inves-
igation to the public authorities, and all
bis at the expense of the company investi-
sted. This would amount to real pro-
ection to the people, and not increase their
urdens as the present foolish law does.
Of course no one can tell what the Leg
stature will do in the premises. That, as
ord Dundreary would say, is ''one of the
hiDgs no fellow can find out" This l
now, ii any gentleman of ordinary intelli-
ence viii give the subject half an hours
andid thought, he will be in favor of the
hanoe / have spOkan of