The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1878-02-20

1neTe Is SeueTdL StHIlLESuL III LHt
State, in favor of modifying, if not en-
tirely repeating, the Insurance laws
which remain on our statute book
precisely as they were left by the Radi-
cal party which adopted them as a forced
loan Oh the companies that were doing
business in the State. AS an example
of what the press is saying we have copi
ed the following from the Aberdeen
Esoau,i,tcr, one of the ablest Of our State
journals:
We heartily agree with the Jackson
CLARION in its condemnation OF the present
insurance law which requires 10000 de-
post from those companies doing business
in the State. 1t has resulted in driving out
many popular companies, and has kept
numbers of others from entering this field,
and the result is that there Is less com peting
for insurance business in our State than in
any other while the premiums we under
stand are uniformly higher than elsewhere.
Before the passage of this law, almost
every com panV of note in the United States
sought business in Mississippi. and insur-
ance companies, like all all other CORPORA
lions, were frequently forced to lower their
rates in order to obtain patrons, but after
the enactment of the "depOsit law" the
mands and many of the strongest retired
united in every locality where they estab-
lShed agencies, into corporation" rings
that fixed uniform rates tor every house
and thus while the owner was left the
choice of con- panV. he was given to undtf r
stand that there was no hope of his obtain
ing less rates than those offered by the first
agent he applied TO.
The Insurance Law as it appears in the
Code of 1857, was good enough for Missis-
-, hot r aox at,1 Ia.
enacted: there is neither sense or reason in
acce ptng the legislation, in this matter, of
a combination of carPet-baggers and in
surauce sharks, who together patched up
the present statute. Under the old law the
party insuring knew what he was about,
tor every agent was required to publish IN
the county where he was domiclied COM
plete statement OF the condition OF his conn
pany every year, and the statements were
anXiouslv looked for by insurers, guiding
them in their transactions; and If the de
post law Us not repealed it should at least
be SO amended as TO compel these local ex
hibits wherever an agency is established
In proof that the effect Of the law has
been to diminish the number of compa-
MES doing business in the State and thus
to diminish the revenue from that source
and at the same time increase the burden
of policy holders, it is only necessary to
refer to the Reports of the Auditor of
Public Accounts from time to time. Thus
in this report for the years 1874 rs, that
officer said:
"A reference to Document RI will show
that the number of insurance companies do
ing business in the State, in com plance
with the existing laws, is gradually decreds-
ing. The system of requiring deposits TO be
made with the State Treasurer, seems to
be generally distasteful to the large ana
solvent companies. a privilege tax of
$1,000 is now required by law, to be paid by
each company doing business in the State.
The amount thus received is much less
than the interest now paid by the State on
the deposits made by the companies. and
the present system is a source Of consider
able expense to the State, without any cor
responding benefits. The amount of the
deposit required in each case Is but little
security to the policy holder against loss
|, therefore, recommend that all insurance
con- panies, now having deposits, be author
lied and required to withdraw the same, by
giving due notice thereof, and that hereat-
ter each company doing business in the
State be required TO pay an increased priv
ilege tax for so doing, under such regula-
tions as may be provided by law
And in bis report of the next year,
the Auditor reiterated what was above
said, as follows:
son this subject l am still of the opinion
that our insurance laws, instead of being an
advantage to our State, are directly the OD-
posite. A change in my Judgment could be
made, that would be better for all interest
ed.r
Previous to the passage of the present
law by the Republican party, there were
thirty Insurance Companies doing BUSH
ness in the State. Now the number has
continued to diminish until they are re-
duced more than one half below that
figure. And the revenue derived from
that source has diminished proportion
ately.
L is said, however, that the financial
condition of the State will not admit of
the immediate withdrawal Of the deposits
on which the State is paying an interest