Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-03-26
THE INSURANCE QUESTION.
Meeting of the Assembly Committee on
Corporations

Corporations.
The Assembly Committee on Corporations
held meeting last evening for the consider
alton of Senate Bill No. 1SS, regulating in
surance companies in this State. a number
of gentlemen representing the various insur
ance companies were present, including j. j
Desmond, General Hutchinson, E. d. Farms
worth, Julius Jacobs, L. L. Cromwell, Mr..
Hopkins ald Insurance Commissioner Ford
Mr.. Bromwell appeared on behalf of the
advocates OF the bill, and presented printed
statement for the information of the com
mittee
Judge Tyler opposed the passage of the bill
on the ground, first, that it would permit
foreign mutual insurance companies to do
business in California without a dollar OF
capital or security for the protection of the
public. and secondly, because this would be
in direct conflict with that provision Of the
Constitution which declares that no corpora
! ton, organized outside of the limits Of this
/ State, shall be allowed to transact business
within this State on more favorable condi-
tons than are prescribed by law to similar
corporations The bill, furthermore, would
drive out of the State from thirty to forty
! foreign and Eastern insurance companies,
and would aid in fostering gigantic monop-
oily and consequent raising OF the rates.
Z. d. Farnsworth called attention to the
fact that the friends of the bill had issued a
circular which had been distributed in the
Senate Chamber, purporting to give list of
/ foreign companies favoring the passage of the
! bill. He produced letters to show that a
| dozen of the companies thus referred to, in
Guiding the st. Paul Insurance Company,
1 French Insurance Company, La Confance
Insurance Company and the Traders Insur-
ance Company, were opposed to the passage
OF any $500, coo capital law. This was merely
to show the unfair method that was being
| adopted by the friends of the bill. He also
read statement showing thirty-four fire in
surance companies having less paid-up CAPT
! tai than $500, GOO, but with assets aggregating
SIG, LOSS, 143 10, doing business in the State of
California, and which would be compelled to
withdraw from the State under the provisions
OF the amended bill. Under the provisions
of that bill only thirteen of the New York
companies would be admitted to California,
and OF those that would not be permitted to
remain fifteen have assets, the lowest $780,
245, and the highest 81, 1S7, 2S7.
| General Hutchinson followed with q brief
address against the proposed law. His argu-
ment was divided into the following nine
points First-The State has no interest in
| the proposed bill beyond the question of
revenue, and no company objects to any
proper and equitable taxation. Second-The
only interests to be benefited by the passage
of the bill are those of the local companies.
Third-The Legislature cannot consent to
legislate on behalf of local interests to the
detriment of the general public. Fourth
| The State cannot afford to drive Sic, 900, 600
of capital and assets out of the State for the
purpose of bolstering up local institutions.
| Fifth-Wise laws. calculated to draw capital
to the State and not drive it away,
should command the earnest attention OF
the Legislature, and will receive the
hearty approval of the people. Sixth
"A largely-sighed petition by leading
bankers and mercantile houses in San Fran
cisco was presented to the Senate, reHon-
strating against the passage of Bill 1SS as
opposed to the best interests of the people OF
the State and its consideration by the AS
sembly is now quite in order. Seventh-No
section of the State has sent up petition for
the passage of this or any other bill looking
to the exclusion from the State of any of the
insurance companies now doing business in
it. Eighth-With equal propriety the mer-
chants of all departments in trade might
come to the Legislature and ask the aid of
It's strong arm on behalf of the interests in
which they are respectively engaged. as op-
posed to all those who have less capital than
possessed by them. Ninth-The provisions
of Bill 1SS will not stand the test Of we'll
recognized business PRINCIPLES.
The committee adjourned without having
taken any action in the matter.