Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-02-20
CALIFORNIA LEGISLATURE.
XIII. sEssIoN-FoRTY-sIxrH DAY.
IPhonographicaIy reported for the REConD-UNI
hy Willis & Stockton

IPhonographically reported for the RECORD UNION
ty Willis & Stockholm
SENATE.
SAcRAMgSTo, February 10, 1880.
The Senate met in regular session at 10 A. NJ,
Pres dert Mansfield in the chair.
Roll called and quorum present.
The journal OF yesterday was read and approved
On motion Of Mr.. DICKINSON the special order Tor
the hour Senate Bills Nos. l3l, 81 and lS7 were
postponed until after the reading of the long bill
introduced last evening by Mr.. Trayor
REVENUE BILLS.
On motion of Mr.. JOHNSON the consideration Of
majority ami minority reports OF Joint Committee
on Revenue and Taxation, with substitute bill from
each for Senate Bills Nos l0l, 120, 1885, 1876, 100,
206, 2S0-special order for this day at 1:30 P NJ
was made the special order for tomorrow at the
same hour.
The Secretary then resumed the first reading Of
the Tray!or City Governmcn. bill.
1t was ordered printed and referred to the San
Francisco delegation.
THE INSOLVENCY BILLS
The Senate then took up the special order of the
hour-Senate Bill No. 13l-An Act for the relief OF
insovent debtors, for the protectiol OF creditors,
and for the punishment Of fraudulent debtors (by
Mr. Dicknson)-it being an Act of eighty-two sec
tions.
Several amendments proposed by the Committee
on Judiciary were adopted
Mr.. CHENEY moved to amend Section 3, line 9 by
striking out the words " as far possible and in-
sert "to the best Of his knowledge and belief" He
gave his reasons for the amendment, stating that he
believed those words were sufficient. The people in
the country districts were not in the habit OF keep
ing their books very thoroughly, and many of them
kept no books at all. His amendment was for the
benefit of farmers, mechanics and poor men who did
not keep correct books.
Mr.. DICKINSON said he did not object to the amend
nient
The amendment was adopted.
Mr. SATTEKwuITE moved to amend Section by in
sertng after the word newspaper" the words % OF
general circulation" Adopted
Mr.. WENDELL moved to amend Section s so as to
strike out $500" and insert $780, as the amount
of debts. Adopted.
Section s.: Amend Section 8, line 13, between
cor" and " suffered" insert wilfully." Section g.
line %, between "or" and "has" insert "being q
merchant or tradesman," and line %, after "indebt
edness" insert unless the party holding such
acknowledgment has in writ ng waived the right to
proceed under this subdivision
Mr.. CHENEY claimed that without the amendment
when tradesman or merchant had secured the
news OF day note, his creditors might step in and
throw him into involuntary bankruptcy. The
amendment provided that when tradesman or
merchant had suffered his note to become due the
party who held the note might waive his right to
proceed under this Act. He could see no reason
why any other party should complain il the holder
of the note did not. The man who owes the money
ought to have the right to try and compromise with
his creditors In this bill there such latitude
for the debtor.
Mr.. DICKINSON asked if, after day note had been
extended it was in the same condition though it
had not been extended-if it was extended for six
months whether it would be due on the next day.
Mr. CHENEY held that the note due unless it
was changed The amendment simply allowed the
holder OF the note to waive his right to proceed on
it for certain time.
Mr. DICKINSON said he had no objection to protect
ing the farmer or adesman, but he not salts
fed with the amendment as introduced. He sug
gested that the amendment be passed over for the
present.
Mr.. JoHssoN said he proposed to move to strike
out the entire Article Ill. of the t because he be-
lieved it to be engine by which the Francisco
merchants could ruin every other merchant in the
State OF California. He believed it to be a relic of
barbarism resurrected in the interests Of rich
chants of San Francisco and Sacramento 1t put
into their hands the means by which they could ruin
any man doing business in any county of the State.
He could not support the bill until it stripped
OF what he deemed to be its very bad features He
heartily agreed with Senator Cheney in his remarks.
In regard to inserting the word "willfully," Mr..
CHENEY urged that the amendment ought to be
adopted, because could under the bill be
forced into involuntary insolvency because he had
suffered Judgment to be taken against h m by de-
fault, even though the default had been caused by
excusable neglect or inadvertance.
Mr.. JOHNSON argued on the same side.
Mr.. WENDELL took the opposite side and held that
the next sentence covered the ground.
H.
SIr. SATTERwHITE moved TO amend Section by
striking out the words five more creditors and
insert 'any creditor"
Mr.. JonSsoS opposed the amendment.
The &.Iloi.-i4.s,t ,-as lost
Further consideration of the bill was temporarily
postponed.
REPoRTs--INsURANCE.
Mr. SEARS made the following report from min
erity of the Committee on Corporations:
Mr. President: The minority of the Committee on
Corporations desire to submit their reasons why
Senate Bill No. lSS An Act to regulate fire, marine
and inland insurance companies transaciug business
in this State should not become a law, and also
suggest wherein it should be amended. The busi
ness of insurance in all its branches is one which
has beeu reduced to business principles through
years Of experience and careful study. The inter
ests of the policy holders and the insurance
panes should be mutual. Every unjust restrictive
burden impos ID upon the companies increases the
burden OF the poicy-hoGers. The proscriptive
features of this b II against he wisdom OF
experience and the business Judgment of enlightened
policy. Similar laws have had their trials in
many other States and have been repeated by the
weight OF their bad effects This State tried de-
pository law years ago, and repealed 1t because
it was against the enlightened spirit Of the
age. This Legislature has enough to do 10 enact
the necessary good laws required, rather than
it, limited time re-enacting bad and discarded laws
If deposit law is required in this State TO protect
the insured, it is needed in every other State. If
this State must have 500, 900 deposited here from
every company organized outside Of this State to
protect poliCy lneu SJ%tSS
the prot,c ction To transact business in thir,
States would require %, 900 600 scattered among
those States. Very few companies have this amount
OF capital stock aud assets combined. The bill
quires the deposit to be made with the State Treas
urer, and he is to hold the until ali liabilities
Of the company are satisfied therefore the COM
lany is debarred from using its assets to pay its
| losses, ii fire in State should entail Il loss
which required more money to meet its demands
than the amount Of the deposit in this State. The
money required to meet losses would BIZ locked up
in State vaults, which the company would have
no control, and it would be compelled to suspend
when its scattered assets were twenty times sut-
clent to pay all its losses. 1t would be ike tyTant
OF old, who chained one Of his victims 70 n wall and
placed cask OF provisions beyond his reach, and
then issued proclamation in flaming letters de-
claring that he in favor Of his growing fat
The result Of the workings of depository laws in
the Eastern States has been to drive foreign
panes and confne the business to local companies,
which invariably Increases the rates and risks.
The seven local companies now doing business in
this State have combined capital of So 200 0o0 and
are carrying risks amounting to SJ9,000,000 The
capital and assets of these companies are in the
same boat, and must sink or swim together. A fire
far less in extent than that in Chicago Boston
would swallow up both. IL is cften mentioned with
pride that more mechanics own their homes in San
Francisco in proportion to number than.any other
city in the Union. Now every property owner,
great and small every mechanic, every poor laborer
whose hard armed savings has secured homestead
to shelter his family; every man who owns his
the time when he may place it in his own house-a
have interest in preventing the enactment Of such
injurious lazy You had better take his life rather
than remove The protection which secures him
in reb Hiding his home in case Of fire. The Eastern
and foreign Companies are generally conducted
safe principles. The available capital in the aggre.
gate of these companies is equal TO onethird OF all
their risks while that Of the local companies is
thirty, ghth OF their risks 1t will be that the
polio holders in Eastern foreign company have
over twelve times the security that has in
local company. II this bill is passed, it will to n
grea: deprive the of buildings of this
reliable insurance security II the proposed bill
should become law, it would create monopoly Of
the business here, and concentrate it among the
loci companies whose risks are far gre etter now
than wise policy would dictate. The assets Of in
surance companies should not be pooled with their
risks TIE grea of territory the risks are
spread over the greater security is guaranteed TO the
policy holders As servants and repre- entaives OF the
people we are not justified in emoving the tim
bers from this bridge which has for years carried
many safely over. The minority Of your committee
recommend that the depository clause in the bill be
stricken out, because it is mischieyous, injurious
and has been tried and found wanting. We also
recommend that secti II be added making the In
surance Comm ssiUner the attorney irIevocably Of
all companies bere SO long as said companies have
any outstanding liabilities Of any kind also to re-
ceve service OF process in suits commenced against
any of said companies in this State. We also
recommend that section be added providing for the
distrcting Of San Francisco and other cities Of over
5000 population into Insurance districts and that
company be allowed TO take risks in said districts
greater than c amount of It's capital STOCK and