The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1882-09-01

,e,, resusotiye counties and cities, for Peg
,cnt oftgxes, and also TO distrlot ~ nor
10 af them w discovering nnd pflng
VI before the grand Iurles all Gu Ses OF
oents en,saaod In Illicit Insurance.
When iyTfstated that duringthe drst hall
Z die wear 1881 no fire, or FIRE .nlarine and
inland insurance company haf. applied to
department for admission 20 the state,
that in the last half Of tho same year n
n ,he first two months OF .he present year
m less than thirteen fire and fire marine
inland companies, with aggregate as
;ets of more than ti.teen million dollars,
rave been admitted TO the state-not 10
mention here one guarantee company and
one life company also admitted-it wouiu
seem to be difficult to assign any other ade-
nuate cause for this simultaneous acces'
of companies ard capital than the
that was designed and adopted, as
for that purpose, by this department
in Jnne last. Although sufficient time has
not vet elapsed to judge whether the other
results that were anticipated VIII pc iuily
realized, the increase in the grand total, OF
nroperty of the people OF the state that
was nrotec,ed by insurance during the
mast wear exceeded that of the previous
year by forty millions OF dollars, an IN
crease of more than one-half, as is shown
by the following:
Number of fire, marine and inland cc
companie asstsof same s1a', $50, oV
Value Of property in Texas insured. liz, s1o'G 90
Aggregate losses incurred IN Texas,.. soo'@'
Aggregate premiums received inIex- ,,oo,o
an .........,.. i,toiOio
The assets of one company OF the above
number are not included in this summary,
nor in the chart for 1881, its papers not hav-
ing been filed in time.
II will be seen that Texas has not es-
caped the epidemic of fire losses which pre-
vailed during the latter part OF the year
throughout the greater portion OF the
United States.
it is understood, TO causes connected Win
its affairs in foreign countries, retired from
the state early in the year, after having re-
insured all its Texas risks; the Lamar, oil
New York. whose Texas business was very
small, closed up its affairs and retired alto
rether from the business; n a tniTd, the
National Fire, of New York, which haa
never pushed its fortunes in this state WIN
conspicuous energy or success, Wltharew
nj the close of the year; so that the loss to
the actual working force in he Texas IN
surauce field during the year has been
hardly a~ppreoiable.
LIFE INSURANCE.
Summary of life insurance business in
Texas in 1880 and 1881:
1850. 1851 >
k Sgsresst Sf a sSmga Of issa;::s2oO, &c. ss ssl1. ole. 57ss
Total amount of policies
in force in Texas De- 90, ,so
cember 3l.........:.... o,Sl6,6'O oo-h4'o
Total premiums received sen o--
in Texas. .............. lZf,lo- io''o''
Total losses incurred In q 90,
Texas............... l~!1,3l7 liVolt
From this statement it will be seen that
the increase in the resources in the Iexas
$1,000, sc ilna 1tfa ipouranpa cDmnaDleS IN
1881 over that of 1850 were as follows: In
crease in assets in round numbers, $ll ,0ool,-
COO: in total amount of policies in force In
Texas. 81. 500, 600; in amount OF premiums
received in Texas, $65, 900; and a decrease
in losses incurred in Texas, $1,3li. only
one life company has been admitted during
the year, with assets amounting 10 sIof,Voo'
| deem it my duty to bring to your no
ice. that during the year THIS office has
been literally flooded with letters and pros
uectuses from managers OF so-called be-
neyolent, philanthropic, religious, and mat,
rimonial aid associations, organized ana
chartered in other states, all copiesseuly
without capital, and all proiessedly not IN
surance corporations, and therefore claim
ing exemption from state supervision anu
state taxation, but nevertheless proposing
to issue life policies, or matrimonial poll
cies, under the name Of certificates OF mem
bership, to collect premiums under the
name of fees of admission, dues, and NOR
tuary or matrimonial assessments, and
promising to pay death losses, or natrimo-
NAL endowments, by means OF assessments
on surviving members or unmarried mem
hers respectively. All these letters ind
cate a purpose on the part of these associa'
lions TO extend their beneficent- operations
to this young and growing commonwealth,
upon condition that they shall be permitted
to provide for our desolate widows and
helpless orphans and happy husbands and
wives of the future, without subjectine
themselves to the rapacity OF our tax laws
to the scrutiny OF state supervision, ana u
the ~exaction of the statutes of this state re-
auiring the possession, by an insurance
company, of 500, 900 for the security o.
their intended beneficiaries. All of these
associations, with one accord, claim to be
identical in methods and purposes with the
knights of Honor, knights of Pythias, and
the Odd-Fellows, and yet, at the same
time, many of the letters received incau'
tiously let drop the expression Of a strong
conviction that their respective corporations
would do a Thriving business" in Texas,
thus Enthusiastically disclosing the fact that
gain, and not beneficence, is their real mo
tive. Without this, however, their bylaws
and regulations would seem TO make II
sufficiently clear that there is q broad dis
tinction on this cardinal principle of gain
DctWeCu lltSt uSoOClhllOHo uuu llOcC lOnE
and well known institutions above named,
under whose prestige they claim exemp'
ton from state taxation and supervision.
Nevertheless, as the law stands, there is ap.
parertly good ground for difference ol
opinion on the question whether the cor
porations referred to are to be classed as
&c operations for..protit," or Corporations
for charity and beneyolence;" and If cor
~porations for profit" whether they are Ia
be treated as coming under the operations
81 our laws regulating insurance compa'
MES. 1 would therefore respectfully ass
that the attention Of the legislature, at the
approaching called session, be directed "a
the necessity of amending the act approved
July 0, 1879, entitled IAN act to define who
are insurance agents, and TO fix their liza,
bility for acting without authority Of law, y
corporations, in terms 80 clepr as to nc
longer leave a reasonable doubt on the
Illicit insurance, like Illicit distiIllng and
smuggling-nndred ofienses against the
revenue laws-has ever been found difficult
10 detect, and for that reason next 20 i'm.
possible TO wholly suppress. In the month
OF January Of the present year, q large fire
in Galveston disclosed, by the inevitable
adjustment Of Losses among the large mum.
Der Of companies involved, astounding
evasions Of our revenue laws. IL was found
that no less than twenty-seven insurance
corporations Of other states, without the
certificate Of authority required BY law and
~withoutthe prepayment Of occupation tax,
had covered by their policies property de.
stroyed by that fire. As may be remerl.
bered, similar evssions Of our insurance
and revenue laws, but Of smaller proper.
tions, were disclosed BY o Ere at Palestine,
Terss, 10 1877. And 70 show that the
ofsnss is not confined 10 Texas, / may state
that very recently q great fire In New York
CITY uDearthed an amount NJ a.
icIr INSURANCE.. n sOvn nsu VS. rvsnDr1i I
onsistent with other Official duties, 20 gei
1 the fscts, I laid the disclosure OF the Gal
fire before the attorney-gcner1 nor
lie action.
luelavs Thave gone somewhat into detail
n order 20 emphasize the Obvious inefh-
iency Of the Law e. II stands 70 resch tbt
inense. The stringent provisions o. , 80