The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1891-02-04
Would Deposit Law Benefit the Peo.
pie OF the State.
Especial Cor. STATE CHRoN1CLE.l

Especial Cor. STATE CHRoNICLE.l
One of the most noted Southern IN
derwriters recently said IN a speech be-
fore the Georgia Legislature ''Insu-
rance is of itself a thing apart. IN its
organization and operations, it is a
grandly benefcent institution, that car
Iies out principle philanthropic in th-
highest degree, and that is the distribute
tlon Of the heavy, and what would 9TH
er-wise be crushing misfortunes of tne
few to whom disaster comes, amongst the
many, and IN such a moderate degree as
not to be burden to any,"
Now as citizen Of North Carolina,
and one deeply interested in its welfare,
and having studied the Insurance busi
ness with diligence, for years, you will
pardon me for commenting briefly on the
| recommendation made by our Governor
in his recent message to the Legislature,
viz:that all Insurance Companies be re-
quired to deposit with the State Treas
urer $4,000 90 in State Bonds, before
| they be permitted TO do business in the
| State presume His E2ceIlency's idea
| is to have this law passed in order to
| increase the demand for State Bonds;
| but surely our States credit does not
need "boosting" to such an extent that
+; We should force Insurance Companies to
take our bonds. Our bonds are to-day
| selling above par, and the passage Of
such a Law would only bonoit the favor
ed few who are fortunate enough to hold
state Bonds. while it would deprive the
poor man On his farm Of the means of
| protection by Insurance; or increase the
cost of that protection. Ii Deposit Law
Is necessary for the protection of the
Citizens Of this State, Why not leave 1t
optional with the Companies whether
they deposit State, or United States
Bonds? Many of the Companies doing
business here would not object to de
posting United States Bonds, but would
| leave the State if forced to make invest
ments in State Bonds or any her
Bonds, which they did not favor.
1t seems to me that a deposit of So,
600 90 in U. S. Bonds would protect the
policy holders equally as well as SO,
| 10000 in State Bonds. There need be
no fear that our efficient Secretary o1
State, who is our Insurance Com
missioner, will ever issue license tc
any company that is not perfectly sound
and reliable.
I feel safe in saying that no citizen O
this state has lost one dollar by an In
surance Company, since the repeal o
this law several years ago, that would
nave been saved to him hal the law re
NAMED in force. [ will state further
that there is not al Insurance COmpan,
doing business in the State that coul@
not put up, readily, the amount Of th
required deposit, but they would objec
seriously to being forced to purchas
State Bonds, and some Of them whic
e are worth millions of dollars, are 10
y doing sufficient amount of business i
4 the State to justify them in putting u
/ the deposit.
b We have ninety-one companies doin
e business in the State, which pay to th
n State in taxes and fees about $50, ,0QO
If annually. If this proposed law is pas:
S ed, it will drive out Of the State at leas
9 so per cent Of the companies and anon
( them some of the best and largest CON
e panies IN America, as competition IS $
< strong here that anumber OF our large;
;e companies are getting only small shal
d of the business, and to this extent con
'e petition will be cut off; our State rev
e nues will be diminished; insurance rate
will probably increase, and no one vi
Of be benefited bat few bond holders.
y John C. DREWRY