The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-02-02
Mr.. DREW'S OPEN LETTER,
A Prominent Legislator Discusses
the Insurance Bus mess.
AND GELS AFTER THE LOBBYISTS
some Facts ana Figures of the Cow
crnor's Message Repeated with
Characteristic Emphasis.

Austin. Texas. February l.-Reprcsenta-
tive Byron Drew OF Kaufman county hand
ed The Post correspondent the following
open letter TO the Dallas News.
To the News
In his message to the legislature Gov
ernor Cuiber~on recommended legislation
on the subject OF foreign insurance com
panies. Soon aterward an agent OF one Of
the leading life insurance companies OF New
YORK appeared in the State. snd as soon
as he reached Dallas and other places. a
carefully prepared article, implicitly. at
least, In refn.aiion OF this recommended
ton. was published in your paper and
others. and apparently paid ,or as an I'd
Nertsemont Following the appearance OF
this agent strong lobby has arrived at
Austin and is now at work to defeat the
proposed legislation. New York newspapers
have attacked the governor. purposely mis-
taxing his position and from time to time
you are reproducing the articles from these
papers, evidently intending to prejudice the
measure. He recommended that the drain
Of money from the State should be stopped
by requiring investment here. stating in
cidcntally that the money was being used
by the officers OF the companies in extrav-
agaut salaries. and that as these companies
pay no ad valorem taxes. the tax on the
gross premium receipts should be increased
With reference to the drain Of money
from the State. what are the facts? In the
past ten years the net premiums paid three
New York life insurance comnaniea alone
by the people of Texas was si3. Gq6.555.3i
and the net premiums paid all fire insur-
ance companies in that time was tn round
numbers sl2 900 900. aggregating more than
S25 600 900, and If to this we add all esti-
mate OF $1,000, 900 as the net premiums paid
other life companies than those mentioned
the total amount of money taken out Of Ia
State during that period s s2i 0oo 600 in
stead of s25, 900, 900 estimated by the gov
eruor. In order to draw and keep money
there the laws of the State Of New York
require insurance companies to invest half
of their receipts there. Ii this be- lust
law in New York. and has done good work
for that State. what objection is there to
something in that line hero Are We not
supposed to lcgislate for Texas? Aud IL
so. should we allow this enormous drain to
continue? The proposition is to require
them to invest reasonable per cen, az the
receipts from Texas business In this State
for instance. in our State county and city
bonds, Are these not as safe securities a.
any that can he obtained The agent re-
fcrred TO tells us that one " the companies
has already invested LARGE sum In such
bonds. aud certainly there can be no valid
objection urged TO investment in our state
and municipal securities and other prop
erty. when 1t will not affect the amount OF
Insurance written or the value OF the poll
cios and dividends thereon. except to in
crease them. Such policy will tend to keep
our money at home, and build up Texas.
instead of other States. Is the incidental
statement true that the money is being ex-
pended by the officials of the companies in
extravagant salaries? ono of the lifo com
ample. Tho president receives the uncon-
scionahlo salary of $4,000 annually. Three
officers receive 1900 a year each one
$4,000, two s25 900 and one $50, 900 and the !
total annual salary account is s577 600. or
a fourth of the general yearly expense OF
our State government. My Information is |
that the salary list OF other companies IL |
equally eXtravagant, In some cases the
president receiving even higher salary |
than that named. The measure introduced |
by me to insure taxes on their gross re
cepts is manifcstly Just. II is we'll known |
that these companies have no property in |
this State. and therefore pay no ad ralorcm
taxes Although they did an enormous bust
here until 1873. when the present law was
passed lovying n tax of y OF per cent on
he gross reccipts Of fire companies and "a
per cent on those of ltfe companies. In
500 the state was greatly In debt and be-
'ause OF this taxes were raised. Taxes were
ON express companies, railroads
awyers doctors, laborers, farmers, In fact.
lpon everyone who owned property.
II was Just that taxes should be increased
IN insurance companies also. and such a
MEASURE passed the house, but 1t was de-
Gated In the senate and thus these cor
,orations. which had escaped taxation for
'ears, were the only subjects of taxation
hat escaped a raise.
Revenue Is now needed to run the gov
'rnmcut. ard II is right that the burden
hould lie cqualizcd by increasing the rate
u TAXATION upon them.
Byron Drew.
THE ]. u. q. y.