The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-10
INSURANCE CONVENTION
WILL BE HELD APRIL 28VH AT
SOUTHERN PINES.
A Vigorous Letter From MIR. PatricI
Touching Upon the Southern
Industrial Situation.

10 Meet mere Oh the LSuH OF April, prolHlS-
es to be a gathering of strong men, Many
insurance men will be here to confer
promote the true interests of the State
with reference to insurance.
This convention has excited interest
in all portions of the South. Such papers
as the Baltimore Sun and the Savannah
News, and papers of smaller circulation
are discussing the convention, and what
is better they are discussing the matter
of insurance in it's widest scope. In is
not the purpose of those who called this
convention to map out any plan and rush
it through. Nor is it antagonistic ito any
already established insurance companies,
1t is to show to the South that they can
conduct the insurance business as well
as they can manufacture cotton goods.
The time was when our own people be-
lieved that the cotton must be grown
in our own fields and sent to New Eng
land to be manufactured. That idea
could not be corrected except by the
South's actually showing BY DOING
IT SUCCESSFULLY that we could
manufacture cotton goods alongside the
mills every day and most of them are
running on full time while in the North
there no new mills being built and many
of the old ones are not running.
In order to show the object of the
convention, | append herewith a copy of
the circular letter sent out to insurance
men and others by Mr.. Patrick, who orr
ginated the idea of this convention:
Pinebluff. \. c., March 26. 1897.
Dear Sir: | beg your pardon for writ
ing YOU such a lengthy letter, but as
you are very much interested
in the subject / write about, l am sure
you will appreciate the informatio here
in contained.
On the 2Sth of April there will be held
what is called a Southern Interstate
Insurance Conference The object of
this matter is to put on foot a move
ment looking to the investigation of the
insurance business. A great many OF
the people of this section, both native
and Northern settlers claim that the in
surance companies do not invest a fair
per cent of their profits in the South
that they take out one dollar for every
fifty cents they return to the South:
this not only hurts your interest, but
it Injuries our section. For if it is said
that Northern insurance companies are
afraid to invest money South, it fright
ems others from putting their money
South, and that such statements are
very injurious to Southern developments.
all must admit The claim is made that
the money earned by insurance COM
panies is invested outside of the South
in building factories, water-wOrks, rail-
roads, and in bonds, stocks, ETC. Also
it is generally believed that the insur-
ance companies will not come down
South and investigate the opportunities
the South has to offer. They claim that
upon IL full and careful investigation, it
can be seen that manufacturing enter
prises in the South. rightly managed by
skillful Northern experts, pay much
larger dividends than in any other sec
ton in the United States on account of
the cEeapness OF raw material and low
wages paid to laborers. both white and
c0lOrcd and owing to the fact that there
are no strikes or disturbances among
the laborers. and that we have longer
hours of work.
/ do not think that the people are
well informed as to the insurance bust
ness. i know Of my own knowledge.
that outside insurance companies have
made investments South, and that these
investments have proven very satisfac-
tory, but i am informed as to few
companies only.
l know it is not the intention of any
one South to do aught against any for
eign institution getting business from
this section; but they seem to think it
is right and proper for them to patron
ize such institutions as are liberal in
their Southern investments.
You know the people of the South use
a large amount of manufactured goods of
every kind; and begin to see the ad-
vantages of manufacturing enterprises.
They are extending many inducements
TO Northern men to come South and
engage in manufacturing; even going so
far as to pledge that hey will give them
their patronage in preference to send
ing their money to outside concerns {:
even though they have to pay the man
who comes South more than they would
if ne kept his factory elsewhere This
is not an antagonistic disposition on the
part of the people of the South; but
they believe they would not be doing
their duty TO the Northern men who
come down among them, or the firms who
put up branches OF their factories II
they, the Southern people, continue to
patronize outside concernsm in prefer
ence to the Northern men who come
down. A large number of small manu-
facturers have already moved down and
are doing well. There is no doubt that
the favoritism extended is the reason
why many continue to come. / say
this much to show you that there is no
feeling against outside enterprises, but
a disposition to give the man who comes
down the advantage of what business
can be turned into his hands.
| repeat that / know that many in
surance companies have loaned money
South, that has been put into enterprises
that have gone far towards placing the
South in the prosperous condition in
which it finds itself in these dull times.
l am sure that upon investigation, our
people will see that insurance companies
are willing to be liberal to them when
they need money and can offer good
security for it,
| wish to say in conclusion, that all
these industrial meetings are held I'M
der what ia known aS tha "SOuthprn