The times. [volume] (Richmond, Va.) 1890-1903, 1897-12-18
OBJECTION MADE TO SCOTT.
Continued from First Page)

TO all intents and purposes, the capital
of the United States bfancn, ana the pa
rent company abroad bears 20 IT'S inlttd
states branch precisely the same relauoh
that the stockholders ~ am American M
surance company bear 10 it. Not only
has such deposit been so regarded,
through custom in different states put
i'm order 90 prevent any doubt on the SUD-
iecr. the laws OF New York. Massachu-
sctts. Connecticut and Missouri distinctly
state that such deposit shall be deemed
for all purposes Of the insurance laws
the capital Of the company making d.
by The law OF Virginia IL is enacted
that every insurance company lncofpo-
rated under the laws OF any Other State,
when entering Virginia for business. shaii
deposit with the treasurer for the pro-
lection Of IT'S pOlicy-hOlders in virginia
certain securities 10 am amount equal 10
per centum Of its capital Stock. lu the
absence of any legal definition as % what
constitute the capital STOCK OF lorelsii
insurance company, SUCH as ls proNldeu
by law i'm New York Massachusetts,, con-
necticut and Missouri. tine treasurer OF
Virginia iuterprets the law as recurring
from the United States branch of for
elCn company q deposit OF per cent. ON
the capital stock of the parent company
abroad Practically this Us Dee same thins
as if he were to require New hork com
panv 10 base IT'S deposit ON the personal
assets Of frs Individual stockholders. 10
will be readily seen how burdensOme THIS
must Doe 10 % foreign insurance COM
pany It's only capital for me pros'cu-
ton OF its business bon the United states
IS lts deposit Of S20OVO. ITS financial POI
sition is precisely that OF an American
company with capital OF >1nWO anu lh'
Interpretation OF the virginia law ny
the treasurer OF Virginia would compel
II to deposit about 20 per cent. or it5
capital instead OF only before IL is per-
al f., q U business virginia.
"The law Of New York so fully recog
nizes thu fact. that the 100000 deposit lS
the only capital of the American Dran' ID
OF q foreign Insurance company thai il
makes IL penal offence Tor such branch
company 10 advertise the capltai OF "7-
sets of the parent company.
1T f. at least questionable, Wh'tnei .
under the existing law, the treasurer OF
this state has authority 10 require o'
posit based upOn the capital or the parent
romnanv IL might well De held, thai.
in the case OF the United states branch or
foreign insurance company, inc "oIu5
capital stock In the virginia law are
intended 90 apply only 70 me dcnost O.
tal OF such United states branch, IN
many other States, where mere ~ 10
statutory definition as IN New l"rh.
Massachusetts. Connecticut and Missouri
the state authorities have untoi MY held
that for the purpos' or tne iusuiail."
laws such deposit capital is the only cap
ital Of tho United states branch. As
there is some ambiguity ON this point IN
Virginia IL is certainly desirable that II
should be clearly defined hy some sucn
law as Is proposed. ,.
This bin does not affect any insurance
company now licensed 10 do business III
virginia.
There are only four alien casually in-
eiirancc companies now doing business
i'm the United States. not one or mem
is licensed 10 transact business ~ fli-
ginia. n Is cartain that not one 81 them
will aorlv for license - enter virginia
so long as lt is required 10 make a. deposit
of five per cent, on the capitai or H9
parent company. A. least one of thtHh
nov stands ready 90 enter Virginia resu-
larlv for business f permitted 10 DO so
upon the same basis ass IN other states
and as provided in tbs bill. rms would
rrcan the imm ediate payment INTO lne
trcasury OF Nirg MIA Of SzVc. for the IL
canse and the payment annually OF one
per cent on the premiums collected
The veterinary surgeons bll was lnt
last On To be considered. i. proNldt3
that no one shall be prohibited from ds-
horning cattle or treating domestic AMI
mails. provided he does not claim 10 pe,
"a veterinary surgeon and does not hoIu
a license TO that effect The committee
decided 10 report the bill favorabiy'