The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1898-08-12
KOAlE INSURANCE..
Tho Establlshment OF Home Companies
VIII Tond to Keep the Mon, y In hoae
SeGtlOns Where It. In Most NeoJcd
INows and Courior.


American, proves that the insurance
business as whole is Il very profit
ablo ono, and it submits the general
reflection and some particular fncts
rotating to it for the consideration of
tho business mon Of Tennesseo The
rich companies dorive their income
and profit, of course, from very
large field, and tho especial purpose
of the American is to suggest that
money contributed by tho people Of
Tonncssoo to tho wealth of such com
pnnios might DO retained ut home
greatly to tho advantage of that
State.
During tho year 1897, it shows,
tho people Of Tennessee paid in pro.
minms for fro and murine insurance
S2,713,4O2; i'll premiums for lfo in.
surance 81, ,S07,27O; in premiums to
fidelity and casualty companies $780,,
O06; in assessments to assessment
life and accident companies $2O4,
744; in assessments to "fratornal" as.
scssmont orders 1854, 1872; all of
which Payments, aggregating ST.
02S,G42, or about five million dollars
in round numbers, were paid to co,.l-
panios outside tho State, and, Of
course, carried 80 much money out
of tho State. In tho past fifteen
years $23,773,7 700 have gono from
tho State to pay premiums on fro in
surnnce alone, and if tho payments
for other insurance during the same
period wero ut tho rate of tho pay
monts for last year, tho total for the
fifteen years WAS, Of course, noarly
$lO,0O0,000.
From these figures, tho American
says, it can bo soen what this systom
Of outside insurance costs tho people
Of tho State; and, while it is true
that much of tho money 80 paid ont
comes bach in tho losses which the
companies pay, it is plain that the
net result is large profit to the
companies, or they would not con-
tnue the business, and tho fact that
they arc tho richest concerns in oxis
tenco proves that tho business is gon
orally highly profitable one "lt
does not take any powerful roason,
ing," says tho American in conclu
sion to show that if the largo sums
paid by tho people Of Tonnessoo re
mainod at home, circulating among
our own people, and performing the
useful and valuable functions O
which capital is capable that til.
people Of tho State would be to ,
very inrgo degreo tho gainers by th'
process.
This is the lesson, Of course, whicl
is presented for tho consideration o
0 the people Of all tho Southern States
and tho people Of Toxns uppoar t.
have begun to consider it to gooI
purpose. Under an net recontl
passed by tho Legislature tho Toxa
: Mutual Lilo Insurance Company wa
i Incorporated for tho purpose Of on
couraging tho organization Of HON
II companies, 80 that n part ut loaat q
y tho capital annually sent ont Of tn
u State may be retained for invest mon
and use ut home. The prospoctu
I Of the company says:
r "Toxns is 30 far removed from tn
o great money contros that it il pract
n cally country within itsolf. Th
d being tho caso, let us 500 what fe
% other people, similarly situated, al
it doing. Tho little island Of Ne
Zealand, with a population not on:
20 third as great M that Of Texas, ht
If n company whose assots oxcood $40
F. 100000. Instead of sending the
1t lifo insurance premiums and accum'
" lations to Australia, or TO Englan
W thoy are, to this extent ut lonat, r
10 tainod permanently At homo. I'll
k, rs,rve, surplus, dividends, doat
n claims, interest, taxes, commission
q. and expenses circulate at homo,
ir tho benefit Of overy business on Il
a. island. Australia proper, with apop
!. lation but little creator than that
ID Texas, has homo companies who
n assets exceed 0N,000,000. In o
nc own country somo Western Stat