New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-08-11
INSURANCE IN FRANCE
RESTRICTIONS 1T is PROPOSED NJ
PLACE ON COMPANIES CARRIED
ON BY FOREIGN CAPITAL.
Paris. July %.

July %.
The magnificent scale upon which Mn.
Frederic Humbert carried on her swindline ON
erations in Paris and the signal success wiz,
which she gulled the public with her Life An
nuity Company have drawn attention to N.
laws which regulate the operations and bus,
ness of the banks and life insurance GONNA.
MES in France. many of which are foreign CON.
Germs carried on by American British. German
or Belgian capital Several bills to control
these undertakings have already been submit
ted to the Chamber Of Deputies There are the
Ferrette bill. the NIirman bill. the Siegfred
bill, the Chastenet bill and the Guieysse bin
all of which are under examination by uar-
liamentary committees. All of these PROPOSED
laws have the same object They seek 10 i'm
pose strict governmental inspection and control
on all financial establishments in France. es
pecially on those which are worked with for
eign capital. The bills differ in detail, but thew
all REQUIRE that foreign corporations publish
each year minute reports of their operations
that their balance sheets be open to inspec-
ton, and that they shall produce evidence
whenever called upon. of the reserve capital set
forth in their advertisements or In the can
tions Of their letter paper.
These proposed measures so rigorous
and are accompanied by such severe penalties
in case of non-fulflment Of conditions that
in financial circles considerable apprehension
prevails lest business be hampered that
foreign enterprise and foreign capital may be
frightened away. With clear headed prac-
teal and conservative a Finance Minister "a
NJ. Rouvier in Office it is highly improbable
that alarming measures will be adopted TO re-
strict the legitimate business of foreign insur-
ance companies, but the promoters Of the bills
claim that the present laws accord privileges to
foreign concerns and secure for them undue
TEaf- oh ~~r1 matt
The most elaborate and comprehensive Of
the bills seeking to reform the laws regulate
ing fereign corporations established In France
is that drawn up by NJ. Mirman, the we'll
known socialist Deputy and bitter opponent OF
trusts in every shape and form NJ Mirman
takes for the basis OF his proposed law the
ouirements enforced in Prussia in regard TO
American and other non-German insurance
companies which deemed so onerous that
the American life insurance companies some
wears ago abandoned all attempts to do bust
ness in Berlin. NJ N1irman's bill, il adopted.
will compel foreign insurance companies TO in
vest in French Government bonds at least one
half OF all the money received on their French
policies The French bonds. moreover. must be
deposited in the National Bureau OF Deposits
and Consignme7ts. NJ. Mrman has also en-
bodied in his bill clauses enabling French Of
fetal inspectors TO enter at any time the estab-
Hshments of all life insurance companies in
France and verify deposits and examine books.
He says: Il shall ask Parliament TO adopt the
same measures to guarantee the savings Of
French workmen that the governments Of
Prussia and OF Italy have for some years en-
forced to protect the savings OF their own work
men. The present French laws exempt for
eign insurance companies from rigid and salu-
tary government control that prevails in Prus-
STA and Italy Moreover. the laws OF most
of the States OF the American Union require
guarantees in respect TO American insurance
companies that the same companies are not
subjected to in France. Another clause In
my bill requires that foreign insurance COM
panies shall deposit under government control
an amount in French Government bonds equal
IN value 70 the total en- "a gements assumed in
regard 10 French insurers These sums, re-
naming under the control OF the French Gov
erruent will be an effective guarantee for the
payments that may become due 10 French Citi-
Gems" II is estimat ted that the new busi-
ness done during the year 1901 in France
by the foreign insurance companies exceeds
/ S3OOOO 900. Socialists regard this foreign
drain home savings
The opinion in financial circles in Paris Is
that the requirements proposed by NJ. AIirman.
which have the support OF the socialist group
in the new Parliament. would restrict legiJi-
mate enterprise and lock UP large sums OF cap
/ ital to such extent that insurance business
could no longer be carried on here at profit
This outline of the proposed Law indicates the
trend OF socialist thought and may be taken as
a forecast OF the financial policy that would
prevail were the socialists 10 carry the day IN
the debates on the great questions Of public
economy in regard to which the Cham
Der of Deputies will be called upon next Oc-
tober to express itself G. l. 8