The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-28
KEEP MONEY AT HOME.


Il want to thank you heartily for
your editorial on THE Staunton Com
panies" 1t is fine, timely and well
said. You have done the State and
the South a great service.
The greatest need of the South today
is enough money to do things with
and the easiest and best way to get it
and to have it is to keep our money
at home"
The greatest trouble about the pro-
gress of North Carolina has been the
constant drain upon it of men and
money. Lacking any great city, there
has been no centre of influence and
young men have heard and responded
to the call of the organized forces of
commerce and manufacturing. The
same cause has drained us of money
which should have remained at home.
All our railroads run through the
state, carrying into other Common
wealths the business that originates
here and building them UP at the ex-
pense of North Carolina. Until recent
years, our banks were too small to
care for and help develop local indus
tries AS for insurance. our money
has been carried out of the State as
fast as wheels could carry it, and too
small a portion of it has been returned
to us. In the year 1904 North Caro-
lima folks pads $1,S07,101.S6 in fire
insurance premiums to outside fire in
surance companies, and $500 1861 to
North Carolina companies. The
amount paid back in losses by outside
companies was 1894, 944.53, and $751;
1909 by home companies. Therefore
the people paid out one dollar and re-
ceived back only one-half of the
amount paid. AS most of this money
was paid to foreign companies. the fire
insurance drain from the State has
been very great during all the past
years OF the s2,307,49S.57 paid in
premiums, $500, 396.71 was paid to
North Carolina companies. The day
ought to come when these figures shall
be reversed. and the $2,3O7,49S.57
ought to come to home companies and
the $5OO,396.71 go to the outside COM
panies.
AS to life insurance, the showing for
North Carolina is a steady stream of
large volume going out with com
paratiyely small stream flowing in our
direction. In 1904 the amount paid in
premiums to all life insurance compa-
MES in North Carolina was $685.
404.4S, of which only $173,261.07 was
paid to North Carolina companies,
leaving s3,3S3, 143.41 in premiums that
was sent ont of North Carolina during
one year. How much of that came
back? The total losses paid during
1904 was S1,1O4,01O.17, of which sum
$26,07S.34 was paid by North Caro-
lima companies, leaving $1,O77,931.S3
paid by companies organized outside
of North Carolina. Let us see how the
life business in North Carolina of 1904
stands:
Premiums paid 143.41
Less losses paid ........ 1,O77931.S3
Excess premiums paid $2,295,211.58
That is to say, North Carolina sent
out of the State in one year $2,295,-
- l. ID
more than was paid back. 1t got less
than one dollar for every three dollars
paid OF course from that excess of
$2,295, 211.58 the commissions paid to
agents remains in North Carolina, and
it is chargeable also for the proper
tomato amount of expenses at the
home office, including, of course, the
contributions to the Republican cam
paign fund, the dinner and ball to the
French Ambassador, the Depew and
Turner loans. the extravagant salaries
and wanton expenses of the high
flyer magnates who run some of the
companies.
And bad as these figures show for
North Carolina, this State is far
ahead of any other Southern State so
far as home insurance companies are
concerned The Manufacturers Re-
cord gives figures showing that In the
wear 1904 the Southern States paid out
i'm premiums to home companies $685.
252. In the same period the Southern
people paid out in insurance pre-
panies $5O,304,S05. Why is there
more money in the banks of the North
and why is interest cheaper there than
i'm the South? One of the answers is
that last year the Southern people
sent nearly fifty million dollars more
in premiums for insurance to the
North than they kept at home. Ii
they had been wise, they would have
reversed the figures and kept most of
the money at home. If they are wise
in the near future they will see to it
that solid Southern companies already
organized are better patronized ana
that new strong companies are or
ganized to stop much of this steady
stream that enriches other sections at
, the expense of the people of North
Carolina. Think of it! The little town
of Montpelier, Vermont, has one life
insurance company that receives $5,-