New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1905-09-23
WHAT THE SOUTH PAYS FOR IN
SURANCE.

SURANCE.
1t is heavy tribute in money that the
South pays in different ways to the North
and large part OF ii is drained from this
section in the form of insurance premiums
A short time ago we called attention to
this matter and urged the organization of
insurance companies in the South ON the
large scale of some Of the new trust and
banking companies now doing business in
this and other Southern cities. We argued
that in this way many millions of dollars
that are yearly poured into the Golfers of
Northern insurance companies could be
kept at home and used for the develop
ment of the great resources of this section
of the country.
Recently the Baltimore Sun presented
figures showing that in 1904 Northern in
snrance companies collected annually
from the South in insurance premiums the
sum of $50, 1904, 900 which with the excep-
tiou Of a small portion paid back to policy
holders,xw to the industrial and COM
mercial upbuilding of the States in which
the companies are located. This is an
enormous sum<of money to be drained out
of the South each year and it not difficult
to imagine what agreat return would be
reaped by this section and its people if it
were paid to home companies and invest
ed in new enterprises. It is with much
force that the Baltimore Sun contends
that there are no reasons why the South
should not have her own insurance COM
panies, and calls attention toFthe fact
that New England has many such enter
prises and they have proved to be impor-
tant factors in en1iching her people.
In commenting on the utterances of the
Sun its contemporary, the Charleston
News and Courier holds that it is not a
matter of sectionalism at all, but sound
business proposition. This is what it is
and nothing more. The South needs
money with which to upbuild her indus
tries and develop her resources, and this
most important work will necessary be
slow if every year more than $50 DOC, 900
are collected from her by the North which
should and could be kept at home. The
News and Courier says: ..,s
"Ths South offers unbounded opportun-
tiles for the profitable investment of
money. 1t is to the interest of every
Southern man that his own as we'll as his
neighbor's money should be invested at
at home. Great Southern insurance
companies would contribute to the
orignation and success Of Southern enter
prises. The cold line" companies of the
North should continue to be patronized,
but if they expect to retain the patronage
of the South they should invest more liber- /
ally in the South than they haveever done
before. If they fail to do this itisss but a
question of time before competition Will
spring up in the South which will keep at
home large part of the money which now
goes to them"
There is not the least reason to think
that the "oId line" companies are going
to invest any OF the millions they collect
from the South in the South, because op-
portunities for profitable investments are
offered at their own doors. The progress
or welfare of the South does not interest
them much, and all they care for is the
money they drain out of this section in 1
insurance premiums. And it is money
for which no return in business way is
made. Recent disclosures have policy
holders and contributing the money in
presidential elections to the campaign
fund of the Republican party-a party
from which the South has received moth
lug save hostile treatm eut-hence q part |
of the millions drained annually from
this section is used to it's political disad-
vantages. But as the leading newspapers |
of our section have taken up the insur-
ance question and are discussing it as
a plain business proposition there is reason
to believe that in the near future the
South will have several great insurance
Of its own and the outgo of
$50, O0O, 900 annually to the North will |
cease for ali time. In view of the fact |
that the South has demonstrated her abil-
ty to organize great trust companies with
millions of capital there can be no ques-
ions of her ability also to establish great
insurance companies. Southern business
men will soon realize the wisdom of hav-
ng and patronizing home insurance COM
panles which will be the means of helping
hem by helping their section. When the
.ottenness and rascality which marks tho
of the affairs of the big
Northern companies are considered it
would seem that the time is opportune for
Southern business men and capitalist to
interest themselves in REORGANIZATION of
home companies.-Dajy States.