The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-07-02
THE INSURANCE DRAIN ON THE SOUTH.


resources. This paper, not always IN
sympathy with it's views, has found 1t
sincerely devoted always to the meas
ures it deems best for the enrichment
of the South and the prosperity OF
its industries. We have been sur
prised that it has not heretofore urgeu
upon Southern men the occupation Oh
the fallow field of insurance that lies
ont before them. Evidently it was
waiting for the opportune time. In It's
latest issue. discussing Lessons FROM
The Equitable" the Manufactures
Record says:
when the Equitable insurance
souabble was begun many VINO looheu
beneath the surface came TO the con-
clusion that whatever might nave Deeil
tho motives at the beginning Which
nrompted the officials who are Waglng
war on each other, the real nght was
between Morton and Hartman lot the
control of the company with ltS elior
NOUS assets. No one imagined thdt
either Morgan or Hartman proposed
RI utilize these assets in any but a
legitimate way, but how vast Is the
mower which the control OF such
company gives-may be realized from
the fact that the $400,00O,OOO OF as
sets of the Equitable is equal to more
than half of the national banking
capital of the United States. The pur-
chase of a control of the company by
Mr.. Ryan and his close association
with Mr. Morgan, taken in connection
with other things bearing on the mat
ter, can only be Interpreted as MOT
hi inc
gan to add one more vast aggregation
of wealth to his entourge. With the
Eouitable and the New York Lie
closely affiliated with Morgan interests
and with the Mutual Life probably NOT
unfriendly-in fact, the report now
being that the Mutual Life is interest,"
ed in the purchase of the Equitable
the enormous power of the 81 800
600. 600 assets owned or controlled py
these three companies is probably
practically massed for any active nm
ancial movement. This power Is 100
vast for safety and for the good OF
the country.
ut will be better in the long run
should the fight in and for the Equita-
BILE cause the whole country to serl-
ouSly consider the question OF 1nSur-
ance. 1t seems hardly possible to be
lieve that the purchase of control
Of the stock and the management OF
this property by people who have been
bitterly assailed for alleged illegal acts
will overcome the criticisms Wnlcn
have been called out by the recriml-
nations of the officers and directors,
and if the final result of all this
trouble should lead to a lessening or
the relative power of a few of the
great insurance companies the country
will be better off for it. We believe
TINT the enormous drain OF money
from every section into the treasury
Of few big insurance companies Is
"a distinct disadvantage. 1t has result
ed I'm too great concentration Oh
wealth and power, and at the same
time i'm too great cost of insurance
For years the South and West have
poured into the East millions and tens
of millions for insurance premiums.
In times past this may have been ne
cessary, but now the South is finan-
cially strong enough to organize Its
own insurance companies, and 1t ought
to finance many of its own business
undertakings, and ought thus 10 con-
centrate i'm it's own companies, bank
ing, insurance and others, some of the
vast wealth which has heretofore been
helping to pile up in New York. Else
where in this issue we publish an in
the fire-insurance standpoint. In life
insurance there is probably still great
er reason why the South should be-
gin to seriously study ways and means
to stop some of the enormous tribute
which for years it has paid to the
power and wealth of New YOrk's great
insurance companies"
The review of fire insurance re-
ferred to in the above editorial, is an
article on Fire Insurance Premiums
Paid by the SOUTH written by Mr.. J.
T. Dargan, president of Atlanta-Bir-
mingham Fire Insurance Company.
The figures presented and the conclu-
sion reached will interest every bust
ness man, and we therefore make
room for it as follows
while many people are aware that
the various insurance companies of all
kinds and conditions have more ready
money than any other one financial
interest in this country, yet only i'm a
vague way do the Southern people
seem to appreciate or realize the
economic fact that the section or sec
tons which have the most or largest
most money, and that the South has
been and is still getting supremacy left
inSuranceWiSe.
Life insurance companies conSti-
tute the most important factor in this
insurance problem, but this particular
feature of insurance l will defer for
treatment later on, and the present
article l will devote entirely to fire in
surance, which in Importance and
ranks next to life in
Surance.
1.-The following table accurately sets
forth the situation. 1t exhibits a
statement of net cash premiums re-
ceived for the year 1904 as set forth
in the various fire insurance COM
panies' sworn reports to the various
insurance departments of the twelve
Southern States formerly comprising
the Southern Confederacy." The de-
batable States of West Virginia, Okla
homa, Missouri. ETC., are left out,
which, if included, would make the
South present even a much poorer
showing. The figures are taken from
Distribution by States of Fire Insur-
ance, 1906" published by the Specta
tor Company of New York, and are
therefore authentic:
Nonresident Southern
Stock Stock
companies companies