The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-05-21

ers is concerned. is as sound as the
Rock of Gibraltar then see what
is left that will be owned or contr0ll-
ed by that 100000 of stock. They
will then see why $5,000,000 for
$51 ,O00 of the stock, was no tempta-
ton to Mr.. Hyde. They will find
five times $5000,000 will not be
temptation to him to SELL The for
FIXTURES alone in forty years, by those
unable to maintain their policies,
when misfortunes had overtaken
$4,000, 900 profit that has gone to
that stock / know of a single in
stance and have heard of many more,
in which the policy holder had paid
in over $4,000 in cash, and could only
procure in return $3.50 paid up policy,
payable at death. The writer has
been advocating the formation of
bond insurance and trust companies
for each State in the South, and es-
pecially one for North Carolina.
While the showing for saving in ia
vor of home life insurance companies
being formed is good elf the bankers
and money handlers in North Caro-
lima VIII give little careful study to
another channel, through which
many times as much money is yearly
leaving the State, and will continue
to do so as it is doing on life insur-
ance); while home companies can
not stop the present draft on our
money resources, neither in life in
surance nor bond principal or inter-
est that are already in actual exist
ence. they can stop the increase, for
new risks are being born every day
and new industries inaugurated every
day. calling for money. If our rail-
road commission would. for it has the
authority to do so, make public just
how many bonds, and how much
guaranteed dividend paying preferred
stock represents the miles of rail-
road in the State of North Carolina,
then let there be added to these, the
State bonds; the county bonds, the
municipal bonds and the industrial
bonds, and the endowment bonds, all
drawing interest today, and many of
them PAYNE annually sinking fund
for final redemption, 80 per cent of
which is sent to New York to be re-
handled just as the life insurance
money is handled, and only such
amounts being returned to the State,
(Which is the basis of both the prin-
cipal and interest earning founda-
tiCn of these securities). Think of
it, only such an amount coming back
as pays the railroad labor and cost
of maintaining the lines and building
extensions and the overpius finds
other channels for investment So it
is with 80 per cent of the interest
and trustee fees. with every other
bond outstanding in the State, rep
resented by trustees in the East.
When this amount of outgoing inter-
est is set over against the returning
amount compared with life insur-
ance in volume, it is like comparing
a penny to a silver dollar. To say
this system should continue is to
confess that this State, and the whole
South has not enough men of high
character with talent. financial in
tegrity and ability to handle the
money of the people of this State or
the South as safely and conservative
ly as men in the East, who assume
not the slightest liability for acting
as trustee for any bond issue that is
made, other than to render a correct
account of all money sent them, and
for fear for this bit of high class in
tegrity, and the redistributing of the
principal and interest to the security
buyer, they have grown rich. The
writer has outlined a plan, that for
the future this vast volume of in
dustrial debt that is accommodating
year by year, can by a little inteli-
gent effort on our own part, soon be
handled in the South at a saving of
millions to her people, and certainly
as safely, and as honorably as the
work can be done in the East / am
glad Florida is leading off with a
company for life insurance on a scale
large enough to insure success, and I
am glad North Carolina and Georgia
have already started on the same line
and the writer feels certain, if some
of the strong conservative business
men in this State. who now have this
subject under consideration, will give
careful thought to the suggestions
outlined, another year will see North
Carolina lead off with a bond insur-
ance and trust company, many mill
lion dollars strong, in the hands of a
set of men that will command nation
al confidence. and will be able to keep
the sinking funds, and a large por-
ton of the interest at home for the
use of her people.
S. A. JONES.
Waynesville, N. c., May 10, 1905.