The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-05-12
THE INSURANCE DRAIN.
North Cardinals Taxes Are Less Than
This Annual Drain.

To the Editor: The Insurance
Drain" from the State for last year
proved to be even greater than my
first estimate taken from the print
| ed reports of the Insurance Com
missioner to the Governor and Gen
eral Assembly.
1t now appears that we paid for
last year alone the sum of $3,256, 388
| in life insurance premiums while the
companies paid losses amounting to
only $853,983.89, making the drain"
from life insurance alone $2,402,
404.71.
From the Auditors Report for
1903, page 327, 1 note that the total
receipts for the public fund in North
Carolina, including receipts from all
sources and including bonds, amount
ed to but $2,269,638.86, which is less
than the life insurance drain alone
by 1892, 1852 and less than the
yearly life premiums by 1886, 649.84
and less (by estimate) than the total
yearly insurance drain by $1,250,0O0.
We have made a comparison with
the total premiums in addition to
comparison with the net drain for
the reason that the first appalling
as it may appear) may be more cor
rect, for this reason: Every dollar
of the $853,983.89 returned in
losses" was no doubt dearly paid
for in years gone by. Golden Con-
necticut 'nutmegs" for which we
gave two for one, probably mort
gaging the farm and paying eight per
cent interest to do that.
The life premiums alone (practi-
cally all going out of the State) for
last year amounted to more than the
land value 5000 of the following
counties combined Allegheny, Cam
den, Carteret, Clay, Dare, Mcdowell,
Tyrrell, Washington and Yencey. And
even after paying back their losses"
the net drain still amounted to the
land value of all these counties COM
bined. less the last two.
When we began this matter some
months ago, we expected to hear a
clamor from the craftsmen who have
been so profitably engaged in gather
ing in our savings for export into
New York, New Jersey and Connec-
ticut.
1t matters not whether these great
foreign companies that are piling up
their millions elsewhere at our eX-
pense are mutual" stock or
mixed" the main fact is constant,
to-wit that they are blighting the
best interests of North Carolina by
draining away her sadly needed capt.
tai by millions yearly. One "Mu-
tual' company alone (the Mutual of
New York; wrote in the State last
year $2,774,764 in new business, with
a premium income from our peopie
on this and past business of $373,-
400; while another (the Mutual
Benefit of New Jersey wrote $1,65S,-
085 and collected on this and past
business $288,752. 1t is not neces-
sary to consider the great salaries
paid at the head offices, for the gen
eral managers in the State of these
two mutual" companies alone prob
ably receive for their services from
two to three times the amount that
we pay our governor for looking
after the varied interests of the whole
State of North Carolina. And the
service th2c they (the thirty or more)
render the State is the transfer north
ward yearly of a sum that approaches
the land valuation Of while Con-
gressional district.
Papers in sympathy will kindly
copy.
r.. r. M'KETHAN.
Fayetteville, N. c., May II, 1906.