The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-14
CONFIDENCE THE BASIS.

A successful and observant citizen of
Raleigh said yesterday: "Our people
have come to have faith in both the
honesty and capacity of their own
home men. A few years ago they
preferred to put their money in en-
terprises controlled by great financiers
jim the Northern cities. All that Is
changed now. Ashley Horne could
get more money in Raleigh for any
enterprise than Rockefeller or Nor
gan"
That brief statemnt gives us the re-
suit of how the eyes of our people
have been opened through the opera
tons of "frenzied finance" as exposed
i'm the Equitable, the New York Lie,
the Shipbuilding trust and other ike
giant concerns under the management
of men whose names are familiar in
the exchanges and bourses of the
whole world.
North Carolina people have learn
ed that North Carolinians have brains
and character and capacity to man
and other great enterprises that re-
ouire corporate action. In every in
stance where the company had suih-
Gent capital and was conservatively
managed the Southern life and fire in
surance companies have succeeded
The hour has struck for North Caro-
lima people to give the bulk of their
life and fire insurance business to
homo companies we'll organized and
properly managed. of course the best
outside companies will continue to DO
a good business in North Carolina
Her companies could not now carry
all the business and it will be gem
Grafton before they can carry over
two-thirds OF it. but they can carry
the bulk Of it now in both life ana
fire companies. and it is to the best
interest of the State and to the in
dividual insurers to keep most or
their insurance at home.
The Baltimore Sun. the richest and
one of the wiscst journals i'll the
South, i'm an editorial i'll its issue yes
terday, saws:
Southern Insurance Enterprise.
1t is doubtful whether the South
ern people are getting their proper
share of the benefit accru,<g to some
body from the large insurance busl-
ness done wth:,l their territory.
Handling the money of the insured is
q good thing for the localities that do
it. Little towns in New England nave
insurance companies that get much
business in the South, to the advantage
of the enterprises of said towns. But
why should not the premiums paid by
Southern people be available for
fructifying Southern enterprises?
The Manufacturers Record shows
that Southern insurance companies in
1904 collected but s536,252 in prem
iums from Southern people, while
Northern companies collected s50.304.-
SOS from the Southern people. This
$4,000. 900 was handled to the ad-
vantage os thc communities i'll which
the Northern companies exist. 1t is
estimated that Northern companies
have in their reserves $200.000.0OO
collected from Southern policy hold
ers. There is no good reason why the
South should pile UP this enormous
sum in the North. to be loaned to
Northern business men at low rates
fer the stimulation of Northern en-
terpriseS. while Southern enterprises
are paying high rates for loanable
capital. 1t is a mistake to suppose
that an insurance company needs to
be in a big city. Montpelier, VT,
with population of 6,266. has an
insurance company which last year
received $5.OO0O00 of cash premiums.
Character. enterprise and knowledge
of business are the requisites. and
these arc to be found iii many small
Southern towns