The Montgomery advertiser., 1906-08-11
HAS NO STATE BONDS
ATTORNEY GENERAL DECIDES
 AGAINST INSURANCE COMPANY.
Chicago Life Corporation Cannot Do Business in Alabama on Certificate that 1t Holds Municipal
 SecurftfeN.

According to the laws of the State of Alabama, the Chicago Life Insurance Company of Illinois, which Is seeking admittance to conduct its business ir I this State, will not be able to gain an entrance. This statement was made public yesterday by Attorney General Massey Wilson in an opinion which he sent to E. R. McDavid. Secretary of State and State Insurance Commis- sioner.
 The only means by which the Chi cago Company can hope to gain an opening in Alabama will be through the transference of certain municipal bonds which 1t now holds. and the substitu- tion in their place of one of four classes of bonds. which it does not at the present time possess.
 To authorize a life insurance com pany to do business in Alabama, it is necessary for the officers of the com pany to show to the State officers here that 1t has on deposit with the proper officer of the State In which 1t is or ganized at least $1o0.000 of United States bonds, of bonds of the State of Alabama, of bonds of the State in which 1t was created. or on notes or bonds secured by mortgages on real estate of at least double the value of the mortgages. This. the Chicago com pany does not claim to have and it Is, therefore. for the present debarred from beginning operations in Alabama.
 Several days ago. Secretary McDavid asked Attorney General Wilson for an opinion on the legality of granting, d petition to enter the State from the company in question. In its applica- tion, the company urged that 1t had on deposit in Illinois, $100.000 in bonds of hn rxf Gk S being in the State of Illinois, could be classified as State of Illinois bonds. The matter was referred to the Attor- General for his opinion, and that official has refused to admit the insur- ance company's classification. Accord ing to his interpretation of the State law. the term State bonds applies only to bonds issued by the State. not to all issued in the State. The opinion of Attorney General Wilson follows:
 Montgomery. Aug. 10. Hon. E. R. McDavid, Insurance Com
 missioner. State Capitol:
 Dear Sir-I have your favor of the sth inst.
 ''To entitle a life insurance company created by the laws of another State to do business in Alabama, it must have on deposit with the proper officer or the State of its creation at least S100,- O0O or united states, Alabama, or bonds of the State of its creation, or notes or bonds secured by mortgages on real es- tate of at least double the value of the By the terms bonds of this State or the State in whioh such company is organized bonds is- sued by the State are meant, and not bonds issued by municipal corpora tion of the State Therefore, a non- resident life insurance company which has not the required sum invested in one of the four classes of securities above named, although it may have the required sum invested in municipal bonds of equal value. is not authorized to do business in this State
 Very respectfully.
 Massey Wilson,
 Attorney General"
 Notice will be sent to the Chicago of the Attorney-GeneraPs opinion.