The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1907-07-11
Ardmore Adertissd.

Ardmore Adertissd.
The withdrawal Of the Mutual Ben.
eft Life Insurance Company from
Texas and the establishment of it,
general offices in Ardmorc has been
the means Of greatly advertising the
town and is one OF the necessary
steps toward making a city of Ard.
more. In the new state there are A
number Of progressive, ambitious
worthy towns and the selection OF
Ardmpre as the location OF the gen.
eral Offices OF this company shows the
standing Of the town in outside circles
The company has issued the follow.
Ing interesting letter giving its rea.
sons Tor witadrawiu- from Texas and
informing It's policy LoI Icrs that af.
Ter today an It's Texas busincs, will
be- transacted through the Ardmorc
office Seven thousand of these let.
ters were printed and mailed out T.,
policy holders in this company. The
letter sent out is as follows:
Newark. y. j.. June p. 1907.
To the Company's Poncyholders in
Texas:
1t is with great regret that n,
company is compelled to announce
that on July 10th. 1907. It will cease
TO do business in the State of Texas
THfa ef.u a. f,r,.g ,,,,.,, ,h.. s,....,... ....
by reason OF the enactment by the
Texas Legislature OF the Robertson
Act compelling life insurance com.
panies TO invest 10 per cent. OF the
reserves" on Texas policies in Texas
securities and TO deposit such securi.
ties in Texas.
This company is not at all ayerse
to investing its funds in Texas securi.
ties. provided. Of course, it can secure
as safe and profitable investment in
Texas as II can procure elsewhere
Prior to the passage OF the Robert.
son Act II established an agecny in
your State for the purpose OF making
real estate loans, and the company
had anticipated a rapid increase in lis
Texas investments. The passage Of
the Robertson Act compels us TO re-.
tire from the State for two reasons:
First As a mutual company we are
not permitted to segregate any por.
tion Of our assets for the benefit Of I
any particular class Of policyholders. f.
The company's funds belong to the /
as a body, and there .
cannot be a preferred class. To com
ply with the Robertson Law We would I
have TO violate the higher law under
which the company was organized /
and must conduct its business, viz: /
The law of mutually Furthermore /.
the control and disposition of the /
assets are in the hands Of /
the Board Of Directors, and this re-
sponsibility cannot be transferred as .
would be necessary under the terms
IF the law.
The second fundamental objection
@ the Robertson Act is that funds
deposited in the State Of Texas as re.
luired thereby would, in all probabil.
~. be rendered subject to taxation
or the benefit Of some town at local
ates. which would mean a prohibit
ory tax such as was not contemplat-
d when the company's premium
ates were fixed Moreover, the {
immediate investment OF
arge sums OF money by many com
anies in a restricted field would un.
oubtedly make II impossible to safe
: invest the amount called for by the
erms OF the Robertson Act. and
'ould certainly tend TO reduce the
ate OF interest TO all investors be-
Nv the point at which the invest.
lent would be profitable
This company has transacted the I
usiness Of life insurance in the State
Texas since 1883. During that I
me It has found favor with the citi. I
ms Of Texas. as It has been with T
ie citizens Of other states since the
,mpany was established in lSi5 The