Daily capital journal. (Salem, Oregon) 1903-1919, 1907-07-11
TEXAS GIVES
HERSELF
A BIG JOLT

the most drastic laws ever passed D.
the legislature Of any state were en-
acted at the session of the Thirtietl
Texas general assembly and will be
come effective tomorrow. AS re
suit. nearly all the larger life In
surance companies will close thei
loffices and retire from the state to
day. many bucket shops will qui
business and the saloons of Texas
will be closed for ten or twenty day'
or until new licenses can be secured
This Is only a small part of the
havoc worked by the solons and
many declare that they didn't know
II was loaded" when they fired the
Legislative broadside.
BY the terms of the Robertson bill
regulating life insurance companies,
all companies doing business in the
state are required to deposit 70 per
cent of the reserve on Texas business
inside the state, and pay tax Of l
per cent on gross premiums collect
ed. Among the companies which
have left the state rather than COM
ply with the terms of this law are
the New York Life, New York Mu-
tual Life, Northwestern Mutual
Equitable Life, Manhattan Life,
Home Life and Massachusetts, Life.
While the big companies are leav-
ing, numerous smaller concerns have
applied ior permission 10 conduct
offices I'm Texas and the citizens of
the state will not be deprived of OPP
portunity to get life insurance.
Hereafter policy holders Of the de-
serting life insurance companies will
have to remit premiums due TO the
agents in Texas for the collection Of
premiums on business secured prior
10 the time OF withdrawal or even TO
collect such premiums through any
bank or other agency within the
state. The loss of revenue 10 Texas |
will be about 100000 or about one
wentieth of the states annual in
'ome from all sources. The action
II the Association of Life Insurance
Presidents in deciding to withdraw
rom Texas marks the first time In
lie insurance that all the leading
have united In a plan to |
ractlcally blacklist one OF the states
( the Union.
BY the terms OF the bill, compa-
les remaining In the state will be !
equlred to show an investment of
: per cent of their reserve on Tex
, business when the law goes into
feet tomorrow and the balance OF
le investment of 10 per cent must
b made before January /. The in
france companies are authorized to
vest In the stocks OF any solvent
,tional bank doing business under
Ie laws of this state or the stock
any state bank organized under /
le laws OF Texas, provided that not
ore than 40 per cent OF the stock |,
any such bank shall be owned by /
surance companies also, invest
ents may be made in the first mort ,
lge bonds OF any solvent dividend. q
'ying corporation incorporated AMI In
'lng business In this state and
hich has never defaulted in the IL
yment OF interest. The companies n
e also allowed TO invest funds I'm G
G purchase of not more than one 4
Iilding site and the erection OF not In
ore than one Office building In any G
y OF the state having over $4,000 "
pulation.
The Baskin-McGregor bill, regu-
ling the sale OF liquor, also goes
10 full force and effect tomorrow 7
d will force every saloon keeper a
take out new license. =
Through an oversight no provision A
IS made for the continuance Of 8
slness under old licenses until "a
" ones were granted. The attor- n
general caused great consterna- a
n IN the ranks of the liquor dis /,
lsers by ruling that it would be 4.
'essary for them to close their 4
ees OF business for ten to twenty ]
Is after the law becomes effective I
'ether this decision will be ad- \
ed to by the saloon men depends !
sely upon the attitude OF the local I
'ials In the various wet" coun- /
; In San Antonio and several
er large cities the saloon keepers J
probably disregard the ruling I
continue 10 dispense their u,,ros ]