Bisbee daily review., 1909-02-06
|OBJEC1lOM MADE
 ID INSURANCE BILL
Old Line Insurance Men Urge Many Arguments Against
 Proposed Measure.

An outrage upop the general public as well a upon the older and more es- tablished insurance companies of the country is aow c. c. Thompson, ol this city characterizes the proposed insurance investment bill. which Is at present in course of committee con sideration before the legislature. lt will have the effect of causing every life insurance company in the terri tory to withdraw from business in Arizona if it goes through in it's pres ent form. ne predicts.
 The bill. if passed in its present form, will create a monopoly of the life insurance business of the territory for one company. the Occidental, which is an Arizona and New Mexico corporation" said he. The bill pro vides that 70 per cent of the surplus of any company doing business in the territory shall be invested in Arizona securities That is not right.
 '"rie insurance companies doing bus ness in the territory at present, with the exception of the Occidental have investments in other parts of the country which they find more lucra- tive probably, than any Arizona in- vsstment they could make at present. They have investments in the terri tory fin a way. as there are numerous policy holders who have borrowed money from gbem ai VsTy low rate of interest.
 At present the territory derives in actual revenue from the life insur- anca companies doing business within its borders between $l5,0Oo and S20.- coo. If this bill becomes law, the old line companies would probably with draw practically as a unit, and thus. instead of proving the benefit t claims 1t would prove. the law would be the direct cause of 9 loss of reve- nue. It has always been the policy Oi insurance companies to invest their surplus earnings to the best possible advantage, the most exped'el being always sought for Obligatory laws compelling them to invest their money in Arizona securities would practically compel them to cease do ng business in tie territory.
 "A hardship would be worked upon the policy holders because Of the fact 1 that where they can now de business with the local agent. borrowing on their policies througl him; in case the companies withdrew they would have to transact their business with the
 head offices of the company they carry their policy with, causing yeXatious delays and inconveniences- The dam | per this would put upon business is easy to bs seen
 "I. is the candid belief of insurance
 men that this would not he a constl- i tutional law, as 1t would act as q re- | straint upon trade. but it is also rather
 certain that the insurance companies rather than fight the matter in the courts at the cost of time and money
 would withdraw as gracefully as they could. Texas has a law upon prac 1 tically the same lines, and the com panies withdrew there, ca1sing a los;
 in the state revenue of approximatel,
 sl00.O00 year.
 Policy holders in the old line com panies are opposed to the bill. as thel perceive the injustice it would worf upon them. as we'll as the companies
 I have it upon reliable authority tha scores of letters have poured into Phoenix asking the legislators tC down it. I do not believe that it vii ever become a law, but in case I does. the result is evident"
 An effort was made last evening t' secure an interview with an agent O
 the Occidental company, who Is nov in town. but unsuccessfully, as h' could not be located.