Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-06-01
Flood Of Prosperity Following
End of Tariff Revision Likely
to Develop New Phase Of
East's Present Mastery Of
Situation.



rush Is confirmed BY manufacturing
and commercial interests, but bankers
ana other financial men have pointed
out that Of the great insurance funds
the East already has absorbed a large
part TO forestall the time when the
need becomes acute for funds FOR de-
Volopmcnt purposes-ncW railways,
new projects OF other kinds-the
movement is now wcll under way to
organize and maintain western i'm
suranec companies for the invest
mont Of western funds In western
enterprises VIII receive q great i'm
uctua.
pam up the dollars so That we
may keep them IN the West pcrma-
ncntly and the development Of the
manufacturing, mining ana milling in
dustries and the railway and inter-
urban lines in the Middle West will
be permanent ana sustained" This
r. the declaration Of Robert j. Arm
strong, IN Iowan and former Assist
ant Secretary Of the Treasury, in com
menting upon the situation in the
Bankers Monthly of this city. Mr.
Armstrong speaks MS an Insurance
man-the president Of the Consolil-
atcd Casualty company-and also ms a
nnaneier and westerner, as result Of
statements made In a report to the
Association Of Commerce by Chairman
Il. S Conway. The report showed
that, IL the heart of America is to be
developed as rapidly as its POSSIBLE
tiles Justify there are required more
permanent iiN testing companies-hre.
life and casualty companies, banks
and trust companies being but tran
silent holders Of these great surplus
funds. Such companies in the west
are declared not only desirable but
very necessary.
The Association of Commerce's re-
port from Chairman Conway, M OF
the representative men of the West,
declared:
You will remember that the great
deficiency existing ia this city of in
surance companies of various kinds,
capable Of meeting the demands of
the business interests OF Chicago, was
commented upon at considerable
length and facts were brought out
that created some surprise. 1t was
shown that Chicago. and the region
Immediately tributary to it, expended
annually something like 100000 600
in Insurance premiums, of which less
than M per cent. was retained a;
home. the remainder being sent TO
cities, foreign and domestic.
"The result III this negligence, IN
not assuming our risks Of various
kinds ana reaping the profits result
ant from that lucrative business, is
tina other commercial centers, which
we permit to do that business for us.
have moro than three-fourths Of the
insurance money of the country on
deposit in the banks east OF the Al
leghanles. with loss than one per cent
remaining IN Chicago.
while II is clear that this ASSOC
citation, as an organization, cannot act
in this matter. | am fully convinced
thai Chicago viii never become the
financial center It's population and
commercial supremacy entities her to
be. until We have established institu-
lions OF the highest character, which
will attract 10 her the money that now
goes through such channels to foreign
countries. and To hat portion of our
1871 country that lies east of the Al
%lcghanies. We have no great invest
ing institutions that compare at AN
fayorehly with those OF neishboring
cities of on%e-quarter OF our own pop
ulation, or ouc-tcnth of our wealth
We need and must have, secondary
popular money reserves from
which loans can be made on long
time az fair rates of interest to the
people. and these we would have IL
Chicago retained her insurance pre-
miums az home.
1T is manifcstly absurd when we.
OF tho middle west desire to take out
fire, life or casualty Insurance 10 find
u obligatory 60 transmit the premiums
therefore to some foreign or domestic
financial center because we are unable
to transact that business within oar
own borders
Moro than 5000 600. o0o Is ex-
pended In this manner annually by
tho west. while only about one per
rcmains at home. when We
should have al least one-half of il OF
deposit here to meet the require
mcnts not only OF our people. but OF
banks, thus creating a fund that
can be ~lcgitimately used FOR long time
loans for development purposes.
Chicago is the second American
city in population. and probably the
first in the volume Of its trade and
domestic commerce. ana NO good or
reason can be offered why We
not do q very large proportion
~ ,str fuaurfmr 4a nall a1 thnf M ffr
area tributary To Us I be
licvc our city can become an
investing center commensurate with
its importance Until this vastnsurance
reserve is retained by our local in
stitutlons I commend this subject
not merely to the attention, but also
20 ne activity % the business men az
Chicago. and especially 60 those OF
our association whom ] believe have