Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-02-08

| bic bill, had to be invested in the
state, where would the company gel
any money to supply the demands Of
it's policy holders for policy loans?
The premium income of one com
pany in 1910 in North Dakota bust
ness was in round numbers $500 900
The company has loans outstanding
in North Dakota right now to policy
holders amounting to $617,851. In
addition to this the company has in
vested in railway bonds on those por'
tons of our four great railways that
cross this state the sum of $685.,
815, which together with the policy
loans amounts to more than the legal
reserve on all North Dakota policies
in said company. Not a mile of rail:
way has been built in this state with.
out the aid of life insurance invest.
ment, and this form of investment
is just as real and just as local as a
mortgage on farm lands or city blocks
Because some of our companies have
found it profitable to invest in this
form Of securities shall We now pass
their holdings and re-invest in some
law compelling them to sell out
other form of property?
Not only that but the company is
distributing $4,000 each year in
death claims, paying $4,000 in ma
truing policy claims and over $4,000
in current cash dividends to policy
holders in North Dakota, paying
$4,000 annually into the state treas.
ury for taxes, and disbursing upwards
of $50, 900 per year in the state in the
form Of salaries to employees, Office
rent and other fixed charges, com.
missions to agents, fees to doctors,
etc., thus actually disbursing each
year In North Dakota about a quar-.
ter of million dollars more than
this company is receiving from it's
North Dakota policy holders. The
same no doubt is true also of the
other leading companies that do bust.
ness IN this state, that have business
OF some years standing, in force. All
this Except policy loans on exist.
Ing business) would be lost to North
Dakota, II this company alone were
compelled to withdraw from the state
not to mention similar results from
the withdrawal Of other good COM
pan1es, and that practically all for.
eign companies would have to with.
draw If the Trimble bill should be-
come law, nothing is more certain.
Nor would our local companies find
it possible to comply with this kind
OF law, especially as to investments
by counties.
With 20 per cent of it's total in
come paid out in operating expenses
necessary IN a new company Just
starting or only recently started)
where would they get the fifty per
cent to invest in the county or the
IS per cent in the state?
Insurance investments.
In Texas, where the local compan
les favored the passage of the force.
investment law, the results do not
seem to have been profitable even to
the local companies. OF the five local
Iexas companies, four wrote less bus.
mess the year after the Investment
law took effect than they did the
previous year before the twenty.stx
foreign companies had withdrawn.
and 1t is notorious fact that the
-0"' SoAAPoAy 1uCES0S0U lCS
business only by exploiting "board
contracts" and agency stock schemes
an entirely unreliable and reprehen.
sible sort of insurance which the com.
missioner of Texas has since prohib-
tied.
The total new insurance written
in Texas in 1906 by all companies
was $64 ,065,O00. In 1907 the total
new insurance written in that state
by the companies that remained in
the state was only $37,160,O00. That
Is, by the passage of the Robertson
force'investment law, the new insur.
ance written on the lives of Texas
citizens diminished in a single wear
26,905, 900.
When the purpose of life insurance,
Its benefits to individuals and it's eco
nomic value to the commonwealth.
are considered, a result in a single
year which deprives the citizens of
a state Of insurance protection
to $26,9o5, 900 is nothing
short Of appalling.
There is good reason to believe
that the Trimble bill, If enacted,
would be even more disastrous in it's
evil effects in North Dakota.
,ss1n In 1halr 9ton,aoha