Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-07-27

Gas far back the this department it is
shown that of these companies doing business Texas
in 1880 Others admitted from time time down 1904
when the last granted permit to enter this field The
gregate outgoing companies from
the people of Texas premiums the time they entered
until their withdrawal 1858 66291342 And the aggregate
that paid losses by companies
500 9 40S89-a difference $462350453 Extract from the
official report of Hon R. T. Miner commissioner of agriculture
srance statistics and history to the governor August 81 1907
The bill originally drawn required the deposit within the
of the securities which the companies required to in
their Upon the suggestion being made that this de
post requirement sacrifice of the pey holders
because the heavy additional ad valorem burden which,
under the constitution and laws of the such deposit would
tail the bill amended provide that the commissioner
of banking should have the waive
rement of M law showing that the enforcement OF such
requirement would work sacrifice of the policy holders interest
With this amendment the bill passed by the legislature received
executive approval and became the law Immediately OF the
larger companies which had for transacted majority OF the
life insurance business of the state announced their purpose to
withdraw from the state and did discontinue writing new business
shortly the date when the law became effective the most
of them published statements and IN circular letters
addressed to their policy holders that they We're forced 10 take TINS
by burden which would be i'm
posed upon them and through them their policy holders by
compliance with the deposit requirement. making no mehh o.
provision of the law hat this other OF
requirements waived showing that its enforce
ment would sacrifice the policy holders interest more IMAM 20 com
remained in the state and have continued to transact bn
number of large companies having heavy Texas reserves
applied for waiver OF the deposit requirement showing upon e
hearing their application that compliance with that requirement
would subject them taxation and IN all such cases TINS
requirement was waved Many companies having smal edS
could and did comply with the deposit requirement with
the being burdensome When the commissioner
OF insurance and banking waived the deposit as 70 e
companies applying for such action the officers OF companies which
could Notwithstanding this action for the that
the department this question
time by change in the ncumbenc OF the
commissioner that they could afford to risk the
uncertainty whether there would continually be IN once com
the deposit requirement In his an
nua 1908 the commissioner of insurance and banking
that the deposit requirement should repealed by
legislature 1909 the author of the law who had been
elected legislature publicly announced his purpose to INTRO
duce eectng amendment of the law and this was rec
Campbell his message to the Legislature
Thus definitely and permanently narrowed to the
question whether life companies collecting life insurance
the be invested somewhere and
wherever they might be invested in safe securities which would
obtainabe and which the companies
advntageousy within the state of
Texas should be required to invest far proportion OF
Texas citizens in Texas securities
Immediately becoming apparent that the deposit require
repealed the Association of Life Insurance
Presidents representing which had withdrawn from
the the city of New York adopted resol
which they respectfully urged all companies which retired
from the of the law to unite IN demanding the
repeal compulsory investment feature This demand
of foreign corporations the legs
ature within whose borders they desired the privilege
ransacng acceded to- but met by the
legislature which convened January of this passing
by overwhelming Of both houses BILL again introduced by