The herald and news. [volume] (Newberry S.C.) 1903-1937, 1913-12-30
Dc influenced at all by this.

panies in the North withdrew from
: Texas. There was no harm in this to
the State Of Texas, except in Jhe loss
OF revenue from tae tax on premiums
which these companies continued to
collect by mail from Texas, but on
which they have paid no tax to the
State of Texas as they were not
licensed therein.
so, from 1909 until 1912, l content
ed myself with carrying on the cam
paign by agitation and by correspon-
dence. In 1912 1 proposed that the
license fees on those companies Which
did not invest be increased, but the
Legislation was not passed. AS several
of the largest companies, taking the
largest amount of premiums from
South Carolina, did practically notn-
ing during the year 1912, at the ses-
sion of the legislature last year l pro-
posed that we pass compulsory in
vestment law, believing that it would
be better for the State to sacrifice
what it would lose on premiums which
would be mailed to the companies
which withdrew from the State, tnan
TO allow them to continue to write
new business in this State and not
make investments in the State.
Matter Continued.
"When this bill was about to come
up in the senate. committee of SEN
ators and myself we're invited to meet
with about fifteen or eighteen repre-
sentatives of insurance companies
who made this proposition. That tne
bill be carried over until this session
and these representatives would set
themselves to work to induce their
companies so to do, and that they
would urge those companies which
did not invest to withdraw from the
fell, so that this agitation would
cease, this agitation being a serious
matter to the agents Of the companies,
citizens of the State.
Therefore, the bill was carried
over. During the past year practical
Iy all of the companies, with one or
two exceptions, have made, and are
beginning to make, liberal investments
in this State. With one or two excep-
tions, all of the life insurance com
panies are now making reasonable in
vestments in this State and some of
them are investing literally.
'I cannot say that there is an agree
ment among the managers of the
largest companies to withdraw from
the State if compulsory legislation is
enacted, but the fact is that six of
the very largest companies doing busii-
ness in this State, holding South Caro-
lima reserves aggregating $17,222,OOO,
would withdraw from the State if
compulsory investment law were pass
led. (The statement was made at the
conference held last year that twelve
companies would withdraw. So there
are six smaller companies besides
the six large ones allauded to- These
six large companies last year paid to
the State of South Carolina in State
license fees $4,000. This does not
include the amount paid to municipali-
ties.
Increase Taxation.
"Under present conditions, due to
the fact that South Carolina has been
particularly active in this matter and
that a number of other States have
not been at all active, it seems likely
that a number of these companies
will not only invest their full South
Carolina reserves in South Carolina
securities, but will do more. Indeed,
one or two of the largest comDanies
have already invested more in this
State than their South Carolina ro-
serves. Therefore, since the passac"n
of compulsory investment bill would
cause the State to lose certainly more
than $4,000 in revenue, and, since
the companies which would withdraw
from the State (supposing there are
twelve) hold probably $20,000,O00 of
South Carolina reserves and these
companies would then cease to invest
in South Carolina, it seems to me
that, instead of pressing compulsory
investment legislation it would be
better to propose passing a law in
creasing taxation on those companies
which did not invest, so as to either
cause them to invest or to Offset the
/ loss in revenue which the State now
1ioopco fooc m