Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1915-03-08
HOW CAN TEXAS SECURE
LONGTIME CHEAP MONEY! Z


hhith%H N'f'Esi ldIm iHfit-t-f hallfh>. IN
there should be amy organized. NJ has
been the agitlted during the past two
years. The Robertson insurance law.
that was enacted the early part Of 1907.
had more 90 do Ia rctard the development
II Texas than any law that WAS ever
passed. Some of the defenders Of the
Robertson law ! have noticed. in practi
cally all eases. were directly Interested
IN the local insurance companies Of Tex
a.. or were regular money lenders. aud
were very anxious 10 secure a. high 4
rate Of intrrr I rs possible. aud were not
very much int, rStcd in The DEVELOPMENT
Of Texas. They claimed that the big in
Surancc companies had loaned hut very
little money on real estate ina Texas.
which WAS 4 fact. but the four giant cum
panic> at New York did furnish the lar
scr part Of the money Ia build railroads
~ Texas ami 10 buy municipal bonds ~
all kinds. Two al the giant companies.
the New York Life and the Metropolitan.
did commence a. loan money i'll Texas in
1906 on real estate. The New York Life
loaned Linz Brothers in Dallas. Texas.
l~l3O.UW at J per rent %intrrSt. but The
money lenders an,l local insurance com
panics did not want To see money loaned
- fRAA~ ~ ~ III VIII. lnfffl'ff III WIS
Necessary that some kind of Il bill IT, IN
%troduccl in the legislature that would
compel the biz insurance companies 10
leave the state. for thcbcnciil of their
own selves. and not the general welfare
Of the public.
During 1906. they had what il known
rs the Armstrong Investigation of the
large insurance companies ia New York
stale. That ~ the year they PASSED 4 law
prohibiting the Insurance companies
from buying any more stocks. and also
passed y law compelling them 10 sell
what stocks they bad on hand during
the following i've wears. However. that
has been extended for 4 period ~ five
wears. Therefore. il became necessary
for the large insurance companies of New
York 20 hunt 4 new field "a loan money
on reel estate. amt two of thc companies
the first year Che Armstrong law was 81
acted. came 90 Texas a. loan money. The
combined assets 81 ali inu>rnncr cumpan
- that arc NOW writing Insurance ia
Texas are less than tWuthirls 81 those
of The New York Lift. alone. The rom
hincti assets uf the companies that with
drew from the state and htvr not return
-! amount 10 over - Ja1.0Gl. Their
premium income ana interest income j.
Increasing. above the amount paid 10
policy holders and dividends. maturcd
rndnwmrnt>. cash surrender values aud
death claims Ia the rate W over S.up.On0
per wear. In addition 90 that. they are
gradually receiving money ~ loan w
real estate from thc sale uf ~turk~ and
maturcd loans, thai they prefer To loan
10 4 better field.
The insurance companies have a. IT,
more particular than individuals ON ne
count ~ having 40 \ certain extent 40 ~
~ on the valuations placed on the real
estate hv their employees. scattered Am
different parts NJ the United States
Therefore. il j. very essential that the,
make loans on dccp rich black land thai
n AZ the proven rain bell. that ~ too ley
"a 4" wash. hat il sufficiently we'll drain
cd e. produce good crup>. They also pre-
Ter ~ loan IN 4 community where there
Is the largest per cent az tillahlr soil
Therefore. knowing conditions aS they
exist today in the United States. Am
compelled 10 believe that the insurance
companies that are now out of the state
VIII loan al least ~lu.uUU nun Der wear
Tor the next five Years IA the best uual
ity Of good black land i'm the proven rain
belt ~ North Central and south Texas
at not a. exceed u per cent interest uro
vldcd he Gih>cn bill is nut on the law
books NJ Texas. i'll lien vi I'M Robertson
insurance Law; but | 20 not See how
the Insurance companies can afford 4,
nler \ guarantee ~ loan IN Texas so
Vhh.om during the next five ,clrS. pro
videt The legislature will repeal the Rob
rrt>un Insurance Law. as other stytr.
that nave not the proper collateral de>
crlhed above. would probably BASS SINH
lar laws ami then compel the commands.
10 guarantee a. lean th IN 4 certain om.
cunt Of money in order to let them Jn
business IN their state.
Ii a. not fair. nor right. IL ask the ~.
Surancc companies that let the state
that have not pursued their ~nrrupatinn
~ Texas Ia piv back occupation taxes
TfNaS has already lost considerably aver
y million dollars Ia taxes Nv driving III.
insurance companies from the state. and
the development If Texas has been re
tartlcd 40 least five wears. ~ II fakes
large amounts OF money Ia put into cuI
iivation large bodies of land ana bnild
manufactures. railroads. intrrurhan
INES. and Q great MANY other things thai
are badly 'cIcd TO-DAY. II j. very DIM.
cult 70 SET Northern people land ia Tex
n on account of interest rates b.ing 81
very high. The hostile laws that Texas
has hen passing FOR the past several
years has kept a very large amount Of
capital out Of the state. and makes il
practically impossible for Il man ID n
nance amy kind of a large enterprise IN
Texas.
| have understood that | have been ~
cuSe'l ~ being paid ~ the bic INSURANCE
companies of New York la assist i'm ra.