Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-02-19

Why 1t Withdrew. ~
"Au the large companies have with.
drawn from the, state and, the local
companies are entirely unable to ham
die the volume. Of business that Is Of
fered them.
Last year the bankers of South
Carolina were unable to loan large
amounts on cotton stored in the state,
and protected by safe policies OF In
surance,, Through these loans our cot
ton growers were enabled to hold their
cotton while it increased in value from
SIS to $50 bale, thus adding millions
Of dollars to the wealth OF tne state.
another cotton season Will soon
omen and, unless we can secure sale
; insurance, we will not be able to COM
nand the funds to repeat these loans,
and very little cotton will be stored IN
South Carolina. THIS may cause heavy
losses to our cotton growers.
"Shipping is being driven away
from our chief port, Charleston. on
account Of inability to secure cargoes
there. Many pending loans cannot be
completed as the risks cannot be IN
sured in safe companies.
'.As present policies expire we ex-
pect to see the calling in Of large
amounts now loaned on south caro-
lima property by northern companies
and local capital is not sufficient to
absorb these investments.
. "while the quality of insurance now
sold in our state is poorer, the price
has advanced in many cases from bO
to 100 per cent, especially on country
property, and many buildings cannot
be insured at all"
States Position.
Mr., Wilbur stated his position
frankly, when he said:
toh HUifh greatest
the insurance program that Is being
enacted by this legislature. Mr.. Pad
!, dock has stated frankly to you, when
he argued House Bill 80, that COM
panies might refuse to share risks. !
believe he is right. and believe furth-
ermore that the companies Would oe
more than justified in withdrawing
from the state and as q natural and
inevitable consequence Of such with
drawal, cancelling every fire insurance
policy in the state.
II am not the representative OF any
company or companies. am not au-
thorized to speak for them or any one
Of them. But have watched q burden
piling upon them under which 1t is
my honest opinion that they cannot
continue to do business here. fear
situation such as developed when
they were forced TO withdraw from
Missouri, later, from Kentucky. and
later 9Llll IrOUl SOVIn SAIVAue.
Charges Partially.
He charged partiality in favor OF
life insurance companies.
II cannot be insensible to the fact
that marked partially has been shown
to life insurance companies by this
leRtslature," Mr.. Wilbur said. Not q
sinRle bill aimed at them has been in
troduced in either house or senate
What is more their unearned income
represented by the interest earnings
on their investment in farm loans wa
exempted from the income tax law.
rs .Y esterday, the house amended the
income tax law further that all mn.
tual life insurance companiess were
exempted from paying the income tag
on their net premium income. This
amendment exempted all oNthe bfe
life insurance companies, and left the
smaller ones in and remember, 1t !,
only the big ones who are loaning in
this state. IL. 3. y.
The state Are insurance fund bill
already had b6en reported in the sen,
ate for passage: and Chairman Waiter
wexford Of the insurance COMMITTEES
had gone before the league caucus on
Monday evening, asking that It be
withdrawn to permit further consid-
Grafton. That permission was not
granted, but the bill was laid over tiil
today because Of the points, Mr.. VIII
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