The Neshoba Democrat., 1920-12-23
HEADED FOR BANKRUPTCY

Under the above caption the Jack
ason Daily News makes the following
ISsaeppy remarks In Its editorial
columns regarding the billion dollar
suit against the fire insurance COM
panies.
4 "The only logical solution Of the fire
insurance problem that now confronts
MIssEssippi is for the state revenue
lagentt to Withdraw the garnishment,
feature of his billion dollar anti
trust suit.
4 If(funds now on hand and all pros.
Dective revenues of the insurance
#5ompanies are to be tied up In the
4 courts, it is certainty that thsy will
\ *ssvithdraw from business In this com
81 Withdrawal at this time would be
bothing short of a statewide Gala M
ity, and would bring down the rights-
as wrath of every citizen Of the CON-
y &monwealth on the head Of the state
4 revenue agent, and all others who
|, lre connected with the litigation.
Y In the first place, there 10 hardly
anything to be gained by the gar
4 Sishment of funds. Even II the
i levenue agent should be sustained BY
y the courts, which is wildly improba-
fle, and judgment rendered for the
amount claimed, IL would render
practically all the companies In
ssolvent, and they could not mest the
But, with the certainty
!. that all premiums collected are to be
withheld from them while the litigs.
i tion is being dragged its slow length
i through the courts, 1t is quite sure
that the insurance companies are 60.
ing to quit business, and the revenue
Z agent will have control over only
what premiums now happen to be 10
the hands of agents.
n. And do you know what 1t means il
these companies quit businsss2
Well, In the Iirst place, it means the
kFencellation of fire and marine insur-
france policies totaling nearly $50O,-
100000, leaving the people without
= kany form Of fire protection whatso-
\ yer, j.
1919 the fire and marine COM
DIes wrote risk in this state total
u tlg $4S4, 1881 ,287, and for the year now
( EaWing to close the volume OF risk
carried is considerably in excees Of
hat figure.
u II this business is cancelled II
peans that the cotton crep nov be-
q 4g held in this state will be atterly
worthless, and the men who own IL
will be driven into bankruptcy, FOR.
unless thestaple is Insured, the banks
pNill promptly recall all loans on cot
ten.
y 1t means the same for every man
who is carrying loan Of any kind,
sforqa, character or description where
kit ii u part OF the obligation that fire
insuFance be carried on the property
Rand loaus nf this kind in the state
easily ,t,tai $50. .010.0 900 or 500.
900.
.ly The revenue agent will perhaps
- nswer this by claiming that 1t will
De quite possible for owners of cotton
merchants buying stbcks, ETC.. to ar
range r ia3lr4lcs oltsids ms stst,
&getting pl otection Shrough New Ysrk
assurance brokers.
~ This may be possible in some in
INSTANCES, but the little fellow Ger.
tainly cannot get that insurance.
brokers would not bother with small
<xSisk. Furthermore, insurance Writ
kSEn outside the state 10 a pr0teeti n
s4of doubtful value In case Of contrn-
|6versy over loss incurred, tits neces-
sary for the Insured To go outside the
state to file suit. Again, rates would
Abe much higher than ara now being
xcharged
. III The bilIi N dolaf anti trust sui Il
difficult to justify with any sort Of ar.
yhvument, but the garnishmsnt feature
that threatens to cause the companies
TO quit business and leave the people
kwithout protection Of any kini is 40.
solutely i excusaole. is cDndndance
as feature OF the bill f complaint
means oaukruptcy for thousands OF
Rur citizens
alglN - r ntaFAN fAaAyalT