Year: 1873

the State. Such q law as
viii bring the insurance legislation OF
Tennessee ia harmony with that ad-
vaneed and enlightened commercial
spirit Of the age, which, we are happy
to say, now marks the Legislation OF
nearly all the States regarding thi5 great
interest, so that, in our efforts to
extend the business of our COM
panies into the other States of
tha Union, we may be enabled to do 30
on equal terms with the old and power
ful organizations of the Eastern and
Western States and the European ma
tions. Under the present laws of Ten
nessee we cannot do this, for the reason
that we are SO loaded and hampered with
license and deposit laws that we are
practically excluded from all States but
our own, and hence are forced to con-
fine our business to its limits. No fire
Insurance Company, confined TO the
limits of any one State, can ever be-
come anything but puny institution;
solvent it may be, but great never. Ii
you would have the insurance organiza-
tions of Tennessee rival the great COM
panies of New York, Connecticut, and
other States, you must give them room
fer growth. OF the thirty-seyen States
now composing the Union, but seven, or
less than one-fifth the whole number
require any deposit of money or bonds
from American companies as condi-
dition precedent to the transaction Of
business by agents in their limits, and
it is noteworthy fact that those seven
States have fewer insurance COM
panies than any of the other States,
and hence the great bulk almost
entirely of the insurance premiums
paid by their citizens, is paid to the
Companies of other States or foreign
governments. The legislation of nearly
all the States is retaliatory with refer
ence to taxes, licenses and fees, as well
as deposits. Tennessee companies must,
therefore, pay the same taxes, licenses
and fees in other States, that we require
companies of such other States to pay on
entering Tennessee. By change In the
law regarding the taxation of compa-
MES of other States, the same amount
of revenue may be obtained as at pres
ent without imposing such heavy bur-
dens on those Tennessee companies
which may seek to extend their busi-
ness into other States. But one other
State in the Union imposes so
great a license fee as Tennessee by
abolishing or reducing this license and
increasing the per centage tax on pre-
miums. We believe that under the re-
quirements of the proposed law for its
collection as much or more money may
be collected by the State, to the great
relief or our own State companies.
The stronger our own State companies
become, the greater the number of our
citizens that will insure with them.
Hence, it follows that if by the adoption
of more wise and liberal spirit to the
companies of other States we can
strengthen our own companies, We are,
by pursuing that course, doing more to
reverse the drain which foreign insur-
ance companies are making upon our
resources than we can ever hope to do
by following up proscriptive course.
In conclusion We would say
that if you would build up
our own State companies; if you
would have insurance companies in
Tennessee rivalling the powerful Organi-
cations of the North; if you would en-
courage our companies to go out into the
other States of the Union that they may
bring into our borders all the capital
which the ability and energy of our
citizens can grasp, you must
so shape the legislation of
the State as to enable them
to stretch out their arms all over the
land, leaving them free to go wherever
they may choose; and this can only be
done by an immediate abandonment of
yur policy. If, however, it is the will of
Tennessee that her companies may ever
continue puny institutions, unknown
even to all the people of surrounding
States, if she wishes to prevent them
from acquiring that strength which no
company can ever acquire in the mar
row limits of any one State, and her
citizens be thus ever encouraged to pro-
tect their property by policies of COM
panies which have no interest in
the State, except to draw as much
money from it as possible; if the energy
and enterprise of her citizens are to be
repressed rather than encouraged; if
her insurance companies are to be de-
MED the right to bring into our bor-
ders any portion of the wealth
of the vast country surrounding us, then
let her continue her present policy, and
her object will surely be attained.


The memorial is signed by officers OF
leading companies in the State.