Newspaper Page Text
Second Section
The Atlanta Georgian
AND NEWS
Second Section
VOL. VI. iNO. 127.
ATLANTA, GA., TUESDAY, DECEMBER 31,1907.
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ianre Annual Insurance
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INSURANCE COMPANIES
PAY ENORMOUS TAXES
Pau' Mo! ton Writes In
teresting Article on
This Subject.
I
By PAUL MORTON.
President Equitable Life Assurance
,* Society, v * ,
DKKIUK to *sy a few words on the
• t ons I'oine to pnss iu the United
Ht.-ites that Instend of encouraging
thrlfi It in popular to reverse the proposl
tfoil. Life tnsurnnee. If nnlremnll.r indulg
ed In. I* lietter calculated to help the state,
to promote hnpptueim. to eilurate the young
iind to d:s>'onrnge poverty thuu any othe
ins;: tut Ion Inaugurated by civilisation, end
yet wo see various states and cities trying
to outdo each other In seeing wlilch mu
Inqiwe the highest taxes and place the
greatest handicaps on the luiKlness. The
fooling socm* to he that If In nny Wny by
taxation, by due or by undue process of
lnv.\ or lor legislation, tbis'so-called •’octo
pus" can he hobbled or brought to Its
knees, a great public service will hsv# beeu
rendered.
Many people fall to understand that a
.life Insurance company Is Its policyholders,
snd that each and every policyholder Is Just
n's much a' factor In Its success ns If he
were a shareholder; which, In fact, bo
really Is. Iiecouse be aharea In both the
prosperity and adversity of the Institution.
least your |hc various / companies paid
. more, than $10,000,000 lu taxes on life Insur
ance premiums. I understand that origi
nally these taxes were levied for the pur-
|H>se of providing a fund to hover the cx-
Irtuixe, of state supervision, but the fact
that In 190$ the state of Kentucky apent
only $22,799.74 for supervision, and collected
.$280,779.,4$; Tennessee spent only $11,286.40
‘and collected $263,618.47; Alabama spent
only $3,253 and collected $108,097 from the
policyholder* of the state, shows plainly
that life Insurance premiums nre now re-
.panted as revenue producers, and each
Estate penalise* the companies for all they
.'will stand.
j Although I have been unable to ascertain
the amount spent by tbe stats of Georgia
Jur supervision. It. I* safe to say that tbe
• nmoutit would not elected one-tenth of the
"Mini collected by the state In taxes, which
• In 190$ amounted to $167,009.14.
r [ in the Isst seventeen years the taxes,
• licenses and other fees paid by Insurance
'.companies to the various states approxl-
mated $100,000,000. and they haye constantly
• Increased year by year. Every cent of this
money comes out of the policyholder* pock-
• et*.
« (jist year this socloty alone psld out
’a’lout $1,000,000 In taxes and charges of this
u linmcter; when our actuaries originally
juiade their computations os to results, no
• tuxes on premium* wtere levied by the vs
prions state*. The power to tax la the
V power to destroy. The question naturally
rises, where will it end?
« bur dividends could have been 10 per
Vent larger last year If It bad not been for
these taxes. It Is not necessary for me to
. r. neat to you that the policyholders pay
• these amounts, and I leave It to yon
. whether or not such taxation should be
f SSCSSed.
To my wind. It I, l«»t »• »nf,lr to t«x
Mlfe Insurance premium, a* It would be to
'tux Kirlnt* bunk deposits—f*cb tux I, a
"penalty placed upon thrift.
The trouble wem, to be thnt the orerege
Ahierlenn legl.lMor. end much of hie con-
'tstituenCT, «eemi to feel tbnt the home of.
die *nwn» off In'New York, Philadelphia.
. II,I,inn. or ,ome other remote plnee. le the
Ineurnnee company: that It I, n eoullees
nml n henrtle.n corporation: tbnt It, only
’mission In life U to gnther lu the pre
. mlnm, which It nbeorb, from their Irnme
.illnle locality, nexer In turn to Inveet nny
• money locally.
The money paid Into life Insursnce com-
pnnlc doe. not go Into .trong boxes, rad
!. „ot honrdeil. All th.t the vaults of
tbe eoclety contain ere bond,, mortgages,
collrtternl note,, end other erldence of
n’enltli so held. ...
Tbe money Iteelf le »t once put Into clrj
eolation by Investment In the very ssfeet
of iccurltlei, end help, to build rnllroede,
die weterwnye. Improve clllee. promote
commerce, develop tbe reeoorcee. «ml In
Other wey, build np the country In which
we live.
Not Miking • Living.
You can not make a. living such
vou should desire, says one of
companies, unless you pay for one ap-
‘ plication a week. An agrent fa not writ
ing a healthy buelnen—In other word*.
h |, business I, not prolUable-unle.a
hts Is paying for one application a
week and If he la not doing this his
company Is not conducting Its business
Ta healthy or profitable basis. You
can not succeed in any undertaking
without making a supreme effort. Sue-
cess does not come easily: In fact,
succesa does not come to any one—you
must go after It,
Don’t Go With a Light.
Don’t go with a light to hunt the
, , 0 £Te of an odor of gaeolene. The
result* of finding It by that means la
always Inetantaneoua and momentous.
Don’t Glva Up.
s Don't give up with the first Interview
I’ If you do not get your man. You will
L he better acquainted next time.
They Are Not Immune.
I people ought to apply for health rad
E accident Insurance without b «lng a*k-
1 but they won’t because they think
ti c-1 r present health and freedom from
iccdenV a sure sign for the future.
P Point out their error In thue as.umlng
' :; rthey are ''Immune.’ ami get their
[appllcailcna. . , * .
PAUL MORTON.
'T
AVAILABLE ASSET
Policies Offer Exceptional
Advantages to Their
Owners. •
T he
fnr
By GEORGE T. DEXTER.
Second Vico President Mutual Life
Insurance Company of New York.
HE value of the life Insurance poll-
•y ns nn asset In time of need,
heretofore tacitly conceded, hns been
forcibly demonstrated In tbe recent
financial stringency. In the latter part of
October last without premonition percepti
ble to the general public, the business world
suddenly awoke to the fact that "money
was tight." In the large centers of popula
tion, the less-lnfonncd meml»ers of tho
community—the small depositors—been me
frightened and proceeded to withdraw their
funds from the banks. A few weak con
cerns closed their doors. •
There were unfavorable rumors as to oth
ers, and the panic soon began to spread
with the rush of a prairie fire. Small
business men. nnd even larger depositors,
who could not afford to have tbelr funds
tied up In a suspended bank, were Impelled
to reduce tbelr balances as rapidly as
practicable. The circulating medium of the
country was steadily disappearing. The
people were hoarding their funds and the
banks themselves, menaced by the fear of
a run, were forced to hoard.
Credit everywhere was greatly curtailed,
wheu not absolutely refused. The manu
facturer with a pay roll to meet, the bus!
ness man wtlb bills falling due and eollbC'
tlous Impossible, the speculator who hail
to have funds at any price—all alike were
denied their customary accommodation,
or compliance with their demands wna
limited. It was not a question of
flit-edged collateral waa
The money waa not to be
greatly V
security
offered In rain,
bad.
In this emergency, men bethought them
aclrea of. one sure dependeuce—n source of
Immediate and certolu relief. The old es
tablished life Insurance companies had the
fund* and were read to iwy them out, for
they had no run. The pollr/bolilors who
needed tbelr money know they could get
It—these and these ouly demanded It.
There was no general stampede to with
draw, for no oue for an Instant doubted
the Impregnable solvency of tbe great com-
K nles, but those who bad to have funds
uud In their policies collateral that none
could question, and in their compsuy a re
source that could not fall them.
In the course of a few weeks, loans to
the extent of many millions were made to
pollcyholdeps In nil parts of the country—to
some a few hundred dollnro, thousands of
dollars to other! whose holdings were larg
er, s hundred thousand and more lu some
Instances—bat *^
dlate relief nowl
probable
i of not —- —... — _J S.
have been made by tbe grent^llfe
and In tbe safest manner potalbL.
policyholders have secured needed ncep*|.
mixtatlon. prompt!, - —•
at reasonable ratei
able at their own pleasure.
The amount of Influence exercised by the
life Insurance companies in staying the
financial panic thru tbe medium of policy
loans can scarcely lie estimated. In only
one respect Is resort to this expedient In
financial emergencies to Ik* dcpre«*ate<l. The
man who borrows ou his life iusurance pol
icy shonlil remember that lie Is borrowing
from bis beneficiary—not from the company.
In tbe event of bis death before the bum
Is repaid the fund that would otherwise
have'Inured to Ills widow nnd orphan chil
dren will l»e reduced by Just that amount
with accrued Interest, If any. .
I.et him make baste to restore to Its origi
nal statu* at the encJlest moment tbe pro
vision so unselfishly began. To make as
surance doubly sure, wuy should be not
take an additional policy to the amount of
tbe loan? The extra premium would merely
amount to a moderate Increase In his lutc~
•at rate, and In case o'
nal provision which
make for bis fnm"“ *
them unimpaired.
* m y can im eoniiniino, or, u
“e have elapsed it can be
exchanged for pteld-up Insurance to an
amount abont equal to cost or even more,
according to age and form of contract.
“Don't Givs Rebates.**
One of the life companies says to Its
agents: “Don't rebate any part of your
commission. You earn It as fairly as
the merchant charges his profit. When
you rebate you not only give away your
profit, but you virtually admit that your
article Is not worth what you ask for
It”
Don't Waste You
ANNUAL INSURANCE EDITORIAL
THE SOUTH'S PROPER ATTITUDE TOWARD UNDERWRITING PROMOTION.
By J. E. MoLAUCHLIN.
In former years there was a widespread suspicion in the minds of smaller investors that the
• life insurance business was a great big scheme through which a few men could legally rob the
masses of their hard-earned savings. This suspicion was not confined entirely to the South, but
ft existed in all parts of the country. .
There was a well grounded cause for this lack of faith on the part of those who had become vic
tims of the hundreds of fraternal orders with insurance features and assessment concerns that
were springing up in nil directions, gatheripg about. them a tremendous patronage, only to suc
cumb to the inevitable laws of mortality.
Perhaps it would be well to explain what thesp laws of mortality are, and the best way to do
. this is to give nn illustration of what is known as a natural premium for life insurance.
Taking the average age of thirty-five, out of one thousand healthy men there will be nine to
die the first year, therefore yon will readily see that it will take nine dollars from each member of
a class of one thousand to pay n mortuary call of one thoAsand dollars, if each man rhips in n dol
lar. As the class gets older, the number of deaths per thousand increases, thus making the amount
due from the survivors greater each year, and thus making it impossible to maintain nn insurance
company on n basis of that character for n long period of time, as only those who die early would
be benefited by the organization. When the companies were young niul filled with healthy young
men and were continually increasing their membership, the burden of'mortality was so insignifi
cant, the. innocent victims felt a mutual protection and a genuine assurance thnt they were provid
ing for their families in the event of their own death.
But Father Time is a merciless reaper, and ns age creeps upon us the certainty of death grows
stronger nnd stronger. The large membership has grown older, and the mortality has become un
bearable. What’s the answer? Defeated purposes. Diseased victims without protection. Tho wolf
at the door of families who have saved and sacrificed to meet assessments for years. And a sore,
disgruntled public—justly so.
But these experiences have had their blessings. They have been the means of differentiating
■ between the substantial assurance and the temporary protection. By degrees, the public hns learned
that there must be a provision for the increasing mortality in every insurance proposition, nnd they
have been convinced that it is tho company with an adequate res e/ve that can withstand the prog
ress of age.
The temporary Insurance is the natural premium, where a collection is taken up when a mem
ber dies, whereas tho permanent insurance is figured out on a mathematical certainty, so that each
policy takes care of itself in. a class of thousands. There is a sum set aside in the premium of the
permanent insurance to meet the enrrent death loss, a sum plnccd at interest, which at the end of a
man’s expectancy, or average length of life at a stated age, will amount to the face of the policy,
and also a sum to meet the necessary expenses of the company, so that the reserve, or sum placed at
interest to meet the face of the policy at the end of a man’s average ago, can be invested in an ab
solutely safe investment and will not be required for meeting current death losses nnd expenses.
The premiums in those companies that furnish a permanent insurance may appenr a little high,
but when the returns in the shape of dividends are considered, it will be seen that they Bro only
high enough to furnish this protection on a safe basis and that is why they never fail.
The percentage of loss sustained by policy holders of what is popularly known os Ihe old line
companies is infinitesimal when compared with that of the fraternal, assessment or natural pre
mium companies, because where an old line*compnny has been mismanaged, its clientele js rein
sured in another compnny, which hns sufficient facilities to carry the contracts of tho unfortunate
company to maturity without any loss to the policy holder.
There are no perfect financial institutions. The old line insurance companies do not profess to
he, but they npproacli ptjrfcction nearer than any other institutions.
These things being facts, what should he the attitude of the South in regard to promoting the
progress of such establishments? Is it ndvisablc for the different legislatures to enact laws that
will all but prohibit their operation under such pressure? Should thcy.be taxed beyond the re.
qnireraent8 of a government whose revenues are assessed in popular proportions? Should not the
advantages of these companies be placed at tho door of every citizen at a minimum cost?
These are economic questions that the builders of laws should not overlook. They reach nearer
the tender spots of providence and are more sacred to the family protector than any other part of
the heritage left for the maintenance of the dependent ones.
From a treatise furnished by the president of one of the largest of the old line life insurance
companies, and appearing in another column of this issue, it will be seen that the objects of life .in
surance arc being continually Unvaried through the enactment of stringent legislation. The pub
lic cry for cheaper insuranee’and at the same time applaud those who create laws that make it im
possible to give adequate protection at a less cost. Every tax that is imposed upon tho insurance
compnny makes the cost of protection to the policy holder greater: It reduces tho dividend on his
premium and makes it impossible to extend liberality in features.
Just as a suggestion, would it not bo prudent for those in power to examine the records and
ascertain the real facts in regard to tho irtoney that is paid for insurance by our citizens? In pretty
nearly every instance it will be seen that companies operating in this state have investments m the
state'amounting to considerable in excess of the reserves on their policies and that the disburse
ments of these companies in this state, including death claims, surrender values, endowments nnd
dividends, are greatly in excess of the receipts for premiums. Does that look like robbing the
dear public?
Going further into the benefits offered by the insurance companies to those who take advan
tage of their policies, let one examine into tho records of the past few weeks' nnd ascertain the
amount of loans t|int have been made to policy holders dnring tho stringency we have just experi
enced. While every other form of collateral was dcflnted in value to such nn extent that financiers
and bankers were afraid to accept it as pledges for lonns, the man with nn insurance policy had
an mailable asset in the guaranteed loan, with a stipulated five per cent interest rnte. An insur
ance policy of sufficient age is always an asset ready for use.
There is another feature in connection with the insurance policy that should commend it to the
public—the thoughtful public—there are never any runs on insurance companies. The demands for’
payment of claims are regulated by the number of deaths. Money panics do not force them to dis
pose of collateral r.t under-values, but on tl;e other hand they are always in a position to secure
gilt-edge securities in times of panic at bargain counter prices, thus assuring increased returns to
their clients, ....
So it is seen that a hostile attitude toward insurance companies is a form of cutting off one’s
nose to spite his face. Every stringent regulation imposed by law means increased cost of protec
tion and less competition in the underwriting field. Every just regulation of state authority is wel
comed bv legitimate companies and not one of them will be found dissenting from such laws.
1908 should be a, banner year for every form of insurance underwriting in Georgia nnd the
South. The. lessons of 1907 will bear fruit in the establishment of conservatism in the halls of leg
islation and’it is predicted that the benefits offered by the great institutions that furnish protec
tion sgabist accident, sickness, firp, death find other liabilities will be extended beyond all former
bounds. ,.
Begin the year right. See that your insurance is a permanent protection.
teeeeeeeeeeeeeeeeei
1907
GREAT PRINCIPLES OF
INDUSTRIAL UNDERWRITING
History of This Form
of Insurance Given
by John F. Dry den.
JOHN F. DRYDEN.
GETTING CLOSER
TO MJUMH FIELD
Insurance Managers Like
to Be in touch With
Solicitors.
MONEY INVESTED IN DIXIE CONCERNS
STAYS AT HOME; HELPS THE SOUTH
By WILMER L. MOORE,
President Southern States Lifo Insur
ance Company.
A i’CORDING to the loot available
slatritk’*. December SI. 1006,
there were thirty-two. Southern
life Insurance companies operating on
what Is known as the old line plan.
Of these. North Carolina had aeven,
Virginia ami Texas nvo each, Ken
tucky three, two each In the atetesof
Louisiana. Wen Virginia. Tennessee
and Florida, and one each In the states
of Mississippi. South Carolina, Ala
bama and Georgia. During the year
1*#;, In some of these states, many life
Insurance companies have been organ
ised. nnd a few have engaged actively
In soliciting business. Such companies
should be added lo the above list.
Arkansas and Oklahoma as ysl re-1
main without any local companies.
The old sat Southern life insurance:
company In business today was organ- •
tied in 1*71. soHelUns bath
Time la the agent's 'stock fn trade.land Industrial business. Th* rudest
An hour wasted la money loaf. Time I lasunocf company <nnniai: It
Is money—to every one but a loafer. strictly to ordinary busin^ra was
gnntied In 1100. Since that dale, the
other rompanles have been established.
By referring to the statistics of 1900.
which are the last available figures, the
premium Income for life Insurance for
the entire South was 356,763,404. Of
this amount, the Southern companies
kept at home 33,570,101. In consider
ing this drain upon the South, we
should also take H)to consideration the
enormous amount of money which le
held by the Eastern rompanles aa re
serves to_protect Southern policy con-
is Voughly estl-
v,:L.-._n l. moose.
tracts. This amount
mated at 31.000,000.000.
The statistics for 1047 will show con
siderable advancement of the Southern
companies, both In volume of business
and Increase of assets. Their progress
has been remarkable, and has demon
strated that the Southern people real
ise that the South can establish life
Insurance companies with the name de
gree of success aa she has developed
her resources, organized her factories
and Increased her banking facilities.
Study the irecord of North Carolina
alone. Last year. Southern companies
received approximately one-sixth of the |
(From The Insurance Times.)
From the frequenry with which the
president of the National Association of
Life Underwriters says a good word
for the general agent It Is fulr to as
sume that the disposition manifested by
a number of the companies to get
closer to their solicitors In the Held Is
causing more or less worry In some
quarters. A brief extract from a recent
address will show whet the general
tgent le thinking about these days:
"The type of man that the public de-
res lo have In the business, the type
that the outsider can aafely ' deal
with, In not apt to stay In the buelneee
unless he Is given a fair opportunity
to build up his.business and his In
come. In my judgment, the tendency
of the law as It stands has been two
fold. One, to run, some high-pressure
men out of the business, ana the other
to eetabtleh conditions which. If they
continue, will tend to the companies be
ing represented by mediocre men, rath-
er than by men of real ability and ca
pacity. Above all things. It Is Impor
tant that the general agent should ho
encouraged to stay In the business. lie
and not the solicitor Is the one with
whom the policyholder deals perma
nently. Soliciting agents come and go,
the right type of general ngent Is
fixture. He stands In hie district'for
tho company."
By JOHN F. DRYDEN.
President of the Prudential Life In
surance Company.
I XDt'STIHAI. Insurance may he iMIm-t
ns Insurance fur sinnll amounts, snrtl-
clcnt to provide with absolute ccrmlu-
!£ f l’ r ."!!•. Imrlal expenses nnd the co-t nf
tlic Inst Illness of the Insured. The pofiel. ,
sre psld for by smell weekly premiums
which win average nbout 10 eenls to tint
Individual and to eenls to the family. It Is
a form of Insurant's especially adapted to
the needs snd circumstances of waxe-enni-
era. ns a aiihitnntlal sbl In Ibe struggle (or
n higher stnudanl of llrlng. The business
Is i'll elty trnusneted In largo cities, where
the nliernntlvc of absolute poverty at destu
Is n pauper s Imrlal nnd helpless dependeuee
upon private charily or poor relief.
To inellitale the payment of tho weel.lt
E reiutiims the same aro collected from tho
eusea or the Insured and while this method
of collection necessarily Increases the ox.
pense, no prnetlcnhle substitute lias been
suggested. Kaperlmentn to transact Insu
rance without agents have universally heed
a failure, even when undertaken bv gov
ernment thru the j 1 —
squally unsuccessfi
|'aules which hare
life Inknrsnco on the -
tnent plan, and the only alternative I..
Industrial Insurance at rcnsenable cost, or
no Insurance protection whatever for a
large proportion of the population depend
ing solely upon weekly wages.
The business or Industrial Insurance was
Introduced Into the.United States In 1873 bv
the 1’nidcntlnl Insurance Company or
America, on Kngllsli plans nnd methods, I
originally Introduced Into that country lu '
Ib64. During the Intervening period llm ;
business of Indnstrlsl Insurance has at
tained enormous proportions through.>ui the
civilised world and has assumed the char
acter of a universal provident Institution.
or insurance, haring on I
17,311.394 npllelea In force
$7.(33.814.707 of Insurance.
world It Is estimated thnt there
approximately 30,000,000 Industrial policies In
force. In addition to tbelr Industrial busi
ness. the large Imtnslrlai companies trans
act a very I'ouahlrrablo amount or so enllnl
ordinary business, which la for policies or I
31.000 and orer, which, to an overdnrrcnslns
extent, are Iielng written upon the lives of
wage-earners praetlenlly not solicited or
readied by tbe oxcluefvcly ordinary com-
mighty effective education lu thrift. Ii edit.
cates the people thru every stage of mi.
terlal wellbeing from almost helpless pover
ty to prosperity ami comparative hide,
pendence. Beginning with very small i
amounts, the premium, are grnduallv In-
erenseil In proportion to an Ini rrnslng fain- I
lly Income until a snMcIcnt amount or tu-
suranee protection Is provided foe swrv l
member of the family
eleney of this form
lie quaatlon and Ibe
upon Ibe results of |
imlnl
"fll-
the bnslne
H... of past w hich
“ I" hi Inl.'inal ;,..i i ,,f lb., nr.. ,,f
wag-earners throughout the Baited States.
The progress of the business Ino. I
continuous nnd there lias never been n yesr
entire premium Income paid on life In
surrace In that stale. When the facte
are made known In th* annual state
ments which will be rendered on De
cember 31, every Southern company
will ihow a most gratifying Increaae,
not only of new business, but also of
business In force during the pant year.
It In doubtful If the same can tie laid
of the older and larger rompanles of
the East and West. The loyal support
of the tfouth of Its home Institutions
will help lo rear a power of financial
strength throughout their respective
states, which will greatly aid the Houth
In establishing Its Independence of
Wall-st.
The larger companies of the East are
today greatly troubled on account of
the valuation of their assets by the
various state Insurance commission
ers, owing to tbelr assets being large
ly atocks and bonds quoted on ine New
York stock exchange. The shrinkage
of these values has been enormous. Mr.
Kingsley, president of the New York
Life, In a speech before the recent con
vention of Life Insurance Presidents.
whea the amount of Insnreni
not rimsIdfrnJily Inerenied by Hie nddltbm
of a very ■ubstantlal number of Indu-irial
policies. This progreaa haa remained practi
cally iinalTeiied w iinnlea, depre—lniis,
strikes, etc. Industrial liiaurnner Is nn
Inherent necessity In tbs life of the peopls
and It la correspondingly spprerlnti' l nml
vslned by millions of mankind.
Industrial policies srv plainly worded con
tracts, readily within the understanding "f
anyone, and conform In all rssembiM
tils. The Indnstrh
tivlilv solvent 1 n-r11 „,
I eompfl
Ing '
ust rial
■ -i decidedly ,.
and continuous Improvements have In
trodueed, with a gradual tendency iDWiin!
an Ideal which Is In a fair way of being
realised by proportionality larger bencllts, ,i
reduction In the expense rate, the more sue-
restful education uf the agency force cud
by the better Insurenru education of the
public.
held In New York at Hotel Belmont on
December 3, stated thBrthe shrinkage
In values of the Investments of the
Equitable, New York Life and Mutual
would be at least 373,000,000 If valued
m the stock exchange quotations today.
Jf this be true of the Giants, what la
Hie condition of those medium-sited
companies of the East whose assets
consist largely of the same class of In
vestments. t’ontrost with these the
smaller and younger companies of the
South, whose Investments sre made on
improved real estate loans at valuations
not exceeding 50 per cent of the ap
praised value of the property. No
shrinkage In such securities. What are
the leasone to be learned? First, big
ness Is not always strength; It Ii
sometimes n weakness, os Is now dem
onstrated. Second, security as to your
volley contract Is not to be based upon
urge figures' as shown In financial
statement!, but an analysis oi
such figures Is of Ihe great
est ' Importance. Thlrfl, proX'
Imtty to Wall-»t. Is too dangerous for
a safety, as Is evidenced' by the fact
that only the Eastern companies nre
troubled on account of the position of
the Insurance commissioners of the ill’
ft rent elates regarding the valuatlt
of their assets.
thought for you to ponder well:
Would the Houth have experienced any
money famine recently If she had been
free from New York financial depend
ence?
What are the facts?
Our banks have more money then at
any time In their history.
Our mills had more orders ahead
lhan In any one year elnce organiza
tion.
Our products were selling at good
prices.
Our cotton crop was a golden har
vest.
Why any curtailment of orders?
Why any cessation of business?
Why any contraction of limns?
Why any clearing house certificates?
Why any decrease In value of our
products, any curtailing'of the ■•m i n'
of mills and mines or any decline in
the prices of our greatest staple coop?
The answer le one and the same to
ull these questions. New York li.ul a
"clearing up” nnd became frightened
a; what was exposed of her rottenness
In financial circles. As the South look
ed to New York to finance her Indus
tries and move her crops, she necessa
rily suffered from the general conta
gion of ‘‘stringency.”
Fifty-five million dollars a yenr to
the East from ths South for Insurance.
More than a billion dollars held by the
Eastern companies to protect policies
written on Southern lives. Suppose a
fifth of these two amounts was kept In
the .Sunny South: would we nerd any
assistance from any city or any sec
tion? Would It have been necessary
for our tnnksrs to have requested of
Mr. Cortelyou S'division of the money
thrown Into Wall-st.. asking for at least
110,000,000, which request was not
granted?
What le the lessor/ to be learned?
The South must finance herself. How
can thnt be accomplished? By pre
venting the enormous drain upon her
resources and keeping, at home the
money derived from the sale of her
cotton crop, of the output of her mines
and her mills.
One opportunity Is offered by the
Southern life Insurance companies to
the peoplo of the South to divert the
stream of money flowing to the North
and East thru the channel of life In
surance premiums.
They havo no entangling alliance
with speculators who use funds for
their own Individual gains.
No stronger arguments nre needed to
prove their soundness end stability.
On. then, with the battle cry of "the
South, for the South.” I.et all South
ern patriots stand together steadily,
shoulder to shoulder, working with one
end In view, the emancipation of the
South from the chains of financial de-
I'emlenco and the building up of South
ern Industries
velop the vast
midst and all
atrhword of
"Loyalty to
control and de-
■ ealth which le In our
round us and let the
■very true Southerner
ur own tnstltuttonsk”