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To The People of Georgia:
The most important bill ever put before a General
Assembly affecting the general welfare of the state is
in danger of being lost by failure to secure a hearing
before the committee.
This bill—introduced by Senator Mann—provides
that life insurance companies doing business in Geor
gia shall invest in Georgia part of the reserves that
must be invested for the protection of Georgia policy
holders.
Several years ago, when legislation of this char
acter was attempted, the great life insurance compa
nies of the East said that it was an experiment, having
been adopted in only one state of the Union. They
said “Georgia can afford to wait and profit by the ex
perience of Texas. If the law works to advantage,
this state will have lost nothing by waiting.’’’ Texas,
however, has never seen fit to repeal this law, al
though it has adopted slight modifications in regard
to taxations that were calculated to eliminate the
only objectionable feature that has been successfully
urged against legislation of this character.
IF FIVE YEARS OF SUCCESSFUL OPERA
TION IS NOT SUFFICIENT TO DEMONSTRATE
Both States ratified the Constitution in January, 1778.
The area of Georgia is 59,475 square miles.
The area of Connecticut is 4,990 square miles.
The population of Georgia nearly doubles that of Connecticut.
Wages paid in Connecticut in 1911, $87,942,628.
Wages paid in Georgia in 1911, $27,392,442.
Savings deposits in Connecticut, 1911, $284,807,844.
Savings deposits in Georgia, 1911, $11,187,057.
Hartford, Conn., annual income from Insurance Companies ap
proximately $100,000,000.
Georgia’s income from insurance companies less than $7,000,000.
GEORGIA CONTRIBUTES ANNUALLY TO FOREIGN. OR
NON-RESIDENT INSURANCE COMPANIES, OVER TEN MILLION
DOLLARS.
“Whereas, non-resident companies, having practically all of their
property, real as well as personal, outside of Georgia and not being
taxable in their home state, are relieved from this tax" (property
tax) “and therefore only pay taxes on their premiums and license
Here is an exact copy of a telegram from Hon. B. L. Gill, Insur
ance Commissioner of Texas:
“Twenty-two life insurance companies withdrew’ from Texas in July, 1907. because of the
enactment of the Robertson law. The Manhattan Life Insurance Company of New York, and the
Reliance Life Insurance Company of Pittsburg, Pa., afterwards returned to Texas. In my opinion
this law has been a benefit to this state and its citizens. - A number of Texas companies have been
organized and there is no lack of opportunity for citizens of Texas to obtain life insur
ance on account of the withdrawal of the above companies. INVESTMENTS BY
LARGE INSURANCE COMPANIES UNDER THE ROBERTSON LAW ARE NOW FAR IN
EXCESS OF WHAT THEY WERE BEFORE IT WAS PASSED. THESE INVESTMENTS
KEEP RESERVES OF ALL COMPANIES DOING BUSINESS IN TEXAS INSTEAD OF BE
ING SENT OUT OF THE STATE AS WAS DONE BEFORE THE LAW WAS PASSED.’’
A TALE OF TWO STATES
GEORGIA vs. CONNECTICUT
THE ATLANTA GEORGIAN AND NEWS. SATURDAY, J ULY 27, 1912.
THE EFFICIENCY 7 OF SUCH A LAW, IT WILL
NOT BE DEMONSTRATED IN FIFTY YEARS.
The opponents of this bill will say that all good
companies will withdraw from Georgia. Such will not
be the case. Texas called the bluff by passing a com
pulsory investment law, and is now in the full enjoy
ment of the fruits of its wisdom and foresight. As a
matter of fact, the companies'will not all withdraw
from Georgia, but the Eastern companies who are so
bitter in their opposition to the investment of a rea
sonable portion of their funds in the territory from
which they have extracted premiums, will fight every
measure of this kind introduced in this state, and final
ly conclude to accommodate themselves to the re
quirements of any state the legislature of which has
sufficient faith and courage to demand for their con
stituents a square deal in the investment of premiums,
paid by these same constituents.
The adoption of this legislation is inevitable since
it is founded merely on the right of the policyholders
of foreign corporations to require these corporations to
invest within the state of Georgia a. reasonable per
centage of the premiums that they are paying out an
nually and which go mainly direct to the East.
taxes."—From Report of Georgia Insurance Department, 1910. T
The claims of non-resident companies that they collected last year
over $7,000,000 in premiums from Georgians and paid back over $12,-
000,000 may be true, taking it for just one year.
WHY do they say they are investing in Georgia Securities more
than the Mann Bill provides they shall invest and then say “if this
law is enacted, with which it will be impossible to comply, we will
have to leave Georgia?"
WHY do the non-resident life insurance companies prefer to in
vest their “reserve" in 4 1-2 per cent bonds of the New York bond
market rather than in Georgia Mortgages at much higher rates of
interest?
WHY do the non-resident life insurance companies say 26 com
panies from other states have invested in Georgia Securities over
$50,000,000, whereas their reserve is less than $50,000,000?
WHY is it they will not STATE THE AMOUNT OF EACH COM
PANY’S RESERVE ON BUSINESS LN GEORG IA AND TELL
WHAT THESE FUNDS ARE INVESTED IN?
Take one “shining light" on this subject, a company selected at
random from the list of non-resident life companies doing business
in Georgia and see how it looks?
American Life and Annuity Company
This is from a telegram from T. W. Vardell, Chairman of the Pub
licity Committee Texas Life Convention:
“The Robertson law has undoubtedly been a benefit to the State of Texas. All companies,
both foreign and domestic, have written since its passage more business and a better class of busi
ness. Governor Colquitt stated recently that in his opinifm the people of Texas would not per
mit any change in the law. The foreign companies now doing business in Texas are greatly
pleased with their Texas investments. The foreign companies who withdrew claimed, prior to the
passage of the act, that they could not find satisfactory investments in Texas. They now state
if the law is repealed they will invest in Texas. Before the law was passed no amount of argu
ment could convince the companies that they should invest in Texas, and their actions do not
insj ire the people of Texas with confidence that they would invest if the law was repealed.’’
If some of the companies that withdrew from
Texas follow a similar policy on the enactment of a
compulsory investment law for Georgia. Georgia is
not only destined to survive the shock, but, like Texas,
to enjoy the increased investment of funds here by
those other companies who remain, as we believe that
Eastern companies after failure to make an example of
Texas, can scarcely expect to follow a similar policy
toward every other state that enacts legislation of this
kind.
The investment of these funds, as required by the
Mann bill, will eventually result in a decreased rate of
interest on farm loans. Rates of interest in this state
are too high, not by reason of the risk assumed by the
lender, but because the demand flbymoney is greater
than the supply. It will c millions of
dollars to Georgia, and aid in ufjJwltoing the state
and putting Georgia at the front as the Empire State
of the Union, w’hich title rightfully belongs to Georgia.
PLEASE WRITE YOUR REPRESENTATIVE
IN THE GENERAL ASSEMBLY TO AID SENA
TOR MANN IN SECURING A HEARING ON
THIS BILL AND ASSIST HIM IN SECURING
ITS ENACTMENT AS A LAYV.
“The Mutual Benefit Life Insurance Company of New Jersey,
than which we believe there is no better Company in America, has in
force in Georgia over FIFTEEN MILLION DOLLARS OF LIFE IN
SURANCE. THEY HAVE INVESTED IN FIRST MORTGAGES
ON GEORGIA REAL ESTATE $311,500 at 6 and 7 per cent.
This same Company has in force in IOWA about TEN MILLION
DOLLARS OF INSURANCE and has invested IN IOWA OVER SIX
TEEN MILLION DOLLARS IN FIRST MORTGAGES AT 5 per cent
and 5 1-2 per cent.
TAKE ANOTHER COMPANY:
THE UNION CENTRAL LIFE OF OHIO, one of the largest of
the companies of the Middle West.
This company has about the same amount of insurance in force
in Georgia as in Texas. THEY HAVE INVESTED IN GEORGIA
MORTGAGES SIS3,OOO—THEY HAVE INVESTED IN TEXAS
MORTGAGES ABOUT $6,000,000.
There are today as many and possibly a few’ more life insurance
companies operating in Texas under the compulsory investment law
than in Georgia. These companies have combined assets of nearly
FIVE HUNDRED MILLION DOLLARS.
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