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VOTERS OF GEORGIA, READ AND REREAD
IN Yf. S JJ2 E^.T^ AND PREMIUM RE
CEIPTS TAXES OF LIFE INSUR
ANCE COMPANIES
SHALL INVEST,
That each and every life insurance company now engaged or that may
hereafter engage in transiting the business of life insurance In this state,
shall, as a condition of its right to transact such businass in this state, invest
and keep invested in Texas securities, as hereinafter defined, and in Texas
real estate as hereinafter provided, a sum of money equal to at least 75 per
rent of the aggregate amount of the legal reserve required by the laws of
the state of Its domicile to be maintained on account of its policies of in
surance in force written upon the lives of citizens of this state which re
serve is hereinafter denominated as Its “Texas Reserve.” And each such com
pany doing business in this state shall be deemed to have accepted such cer
tificate subject to all of the conditions and requirements of this act. (Chap
ter 122, Session Laws of 1909, page 240, section 1.)
TEXAS SECURITIES, DEFINITION OF.
The phrase “Texas Securities," as used in this act shall be held to in
clude bonds of the State of Texas, or of any county, city, town, school district
or other municipality or subdivision w'hich is now or may hereafter be consti
tuted or organized to issue bonds under the constitution and laws of thia
state, promissory notes and other obligations, the payment of which Is se
cured by a mortgage, deed of trust or other valid Hen upon unincumbered
real estate situated In this state, the title of which real estate is valid and'
the market value of which Is double the amount loaned thereon, exclusive of
buildings, unless such buildings are insured and kept Insured In some com
pany authorized to transact business in this state, and the policy or policies
transferred to the company taking such mortgage or lien; the first mortgage
bonds of any solvent corporation, incorporated under the laws of this state,
and doing business in this state, which has not in five years, next preceding
the date of the investment by such company in such mortgage bonds, de
faulted for more than three months in the payment of interest upon its
bonds or indebtedness, the market value of which bonds is equal to the
amount invested therein; and loans made to policy holders on the sole se
curity of the reserve value of their policies. And the investments required
by this act, or any part thereof, may be made by the purchase of not more
than one building site, and in the erection thereon of not more than one office
building, or in the purchase at its reasonable market value of such office
building already constructed and the ground upon which the same is located
in any city of the state having a population of more than four thousand in
habitants. And all real estate owned by life insurance companies in this
state, on December 31, 1909. and all thereafter acquired under the provisions
of this act, or by foreclosure of a Hen thereon, shall be treated, to the ex
tent of its reasonable market value, as a part of the investments required by
this act. And “Texas Securities” as used in the following sections of this act
shall be held to include every character of investment authorized by the terms
of this section. (Chapter 122, Session Laws of 1909, section 2.)
INVESTMENTS SHALL BE MADE, HOW.
The investments required by this act shall be made as follows:
(a) Each life insurance company which has a certificate of authority to
transact business In this state when this act takes effect, the total amount of
whose investments In “Texas Securities” as of December 31, 1908, was equal
to er exceeded 75 per cent of the amount of its "Texas Reserves” as of that
date shall have so invested not later than January 31, in each year, a sum
of money equal to 75 per cent of the amount of its "Texas Reserves” as of
the preceding December 31.
(b) Each life Insurance company having a certificate of authority to trans,
act business fn this state when this act takes effect, the amount of whose In
vestments in “Texas Securities” as of December 31, 1908, was less than 75
per cent of the amount of Its "Texas Reserves” as of said date, shall have "
so Invested not later than January 31 in each year, a sum at least equal to
75 per cent of the amount by which its “Texas Reserves” as of December 31,
preceding exceeded the amount of its "Texas Reserves” as of December 31,
1908, added to the amount of its total investments in “Texas Securities” as
of said date; and each such company shall, in addition, have so invested not
later than January 31, 1910, a sum at least equal to 10 per cent of the
amount by which 75 per cent of its “Texas Reserves” as of December 31, 1908,
exceeded the amount of its investments In “Texas Securities” as of said date,
and annually thereafter it shal have Invested not - later than January 31, an
additional 10 per cent of the amount of such excess, until the total hmount of
Its investments In "Texas Securities” shall at least equal 75 per cent of its
"Texas Reserves."
(c) Each life Insurance company not having a certificate of authority to
transact business in this state when this act takes effect, or that may there
after discontinue writing new business under such certificate, shall, if it again
obtain a certificate of authority to transact business in this state, be required
to have Invested in "Texas Securities” annually as above provided, a sum
equal to 75 per cent of its “Texas Reserves:” provided, that if on December
31, preceding the issuance of such certificates of authority the amount of its
investments in "Texas Securities” was less than 75 percent of the amount of
its "Texas Reserves” it shall be Required to have so Invested annually, as
above provided, a sum equal to 75 per cent of the increase in its “Texas Re
serves” since December 31 last preceding the issuance of Its certificate of au
thority, added to the amount of its total investment In “Texas Securities” as
of said date; and in addition it shall, not later than January 31 in each year
after the issuance of its certificate of authority, have so invested 10 percent
of the amount by which 75 per cent of its "Texas Reserves” as of December
31 preceding the date of said certificate exceeded the amount of its total in
vestments in “Texas Securities" as of that date, and shall have invested
annually thereafter, not later than January 31. an additional 10 per cent of
such excess, until the total amount of its investments in "Texas Securities"
shall at least equal 75 per cent of the amount of its "Texas Reserves.” The
proportionate amount of the “Texas Reserves” required by this section to be
invested in "Texas Securities" as of any date shall thereafter be. maintained;
provided, that such investment shall not be required to be made by any life
Insurance company after it has ceased to do the business of life insurance or
to write policies of life insurance in this state. (Chapter 122, Session Laws of
1909, section 3.)
SHALL FILE REPORT OF RESERVES.
That each life Insurance company doing business in this state shall, not
later than ten days after January 31 of each year, file with the commissioner
of insurance and banking of this state, on a blank prepared and furnished him
for that purpose, a report showing the entire amount of the reserve on its
entire business in force tn this state on December 31, preceding, and an item
ized schedule of its investments in "Texas Securities." which report shall be
sworn to by either the president or a vice president and the secretary of such
company. Such report shall contain such other information as may be re
quired by the commissioner to determine whether or not such company has
continuously and in good faith complied with this law, and for that purpose
the commissioner may. whenever he shall deem it proper, require such spe
cial or supplemental reports as he may deem necessary. (Chapter 122, Ses
sion Laws of 1909, section 4.)
That no occupation tax other than herein imposed shall he levied by the
state or any county, city or town upon any life insurance company herein
subject to the occupation tax in proportion to its gross premium receipts,
or its agents. The occupation tax imposed by this act upon life Insurance
companies shall be the sole occupation tax which any company doing busi
ness in this state under the provisions of this act shall be required tn pay aft
er this act shall take effect. (Chapter 122, Session Laws of 1909, section 6.)
CHAPTER 122, SESSION LAWS OF 1909, SECTION 7.
That each life insurance company not organized under the laws of this
state hereafter granted a certificate of authority to transact business in this
state shall be deemed to have accepted such certificate and to'transact such
business thereunder subject to the conditions and requirements that after it
'hall cease to transact new business in this state under a. certificate of au
thority ami so long as it shall continue to collect renewal premiums from cit
izens of this state it shall be subject to the payment of the same occupation
tax in proportion to its gross premiums during any year, from citizens of this
state as is or may be imposed by law on such companies transacting new busi
ness within this state under certificates of authority during such year; pro
vided that the rate of such tax to be so paid by any such company shall
never exceed the rate imposed by this act upon insurance companies trans
acting business in this state, and each such company shall make the same
reports of its gross premium receipts for each such year and within the same
period as is or may be required of such companies holding certificates of au
thority; and shall at all times be subject to examination by the commis
sioner of insurance and banking or some one selected by him for that pur
pose, In the same way and to the same extent ns is or may be required of
companies transacting new business under certificates of authority In this
state, the expenses of such examination to be paid by the company exam
ined; and the respective duties of the commissioner of Insurance and hank
ing In certifying the amount of such taxes and of the state treasurer and
attorney general fn their collection shall be the same as are or may be pre
scribed respecting taxes due from companies authorized to transact new
business within this state.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 8.
That any life insurance company which has heretofore been, may now
be. or may hereafter be engaged In writing policies of insurance upon the
lives of citizens of this state, which has heretofore ceased or may hereafter
cease writing such policies and which does not now or may not hereafter have
a certificate of authority to transact the business of life Insurance in this
state, but which has continued or may continue to collect renewal or other
premiums upon such policies, shall, before it may again obtain a certificate
"f authority to transact the business of life insurance In this state, report
under oath to the commissioner of Insurance and banking of this state, the
gross amount of premiums so collected from citizens of this state upon poli
cies of insurance during each calendar year since the end of the period cov
ered by the last preceding report by such company of gross premium receipts
upon which it paid an occupation tax. and shall pay to the state a sum equal
Io the percentage of its gross premium receipts for each such year that was
required by law to be paid as occupation taxes by companies doing business
In this state during such year or years and upon the payment of such sum
and securing a certificate of authority to do business in this state the penal,
tics provided for the failure to pay such taxes and make such reports in the
oast shall be remitted.
THE ATLANTA GEORGIAN AND NEwib. _
CHAPTER 122, SESSION LAWS OF 1909, SECTION ».
Any company which shall fail to renew its certificate of authority or con
tinue to write new business In this state shall, nevertheless, have the right
to maintain an agent or agents in Texas for the purpose of collecting re
newal premiums on outstanding business written by it under a certificate of
authority, and also for the purpose of making Investments as provided by this
act.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 10.
If any life Insurance company, while holding a certificate of authority to
transact business in this state, shall fail or refuse to comply with any of the
provisions or requirements of this act. It shall be the duty of the commis
sioner of Insurance and banking, upon ascertaining such fact, to notify such
company by registered letter properly addressed and mailed, or by any other
form of actual notice in writing delivered to an executive officer of such
company, of his inftntion to revoke its certificate of authority to transact
business in this state at the expiration of thirty days after the mailing of
such registered letter, or the date upon which such actual notice is served;
and If such provisions or requirements are not fully complied with upon the
expiration of said thirty days. It shall be the duty of the commissioner of in
surance and banking to revoke the certificate of authority of such company,
and In case of such revocation such company shall not be entitled to receive
another certificate of authority for a period of one year and until it shall have
fully and In good faith complied with al! provisions and requirements of this
act. Any company feeling itself aggrieved by the action of the commissioner
In revoking Its certificate of authority to do business In this state may bring
suit against him In the court of Travis County, having jurisdiction thereof,
to annul and vacate the order revoking such certificate.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 11.
If any company shall intentionally fail or refuse to make the invest
ments required by this act or make any report required by this act or to
make any special report requested by the commissioner of insurance and
banking under the authority of this act. or generally to comply with any pro
vision or requirement of this act. while holding a certificate of authority to
transact business In this state, or after It shall cease to write new business or
cease to hold such certificate, such failure or refusal shall subject such com
pany in addition to the penalty provided in section 10, in cases to which said
section may be applicable, to the payment of a penalty of twenty-five dollars
($25) per day for ellch day that such company shall remain In default after
the commissioner of Insurance and banking shall, notify such company of
such default In the manner provided In section 10 hereof, to be recovered in a
suit to be brought by the attorney general in behalf of the state in the district
court of Travis county. And in any suit that may be brought to recover
such penalty or penalties there shall be a prima facie presumption subject, to
rebuttal that any default that may have occurred was intentional, and that
the notice required by this act was given and the burden of proof shall be on
the defendant company to prove that the investments required by this act
were made as herein required whenever the question of whether or not such
investments were thus made is in issue.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 12.
That each life insurance company engaged In doing or desiring to do
business in this state shall file with the commissioner of Insurance and
banking of this state an irrevocable power of attorney duly executed consti
tuting and appointing the commissioner of insurance and banking of this
state and his successors in office, or any officer or boat'd which may here
after be clothed with the powers and duties now devolving upon said commis
sioner, its duly authorized agent and attorney in fact for the purpose of ac
cepting service for it or being served with citation in any suit brought
against it in any court of this state, by any person, or by or to or for the use
of the state of Texas, and consenting that the service of any civil process
upon him as its attorney for such purpose In any such suit or proceedings
shall be taken and held to be valid, waiving all claim and right to object to
such service or to any error by reason of such service; and such appoint
ment. agency and power of attorney shall by its terms and .recitals provide
that it shall continue and remain In force and effect so long as such company
continues to do business in this state or to collect premiums of insurance
from citizens of this state, and so long as ft shall have outstanding policies
in this state and until all claims of every character held by the citizens of
this state, or by the state of Texas against such company shall have been
settled. And said power of attorney shall be signed by the president or a
vice president and the secretary of suoh company, whose signatures shall be
attested by the seal of the company, and said officer signing the same shal!
acknowledge its execution before an officer authorized by the laws of this
state to take acknowledgments; and the said power of attorney shall be em
bodied in and approved by a resolution of the board of directors of such com
pany and a copy of such resolution duly certified to by the proper officers of
said company, shall be filed with the said* power of attorney in the office of
the commissioner of insurance and banking of this state, and shall be record
ed bj’ him in a book kept for that purpose, there to remain a permanent rec
ord of said department.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 13.
That whenever the commissioner of insurance and banking of this state
shall accept service or be served with citation in any suit pending against
any life insurance company in this state as provided by Section 12 of this act,
he shall immediately inclose the copy of the citation served upon him, or a
substantial copy thereof, in a letter properly addressed to the general mana
ger or general agent of the company against whom such service is had; If it
shall have a general manager or general agent within this state, and if not,
then to the home office of the company and shall forward the same by reg
istered mail, postage prepaid, and no judgment by default shall be taken in
any such cause until after the expiration of at least ten days after the gen
eral agent or general manager of such company or the company, at its home
office, as the case may be, shall have received such copy of such citation, and
the presumption shall obtain, until rebutted, that such notice was received by
such agent or company in due course of mail after being deposited in the mail
at Austin.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 14.
Any life insurance company, organized tinder the laws of this state, may,
at its option, deposit with the treasurer of this state securities in which its
capital stock is invested, or securities equal in amount to its capital stock, of
the class in which the law of this state permits insurance companies to in
vest their capital stock, and may, at Us option, withdraw the same or.any part
thereof, first having deposited with the treasurer, in lieu thereof, other secur
ities of like class and equal amount and value to those withdrawn. Any such
securities before being so originally deposited or substituted shall be approved
by the commissioner of insurance and banking, and when any such deposit
is made the treasurer shall execute to the company making such deposit a
receipt therefor, giving such description of said stock or securities as will
identify the same, and stating that the same are held on deposit as the capi
tal stock investments of such company and such company shall have the
right to advertise such fact or print a copy of the treasurer's receipt on the
policies It may issue; and the proper officers or agent of each insurance com
pany making such deposit shall be permitted at all reasonable times to ex
amine such securities and to detach coupons therefrom and to collect interest
thereon, under such reasonable rules and regulations as may be prescribed by
the treasurer and the commissioner of insurance and banking of this state.
The deposit herein provided for, when made by any company, shall there
after be maintained so long as sard company shall have outstanding any lia
bility to its policy holders in this state.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 15.
That any life insurance company which has deposited securities with the
state treasurer or other depositary in accordance with the terms of the act of
the Thirtieth legislature of the State of Texas, approved April 24, 1907, and
published and known as Chapter CLXX of the general laws of the Thirtieth
legislature, and which act is repealed by Section 19 of this act, may withdraw
from such depositary any securities so deposited upon tile execution and de
livery to the state treasurer or other depositary of a proper receipt for such
securities, which receipt shall release the state treasurer or such other deposi
tary of all further liability on account of such deposit.
CHAPTER 122, SESSION LAWS OF 1909. SECTION 16.
That tile provisions of this act requiring investments In "Texas Securi
ties" shall not apply to any life insurance company the total amount of whose
“Texas Reserves” does not exceed $5,000, or to any such company doing only
a reinsurance business in this state, but all of the' other provisions of this act
shall apply to such companies.
CHAPTER 122, SESSION LAWS OF 1909. SECTION 17.
The provisions of this act shall not lie held to apply to fraternal bene
ficiary associations as defined by the laws of tills state.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 18.
That any life Insurance company not desiring to engage in the business
of writing life insurance in this state, but desiring to loan its funds in this
state, may obtain a permit to do so by complying with the laws of this state
relating to foreign corporations engaged in loaning money in this state with
out being required to secure a certificate of authority to w rite life insurance
in this state.
CHAPTER 122, SESSION LAWS OF 1909. SECTION 19.
That the act of the legislature of Texas, approved April 24. 1907, and pub
lished and known as chapter t'LXX of the General Laws of the Thirtieth leg
islature. entitled "An act to require all incorporated or mutual companies
doing .a life Insurance business within this state, to Invest a part of the re
serve set apart on account and for the final payment of policies of Insurance
written on the lives of citizens of Tex is In Texas and other securities and
Texas property, or in the bonds of the United States or any state of the
United States, and to define Texas securities and the property in which such
Investment may be made and to require that a part of the securities in which
such reserve is invested be kept on deposit In the vaults of the treasury of
this state, or in national or state banks or trust companies in Texas, desig
nated as depositaries for the security of policyholders, and declaring an emer
gency,” be, and the same is hereby, repealed, and also that ail other laws or
parts of laws in conflict with the provision of this act, be, and the same are
hereby, repealed; provided, that nothing in this act shall be held or con
strued to affect or destroy any rights of the state of Texas to collect penal
ties or gross receipts taxes from any life insurance company that withdrew
from the state after January 1. 1907, but continued to collect premiums and
■ issue renewal receipts on policies therefore issued, as provided by the terms
of section 8 of the act passed at the first called session of the Thirtieth leg
islature, approved May 16, 1907, and published and known as chapter XVIII
of the laws of said session of said legislature, providing for the levy of oc
cupation taxes, and all taxes not due, or hereafter to become due, under
the provisions of said act, shall be and remain collectible by the state as
provided therein, without prejudice to the state or to any company taking
the benefit of the provision of this act.
CHAPTER 122, SESSION LAWS OF 1909, SECTION 20.
The fact that by reason of an error of engrossing in the enactment of
said act, approved April 24, 1907, and repealed by section 19 of this act, life
insurance companies now transacting business in this state are not allowed
credit on their required Texas Investments for loans to Texas policyholders,
unless the total amount of such loans equals 25 per cent of the total reserve
on Texas policies, creates an emergency and an imperative public necessity
exists that the constitutional rule requiring bills to be read on three sep
arate days, be, and the same Is hereby, suspended, and that this act take
effect and be In force from and after Its passage, and It is so enacted.
OPINIONS UPON THE ROBERTSON LAW.
A letter from the president of the New York Life Insurance Company
early in February, 1912, to the commissioner of insurance and banking of
Texas, stating that his company might be willing to do voluntarily that which
it refused to do under compulsion probably Indicates the only remaining ob
jections which the outside companies have to the Robertson law.
The following representative quotations are Interesting:
STATEMENT OF HON. R. T. MILNER. ‘ ’
“It has been the policy of this department to encourage and foster i
spirit of home enterprise, believing that we have men possessing business ac
umen and Integrity sufficient to build up and manage large Insurance com
panies. It requires no higher order of business ability to manage insurant*
than It does a bank or a cotton mill. The wisdom of a more equitable dis
trlbutlon of the premiums which the people pay for Insurance is apparent t<
every right-thinking person. There is no sound reason why the state o
Texas can not carry a large majority of its risks upon both life and fire,
and thereby reserve millions of dollars for the development of our almost
unlimited resources, Instead of retarding the progress of our country by send
ing its money to distant fields for Investment. In this connection it Is a
source of much gratification to know that this spirit Is taking deep root in
the minds of our people, and In spite of Eastern companies and their foot
men, who hold themselves 1n readiness to do their bidding, to thwart the
efforts of the South and West in establishing and building up Insurance com
panies of their own, the trend of thought Is along sane lines, and the home
company 1s given the preference. Public policy and sound business intelli
gence dictate a change, such as the people of Teifat are manifesting in buy
ing their Insurance at home, since It Is equally m safe, as no one well In
formed will attempt to raise the integrity and honesty of foreign companies
above the honor of the home companies.”— Extract from report of Hon. R. T.
Milner, commissioner of agriculture, insurance, statistics and history. Au
gust 31, 1907.
COLONEL ROBERT E. COWART.
“It is also urged that Texas securities are so limited in amount thatthsy
can not be obtained as a security, for the business done. This objection has
a very strange and sinister sound. It means that these companies
annually take out of Texas more money than they can
safely Invest in it. If the time has come when the $10,000,000 an
nually paid out by Texas policy holders to Eastern companies can not be
safely Invested here, and must be paid to the companies In other states tn
order that it may be invested In those states and managed and controlled
for the direct benefit of the companies In those other states, the good people
of Texas are smitten with industrial and commercial paralysis and our policy
holders are abject slaves of aliens and foreigners."—Colonel Robert E. Cow
art in Farm and Ranch, August 24, 1907.
FARM AND RANCH.
"All of the surplus funds arising from the great volume of insurance
business done in this country has for years been placed at the disposal of cer
tain corporate Interests for the exploitation of the plain business and com
mon people of this country. This stream of cheap money has flowed into the
channel already made for it by the tariff protected industries of the East,
which center in Wall street.” —Farm and Ranch, September 7, 1907.
GOVERNOR COLQUITT.
Governor O. B Colquitt, in addressing a convention of life Insurance
men at San Antonio on February 29, 1912, stated that in his opinion It would
be useless to attempt to bring about a repeal of the Robertson law during his
Incumbency.
HON. B. L. GILL..
“When the Robertson law became effective 21 life companies withdrew
from Texas. Two of them have since returned and are still doing business
here. The withdrawal did not seriously affect the procurement of life insur
ance by the citizens of this state. Many new and solvent companies were or
ganized In Texas, the premiums on life Insurance were kept in Texas, and the
investments of life Insurance companies under the Robertson law have also
served to keep money spent for life insurance in Texas, and the law generally
has stimulated and enhanced the value of Texas securities.
“Some of the withdrawn companies have Indicated a desire to re-enter
Texas, for the sole purpose of Investing in its securities. In my opinion, gen
eral results have been good and are generally approved by our people.”—Ex
tract from letter of Hon. B. L. Gill, commissioner of insurance and banking, to
T. M. Perry, insurance commissioner of the state of Mississippi.
THE HOUSTON CHRONICLE.
“Texas municipalities are apparently up against a boycott instituted by
the great New York insurance companies. Hitherto these companies, and oth
ers of the kind tn the East, have been among the best buyers of municipal
bonds. Texas bankers say these big companies, or some of them, have de
clared their intention to buy no more Texas municipal bonds, byway of pun
ishing Texans for having 'driven Eastern insurance companies out of the state.'
This, it is stated, is the explanation of the difficulty lately experienced by
Texas cities and counties in marketing their bond issues.
“It is every insurance company’s privilege to cut off Its nose to spite Its
face. If it be true that some of the big Eastern companies have put the ban
on Texas, as a means of getting vengeance, we wish them joy of It. Texans
will plug along without them. Texas people who formerly sent Insurance pre
miums East will hereafter, in even larger numbers, pay those premiums to
good Texas companies. The funds created by such premium payments will
stay in Texas and be invested here. They will gradually build up a home
market for Texas municipal bonds. The home insurance company will draw
the interest on the bonds. The money will help build up Texas Instead of
helping to build up Eastern states.
“All Texas ever asked of the Eastern Insurance companies was that they
should invest in Texas a proper portion of the funds which they drew from
Texas policy holders. Some of them turned up their noses and got out. Oth
ers met the requirement and stayed here. Home companies, financed by Tex
as men. took up the places vacated by the arrogant down-Easterners who
were willing to take money out of Texas, but unwilling to take a chance on
Texas.
“Texas is getting along all right without them. We don’t care if they
never come back.” —Editorial Houston Chronicle, Sunday. December 17, 1911.
FARM AND RANCH.
“Since the Robertson law became effective Texas has benefited. That
law has not operated to choke business development. On the contrary, there
has been a decided impetus directly traceable to the fact that these companies
pulled out; and we are Informed that this kind of development has but just
begun. We may ask. when did a life insurance company that took the money
of Texas policy holders Invest in Texas securities to the extent of three
fourths of its Texas reserve fund before the Robertson bill became a law.
"It is readily apparent that the Robertson law has stopped an enormous
drain u)«>n the .surplus wealth of this state, and has caused that surplus to
be used for the further development of Texas.
"Notwithstanding this fact. Farm and Ranch has been informed that an
effort to destroy the usefulnes of this law will be made at the next legisla
ture. Such an act we regard with hostile eyes, and will fight it to the last
ditch.
"The people are satisfied with the law we have. It has made good, Just
as the homestead law has made good. And tffday, with the homestead law,
it stands upon our statutes as one of the very best laws ever enacted for
the benefit of the people of Texas.
“Leave the Robertson law alone and 'Let Texas Grow.’” —Extract from
Farm and Ranch, February, 1912.
DALLAS MORNING NEWS.
“The reports of the proceedings at Houston indicate that a majority of
the members of the commission were favorably Impressed with the showing
made by the Texas life insurance companies in favor of retaining the Robert
son law. for it was shown that much more money had been invested by life
insurance companies In Texas since the enactment of that law that was so In
vent'd theretofore. The law as originallj passed whs objectionable in several
of its features, notably in the provision which required the deposit in Texas
of the securities purchased in this state, which deposit, among other things,
would subject the securities to local taxation. The Texas insurance men ad
mit that this feature was objectionable and that it justified companies in
withdrawing from the state. Hut the law was amended in 1909, removing this
feature, ami the companies which retired no longer have that excuse for re
maining away. The law now imposes no greater burden upon foreign com
panies than it does upon those organized in Texas; indeed, as a matter of
fact, It taxes the Texas companies heavier than it does the foreign companies.
"Regardless of theoretical reasoning in advance, It does seem that, judg
ing the law by its fruits, fair-minded persons must admit that it has worked
well. The purpose of the law is to require life insurance companies to invest,
in T< xas the bulk of the funds which they collect in Texas and hold in trust
for Texans. Before this law was passed such companies did not Invest any
considerable amount of such funds in this state, and there is nothing to
assure us that they would pursue a different policy were they permitted to
return, freed from requirements.
“Therefore, and in view of the further fact that there is no really good
rea-on for any company refusing to comply with the terms of the law, we
believe that the law should be permitted to stand. In so saying, we are
mindful of the force of the assertion of Colonel John N. Simpson, a member
of the welfare commission, tn the effect that nn mutter what agreement the
welfare commission should reach, the people of Texas probably would object
to epealing the Robertson law. -Editorial, Dallas Morning News, April 19,
1912.