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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 American Life and Annuity Company GEORGIA vs. CONNECTICUT Both States ratified the Constitution fn 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 hope 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 EAR LN EXCESS OE WHAT THEY WERE BEFORE IT WAS PASSED. THESE INVESTMENTS KEEP RESERVES OE ALL COMPANIES DOING BUSINESS IN TEXAS INSTEAD OE BE ING SENT OUT OE THE STATE AS WAS DONE BEFORE THE LAW WAS PASSED.” THE ATLANTA GEORGIAN AND NEWS A TALE OF TWO STATES THE EFFICIENCY 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 ease. Toxas 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. 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 thaq 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 IN GEORGIA 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 i in Georgia and see how it looks? 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 opinion 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 inspire the people of Texas with confidence that they would invest if the law was repealed.” * " f 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 for money is greater than the supply. It will certainly*bring millions of dollars to Georgia, and aid in the state and putting Georgia at the front as the Empire State of the Union, which 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 LAW. “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. t 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.