THE OMAHA SUNDAY BEE
35
Magnitude of Insurance Interest in Nebraska
A Drain Upon Nebraska's Resources and How It May Be Stopped
O
NE of the heaviest drains
upon Nebraska's resources
is the amount of Nebraska
money that annually leaves
the state most of it never to return
in the shape of premiums upon
life and fire insurance policies. Un
less one has given the matter careful
study, delving into the statistics, one
has no idea of what this terrific drain
means. But when it is made clear
that during the last two decades, be
tween the years 1891 and 1911, In
clusive, Nebraskans have sent out of
the state insurance premiums to the
amount of upward of $100,000,000,
receiving less than $30,000,000 back
in the shape of losses paid, it must
begin to dawn upon the minds of the
thoughtful that something should be
done to put a stop to the drain. The
superficial observer may say that
much of this money comes back in
the shape of loans upon Nebraska
real estate, but this simply means an
added drain, because interest must
be paid upon loans.
Keep Nebraska Money in Nebraska
Ther is no reason, in common
sense or common justice, why the
Nebraska money paid for insurance
upon Nebraska lives and Nebraska
property should not be retained in
Nebraska, and by the simple expedi
ent of fostering and building up the
insurance business in our own state.
That insurance just as secure could
bo purchased in Nebraska as else
where is axiomatic. It has been
done and should be done again.
But there are, seemingly, two things
operating against the successful
growth of Nebraska insurance com
panies fire and life. One is the
too common belief that something
purchased abroad is superior to
something purchased at home; an
other is the constant nagging, the
constant hampering, of local com
panies. Not a session of the legis
lature convenes that there is not a
flood of "insurance bills," most of
them introduced by would-be reform
ers whose knowledge of the insurance
business is nil; others are merely
"hold-up" bills, introduced for the
purpose of being killed for a con
sideration; others are introduced by
designing men who are interested in
preventing the firm establishment of
life and fire insurance companies in
Nebraska. That there is need of in
surance legislation no one acquainted
with the situation will deny. But it
Alliance, One of Live Railroad Towns of Northwestern Nebraska
is sheer nonsense to expect young in
surance companies in Nebraska to
grow and prosper under the regula
tions and restrictions that an old
state like New York is able to impose
because of the enormous growth of
its great insurance companies. The
Equitable and the New York Life,
with their scores of .millions of as
sets and their enormous volume of
business, are able to thrive under
regulations and restrictions, which,
if imposed in Nebraska, would make
It utterly impossible for a local com
pany even to get started.
Unreasonable Requirements
Some of the "reforms" advocated
by Nebraskans are little short of
foolish and in any event would
spell ruin sooner or later. For in
stance, it Is demanded that all Ne
braska insurance companies deposit
their securities with the state audi
tor. To be worth while these securi
ties would have to be negotiable by
the auditor. Yet local insurance
rompanies are asked to deposit some
thing like $30,000,000 of negotiable
securities with an auditor bonded for
only $50,000, and an insurance dep
uty bonded for only $10,000, and
without the guarantee of the state
that any loss by reason of the audi
tor's incompetency or dishonesty
would be made good. The purpose
McCa
gue
h
estment
Company
OMAHA, NEBRASKA
INVESTORS IN
Central Business Property,
Railroad Trackage Property,
and Income Real Estate
Also GENERAL INSURANCE
Representing Strong Old Line Companies Only
