Mr. DAVIS. Mr. Speaker, I objected yesterday to the passage of this bill because I believe the principle involved is one unsafe to the community. I have nothing to say in regard to the management of this company. It may be perfectly sound and safe in all respects. Nor will I say a company uponsuch a basis may not be properl administered so that the public interests will not suffer. But I do say, in the history of such companies wherever the have been incorporated there has been so much of fraud, so many inducements to do wrong and commit fraud, that I protest against the adoption of such a prinnciple of incorporation ere. An insurance company should have something besides the credit of premium notes which it. may hold to represent capital. It should have an active, actual capital paid in or secured. When based upon credit one disastrou night may wipe out the entire capital, and those who hold unpaid insurances to the amount of 50 to 100,000 dollars have nothing to look to except assessments upon the premium notes held by this corporation. All the security the parties dealing with the company have is the amount of $80,000 capital; yet the risks under the policies may amount to half a million or a million dollars. Now, in order to illustrate the working of this system, I will refer to the history of one or 2 companies in the State of NewYork, the affairs of which it has been my duty to investigate. In one company where this system of premium notes was adopted the directors all lived in a little village. They made a by law that they should meet every night and that every director should receive 2 dollars a session, and any member not present was liable to be fined a box of cigars or a basket of champagne, that was to be paid out of the funds of the company. Large salaries were given to traveling agents. The result. was, after issuing insurances to the amount of 100s of 1,000s of dollars, when the claims for losses came in, not. 5%. could be collected on the premium notes. The whole thing was found to be a sham and a fraud upon the community and that is the history of 4 or 5 companies in the State of NewYork. Upon these premium notes litigations Were commenced costing the parties many 1,000 dollars. Now, sir, I do not wish to see the people of the DistCol or of the adjoining States who have business with this company subjected to such frauds as these. If this company desire to increase their capital let them e allowed to contribute $30,0001n cash. With the consent of the gentleman, I will move an amendment that the company be allowed to pay in an additional cash capital of $30,000.