keep invested in Texas securities and in Texas real estate, as hereinafter provided, a sum of money equal to at least seventy-five per cent of the aggregate amount of the legal reserve set apart and apportioned to policies of life insurance written on the lives of citizens of this State; provided, that any such company upon making it to appear to the satisfaction of the Commissioner of Insurance of this State that it can not safely invest said part of the said reserve or any part thereof in Texas securities or Texas property as provided by this act, may upon being authorized so to do by said Commissioner, invest so much of the same as can not be so invested in the bonds of the United States or of any State of the United States.

SEC. 2. The phrase "Texas securities" as used in Section 1 of this act, shall be held to include the bonds of the State of Texas; or of any county, city, town or school district in this State; mortgages upon unincumbered real estate situated in this State to an amount not to exceed the amount now permitted by the law of this State, to be loaned thereon by companies incorporated under the laws of this State; the stock of any solvent National bank doing business in this State; the stock of any State bank organized under the laws of this State and doing business in this State; provided, that not more than forty per cent of the stock of any such bank shall be owned by insurance companies; the first mortgage bonds of any solvent dividend-paying corporation incorporated under the laws of this State and doing business in this State, which has never defaulted in the payment of interest thereon; and loans made to policy holders against the reserve value of their policies; said companies may respectively invest the said funds representing the said reserve in the purchase of not more than one building site and in the erection thereon of not more than one office building in any city of this State having a population of more than twenty-five thousand inhabitants, and in case of investment in such real estate, the amount so invested may be treated as a part of the reserve required to be invested in Texas securities and property. Provided, that the Insurance Commissioner of the State shall be empowered to waive the requirements of this act, or any part thereof, upon a sufficient showing by any company affected by the provisions hereof, that it can not obtain the securities named in Sections 1, 2 and 3 of this act without a sacrifice of the interest of its policy holders, and the Insurance Commissioner shall have the authority to judge of the sufficiency of such showing.

SEC. 3. That all bonds, stocks, mortgages and securities (except policies upon which loans may be made) in which the seventy-five per cent of the insurance reserve belonging or apportioned to policies upon the lives of citizens of Texas, shall be invested as above provided, shall be by the company so investing deposited in the vaults of the Treasury of the State of Texas or with any National bank in this State designated and appointed by the Comptroller of the Currency as a depository for moneys and funds belonging to the United States, or with any State bank or trust company or National bank in this State authorized and appointed by law as a depository for State moneys and funds, and the president of any depository in which any such securities are deposited shall forward to the State Treasurer of this State quarterly,

or whenever demanded by him, a statement of the character and. amount of the securities so deposited and such securities shall at all times be subject to the payment of any money that may become due on any of such policies of insurance; provided, that no securities when deposited under the provisions of this act, shall be withdrawn without authority, in writing, from the State Treasurer.

SEC. 4. That insurance companies which have loaned, or which may hereafter loan, to Texas policy holders on the sole security of their policies more than twenty-five per cent of the entire reserve, shall only be required to invest in Texas securities the remainder of the said seventy-five per cent of the reserve.

SEC. 5. That the investment and the deposit provided for in this act shall be made of the reserve, on account of current business at least every six months, that is to say, each company shall on or before the thirtieth day of June and the thirty-first day of December of each year invest and deposit the amount of reserve required by this act, on account of the accumulated reserve for the preceding six months. And as to the part of the accumulated reserve upon policies heretofore written upon the lives of citizens of this State and required by this act to be invested and deposited in this State, each company shall have until the first day of January, 1908, in which to invest and deposit twenty-five per cent of the whole amount of such accumulated reserve required by this act to be so invested and deposited, and thereafter each company shall invest and deposit twenty-five per cent of such part of the said accumulated reserve every six months until the whole amount of the reserve required by this act has been so invested and deposited.

SEC. 6. That insurance companies organized and having their domicile in States of this Union wherein at this time, by the law of such home State, such company or companies are required to deposit with officers within the home State securities covering the entire reserve upon the business transacted in that State and all other States, in such manner to secure equally all policy holders of such company, shall have two years after this act takes effect in which to comply with the provisions of Section 3 of this act. Provided, that the fact of such deposit in the home State shall be shown to the Commissioner of Insurance, Statistics and History of this State by a certificate under the hand and seal of the proper officer of the home State of such company or companies.

SEC. 7. That each insurance company doing business in this State and coming within the provisions of this act, shall within thirty days after the thirtieth day of June and thirty-first day of December of each year, file with the Commissioner of Insurance, Statistics and History of this State, a statement duly executed and sworn to by either the president or secretary of the company, showing the entire amount of the reserves on its entire business in force in this State on June 30 and December 31, respectively, and an itemized schedule of its investments in Texas property and Texas securities, which shall also be sworn to.

SEC. 8. That any insurance company coming within the provisions. of this act, or the stockholders thereof, may, in addition to the deposit.

required by this act, at its or their option, deposit with the Treasurer of this State the capital stock or any part thereof, of such company, or securities covering such capital stock, and may, at their option, withdraw or substitute such stock or securities so voluntarily deposited; provided, that the substituted securities shall be approved by the Insurance Commissioner.

SEC. 9. That upon the deposit in the Treasury or any of the above mentioned depositories in this State of any securities or stock provided by this act, the Treasurer of this State or president of such bank shall execute to the company making the deposit a receipt therefor, giving such description of the said securities or stock as will identify the same, and stating that the same are held on deposit for the company depositing the same, and any company making such deposit and holding such receipt shall have the right to advertise such fact, or to print the same upon the policies it may issue.

SEC. 10. That the proper officers and agents of each insurance company making a deposit of securities, as provided by this act, shall be permitted at all reasonable times to examine its securities and to detach coupons therefrom, and to collect all interest thereon under such reasonable rules and regulations as may be prescribed by the Treasurer and the Commissioner of Insurance, Statistics and History of this State.

SEC. 11. It shall be the duty of the Commissioner of Insurance, Statistics and History of the State to cause the terms of this law to be enforced, and the deposit required hereby to be made and kept up at all times, so that the same, together with any investment in real estate, as hereinbefore provided, shall at all times be equal to at least the amount of the reserve, as provided by this act. But the Commissioner of Insurance, Statistics and History may, in his discretion, permit the withdrawal of any of such securities and the substitution of other like securities in their stead, so that the required amount be kept on deposit; and upon the failure of any insurance company to make the investments and deposits required by this act, the Commissioner of Insurance, Statistics and History shall report such failure to the Attorney General, who shall institute suit in the district court of Travis county, Texas, to forfeit the permit of such company to do business in this State.

SEC. 12. The provisions of this act shall not be held to apply to any benevolent association without capital stock, and doing business. upon the assessment plan.

SEC. 13. The fact that there is no law in this State requiring the investment of the reserve apportioned or belonging to insurance policies upon the lives of citizens of Texas, in Texas securities, and the protection of such reserve by requiring them to be deposited in the treasury of this State, creates an emergency, and an imperative necessity exists that this Act take effect and be in force from and after its passage, and it is so enacted.

Approved April 24, 1907.

Takes effect ninety days after adjournment.

PASTEUR HOSPITAL-PROVIDING FOR FEES.

H. B. No. 483.]

CHAPTER CLXXI.

An Act to amend Chapter 125 of the Acts of the Twenty-eighth Legislature, being entitled "An Act for the creation and maintenance of a pasteur hospital for the treatment of hydrophobia, so as to provide for the disposition of fees paid by non-indigent patients, and declaring an emergency.

Be it enacted by the Legislature of the State of Texas:

SECTION 1. That Section No. 3 of Chapter 125 of the Acts of the Twenty-eighth Legislature shall hereafter read as follows:

Sec. 3. All indigent patients shall be treated and maintained at the expense of the State, but all non-indigent patients shall be kept and maintained at said hospital at their own expense, or that of the relative, friends or guardians. Laws pertaining to the introduction and control of said patients shall be the same as those applying to the institution with which said hospital is connected. All fees collected from non-indigent patients shall be used as the Board of Managers and Superintendent may direct for the support and maintenance of said hospital; provided that the Board of Managers and Superintendent may allow such additional compensation not to exceed two hundred and fifty dollars ($250) per annum to the assistant physician who does the work of this department out of such fees collected as may be justified by the extra amount of labor required of said assistant.

SEC. 2. Whereas, the crowded condition of the calendar and the probability of an early adjournment render it impracticable that this bill can be reached and read on three several days, as provided by the Constitution; therefore an imperative public necessity exists that the constitutional rule requiring bills to be read on three several days be and the same is hereby suspended, and this bill take effect from and after its passage, and it is so enacted.

Approved April 24, 1907.

Takes effect ninety days after adjournment.

LANDS-PROVIDING FOR SALE OF LANDS ON MUSTANG ISLAND.

An Act providing for the sale of lands constituting portions of the public domain of this State and situated upon Mustang Island, and for the patent thereof; providing for the appraisement of the value of such lands; adopting with reference to such sales the provisions of existing laws concerning the sale of school lands, in so far as they are applicable; prohibiting for six months the leasing of such lands, and providing that all leases thereafter made shall be made subject to sale; providing for the disposition of proceeds of sales of such lands, and declaring an emergency.

Be it enacted by the Legislature of the State of Texas:

SECTION 1. The Commissioner of the General Land Office is hereby authorized to sell any and all lands situated upon Mustang Island

constituting portions of the public domain. Such sales shall be in tracts of not less than one and not more than ten acres each and no such tract shall have a water front of more than half the depth of such tract. Such sales shall be for cash, or one-half cash and the balance in one year, with interest thereon at five per cent per annum, the purchaser to have the privilege of paying, at any time, the balance of the purchase money with interest to date of payment, any person or persons who have for the three years next preceding the date which this Act shall take effect, resided continuously upon any portion of such land shall, for ninety days after the taking effect of this act, have a preference right to the purchase, without further condition of occupancy, not less than one nor more than ten acres thereof, embracing such place residence; but the application of such person or persons to purchase such lands shall be accompanied by affidavits in writing of such applicant, or applicants and three disinterested creditable residents, citizens of Nueces county, to the effect that such applicant or applicants, actually resided upon the land described in such application, and have resided thereon continuously for not less than three years next preceding the taking effect of this Act.

SEC. 2. Such lands shall be sold for not less than the appraised value thereof, to be fixed by the Commissioner of the General Land Office after such advertisement thereof as he may deem proper to protect the interest of the State, such appraised value, however, to not be less, in any instance, than ten dollars per acre.

SEC. 3. Except as otherwise provided in this Act, all provisions of existing laws concerning the application for survey, appraisement, purchase and sale, proof of settlement and occupancy, and any and all matters, incident to or connected with, the sale of school lands, shall, in so far as they may be applicable thereto, apply to and govern sales of land under the provisions of this Act.

SEC. 4. For six months after this Act shall take effect no lands embraced by this Act shall be subject to lease, and thereafter any and all leases of such lands shall be made subject to sale.

SEC. 5. All proceeds of sales of lands under the provisions of this Act may be patented at any time after payment of all purchase money and interest thereon, if any, and proof of compliance with the conditions of sale, settlement and occupancy thereof, as provided by law.

SEC. 6. The crowded condition of the calendar, and the fact that there is no law authorizing the sale of lands belonging to the public. domain lying on Mustang Island, creates an emergency and an imperative public necessity requiring that the constitutional rule which provides that bills shall be read on three separate days, be suspended, and that this Act shall take effect and be in force from and after its passage, and it is so enacted.

[NOTE. The enrolled bill shows that the foregoing act passed the House of Representatives by the following vote, yeas 102, nays 0; and passed the Senate by the following vote, yeas 25, nays 0.]

Approved April 24, 1907.

Became a law April 24, 1907.