The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-17
BY THE LAST LEGiSLAlOnG

i AT LAST.
! WAS A DEMOCRATIC MEASURE
| The gil, introduc I'd by Col. John ,.
! Cunningham 1.-The lnsurar ce
| Men Are Making
Big Kick.
| Tg,ere was one good law passed by the
late unlalnentetd Legislature. 1t Is
law reducing the rate Of insurance OH
farm property. Surely some good has at
last come out of Nazareth.
The bill was introduced by Col. Jonh
s. Cunningham, Democrat, OF PERSON
county, and was one of the last Jaws
enacted. Heretofore the farmers nave
been paying $1.5O per 500 on frame
shinge roof dwellings, Now they WIN
have to pay only 81. The rate Tor metal
roof dwellings has been 80 cents; IL Is
now rs cents. Barns and stables nave
been per cent; they now go down 10
49, ner cent, when written in connection
with a dwelling. This means much for
the farmers of North Carolina. 1t will
result in a saving to them of thousands
of dollars a year. BY this new law in
surance rates on country property are
simply put back where they were tive or
six wears ago. when through the lnsur-
ance trust-the Southeastern Tariff AS
sociation-they were advanced from 20 TO
30 ppr cent. and without any apparent
cause except the power OF "a monopoly 10
dictate terms.
Col John s. Cunningham, member or
the House from Person county, when
is on the Virginia line, got through this
bill on the last day Of the recent session
of the Legislature. 1t makes it illegal to
charge higher rates of insurance on farm
property in this State than is charged IN
the State of Virginia on the same class
Of property. The Act is as follows:
THAT all fire companies in North
Carolina and doing business in this State
shall not charge higher rate on farm
property than is charged in the State OF
Virginia. That any company violating
this Act shall be fined 500, and be taxed
with the COSTS"
Col. Cunningham gave as reason for
the passage Of the law that he, In COM
mon with hundreds Of other farmers in
the State, owned certain dwellings on
which he is charged $780, and on his
barns and stables at the same place
per cent on the 500. Just across the
Virginia line. and in sight Of the first
property he has other buildings on which
he is charged a lower rate, being l per
cent on dwellings and 1A per cent on
barns and stables. This appeared un-
reasonable to the Legislature, and it
passed the bill, as above quoted.
| This Act, however, as was to be ex-
pected, has raised great clamor and
protest from the insurance people. and
they declare that they can no longer do
business in North Carolina; that the rate
would be ruinous. They say that there
are four established sets of rates in Vir-
ginia and applying to different sections
Of the State which have been recognized
to be under different conditions. Up the
valley section the lowest set of rates OBJ
tain, viz. On dwellings, SO cents on the
500 and II per cent on barns and stables;
in the Southern section and embracing
the counties of Mecklenburg and Halifax,
the rates are 1 PEI. cent on dwellings and
1M on barns and stables,
The South Eastern Tariff Association
OF Atlanta declared at once that it would
be impossible to do. business in North
Carolina il it wasaexpected to continue
insuring farm property at the minimum
rates obtaining in the most favored parts
OF Virginia. 1t, however, called meet
ing of the Executive committee, held on
April /, and instructed the secretary to
send circular to companies composing
the Association, quoting the new North
/ Carolina law, stating the minimum rates
on farm property in Virginia, and leaving
it with the companies as to whether they
will write this class of business under the
provisions of the Cunningham bill. This
committee construed the law to mean
that only the lowest rates obtained on
this class of property in any part Of
Virginia shall be collected in North Caro-
lima.
In accordance with this action Of the
committee, President w. s. Primrose, of
the North Carolina Home Insurance
Company, which, though not member
Of the Association, conforms to its rule,
and rates, wrote letter to his company's
attorney, Mr. r. r. Gray, stating the
facts, and asking for a legal opinion as
to the Interpretation of the law.
Replying to this request Mr.. Gray
says:
my opinion is that a charge by insur-
ance companies doing business in this
State, Of rate of insurance for farm
property equal to the maximum rate in
the State of Virginia for insurance Of
the same class Of property, will not be
violation Of the Act in question. To my
mind, this is the literal construction of
the Act and when, in addition, the EVIL
intended to be remedied' by the Act ito
wit, the difference in rates in the two
States Immediately along the border
line), tended to allow as much to be
charged in the border counties of this
State as is charged in adjacent counties
| in Virginia. I am Of the opinion also,
| that the term, farm property includes
| dwellings on the farm"
Accepting this opinion as the true in
Iterpretation Of the law, Mr.. Primrose has
| advised Ills agents 10 make contracts
| Accordingly. IFe hes also written 10 the
| Southeast, RI Thrift Association. enclos-
ing the opinion and stating. all the facts
Il .ps,y n yAr'a. \