The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1901-12-18
A Lesson in Corporation Laws

Some years ago, says the Insurance
Herald, the insurance commissioner
of Ohio in his annual report laid par
ticular stress on the bad effect of the
valued policy laws and other laws
inimical to the business Of fire insur-
ance. In that report he stated that
in France the average rate of lnsur-
ance is only eight cents on each 500
insured, while in the United States
the average rate exceeds a hundred
cents on each 500 Of the amount IN
sured. Our insurance contemporary
saws that this is due to valued pol
icy laws'' in the different States tend
ing to encourage rather than pre-
vent arson, and thinks that it is a
great pity that these comparisons have
not been brought to the attention Of
legislators in the several States, so
that they might address themselves
to the task of securing the repeal OF
all laws adverse to insurance interests
and to the enactment of stringent pro-
tective laws somewhat on the order
of those in France. But the Herald
goes on to say that the Legislatures
of many States do not know, or If
they know, do not heed the prevailing
effect of most of these regulative
statutes which do more harm than
good. This example is given;
Some years ago the State of Virginia
enacted what is popularly know as the
Wharton law, under which the South
eastern Tariff Association was driven
from that State. At that time, or
rather for each of the two years be-
fore, the average rate for fire insur-
ance in Georgia and Virginia was the
same. It was contended that the effect
of that law would be to reduce rates,
but thefact is that although, as above
stated, the average rate in Virginia
and Georgia for each of the two
years preceding the enactment OF the
law was precisely the same, the aver
age rate in Virginia has increased TO
s1.45, while the Southeastern Tariff
Association is allowed to operate, 1T
has decreased to sl.24, difference OF
21 cents, which is nearly three times
the total average rate in France,
where good laws prevent fire. While,
we are informed, it was stated few
weeks ago in the Virginia Constitu-
tional Convention that the Wharton
law had saved to the people of that
State $50, 600, the fact is that it has
not saved them one dollar, but has
increased their premiums. 1t had cost
the CITY of Norfolk not less than $50, :
600, and probably nearer $40, 600 up to
that time. We might go more into
detail as to the effect of the Virginia
law referred to in different cities in
that State, but the central fact above
stated of the increased average rate IN
Virginia and the decrease in Georgia
tells the story sufficiently for this
! time.
We do not vouch for these state
ments, for we have not had the oppor-
tunitv to examine the records, but a
we'll known insurance agent OF Rich
mond says that he has made an inves-
tigation and has verified the compare
tive figures given by the Insurance
Herald. At any rate the statement is
worthy of attention and investigation
by the membership of the Constltu-
tional Convention and General Assem-
bly,. AS general proposition I'VE be,
lieve that nine tenths of the so-called
anti trust laws do more harm than
good. Richmond Times.