The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1904-12-21
INSURANCE IN SOUTH CAROLINA.
The Charge that Rates Have Been
Raised by the Southeastern
Tariff ffAss0ciatiOn Denied
by Insurance Men.
ByW. n McCaw.

Columbia, Dec. 17.-Well Informed
FIRE insurance men here are laughing
at the complaints which have been
coming in to the comptroller general
to thu effect that since the act of the
legislature allowed the Southeastern
Tariff association to reenter the State
the rates have been raised instead OF
lowered. They declare that the fav-
orable laws which the legislature pass
ed protecting the insurance people
against incendiary fires have resulted
in this State getting better basis rates
than is enjoyed by any other Southern
State with the single exception OF
North Carolina which has even more
favorable laws.
And yet there seems to be little
room for doubt that in the case OF
number of individual pieces of proper
ty throughout the State there has
been material increases in the rates.
For instance, in the case Of busi-
ness building of Importance on Main
street here in Columbia your cores
pondeut knows Of the risk being
taken at rates as low as half that
given in the official rate book. The
owner of the building who is a shrewd
business man opened the business to
competition and he got results. The
insurance men explain this by saying
that this being a new building and
there being no association rating or
the town the agents got the business
at the rates allowed by neglecting to
report the ways in which the proper
ty was exposed and thus escaping
the penalties. The pracatical result
to the owner however was the saving
of a neat sum of money. On he other
hand I have been poinGd to number
of instances in which the rates were
lowered by the owners getting the
benefits of an official rating. The
matter will doubtless be fully aired
at the coming session OF the ieglsla-
ture. It is an important question
affecting the pocket book OF every city
aud town in the Safe. The impression
prevails in spite of the insurance men,
and it is growing stronger, that the
Southeastern Tariff Assoclatlon's
recently into the field has been follow
ed by an average raise in the rates, re-
solutions of the executive committee
of the association and arguments about
extra hazards to the contrary not
witbssanding.
At the stamping cfice of the asso-
citation here the changes in the basis
rates were pointed out to me from the
official rate book which carries on the
hy-leaf the resolution of the executive
committee adopted last April in favor
of reduction in view of the act of
the legislature providing for official
Investigation of fire losses. The dwell
ing rate which has been for years 70
cents in the basis has been reduced to
go cents for second class towns such as
Columbia, Spartanburg, Greenville,
Anderson, Newberry, Sumter, Laurens
and the like. Charleston, the only
town in the State taking a first class
rating, is in the jurisdiction of the
Atlanta stamping Office. In third class
towns, those which have practically
no fire protection, the rate has been
reduced from 81 to 80 cents. On brick
and metal buildings in second class
towns there has been reduction of
5 cents to 70 cents, and frame mercan-
tile risks in the same cites have gone
down from So. so to s2 25; while brick
and mercantile risks in third class
towns have gone to 80 cents from 81,
and frame mercantile from So to
S2.75; in fonrth class towns the brick
and metal mercantile have been re-
duced from 81. Is to $3.50, and the
frame mercantile from S3. so to 1925.
The new rating does not affect spe-
cial hazards, such as oil mills, saw
mills and manufacturing risks of all
kinds, which enjoy the same rates as
prevail in other states.
"It is not true that the rates rave
been raised" said Mr. J. j. Seibels,
who spoke in the absence of his
brother and partner, Mr.. E. G. Sci
bells, who is a member of the execu.
tive committee of the associa-
tion. Both are thorough insurance
men. son the contrary there have
been great reductions. All dwelling
and mercantile risks have been reduc
ed in the basis. and any increase in
the rate anywhere is due to an increase
in the hazard There has been no
other increase and none,is contemplate
ed.
"The difficulty with most individuals
who have grievance lies in the fact
that they have various exposure of def
cheney charges or both. which only
they can remedy, and which so long
as they exist will be penalized to cover
the additional loss ratio which the
companies find that they cause. The
average man who constructs a. mill OF
any kind suits his own convenience
without thought of the fire hazard
and the consequences to himself and
his neighbors, but rails at the com,
panies for rates which we're based
solely upon conditions as they are
found.
Zone great advantage of the asso-
ciation's reentry into the State is
this: If man building anything,
from dwelling to gin house, will
apply to the association be can get
plans and specifications showing that
construction which the experinece of
underwriters generally and expert
statisticiansl in that line demonstrates
is best fitted to resist fire either from