The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1908-11-24
PRAISED THEM
insurance Commissioner lauds
Mutual Fire Insurance Cos.
DOING A GOOD WORK

DOING A GOOD WORK
He Says These Companies Have
Saved Hundreds Of Thousands of
Dollars to the State and will Final
ly Furnish the Very Cheapest Ia-
surance to Our People.
Columbia, Nov. 10.-Insurance
Commissioner McMaster yesterday
made public that part of his report
to the Governor referring to the
mutual fire insurance companies of
the State, in which he says:
"In the statistical part of my report
will be found statements from
number of mutual fire insurance CON-
panies. The majority of the compa-
nies have been chartered under the
Mutual Protective Association Act.
Some few, whose charters antedated
this Act, have their organization
under special Acts. The statements
of these companies are remarkable
in o. way, and the lessons to be learn
ed therefrom are most encouraging.
81 believe these companies show
the way to secure insurance at low
est possible cost, and point out the
means whereby all money in ex-
cess of actual insurance cost may be
kept at home, and in the pockets
OF the people. Operated heretofore
without supervision, and without
that help and encouragement that
should come from intelligent exam
ination, the success Of these compa-
mics has been truly remarkable, and
they tell story of honesty and fra
ternity that entirely overshadows the
failures of the few, which have been
engaged in similar work, chartered
under the same Act, but whose field
of operations extended over the
whole State.
at is the rule and notIthe excey-
tion that where these companies
have confined their operations to
the county in which organized, or -
that county and one adjoining coun-
ty they have proved successful. This
has been due to an appreciation ~
the policyholders that they were In
surers as well as insured. They
have afforded protection at a remark
ably low cost, and believe have
taught the true principles Of insur-
ance, i. e., simple indemnity against
loss, and not speculation on fire
risks, as nothing else could or would
have done. Such institutions must
raise the moral tone Of the commu-
mites in which they operate, ann
clearly they raise to the highest
standard the moral hazard that
bane of fire underwriters.
"The statements of these compa'
nies are the more encouraging siuce
they show the cost Of insurance both
in town and country.
"Eleven of the companies have
confined their operations practically
to the country, four have their in
surance entirely in the City or
Charleston. AS will be seen from
the statements, the cost Of insurance
has varied practically from about 80
cents per S100 to about 50 cents
per S100.
without meaning to make any
invidious comparisons, for there are
others which have done probably just
as good work, but because of its
age, and the experiences through
which it has passed, the Carolina
Mutual Insurance Company, OF
Charleston, is deserving of special
note. This company is now in its
ffty-eighth year. 1t stands today
with a clean record-all losses paid
and $13O,00O Of cash ano invest
ments to it's credit. THIS company
passed through the great fire Of
1851 in Charleston. 1t paid its
losses in full; and the loyalty OF its
members who, with almost one ac-
cord, met their heavy obligations
then has been fully repaid by the
savings the company has afforded
them since. I am informed that
this is the oldest mutual fire insur.
ance company in America today.
"The Carolina Mutual and its fel'
lows, the Hibernian Mutual, the
Germania Mutual and the Merchants
Mutual, all of which c2nfine them
selves to the City Of Charleston,
have been the means of saving, l
believe, without exaggeration, hun
dreds of thousands of dollars to the
citizens of Charleston.
There are certain amendments
which l believe should be made to
the Mutual Protective Association
Act. The spirit Of mutually should
be emphasized by making more spe-
cific the annual meetings Of the poll
cy-holders and the election Of di-
rectors by the poliey-holde rs. re-
Quirements for stated meeting of
the directors, who should be repre-
sentative of the territory covered.
and the number OF whom should be
proportioRate TO the amount at risk.
4. I. - -l~ 1.o