The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-01-10
INVESTMENT LAW.
Insurance Commissioner States What
His Department. Will Ask of Gen
cral Assembly.

ance commissioner of South Carolina,
H. regard to proposed insurance legis-
lation and insurance conditions in
general in this State:
THAT all life insurance companies
dong business in this State, if pos
sible should be induced 10 invest the
funds which they hold in trust for
the people Of this State only in the
securities Of this State, such as mort
cages Of real esta G, state county end
municipal bonds. and such like Sc
curities.
'As is well known until the estab-
ishment Of the insurance department
practically all OF the funds held in
trust for South Carolinians were in
vested IN securities of other States.
Since the establishment of the insur-
ance depadtment, by means of wise
laws and incessant urgings by the in
surance commissioner, more than half
Of the companies have changed their
methods and have invested, or are in
vesting, the funds which they have
belonging to South Carolinians in Sc
curities Of the State.
"But there are a number Of COM
panies, regardless of the fact that
they already have large amounts Of
South Carolina money and are taking
more each year, practically refuse to-
invest in anyASouth$ Carolina securi-
ties.
THE insurance department will ask
the legislature to go after these last
named companies and make them
pay higher license fees than those
companies which do invest South Car
olina money in South Carolina securi-.
ties. The proposition is that all COM
panies. which have invested or which
will invest, even one-fourth of South
Carolina reserve in South, Carolina Sc
curities, be taxed as they are now,
but that companies whichy will not
do this be taxed per cent instead of
2 per cent as at present on their pre-
MUM receipts. But so soon as they
make investments their taxation will
Re reduced.
This is the only proposal which.
the department has to make to the
general assembly.
Summarized, the reasons for not
making other proposals are about as
follows:
THE fraternal insurance condition
In the State is especially satisfactory
rs compared To conditions through
cut the United States. l think II may
b. said that the fratGnai orders. IL
censed in South Carolina. are the
highest types OF their kind in exist.
ence. Ma fraternal orders, not now
licensed. may hereafter be. licensed
unless 1t can guarantee that 1t will
never increase It's rates Of assess
ments While this does not apply to
the orders now licensed, as they were
In the State before the passage Of the
law, yet 1t protects them from insid-
ious competition and will enable them
to adjust themselves unmolested to
new necessities as they arise.
Il do not suppose that perfectly
satisfactory fire insurance conditions
exist anywhere. unless 1t be in Eng
land. Germany. France and several
other European countries Where
people are allowed to build houses
only under government direction in
respect to security from fire, and
where not only incendiaries are pun
ished. but every one else who causes
fire by negligence. think it may
be said, however, that fire insurance
conditions in South Carolina are
about as satisfactory as in any other
state in the Union, and very many
states, where conditions of turmoil
exist. The cotton mills, oil mills
lumber mills. and such like indus
tries. have opportunities for placing
insurance in licensed companies.
which obtain i'm only a few other
States. as there are companies car
rying these risks which are licensed
| only In South Carolina, the New Eng
land States and a few other States.
The accident and health insurance
| conditions have been pretty we'll
Strengthened out and, as a whole. are
on satisfactory basis. The same
may be said Of fidelity and surety.
and most Of the forms Of casualty in
surance, with the exception of en-
pioyers liability. / think I may say
L that .,..a...,