The herald and news. [volume] (Newberry S.C.) 1903-1937, 1912-12-20
DRAIN on THE WEALTH
OF SOUTH CAROLINA
Insurance Companies Doing Business
in This State Took Away S2,400,-
coo Last Year.

Columbia, S. c., Dec. 16.-lnsurance
Commissioner McMaster has been peg
ging away trying to show insurance
companies doing business In this State
why they should invest their South
Carolina reserves in this State. He
has met with some success, but IS
anxious to do more effective work
in this direction. Ne devotes consider
able attention to the subjects in his
forthcoming annual report and what
he has to say is the result Of careful
study on his part. He will report:
The increase in property values in
South Carolina for 1912, over 1911, as
shown by the report of the comptroller
general is about four millions OF dol
lars (s4,O00Oo0)
In the report of the insurance COM
missioner it will be shown that, for
the year ending December 81, 1911, IN
surance Companies of other States do
ing business in South Carolina, took
ont of South Carolina about $2,4OO,OOO,
in excess of all payments made IN
South Carolina. The details are about
as follows:
It must not be understood that TINS
represents a profit, for very large
nroportion of it represents funds Wnlch
must be put up as reserves TO meet
future losses. As will be seen, the
amount of receipts in excess OF dis
hursements in South Carolina for fire
insurance, accident and health, casual
ty surety and such like companies
IS insignificant as compared TO the
companies.
The receipts of 1911 were little
greater than similar receipts in l91O'
# is nrobable that 1912 will show an
increase over 1911. 1t is apparent
therefore, that unless these tunos
which are received by life insurance
companies are invested in securltles
of this State, the operation OF sucn
o,n,n.nias in this State means a very
heavy drain on the resources OF the
State.
The equities of South Carolina poll
1so =, +ho asse6s of life insur-
ance companies now licensed in TINS
State amounts, in round numbers, 10
ahout 27,00O,O0O. This represents the
accumulation of contributions when
sonth Carolinans have made to these
conpanies during the past thirty OF
forty years. No account is taken Oh
finds which have been contrlouteo
nv South Carolinians to companies
which. from time to time, have done
business in this State, but are not NO"
licensed in this State. But merely
considering the amount held in trus-
teeship for South Carolisians IN COM
nonies now licensed in this STATE
&c stated about s27,OOO,OO0, it is more
+nan interesting to know that, conslo-
.;,r oil forms of investments IN Sc
curities of this State, including rali-
road bonds, loans to policy holoerS'
State, County and municipal '0onos
and real estate mortgages, the toCal
amount of money that has been invest
ed by these companies in this STATE
will not exceed $17,O0O,000. In other
words, approximately $1O,OOo'ooo Oh
South Carolina money has been invest
cd nv these trustees elsewhere than III
South Carolina. Some Of it has gone
10 erect handsome buildings in the
larger cities of the country; greater
Gums have gone to aid in the develop
nent of new and Western States. IL
is needless to say that the ease Win
which insurance money has been OBJ
tained for farm loans in the western
States has added greatly in the oeVel-
onment of those States: have made
conditions of life easier there ano'
doubtless have been one Of the CHIEF
canses of making those sections at
tractive to the young men OF Souen
Carolina, and other States which have
been treated by the insurance COM
panies as South Carolina has been
treated.
The result has been that, through the
onerations of these great money
lending corporations, South Carolina
has been drained, not only of consla-
erable portion of her capital, but also
of some portions Of her vigorous young
manhood. Such condition should not