The herald and news. [volume] (Newberry S.C.) 1903-1937, 1913-12-30
GOV, BLEASE ASKS
M'MASTER FOR PLAN
INSURANCE COMMISSIONER OUT-
LINES CAMPAIGN.
MNaSter DoeS Not Advise Pressing
Compulsory Investment Legi>Ia-
latiOn Just N0Wo

between Governor BleaSe ana InSuF-
ance Commissioner F. H. McMaster
regarding proposed law for compell-
ing foreign insurance companies to
invest in South Carolina securities
was given out at the Office of the
governor yesterday afternoon. On ac-
count of the general interest in this
matter the correspondence is given in
full
On December % Governor Blease
addressed the following letter to in
surance Commissioner F. H. McMas-
ter:
Having noticed your fight for a
compulsory investment law, which,
as I understand, requires that all in
surance companies doing business in
this State shall invest certain
amount of their reserve fund in the
State of South Carolina, and under
standing that you Will take the matter
up at this session of the general as
sembly and urge the passage Of such
law. would be glad If you would
outline to me what your idea is in Or
der that l may be prepared to take
such action thereon as may deem
wise. You have been so earnest in
your efforts along this line, and l
aave heard you complimented so Of
ten in reference to it, that 1 feel
that nothing could prevent you from
pressing your fight in this matter, and
I desire to be in position to help you
if I should find that it is the proper
thing to do
McMaster Replies.
To this letter Insurance Commis-
sioner NcMaster replied as follows
under date of December % to Cover
nor Blease:
'First, let me say that I appreciate
your kind letter of December %.
"Of course, my mind has been alb
sorbed in my department, and, there
fore, the power and effect of insurance
forces may seem disproportionately
greater to me than other influences
in the State. I have felt that there
were few matters of equal Importance
to the people of the State as the caus-
ing to be invested in securities Of this
funds which insurance man
ayers hold in trust for South Caro-
linians
"In round figures these funds now
amount to approximately $30,OOO,O00.
You can realize what it means to the
State, to the counties and to the mu-
inequalities to have a ready market for
their bonds. You appreciate the great
er advantage to the people Of the State
to be able to secure long time loans
on mortgages. You also appreciate
that even if these funds are deposited
in our banks, our banks will be able
to accommodate borrowers, poor men
and rich men alike. Now if these
funds, which, before the establishment
of the insurance department were in
vested in the North and West, may be
invested here, it practically means
that much increase Of capital to the
State. AS this is our own capital and
as the people who hold it are trustees
I have felt that it was proper for US
to direct these trustees how they
should invest these funds.
$50 much by way of explanation of
my position.
How to Get Results.
"Now how best to accomplish these
results. There has been little diff
Guilty in inducing the companies which
have their home Offices in Virginia,
North Carolina, Tennessee, Georgia.
and other Southern States to invest
freely in South Carolina securities.
Almost without exception the COM
panies in these States have invested
more than their reserves. But, in the
main, these companies are small and
their total reserves scarcely, equal that
of any one of the largest Northern
companies.
'fCommencing with 1909 a systema-
tic campaign, by correspondence and
personal interviews, was inaugurated
to induce the Northern companies to
invest the funds which they hold in
trust for South Carolinians in South
Carolina securities. Some of these
responded readily, but the majority,
if not looking with actual distrust
upon South Carolina securities, were
very slow to respond. regret to say
that many of the agents of these COM
panies in South Carolina sustained
the view taken by the Northern mana
gers to the effect that the manage