The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-08
M'MASTER'S INSURANCE PLAN
URGES STATE TO ENGAGE IN THE
BUSINESS.
Insurance Commissioner Says Compa-
niles Take s2,OOO.O0O Away From
State Annually.

from this state annually for invest
ment about $4,000. 900. +. III. McMas-
ter. insurance commissioner of South
Carolina. recommends in his annual
report that the State engage In the
insurance business and thus keep this
large sum within the State.
He says:
The State. through the public
schools. beneficiary scholarships. hos
pitfalls and poor houses. educates and
cares for those whose natural protec-
tors have not been able to do so. Why
should the State not offer the means
for those Of her citizens who seek by
means OF life insurance TO care for
those dependent upon them. The
former Is done at public cost: the
latter may be done at public gain"
The commissioner says:
"If the state OF South Carolina
should receive the premium payments
and distribute the funds therefrom TO
the widows and orphans and other
to provide for them by means Of life
Insurance. and IL her citizens would
trust her as they do life insurance
company managers hundreds of miles
away. South Carolina would be i-de-
pendent OF banks and bankers to re-
fund her public debt. provide the
million dollars needed for the Hos
pitai for the Insane and supply funds
for her and her counties for tempo
rary loans.
lis this an absurd assertion when 1t
Is recalled that life insurance compa-
nies OF other States receive from this
State annually for investment about
$4,000, 900? The amounts stated else
where In this report show that life in
surance companies OF other States In
1911 collected In premiums less divi-
dend returns. t4.626.OO0: that they
paid out In all policy claims $2,406,-
boo; that hey paid agents. medical
examiners and all other agency ex-
penses tsss.Oo0; that they paid in
State. county and municipal taxes
and license fees slO1.OOo. leaving for
that one year alone s2.123. 900 for in
vestment. less managerial expenses.
Tho sworn statements of these
companies show that they had on
hand cash bank balances during the
year s5i. $4,000. OF which $4,000
--xas- the proportionate part belonging
to South Carolinans. This $4,000
would supply all the cash needed by
South Carolina and the counties In
South Carolina for temporary loans.
1T Is not amiss to note Just here
that though the proportionate share
OF South Carolinans i'm the cash bal
ances OF these life insurance compa-
nies was $4,000 during 1911. yet
only s1s3.o00 was kept In South Caro-
lima banks; OF this latter amount
$4,000 was in one bank in South
Carolina, due to the patriotic activity
OF one general agent. And this. de-
spite the fact that the strogest BANKS
In this state would pay per cent on
deposits while the companies do not
generally get moro than 2 per cent or
Q per cent on such of their deposits
as TO draw interest.
with such excess funds for invest
ment. South Carolina I'm three or four
years could take care OF her own pub
lie debt and spend a million dollars
on the Hostipal for the Insane. To be
able To mature the policy contracts
Just 40 surely as the insurance COM
panies. the State would not have TO
pay more than 1-2 per cent interest
on these funds. and this is Tess than
she does pay on her public debt,
THE state. through the public
schools. beneficiary scholarships. hos
pitals and poor houses. educates and
cares for those whose natural pro-
tectors have not been able to do so.
Why should the state not offer the
means for those Of her children who
seek by means OF life insurance To
care for those dependent upon them.
The former is done at public cost; the
latter may be done at public gain.
Life insurance Is merely a scien-
tiflc development II that Fundamental
Christian government doctrine OF
bearing one another's burdens, trans
muted into the equities OF general
average in accord with the Pauline
doctrine. so that each man bears his
own burden. The exact scientific prin-
ciple has long been discovered, tested
and developed. Private enterprise
zealously seecks the trustceship Of the
contributions for the direct and indi-