Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-01-24
THE INSURANCE TRUST

Members Of the Yorkville board of
trade have commenced a movement
having for its object the driving OF
the South eastern Tariff association
out Of the state and to that end have
addressed a circular letter to boards of
trade in other towns, and put things
in motion in the general assembly.
The South h-eastern Tariff association
Is an organization maintained by a
large number Of old line fire insurance
companies for the purpose Of fixing,
regulating and upholding rates, and by
people who understand the situation Is
commonly referred to as the fire in
surance trust.
The Tariff association has been an
object Of hostility in this state for a
good many years. An act was passed
about 1898 or 1899 driving 1t out Of the
state, and In 1904 another act was
passed allowing 1t to come back.
During the years the association
was out Of the state there was some
gradual reduction of rates, but not a
great deal. The insurance companies
have a complete rating system with
what Is known first class risk, as q
basis and extra charges for all extra
hazards. For instance, a brick house
close to hydrant and away from 9TH
er exposures. and having a metal roof.
steam heating arrangement and
lighted by electricity, and with a de-
sirable occupant, would be an ideal
risk entitled to the lowest rate. Put
on shingle roof and there Is an addi-
tion to the rate another addition for
fire place heating, another for oil lamp
lighting and 80 on. All agents are re-
quired to understand these things, and
all things considered, the insurance
companies expect agents to maintain
rates the same with or without the
tariff association. AS a matter Of fact,
however, 1t does not work exactly that
way In practice For one thing, when
there Is no tariff association, agents
will, on occasion, reduce rates to get
the advantage Of each other; but as a
matter of fact, in matter Of this kind
agents act as checks on each other. No
agent Is apt to reduce the rates on his
own customers and II he reduces the
rates on the other fellows customers,
the ether fellow will kick. But occa-
sionally where outside companies come
In and make a show of getting busi-
ness, then the companies already on
the ground will take such action as
may seem best calculated to accom-
plish the end desired.
There were some few reductions in
rates throughout South Carolina dur
ing the period the South eastern Tariff
association was out of the state; but
friends Of the organization claim there
were not great many. ...
The theory Of those who want to
drive the insurance trust out Is that 1t
will result in lower rates by reason Of
competition. and the claim Of the
friends Of the trust is that nothing is
to be gained by driving It out. They
argue that II the trust Is driven out,
rates will be maintained for quite a
while on basis Of the system already
established, and before competition
can begin to cut a considerable fea-
ture, people will have forgotten about
the present crusade, and an act will be
passed allowing the trust to come back
again.
The understanding Is that a bill is
to be introduced shortly, to drive the
tariff association out and other bills
are to be introduced with a view to
circumventing this bill. AS to what
1t is all going to amount to will appear
best as the situation develops
AS to whether the tariff association
can be driven out Of the state, even
with a strenuous fight. is a question;
but there is no question Of the fact
that without fight 1t cannot be driv-
en- out. AS to whether 1t Is worth
while to drive 1t out, can best be de-
termined after the task has been ac-
complished, and after there has been
time to see what there is to be seen.