The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-12-11
INSURANCE NOW
IN CONTROVERSY
Question is Whether Sinking Fund
Shall Cover Risk ON Cotton
Warehouses.
THE State.

THE State.
''In am Of the opinion that it is not
only not the duty of the sinking fund
commission to insure this cotton, but
they have no authority in law to do
so,' says Thos. H. Peoples, attorney
general, in an opinion relative to in
surance of cotton stored in ware
houses under State supervision. Sew
eral days ago the comptroller gen
eral expressed the opinion that cot
ton held under State supervision
should be insured with the insurance
department of the sinking und com
mission. D. H. Means, chief clerk OF
the commission, referred the matter
to the attorney general The comp
trolIer reiterated yesterday tie view
be had previously expressed and am
p1ifed his statement.
TIE following opinion was given to
TIE chief clerk of the sinking fund
commission by the attorney general:
81 beg to acknwledge receipt OF
your letter, date November 80. 1914.
and handed by you to this office on
the 4tn day of December, 1914, in
which you ask whether the sinking
fund commission, insurance depart
ment, has anything whatsoever to do
with the insurance obtained and
maintained by Il e warehouse commits
sioner under the appropriation act Of
1914 and TIE act to regulate the stor
age, grading and marketing of cotton.
Quotes the Law.
"In reply Will say that the pro
Viso of cection 90 O the appropriation
act of 1914 provides that a., ;2suc-
anee of public buildings, herein pro
vided tor appropriation, AID all insur-
aace. the premium for which is paid
out of any funds of Institutions sup
ported in Whole or in part by the
State, the sinking fund commission /
is authorized anG required to carry |
said insurance ii the State insurance |
sinking fund
Section II Of ne ware ouse act
directs the warehouse commissioner I
to insure and Keep insured, upon the
best terms otia;nahie all cotton on .
storage In case Of loss. he snail col
lect the iIsu:aI ce due and pay the
same ratahly to those lawfully en-
titled to it. TIE same section pro-
vices further: The insurance policies
to be in the name j; the State and the
premium collected from the owner of
the cotton, the State to Eave lien
On the cotton for insurance and stor-
age charges the same as other public
warehouses in the State
st will thus be seen that the appro-
priation act of 1914 requires the sink
ing fund commission to carry insur-
ance on buildings and property of
State institutions where the premiums
are pad out of the funds appropriated
to tlese institutions, while the ware
lolse act provides that the insur-
ance shall lie collected from and paid
by the owners of the cotton. This be-
ing the case, I am of the opinion that
it is not only not the duty of the sink
ing fund commission to insure this
cotton, but that they have no au- :
thority in law to do so. ]
Should the warehouse commits ;
sioner, under tie act establishing this !
depal tment, purchase any warehouses
CT Eaye other property on hand be
longins to the State, this. of course, !
would be insurabIe and should be in s
sured by the sinking fund commission, {
but IN so Far as the cotton is con- s
cerned, as before indicated, the pre-
niums are paid by the owners of the I
cotton and consequently it does not s
come within the provision Of section {