The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-03-27
INSURANCE BILL IS UNJUST.
SO SAYS \. w. JONES. CHAIR
MAN OF TAX COMMISSION.
Urges Gov. Manning Not to Sign Act.
us Ii is for Benefit of Agents Only
and is Class Legislation.

(O''iil'id, NldICI -t.--ill Il IGltpl 10
Gov. Manning yesterday a. w. Jones,
chairman Of the state tax commission.
protests against approval of the act.
passed by the last general assembly.
TO regulate rates of certain classes of
insurance and to provide for the di-
vision Of commissions Chairman
Jones believes that the approval Of the
act will prevent the State securing
savings upon the insurance prem
iums paid by it for fire insurance if
any one undertakes to enforce the
provisions Of this act"
The letter of the chairman to the
governor is in part rs follows:
Il note that the commissioner Of
insurance stated that the act in his
opinion does not apply to the con-
tracts OF reinsurance and has under
taken to distinguish such contracts as
made by the sinking fund commission
from the contracts Of insurance refer
red to in this. act. The distinction
attempted to be made is both in
genious and specious, but would not,
in my opinion, prevail in the courts.
The act is very general in its
terms, and covers all contracts Of fire
insurance covering any risk or on
property located in the State of South.
Carolina written by any
which may be doing business through
agents in the State of South Carolina,
without distinguishing between orig
inal contracts Of insurance and Sec
ondary or collateral contracts, some
times called contracts of reinsurance,
the term insurance being broad
enough to include both kinds of con-
tracts. The act itself says: 1T shall
be unlawful for any insurance COM
pany doing business through agents
in the State of South Carolina to write
any fire insurance . T.. -. covering any
risk or on property located in the
state of South Carolina except
through OF by duly authorized agents
Presiding and doing business in the
State
1T further provides that agents
who may sign or insurance companies
who may to be signed any pol
icy or indemnity contract (the term
any policy or indemnify contract GER
tainly includes contracts Of reinsur-
ance) and fails to collect the full
premium for such insurance and re-
tain the proper commission which is
due such agent may have their IL
cense revoked as the penalty for aid
ing in an evasion of the law The
proper commissions are defined
above in the act as the same COM
missions on such business as the COM
pany allows them on other business
of the same class The provision in
the act at the END of section /, al
lowing agents residing in the State
to divide their commission with other
agents or brokers, instead of operat-
ing in favor Of the insurer or tho
public, is intended still further to de-
stroy the freedom of contract and
prevents the opportunity of COMPETE
ton as to rate and commission to be
paid by the State in placing it's in
surance risks. In the same a it
destroys competition as to the pre-
miums paid by the state and county
upon bonds Of public officials.
The entire act shows that it was
carefully n adroitly drawn in the
interest of a special class of citizens
of South Carolina. to wit; insurance
agents, and against the interest of the
masses of the people who seek insur-
ance upon their property, and is most
u~ndemocratic in attempting to secure
special privileges and levy a special
though indirect tax on insurance for
the benefit Of insurance agents: it
tends to foster a growing trust and
monopoly, and destroys the freedom
of competition between insurance
companies for the patronage Of the
State and the public seeking to secure
insurance upon their property. AS a
dispenser Once said, Whose bread !
eat his song | sing and this senti-
ment may account for the efforts OF
insurance agents to require the pay
ment of he full premiums and coln
missions which are or may be from
companies in combination with each
other.
Il am satisfied that the general as
sembly did not notice the broad and
sweeping terms of This bill and did not
give 1t due consideration pending its
passage. AS there \NoS m, discussion Of