Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-07-09
BLoWFLIES ARE BUSY

BLoWFLIEs ARE BUSY
Effort to Diseredit Low Rate on State
Warehouses.
The following correspondence just
received from the Office Of the state
warehouse commissioner. explains it
self fully:
Office of
Jno. L McLaurin,
State Warehouse Commissioner,
Columbia, S. c.
July Z, 1915.
To the Farmers Of South Carolina:
My attention has been called to the
following article, published in THE
Insurance Field" Of July 1st:
QUEER TURN OF POLITICS.
South Carolina Officials Try to Place
Warehouse Insurance in Outside
Companies.
New York, July 1-(Special.)-A
most peculiar state Of case has de-
veloped in connection with the insur-
ance on the cotton warehouses main
tanned by the state Of South Carolina.
1t will be recalled that the South
eastern Underwriters association re-
Gently issued notice that the 10 per
cent reduction on warehouses under
the supervision Of the state was being
abused in that in q number Of cases
barns and farm buildings in the coun-
try districts without any direct SUI
pervision were being given advantage
of MI
cordingly advised that the reduction
was to apply only to warehouses in
cities and towns under direct super
vision Of the state warehouse commits
sion.
"The peculiar feature Of the situa-
tion Is that politics has been injected
with the result that the state ware
house commission Is reported to have
turned the business over to a firm Of
New York brokers to place at a rate
Of l IA per cent in unauthorized
companies. 1t is.regarded as astonish-
ing that state with an active insur-
ance department should be party to
such illegal insurance.
The South Carolina legislature at
a special session last year enacted a
law authorizing the establishment Of
bonded warehouses under the super
sion with the idea that this would en-
able the farmers to get a cheap storage
rate and satisfactory negotiable re-
ceipt. 1t is understood, however, that
the banks do not regard the state re-
ceipt as being an altogether satisfac-
tory security as the state cannot be
held responsible in case Of trouble" !"
l do not think that this article was
meant for circulation in South Caro-
lima, but was probably intended to be
handed around in New York city to
injure the state warehouse system by
casting doubt upon the safety Of our
methods Of insurance. l never heard
Of the paper before, and while the
special is dated from New York, it
bears every ear mark Of having come
from Columbia, South Carolina Nearly
every statement in it Is false, as will
undertake to show, and 1t is a coward
ly, under handed attack which l would
not notice except for its circulation in
New York city.
The charges are as follows:
1st. That cotton is insured in
barns and outbuildings not under su-
pervision Of the state warehouse sys-
tenn.
End. That politics has been injected
into the system.
3rd. That the insurance business
has been turned over to a firm Of New
York brokers to place at IA rate
In unauthorized companies.
Each and everyone of these state
ments are absolutely false. The de-
sign Of the author Of this article Is
evidently to prevent the storing Of
cotton in the country. A warehouse
in the country is just as much under
oil nd mi
guarded, as a warehouse in the town.
When we inaugurated the system
they were charging three dollars and
a half per hundred on cotton stored
in the country, and one dollar and
seventy five cents on cotton stored in
a fourth-c class town-this, when the
construction of the warehouses and
the protection against fire were ex-
actly the same. In fact cotton stored
in the country is in less danger, and
should fire occur it is more easily
extinguished than in a fourth class
town where there are no water works.
Any one familiar with conditions in
the country knows that in case Of a
fire, all that you have to do is to blow
the horn or ring the plantation bell
and all the hands and the neighbors
come, and I don't know in all my ex-
country from fire.
Another thing: Everybody agrees
that the normal risk in insurance Is
one Of the heaviest expenses that has
to be dealt with. The kind Of skunks
who burn up their property for insur-
ance do not live on the farms. They
are distinctly a town product. During
the hard times last fall and winter,
how many cotton fires did you hear Of
in the country? There was one night
in Columbia when five unoccupien
houses between midnight and day were
set on fire. OF course, that may have
been coincidence, but certainly If
such a thing as that was to occur in
state warehouses, / would make an
investigation and never pay a dollar
of insurance to anybody until l was
satisfied that it was an honest fire.
The moral risk is almost completely
eliminated under the system OF insur-
ance practiced by the state warehouse.
The insurance is in my name, and II
fire was Of suspicious origin the
company could pay it over to me, and
you can rest assured that l would
have to be satisfied before l paid it
out. The trouble with these people is
that the Southeastern Tariff associa-
want to make this country cotton and
other property in the country pay a
very high rate Of insurance in order
to give. cheap rate to those living
in the town.
l am authorized under the act to
make direct arrangements about in
surance, and if were entirely conf
fined to South Carolina the South
eastern would have the state ware
house system by the throat, just as it
has all of the other property in the
state. am heartily in favor Of the
proposition made by Mr.. +. II. Nc
Master to drive out of the state this
gang of marauders, who have eX-
plotted without resistance a long-suf-
ferng public. They drove the insur-
ance wolves from Texas, and they had
to come hat in hand and beg to get
back. l think Mr.. McMaster under
stands the situation, and l am writing
this letter in the hope Of arousing
such public sentiment that the legis-
lature will be forced to give him the
support which he deserves.
AS to the unauthorized companies,
the certificate which l append from
Mr.. McMaster is a complete answer.
/ haven't got a dollar Of insurance in
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