The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-07-10
M'lAURIh ANSWERS CHARGES
WAREHOUSE COMMISSIONER RE.
PLIES TO ARTICLE ON
INSURANCE,
criticised in New York Publication
Excerpts from Commissioners
Statement Addressed to State Farm.
erS.


Field Of July 1, which he alleges was
written to injure the State warehouse
system by casting doubt upon the
safety Of methods of insurance, John
L.. McLaurin issues statement ad-
dressed to the farmers Of the State
in which he answers the writer's
charges. The statement in part is as
follows:
ITO the Farmers of South Caro-
lima: My attention has been called
to the following article, published in
the Insurance Field Of July L:
QUEER TURN OF POLITICS.
South Sarolina Officials Try to Place
Warehouse Insurance in Outside
Companies.
| New York, July 1.-Special: A most
peculiar state Of case has developed
In connection with the insurance on
the cotton warehouses maintained by
the State of South Carolina. 1t will
be recalled that the Southeastern I'm
derwriters' Association recently issued
notice that the 10 per cent. reduction
on warehouses under the supervision
of the State was being abused in that
In number Of cases barns and farm
| buildings. in the country districts
without any direct supervision were
being given advantage Of this reduc-
ton. Companies were accordingly
advised that the reduction was to ap-
ply only to warehouses in cities and
towns under direct supervision Of the
state warehouse commission.
The peculiar feature of the situa-
ton is that politics has been injected
with the result that the State ware
house commission is reported to have
turned the business over to O firm of
New York brokers to place at a rate
l.of 4 La per cent. in unauthorized
icompanfes Itsis regarded as astonissl-
ing that a State with such an active
insurance department should be
par. to such illegal insurance.
The South Carolina legislature at
special session last year enacted a
law authorizing the establishment of
bonded warehouses under the SUPER
vision of a State commission With
the idea that this would enable the
farmers to get cheap storage rate
and satisfactory negotiable receipt. 1t
Is understood, however, that the banks
do not regard the State receipt as be-
ing an altogether satisfactory security
as the State cannot be held RESPONSE
bic in case of trouble.
Il 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. Near
ly every statement in it is false.
and it is a cowardly, under-handed at
tack, which 1 would not notice ex-
cept for it's circulation in New York
city.
THE charges are as follows
Il. That cotton is insured in barns
and outhuiIb; nat ,,,ao,, A..
vision of the State warehouse sys-
tenn.
"2 That politics has been injected
into the system.
'3. That the insurance business has
peen turned over to a firm Of New
York brokers to place at / IA rate
in unauthorized companies.
Each and every one Of these state
ments are absolutely false. The design
of the author of this article is evil
IDENTIFY to prevent the storing Of cotton
in the country. A warehouse in the
country Is just as much under nv
supervision. and as carefully guarded
as q warehOse in the town. When
we inaugurated the system they were
charging $3.50 per hundred on cotton
stored in the country, and $1.75 on
cotton stored in a fourth class town
this, when the construction of the
warehouses and the protection against
fire were exactly the same In fact,
cotton stored in the country is in less
danger, and should a fire occur it is
more easily extinguished than in
fourth-class town, where there are no
water-wOrks. Any one familiar with
conditions in the country knows that
i'm case of n 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 l don't
known i'm all nv cXporience of a So