The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1916-08-12
lK llIEYlIlu leT.
~ AAAAER MAKES STATE.
HeNT ON INSURANCE. sITUA.
. TION IN SOUTH CARO-
: LIMA.
M ooath CArolina Concerns Show
As unpsscsdeated strsdes In De-
vssopuDsss.

- thS prsss an intsrsting statement
e6nnerujng the now famous LAney-
otem act. cf the last general assem-
~. together with . discussion Of the
in6prancs status In this state at the
pseBspt time. II follows:
Nay I ~ permitted once more TO
talk 20 the people of South Carolina
little bit about the fire insurance
sltuatiou.
IN censidsring the firs insurance
s1onatsoa created BY the withdmwa
- - many Of the larger companies
- Wisdom or unvisdom Of the Lam
sy-oAom act doss not necessarily en-.
eeS n The situation created is 20 In
eoDarab1e or ineonvsnisnt a to de-
u.AnA the enactment Of such legisla-
~ - will ~ satisfactory to the COM
paaAss which have withdrawn. OF
eeurss. this might hurt ones pride a
nfels ne. but many pocket their pride
y slseh - nscsssary TO get along. The
poeo>s os the state are capable judges
e vAsehsr suoh IN intolsrable situa-
~ has bssn created a. to requiro
tho1r isGsnine this attitude. N'
~ hswevsr. No such intolsrabis con-
o9>en 1oss sxist ana merely one Of.
oonSWhAt ineonvsnisnes. Il In well &c,
onnlAer the wisdom or unwisdom Of
~ IAAsy- -0dom act and to try "a,
tAts .. l,atls into the future and "a,
3eA6R whether tsnporary inconYsn.,
nAee 6heuld not b suffered II I'm
trsvtd conditions art likely to fol-
~ from the operations Of the act.
"a sirdssys view Of the act shows
tnet the nrst flvs sections forbid f,rs
inberAncs companies from entering
41e oonbinatioss % govern Ars IN
tosahss rates; Il psrmit, them 70 en-
~ : common agent to make inspsc-
;>><pA fsrnish maps. give full informa-
ten - TO rss>s and to 20 % Tar -
q fssrnish advisory rssss. The eth
o9ee1sn. subJscting the d,,cision Of the
in6neancs oounrnisslonsr 10 instant re-
~ ~ any Judge siwm him power
ef>or hser1nsNts u pshs upon dikcrimi-
n1spsx % an1I1t rites. The tn sec-
ttse ferhsds tls companies or agents
hen. p1syths favortt4s among thsir
bQ>cv-1el1era sSf n-,s ~ ~ j.
20 = zen. the oct while permit
Hqg> >eech company to follow its own
ntehsde YET does permit the compa-
~ " they choose to 'so-opsrats In
sseosct to Inspections swsn 10 the ex-
Tent Of receiving from the common
egsnt what In HI opinion u, an
equitable rate on the riaks inspected.
This. therefore. while permitting great
eo-opsration yet also permits free
compsution between the companies.
This principle Of competition in FIRE
tneurancs rates n one seriously OBJ
jeotsd TO by srsat many' of the fire
insnrahcs company managers. They
e4eiArt that there should be no such
thing ~ competition In fire insur-
encs rates. but that through some
commen agency q rate should be hxsd
au1 al insurers required to charge Il.
There are unmistakabis advantages
N the economy Of cooperation In the
natter Of inspection and classificat ton
q risks and the furnishing Of advi-
sery rates thereon. But when we find
sosns companies with high loss ratios
ssd others with low loss expense
ehArsss. thsrs win bs few who win
'esny that the public should be given
~ bsssft Of such rates as now from
eassful selection Of risks and econo.
~ ~ manassmsnt. II 10 hardly fair
IA the General public TO say that they
sp should contribute to q common
ssnd and that the honest and careful
man should bsar the burden imposed
~ the criminal or carele,s who in
'tsutionaily or unintentionally cause
Arss.
This careful selection of risks, both
In respect to moral and financial hax-
ards. is to bs seen on every hand. II
y the reason why the fsrmers' mutual
nrs companies. which have been run
sntng In this state from twenty OF
twenty-five years. are able to furnish
ipsprancs At from about TIC to 75c
Per 800 . year. through a course of
gears on farm dwelling houses. tenant
housss and barna. when the stock
companies claim inability to como out
even when they charge s1.2O per 800
Ger the. same class Of riaks. Like
wise even greater differences are found
In the cost of insurance In the mutual
companies In Charleston. as compared
with the rates charged by the stock
companies. And the Same excellent
results are TO be found I'm che opera