The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-04-04


mate the situation, and they have ap-
I pealed to the spirit de corps Of the
, insurance men generally, and are
whipping e,erybody into line.
am CONVINCED that the situation
has reached point where = is neces-
sary that you call the legislature to-
gether to provide for State insurance.
for one am not willing to see South
Carolina abate her dignity and sue for
a dishonorable peace. | believe that
We have the courage and the brains to
solve this question ourselves. l ad-
yocate State insurance as tine only re-
course that we now have except tame
submission. | want it distinctly un-
/ derstocG, and in this think your eX-
cellency Will agree with me, that L
believe the Laney- -Odom bill, in dis
solving the Southeastern Underwrit-
ers' association in this State, was an
ominently just and timely piece OF
legislation. and undr no circumstances
should it be repealed, but that the
general assembly should be convened
in extra session for the specific pur-
pose of preventing punishment being
applied to the people o.. South Carolina
because its legislature has endeavor-
ed to do its duty to the people CT the
State and has done it. Should you
see fit to call the legislature together,
think it would be we'll to secure the
advice and assistance of an insurance
expert.
1t does not take much capital to
form an insurance company. desire
to call your attention right mere to the
manner in which the present
second largest Southern fire insurance
company began its existence:
The Southern Stock Fire insurance
company was organized about 16 or
II years ago by A. w. McAllister OF
Greensboro, who had 20 men of good
financial backing and worth to give
him note for S. 900, pon-interest
bearing. payable on demand, which he
used as capital stock to begA nre
insurance business. The demand for
payment of the notes was never made
but he paid the maker of these notes
an annual dividend, and finally re-
nlaced the notes with stock. This COM
panv at the close of the years busl-
ness, 1915, lad total capital and as
sets of $434,5S3 In other words, ne
not only paid dividends on The notes
which we're never collected, but gave
actual stock to replace the notes.
which stock cost the holders nothing,
buildine ND the assets to nearly $780,
600 with start of nothing more than
wind l found upon Investigation IN
New York that this company today
stands very high in insurance circles,
the ability and conservatism OF us
MANAGEMENT having made for it safe
nlace in the confidence of the business
world.
As Extreme Resort.
Now the legislature could authorize
the borrowing of, say, $1,oo0,o00 on
the notes of those whose duty it is to
obtain money for current expenses
and the funds could be secured from
time to time as the necessity Would
arise. 1t might never be necessary TO
borrow a. dollar Of it. l know, Oh
course that it would not be good bus
mess Judgment for the State to assume
Tho entire risk on concentrated prop
erty but, taken in connection WIN tne
formatlon of mutuals ana the reln-
snrsnce which would be available TO
q company with the sovereignty OF the
State behind it, the plan is perfectly
lraetical. sane, feasible and "ouio
mean large profit to the State RISKS
could be reinsured with nloyds IN
London. for instance, and we nave
some good home companies, now sma1i'
but which, following the lead OF tne
State would no doubt be enlarged 10
tand,e some Of this reinsurance, OF
the State might reinsure for the mu-
tua,s and home stock companies. otn-
er home companies would be organlz-
ed One is now in process Of organl-
zation Certainly the example anu
backing of the State would give home
insurance companies a great impetus
and would result in keeping at ho"e
the millions of dollars which We no"
send to other States for fire protec'
tion. Go
have never been very much III Id