The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-08-04

Take Sua.yy. in s@H. aad -4aar :
IhyreugA Heti,.an ot >he rreS>..l
Acts So That gGe5 Viii Meet ,Ae
Requirements oi the inSuring fuo-
lie in South Carolina.
('TLa following letter from Governor
Manning to A;r James A Cofeld, a
leading insurance man of Spartanburg,
was given TO the Spartanburg Herald
by Mr.. Cofeld for publication and ap-
peared in the Herald of last Friday.)
Mr.. las. A Cofeld, Spartanburg, S.
C.-Dear Sir: In reply to your inquiry
about the fire insurance situation of
South Carolina and my attitude in
respect to same, beg to advise that
prior to the convening of the last leg
islature we heard quite a lot of dis
cussion relative to the fire insurance
rates in South Carolina. During the
session Of the general assembly this
discussion took the form of bills in
troduced in the house and senate. 1t
was claimed by a great many people
that fire insurance rates in South Car
olina were excessive and that discrim-
ination was practiced. The cause of
this alleged discrimination and exces-
sive rates was said to have been be-
cause of an alleged combination
among the companies selling this pro-
lection, and that this combination had
entered into campact to control the
fire insurance business in South Caro-
lima. These discussions and state
ments resulted in the passage by the
legislature of what is known as the
Laney- -Odom anti-compact law. The
journal of the house shows that this
bill passed the house by vote of 81
to 81; and in the senate on final pas
sage the vote, according to the SEN
ate journal, was 33 to 8. This bill was
then sent to me for approval.
Given D Hearing.
Having been requested by interest
ed pasties thta they be given an op-
portunity to present arguments for
and against the approval of this act, ]
fixed date for this hearing. Quite a
number of gentlemen interested in the
insurance business appeared at my
Office and presented their arguments
against the approval Of the act. On
the other hand, the insurance COM
who is especially charged
with the conduct of the insurance de-
partment of the state, presented ar
guments favoring the approval of the
act. listened to all arguments with
an open mind. I learned that practi-
cally the same arguments presented to
me against the approval of this act
had reen previously presented to the
members of the legislative committees
before its passage. 1t was stated that
in case the act was approved, it "as
generally believed that the companies
would withdraw from the state. The
insurance commissioner gave it as his
q inion that this would not happen,
hut in case the companies did WITH
draw he thought that other companies
could be induced to enter the state for
business and that there would be no
serious interruption along this line.
did not deem it my duty to decide
whether or not the companies would
withdraw. The only question before
me was whether or not some valid
reason for disapproval had been pre-
sentel to me that was not known at
the tine the act was passed. The leg
islative department enacted the law,
and unless it could be clearly shown
that the act was unconstitutional be-
yond any question or that the mem
bers Of the general assembly were not
in possession of the facts that were
presented to me, it was clearly my
duty to accept the judgment of the
large majority of the members OF the
general assembly and sign the act.
1 did not deem the arguments
against the approval of this act OF
such nature and strength as to con-
vince me that it would be improper
for me to sign the same.
His Idea of Veto Power.
1 do not deem it proper for the gov
ernor to refuse to approve an act be-
cause of his personal opinion as to
its wisdom. The governor should have
due regard for the wisdom and action