The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-03-17

Suring me that my State warehouse
cotton would be taken care Of and that
i: was matter of Indifference TO them
rhether they got any outside business
OF not
81 believe that this situation can be
handled through Samuels, Cornwall &
Stevens, but there is no use for me to
bring men of that caIibre and character
to South Carolina to aid me if they are
to be threatened with arrest and made
to feel insecure in the transaction of
business.
Analyses Situation.
"It might be we'll governor, for me
to give you what I consider a correct
analysis of the situation. If a patient
is sick you try to diagnose the case and
find the nature of the disease.
'In my judgment there are four
things primarily causing high insur-
ancc on fire risks in South Carolina:
q. There are too many agents and
he number causes the excessive COM
missions which are paid to them.
"2. The valued policy law, which
means that if I have building that
costs me $1,000 and it looks like It
might have cost $1,000 and I take an
inexperienced agent and say, This
building cost me $780, and get three
fourths o. $500 insurance on it when
it cost me but $1,000; the value is
fixed by the agreement of the agent,
and if there is a total destruction the
insured can collect his full valuation,
no matter what the facts may be as
to the actual value, which enables
crook to over insure property and the
honest man has to pay for it.
"3. The municipsI taxes in South
Carolina. The 30 VI more companies
entered in South Carolinn probably
pay an a. erage of $500 at the lowest in
municipal licenses or a minimum to-
tai o $4,000.
81. The class of the people the
companies allow to represent them is
another great source of danger-peo-
PIE who have had no experience and
70 knowledge Of the business. Where
a big commission means meat and
bread. the danger of over-insurance is
great.
Fought hcNlster Bill.
"As to the immediate situation, here
IS my analysis of that:
You will recall that during the
ession of the legislature, in tele-
phone conversation, 1 called your at
tention to house bill No. 40, known as
he McMaster bill, and that l directed
the attention OF Mr.. Odom, chairman
o. the agriculture committee of the
house; Senator Banks, Senator Laney
and other leaders in the general as
sembly to the danger of this meas
ure.
"Now, think the trouble is not the
Laney-Odom bill, per Sc, dissolVing
the Southeastern and preventing them
from coming into the State and arbi-
tarily fixing rates, but the provisions
that were put into the Laney-Odom
bill at Mr.. McMaster's request, giving
him the power of establishing what
ever rate in his judgment is the cor
rect one and the only recourse that
the companies would have being an
appeal to the courts. The companies
fear that this would keep them per-
petually in litigation and subject them
to ,orln of annoyance which makes
it undesirable to do business in the
State
From the standpoint of the COM
panies. the provision requiring them
to make oath at the end of the year
that no agent of the company has Vio-
lated any provisions of the act and fix
ing a heavy criminal penalty makes
them afraid to do business. They say
chat it is an impossibility for any Of
ficer O.. the company to make oath that
no agent has violated the law, because
he would not have knowledge Of such
a violation, and per contra it is equally
as impossible for an agent Of the COM
pany to make oath that no officer has
vioated any provision of the act for the
reason that he could not know it.
Suggests Modus ViVendi.
"Thc affidavits are not required to