The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1916-03-09
One Dollar and a Half a Year.
"OUTRAGE," SAYS McN1ASTER.
Scores Companies Quitting State
Seeks Federal Aid.

| Commissioner F. H. McMaster this
afternoon addressed letters to Sena-
tor Tillman and Representative Lever
asking them to have the United
State government investigate certain
fire insurance companies that are
withdrawing from South Carolina be-
cause of the passage by the legisla-
! ture of the anti-compact bill. Mr.
McMaster says that the State is un-
able to deal with this situation, but
"it does seem to me that this is a
! most outrageous condition, and one
! that should not be permitted by the
federal government" said the com.
missioner. He says that he believes
these companies have entered into a
conspiracy to withdraw from the
State and to injure the people of the
State by disturbing the business con-
ditions.
The following letter was written
by Commissioner McMaster to Sen
ator Tillman and Representative
Lever at Washington:
! McMaster's Letter.
eat the last session of the legis-
lature the Laney-Odom compact bill
was passed. 1t was signed by the
governor on the second and goes into
! effect on March %.
'tThis bill practically, in effect
simply forbade the companies max,
ing any compact or combinations
with other fire insurance companies
associations or partnerships or to al
low their agents to enter into any
compact or combinations with other
companies, associations OF partner,
ships for the purpose of governing
or controlling the rates charged fol
fire insurance upon property in South
/ Carolina
! s"The bill practically put out OF
business the Southeastern Underwrit,
ers' association, but left each COM
pany the right to make it's own rates
! It permitted the companies to en-
ploy a common agent for the inspec.
| ton of risks, advising as to defective
structures, etc. AS you know, fol
the past ten years the Southeastern
Underwriters association has dictat'
ed the rates of fire insurance in South
Carolina without practically any abil'
ity by the State to control these
rates. The purpose Of the Laney-
Odom bill was to provide for inde'
pendent action by the companies and
permit some competition in fire In.
surance rates.
| Alleges Conspiracy.
I From the public prints, <informa'
ton received through kilograms te
the local agents and from other
sources, I am convinced that large
number of companies have agreed tc
withdraw bodily from the State, and
! they are now doing so. I believe
that they have entered into a con
spiracy to injure the people of the
State by disturbing in every
way possible business conditions
depriving agents of means Of
livelihood and otherwise working
great injury and loss to the people.
| "Of course, the State is wholly un'
able to deal with corporations which
withdraw from the State and which
have their home Offices in othe1
States.
ssBut it does seem to me that this
is a most outrageous condition anc
one that should not be permitted by
the federal government.
''The companies have claimed thai
they lost money in South\ Carolina
and yet the law, when it goes into
effect, will permit each company te
make its own rates by it's own ex
perience, numbers of them threaten
and in a practical mass withdraw.
els there not some federal remedy
It does seem to me that the fedora
authorities should have the power tc
investigate the matter and to put an
end to a condition which seems tc
me to be ruthless and outrageous.
'I feel sure that you will leave nc
stone unturned to do your best fol
the people of South Carolina in the
present emergency.
asking that you take prompt ac'
ton, I am very truly,
1 sF. H. McMASTER,
| Insurance Commissioner.
Several more companies notified
their local agents today that they
were withdrawing from business IN
South Carolina. 1t is believed here
that practically all of the big ire IN