The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1916-03-08
'0UTRAGE, /" SAYS M'MhSIER
SCORES COMPANIES FOR QUIT
TING STATE AND SEEKS FED
ERAL AID.

AC'cr CTSHS InNcStlSatlOn--Stltc
POwcrlcss, Says McMastcr, Who
Thinks Fire Companies Have En-
tered into Conspiracy.
Columbia, March 4.-Insurance
Commissioner f. H. McMaster this af-
ternoon addressed letters to Senator
'Tillman and Representative Lever
asking them to have the United States
Government investigate certain fire
insurance companies that are with
drawing from South Carolina because
of the passage by the legislature OF
the anti-compact bill. Mr.. McMaster
says that the State is unable 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. commissioner. He says that
he believes these companies have en-
tered Into a conspiracy, to withdraw
from the State and to injure the peo-
pie of the State by disturbing the bus
mess conditions.
The following letter was written by
Commissioners McMaster to Senator
Tillman and Representative Lever. at
Washington: a.,aes
At the last session of the legisla-
ture the Laney-Odom compact bill
was passed. ! 1t was signed by, the
governor on the second ana goes into
effect on March %.
This hill practically, in n, \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 anv
compact or combinations with other
companies. associations or partner
ships fer the purpose of governing or
the rates charged for fire
insurance upon property in South
Carolins.!v fs.5.
1.-THE bill practically put out of
business the Southeastern Underwrit-
ers' Association, but left each COM
pany the right to make it's owni rates.
1t permitted the companies to employ
common agent for the inspection df
risks advising as to defective struc-
lures, etc. AS you know, for the past
ten years the Southeastern Under
writer's Association has dictated the
rates Of fire insurance in South Caro-
line without practically any abilityiby
the State to control these rates. Tho
purpose of. the Laney- Odom bill was
TO provide for independent actor, by
the companies and permit somo
competition In fire insurance rates.
From the public prints, informa-
ton received through kilograms to the
local agents and from other sources, I
am convinced that large number of
have agreed to withdraw
bodily from the State, and they are
now doing so. believe that they have
entered into conspiracy to injure the
people of the State by disturbing in
every way possible business condi-
tions. 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 other
States.
"But it does seem to mo that this
is a most outrageous condition and
one that should not be permitted by
the federal government.
"The companies have claimed that
they lost money in South Carolina,
and yet the law, when it goes into ef-
feet, will permit each company to
make it's own rates by it's own ex-
perience, numbers of them threaten
and in practical mass withdraw.
"Is there not some federal remedy L?
1t does seem to me that the federal
authorities should have the power to
investigate the matter and to put an
end to a condition which seems to me
to be ruthless and outrageous.
II feel sure that you will leave no
stone unturned to do your best for
the people of South Carolina in the
present emergency.
Asking that you take prompt ac-
ton, am very truly,
"F. H. McMaster,
insurance Commissioner"
Several more companies notified
their local agents today that they