The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1916-04-12
THE ANTI.CoMPACT ACT.

Unless the members of the legis-
lature who supported the recently
passed act known as the anti-com-
pact act, and the officers who approx
ed it, are ready to disprove the
figures of the insurance companies
as to the profits made on business in
South Carolina during recent years,
then it would appear to US that the
insurance business in this state has
not been the source Of much reve-
nue. to the companies. 1t would
appear that the insurance companies
have not made money on business
done in South Carolina, even in
normal times, and that they have
not been able to lay aside any sur
plus with which to meet extraordi-
nary demands, incident to the haz-
ardous risks incurred by them, such
as that caused by the Augusta con-
fagration.
The trouble seems to US to have
been that the rates were not pro-
perly proportioned between the risks
assumed. Not pretending to be an
expert, but looking at the matter
from a common sense standpoint, it
appears to US that there is no sense
in insuring a negro house, frequently
left without an occupant, without
the limits of fire protection, on
basis of one dollar per hundred, and
charging two dollars and twenty-five
cents per hundred for insurance on
the City Hall, not only located with
in the limits of fire protection, but
constantly under the eye of officers
of the city, nor in charging one to
one and half dollars per hundred
on brick buildings on the public
square.
We do not believe in trucking to
any unjust demands on the part of
the insurance companies, and we
still believe that the insurance prob
lem will solve itself, and that peo-
pie will be able to procure insurance
in one way or another. At the
same time, if the figures of the fire
insurance companies are correct they
have some cause for grievance. 1t
seems to US that there is no objec-
ton to all insurance companies writ
ing the same kind of policy, at the
same rate. The state is only in
terested in knowing that the rate
charged is a reasonable one. In this
view the law should be amended by
giving the insurance commissioner
authority to forbid certain rates
deemed con6scatory, or unreason-
able, unless approved by some body
having authority to review rates,
and which body should be competent
to so review rates. A commission
appointed by the Governor for life,
by and with the advice and consent
of the Senate, composed of men with
a peculiar knowledge of these mat
ters, who should be paid decent sal
aries, should be able to fix rates sat-
isfactory alike to the insurance COM
panies and to the people. Any arbi-
trary method of fixing rates and
putting them into effect would be as
unfair to the insurance companies
as they are accused of being to the
interests of the people of this COM
i1onwealth. Such a commission
might be charged with fixing the
rates, not only of fire insurance, but
with approving the forms and pro-
visions of policies and contracts Of
fered in all lines of insurance. The
insurance business of the State runs
to enormous sums in many different
lines. The State should be inter-
ested in seeing that legitimate con-
tracts may be had by the people as
we'll as in driving out companies
which do not offer contracts on rea-
sonable terms and companies which
fail to perform their contracts.