The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1916-03-09
UNDERWRITERS ANN No,UN c
WITHDRAWAL FROM sTATE.-
INSURANCE FIGHT BEGINS.
DISPATCHES FROM COLUMBIA
ootngs and Happenings That Mark
tho Progress Of South Carolina Poo
pie, Gathered Around tho State
Capitol.
Columbia.

Gov. Manning approved the act of
the general assembly outlawing the
SOUTHEASTERN Underwriters associa-
ton from South Carolina. The COVER
nor also approved the insurance
brokers' act, which requires an annu-
al license Of s25.
No steps have been taken by South
Carolina authorities to combat action
which may come from the announce
ment Of 67 Of fire insurance companies
that they would withdraw from the
South Carolina field as q result OF
Governor Manning's approval of the
so.called brokerage" and anti-com-
pact insurance bills.
The 67 insurance companies organ
lied outside the state are members
Of the SOUTHEASTERN Underwriters
Association, and will be controlled, it
was said, by action Of their organiza-
ton. The association has closed Its
local offices and withdrawn jurisdic.
tion over the South Carolina business
or Its members. Big companies, 1t
was said here by their agents, will
cancel all policies on South Carolina
risks. There are about 95 fire insur-
ance companies doing business in this
state and it was indicated that those
outside the Underwriters Association
might also withdraw.
The "anti-compact" law, effective
March %, prohibits the organization
OF fire insurance companies to main
tain uniform charges Of rates in the
state. 1t was to this law that cheif
objection from the companies was
made at hearing before the Cover.
nor signed the bill
The brokerage" law which became
effective Immediately that it was sign
ed, imposes an annual license fee oi
| $26 upon agents Of each company the,
represent, and taxes agents four PEI
cent on all premiums paid into them.
James A. Cathcart. president of tn,
South Carolina Association of Fir,
| Underwriters, state organization
said not to be connected with tn,
Southeastern Underwriters Associa
tion, stated that their agents wer,
somewhat In the Clark" as to tn,
course their companies would follow
Cathcart added that 1t was his ow1
opinion that withdrawal of a large
number Of companies would work 6
hardship upon small insurers, as he
believed the big companies of his as
sociation would handle only larger
lines in South Carolina, and do this
business through brokers.
Governor Manning after signing the
anti-compact bill issued a statement
In which he said:
"The general assembly," said the
governor, enacted what is known as
the Laney-Odom bill, prohibiting the
formation of organizations or com
pacts of fire insurance companies to
ftx and control rates. This comes to
me for my approval or disapproval
After full hearing, at which writ
ten and oral arguments were present
ed for and against the bill, am con
vinced that it is my duty to approve
and sign It,
THE arguments against the bill dc
not, in my opinion, furnish adequate
reasons for my withholding my sigma
tWe. There 10 evidently something
wrong in reference to the fire insur
ance rates charged in this state. This
bill Is an effort to give competition il
rates. believe I am acting In the
interest Of the people Of South Caro-
lima in approving this act"