The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-06-06
HMASTER EXPLAINS
tNTi-CONPACT MEASURE
Insurance Commissioner Issues Ad'
dress to People about Laney-
OdOm Act.

missioner. has issued the following
statement to the people of South Car
oljaa. in which he discusses the
Laney-Odom act.
The statement follows:
u would like to talk to the people
.of South Carolina bit about the
Laaev-Odom act. Heretofore what
have written has been to the com
uaaies in amazement at the, to me-
absurd and unreasonable interpreta-
ticns of the law published by those
opoosing it or to the agents in an
effort TO suggest means of relief from
the loss which threatened them.
Now | wish to say something TO
the whole people For fire insurance
affects the interest of all who own
houses or rent them who have goods
to ouy or goods to sell, money to lend
or money to borrow. Fire insurance
nowadays affects very nearly every
material thing of value. so it is OF
interest to the whole people
TO me the fire insurance situation
is a business proposition to be con-
sidered wholly apart from political
arlbitions and to be solved for the
good of the greatest number. Such
have been all insurance problems to
me since l haze been insurance COM
missioner.
Not Commissioners Bill.
AS the Laney-Odom act is not o.
NV proposing, l should have no par
ticular partiality for it. l proposed
the bill recommended by the national
convention of insurance commission
eers It was killed. The sixth section
of the Laney-Odom act, taken from
TIE national convention bill. and tne
eighth section were Of my proposing.
The remainder of the bill is not mine
But that is no reason why should
-iosn in decrying it and in declaring
Z to he chamber OF horrors when,
to nv mind, it is not Furthermore
as an executive officer of the people
snd q creature of the legislature, II
is nv duty to try to sustain the laws
OF the State and TO enforce tnem
considerably but fully.
Nov let US corslder quietly the
act. To do this there IS
no need to call anybody names or TO
inpute ell motives to any one. Lei
US look simply at the act and see
mtat it says.
-.It is of eight sections. The first
five deal with the relations of the
eompanies to each other. The slxth
section deals with the relation OF the
insnrance commissioner to the COM
NAMES or their rate making agent
The seventh section deals with the
relations of the companies and thelr
agents to their policyholders, The
eighth section exempts the mill mu-
finals and the factory insurance as
sociation composed of stock COM
panies, from the terms of the act.
Belser Amendment.
The first FIVE sections are ABOUT
verbatim the Mauldin act passed IN
1sq9 and the law of South Carolina
until 1904, except that section l haS
q most important amendment pro-
Dosed of Mr.. Belser of Sumter. the
sole purpose of the first fiTe sections
is to prevent compacts or comolna-
tons for the purpose OF controlllne
rates charged for fire insurance. Tne
,aes- of the good faith of the COM
nsnies in obeying the act is to re-
.ouire an official or agent of the COM
nsnv in this State to make an al
6davit on March l, 1917, that the
company has not entered into any
trust, combination or association toE
the purpose of preventing competition
in insurance rates in this State.
Each year a home Official is re-
ouired to make like affidavit
Competition With Cooperation.
The Mauldin law of 1899 did not
permit the companies to cooperate
in any respect. Each company nao
to stand alone and do whatever 1t dlo
at it's own cost. The Belser amend
ment to section 1 changes all this.
The companies may employ com
mon agent or agents to prepare and
furnish maps and other data as to
risks, ETC.