Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-02-21
BANKS COTTON INSURANCE.
Senate Passes Bill Again as Revised
and Amended.

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The senate considered only uncon-
tested matters during the early hours
of the session and then took up the
two bills by Senator Banks on state in
surance.
The first provides for the insurance
of state warehouses and cotton there
in by the sinking fund commission
leaving it to the commission to fix rates
and by an amendment offered by Sena-
tor Marion Of Chester limiting the
amount that may be placed by the
sinking fund on any one warehouse at
$4,000 ana requiring the sinking fund
to reinsure the balance in reputable
companies.
The premiums from this insurance
are to 60 into the general insurance
fund which is to be held for the pro-
lection Of all properly insured.
The second bill removes the limita-
ton heretofore put upon the accumu-
lation of insurance funds in the hands
of the sinking fund to s1,000,O00 and
the cessation of the payment Of premi-
ums. Under the. provisions of this bill
the accumulations are to continue and
the premiums are to be paid annually.
When the first bill came up for con-
sideration Senator Duncan moved to
strike out the enacting words.
Senator Banks contented himself
with saying the senate was in full pos
session Of the facts concerning the
bill. It had the same purpose as the
bill which was passed last year, and
which the governor had vetoed; but
many features had been eliminated.
Senator Duncan said he was oppos-
ed to the state going into any form OF
business. He was further opposed be-
cause he thought it subjected funds
of the state to too great risk.
Senator Christensen explained that
the bill subjected only the insurance
funds in the hands of the sinking fund.
The bill did not have many of the OBJ
jectionable features of the bill which
had been vetoed by the governor.
Senator Clifton opposed the bill on
general principles and because Of the
amount Of risks which might be as
sumed, and it would mean that the
state would finally insure not only cot
ton, but corn and all other products.
Senator Young thought the bill ex-
Gee dinghy dangerous. 1t was the state
going into the insurance business, in
suring cotton. This was creating a
special interest.
Senator Laney supported the bill
He paid a tribute to ex-Warehouse
Commissioner McLaurin, saying that 1t
was due TO his genius that the low rate
Of 1.6S had been secured. In graphic
terms he described the fire insurance
fight Of 1916, saying that If the legis-
lature Of 1917 had not thrown up the
sponge and repealed the act which
drove the Southeastern Underwriters
association out Of the state and placing
on the statute books a law which was
not worth the paper it was written on.
He said the Southeastern Underwrit-
ers' association now had the people by
the throat. He predicted, however,
that sooner or later the state would 90
'nto the fire insurance business. He
said the fire insurance companies call
ed their collections rates, the state
called it's collections taxes. The COM
panies fix their rates to meet expenses
and losses. The state fixes its taxes to
meet it's budget.
Senator Marion suggested that the
plan be changed to that Of the mutual
companies an excellent one being In
his county.
In reply to a question from Sena-
tor Clinton as to the theory upon
which fire insurance was conducted
Senator Laney said that fire insurance
was a science and that fire insurance
was run at no risk.
Senator Christensen said that despite
his misgivings he would vote for the
bill. That while there was some risk
there would be the opportunity to put
on a mill and a half and raise s500,0O0
and then place it's insurance as It saw
fit.
Senator Banks said he was willing to
accept an amendment limiting the risk
on each warehouse. He said insurance
was an exact science and very prof
liable business, SO profitable that in
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South Carolina had made demonstra-
ton Of the proftableness Of fire insur-
ance. 1t had started in the insurance
business without a dollar and had now
accumulated about $24O,0OO.
| If the state had done it's own insur-
ance on the state warehouses in the
four years it would now have over half
of the premiums paid out.
On the motion to strike out the en-
acting words the vote was to "a. The
following voted yea: Alexander. But
Ter, Clifton, Duncan, Friday, Hough'
Purdy, Walker, Young. Those who
voted nay were: Banks. Baker, Bas-
kin. Bethea, Bonham, Christensen
Gross, Harrelson, Johnstone, Laney'
Lightsey, Marion, McColl, McCutcheon
McGhee. Miller, Moore, Pearce, Robin
son, Rogers, Shelor, Sheppard, Whar-
ton, Williams.
Senator Marion proposed an amend
rlent limiting risk to each warehouse
to $4,000, which was adopted.
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sent to the house.
The other bill of Senator Banks
striking out the limit of s1,00O,OOO in
the surplus Of the sinking fund was
then passed and sent to the house.
Surrender of German Equipment
On bohalf of the government it has