The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1919-10-29
M'LAURIN DISCUSSES INSURANCE
AND STATE WAREHOUSE SYSTEM
Charges that Trust Of Insurance Companies are
eonsplring to Put Non-Board Members Out Of
Business as Part Of Fight on Warehouse

can Cotton Association, in which the
insurance and warehouse subjects are
again brought to the fore in this state:
BCnnettSville, s. c., Oct. ii, 1919.
Mr. j. 5. Wannamaker, President
American Cotton Association, ST.
Matthews, s. G.
My Dear Sir: | nave your favor Of
the 2iSt inst. and am Slad to know
that YOU favor the development OF
the state warehouse system modelled
on the South Carolina plan "in ever?
state in thc cotton belt" As soon as
rctUrn from the conference with
Govcrno! Dorsey will prepare the
articles giving concrete plans con
meeting inc system with financing
institutions and the marketing fca-
iuro. EoU have done wonderful
work in orou#iug public sentiment
anG YOU cen dcpcnd on my doing
anyth.A5 III my power to aid you. Be
fore W-i;;n& ;h@&c articles however.
som, n1g definite must be agreed up
on about the insurance question 4
s!tuat,.A Is brewing in the insurance
ilcld in SoutA Carolina which viii haze
tremendous CfiGci one way or the
Other. AsManC. = a r't2l factor in
the NM"3o!n& 6! cotton. We have
gyl2Aed the point where the farmers
mUsl l.n"nCc ana control the surplus
i" ord! TO SET a fair price for tho cot
ton c.o9. The higher it goes the moro
surely vii! this be the case, because
at n-caont prices manufacturing con-
Germs cannot afford to carry large
sur,ilu3, and II middle men cbnrT5Tr ffir
surplus they will use it as q club and
cont!nuc 10 reap unreasonable pro
fits nj the expense Of both producer
and manufacturers.
a. Dauk cannot afford to handle
warehouse receipts unless the insur-
ancc is unQucStiOncd, and the farm
cr cannot afford TO pay an cXhorhi-
tant rate OF insurance and interest
charges in order 10 hold his cotton.
ssysta:n, the moment I touched the in
&surancc | stirred up hornet nest.
SlIad ! not been entirely free to make
smy own arrangements outside Of South
sbccn put in operation, nor can ii &c
stmaintainod effectively under the pres
Cent insurance situation.
9& No man who has the true interest
Iff tho - .+ hnr,t ar N
wa system which does not take care
sof the country storage. Cotton should
ssbe kept as near the place Of produc-
Ition as possible and when it moves,
SSliould 30 straight to the place of man
tfacturc, even if it is in China or
#Japan. Every time that cotton is
8snpved II adds to its primary cost.
and whether the grower pays ii direct
S<SiN mot, it is at his expense. | found
sdnt19li that the rates on country ware
Eouscs were prohibitiye. The trust
enlarged $3.50 per $4,000 while in a
fourth class town with exactly the
gsme building the rate was less than
one half that amount
SsExpcriencc hasAITovcd that safety
.sili insurance lies ttE the distribution
4SSIrisk contcndEthat if the sur
cotton were distributed in ware
hpnBcs Of GOO bales capacity scatter
Eeds all over the belt that so far as
1 Ne risk was con3srGsa, it is the best
stp the world, ahaa.Should be the
8cIieapest. The Insurance c0mDanios
8paid more loss in one fire in Augusta,
Ga, than they would in tho next ten
years on Georgia cotton in country
Warehouses such as ] have described.
fyet they give tho Augusta warehouse
gHrate Of l5c and charge the country
Warehouse $3.50 pcrts $4,000. The
8remedy for that is to provide sys-
tenn Of state Insurance for warehouse
8cotton To do that, however, will in
l5yltc such contest with the insurance
trust that it will be necessary for each
Estate to have it's own rating and in
sgspection bureau. We have a provision
%in our constitution forbiddng the
formation Of trust and specifically
sldirecting the legislature to pass laws
efor their prevention. In 1917 the log
sislaturc Of South Carolina deliberately
Nlaid down to the insurance trust and
$we are today well nigh powerless.
The passage Of the Lancy- Odom act
swas the rcuslt OF the fight made by