Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1922-01-04

| peOpte VI tllSSe OliISo SeaISS W 54'S
us deliverance from the curse of this
egotistical and tyrannical Federal
Reserve Board.
Mind About Your Insurance.
Columbia, S. c., Dec. 25.-Insur-
ance Commissioner McMahan has CIV
en- out the following warning to the
public against buying unauthorized
insurance in connection with alleged
guaranteed blank checks and alleged
guaranteed check writing machines.
These sales have been made in the
state without authority of law and
have recently been brought to his at
tention.
The Bankers Supply Company of
Chicago, ILL.,, sells the blank checks
to banks and gives policy issued by
the American Guaranty Company of
Columbus, Ohio, to idemnify the
drawer of the checker to the amount
of $1,000 in case of loss by forgery
| in the alteration of his check on that
particular paper.
Similarly agents of the Todd Pro-
tectograph Company, Rochester, N.
Y, are selling check writing ma
chimes and give a guarantee in the
shape of surety bond up to S1O,-
OOo.Go issuca by the General Indem-
nifty Corporation Of America, home
Office Dorchester, N. Y.
In each case the seller of the pa
per or of the machine is virtually an
agent for the surety company and
therefore is violating the state law by
placing insurance in a company not
licensed to do business in this state. l
have taken steps to stop the further
sale of such "insurance." Unfortu-
notely much of this insurance has
been placed but it is of no real pro-
lection to the insured because there
is no means of forcing the surety
company to pay loss.
The insurance laws of our state
providing for licensing companies to
do business in the state, protect the
policy holders by requiring the COM
pany, as the condition to obtaining a
license to subject itself to be sued in
this state and further to deposit with
the insurance Department securities
for the protection of persons obtain
ing judgments against the surety
company.
There is no such protection in the
case of these surety companies which
are having their policies placed as
above stated, just as there is no pro-
lection in the case of foreign COM
panies unauthorized in this state
which succeed in obtaining insurance
by the mails.
1t does happen, however, that some
unauthorized fire insurance compa-
nies have record of observing their
"gentlemen's agreements" and pay
their obligations though without the
compulsion of our law. In the case,
however, of these two companies,
there is no assurance of their stand
ing. An authoritative report gives to
the American Guaranty Company,
December 31st, last year, surplus
of only $26, 100000. The same author
itv gives to the General Indemnity
Corporation of America surplus of
S248, 100000 but shows a decrease in
profits for the last five years down to
practically nothing for 1920.
But if the companies were entirely
gilt edge, the people of South Caro-
lima should spurn to encourage their
evasion of our laws which are made
for the protection of the insuring
public and which are reputable law
abiding companies comply with to the
extent of paying large taxes to our
state in conformity with these laws.
The people should not tolerate "smug
Cling insurance" or BLOCKADE insur-
ance" or "bootleg insurance"