University of South Carolina Libraries
YOLCME LIU, >'OIBEE 22. , IeWBERRY, S. C, Hi I DAY, MARCH 1", ISIfi. TWICE A WEEK, IU0 A YEAR. f Governor Mak w Of McLaur in W Asks How Fire Insuram It South Carolinians-111? By The Coi W ANSWERS AKE FILED BY W THE CO-tfJIISSIO-NERS .MrLa^rin Complains of Monaster's Inquirinsr Into His Insurance Operations. . The State, 16th. I Gov. Manning yesterday sent the folI Jowing letter to Fitz Hugh JMcMaster. insurance commissioner, and Joh:> L. McLaurin, State warehouse commis.sioncr: "I am daily receiving inquiries from all pans of the State asking me how lire insurance can be obtained under the existing laws, and in view ot me withdrawal of certain of the companies. "vThe Dubiic is deeply interested an.. is entitled to any assistance that can ac given. I desire this information in order that they may make their busines arrangements. I ask tliat you ? will write me where and how this insurance can be obtained." Replies were receivod yesterday a> * frnm Woccrc ATMffl StPr A A KJXXX 4?iv.Wi o ivjcLaurin. (Mt. McMastr submitted a list of 1? companies, 12 of wbicli he believed would continue to write insurance in South Carolina, and a list of 37 mutual fire insurance companies. Mr. McLaurin replied that the firm f ^ ? ? ? P- C! f n f or Tsamueis, uvruwdn ut New York had given him assurances ' that they could handle the situation. He gives his reasons for*the high insurance rates. He also takes 'Mr. McZVIaster to task for inquiring into the activities of Mr. Stevens and another representative of the New York firm on the occasion of their recent visit to Columhiaa. At a meeting yesterday afternoon of the executive committee of the South Carolina Warehouse association, the Laney-Odoia anti-compact law was unqualifiedly indorsed. Commissioner McMaster left last evening J.or New York city. v ?? ?WT? 1 f'T It rVTVADCrn I J nL At 1 l-C? I/.' l/U 1UJui/ BY McLAURIX MEN Warehonsr issoeiation Committee i Takes Action?Resolution Adopted. I Managers of local warehouses oper> ated under the direction of John L. I IMcL&urin, State warehouse commissioner, held a conference in Columbia yesterday, on the call of tMr. McLaurin, and adopted a resolution giving their "unqualified indorsement" to the T.aney-Odom anti-compact fire insur-j ance law. The managers were recently organized into a ooiiv known as the 'South Carolina Warehouse association. Yesl terday's meeting was of the executive ^ committee, composed of Commissioner McLaurin, chairman; W. A. Stuckey, }.i. M. Cooper, D. McQueen, M. 0. Dant^:er, J. A. Banks and John K. Aull. Mr ^ i>anks is president of the association B and Mr. Aull secretary. News o- the proceedings in the -warehouse association reachcd The -state typewritten from office o: Commissioner McLaurin, the association's meeting Deing open to memoers oniy and membership being closely restricted Following is the text of the resolution: "Whereas the laws protecting the Southeastern Underwriters' association were enacted ostensibly for the rrurposo of obtaining lower rates of insurance and of placing same in bona foe companies; and ' "Whereas this underwriters' association has not 'fulfilled the purposes so clearly indicated in the laws proTectins them, -but on the contrary became an oppressive combination of in krerests: "Wherefore the Laney-Odom bill "became a necessity in the protection of es Inquiries and McMaster ce ts to be Obtained by -Answers are Filed nmissioners. I , the people of this State; "We, the executiv committee of the ! Warehouse Association, of South Carolina, give our unqualified indorsement I of this act, and commend the legisla I j :urc and the governor in their course I in relation thereto. i "It is a matter o regret, of course, that this disturbance in the "business of South Carolina should have been ! brought about, and that many persons j who were dependent for their living 1 upon the writing of insurance are af* Ji : fected adversely by it, our wucii u uc comes a question between the sovereigny of the State and the sovereignty of a fire insurance company, we unhesitatingly place ourselves on the side of the 'State, and we would view ; with disapproval any disposition on the part o." the authorities in South j Carolina to take advantage of the technicality of laws primarily enacted in in crest of and for tlie protection 0*: this Southeastern Underwriters' asso ciation to embarrass any agencies 111 their effort 10 secure insurance for the people of the State in the absence o* | the companies which have withdrawn. 'ViVe recommend that mutuals be formed in the various counties of the Stat*-, such as are now* in operauuu m =>??'era! of the counties, for the protec- 'ion o*' small i roperty owners." i i H?>CA.STER ANSWERS INQUIRY OF GOV. MANNING i I Suggests That Licensed Brokers Conld Probably PEace Insurance in Satisfactory Ooceras. j ! Fit* Hvgh McMaster, insurance _ commissioner, rrplied as follows yesj ferrlay to a leticr oe inquiry from Gov. i Marnirg: I "Replying to your letter of '.March i 15 asking :nc how fire insurance ca?? j be obtained under the existing laws ; and in view of the withdrawal of cerj tain of the companies,'. I would say ! that the frequent publication in the j newspapers of the withdrawal of com| panies 'without notification to me by | I these companies leaves me in a posi j ' tion oO inability to answer your ques-! i tion definitely and exactly. j "Below I am giving you a list of i | companies which I understand are I now writing business. and I have ; starred those which I have reason to j belie.c will continue to write business' after the first of the year. * American ; Druggists 'Fire Insurance company, { Cincinnati; ^Equqitable Fire Insrance company, Pittsburg, National Fire j Insurance company, Providence: *Xew Brunswick Fire Insurance Co., New, r cri o T-T r\ m o i COIIly)ci n V % lictI , vjtv^WA. ^ia uvuiv t | Insurance company, Columbus, Ga.; ' Globe & Rutgers Fire Insurance com- ; i pany. 111 William street. New York; i National Ben Franklin Fire Insuance : company. Providence; *Xe\v Brunswick Fire Insurance company, New Brunswick. X. J.: -Now .Jersey nre . i | ' Insurance company, Xewark. X. J.; ; 1 * Pacific Fire Insurance company. 111 j William strict. Xew York; *Palmetto J , Fire Insurant company, Sumter; ! Rhode Islaz.-1 Insurance company, j T-> 1 r> ..11. /'o-aUh, Tv.c-.nr 1 I rroviuence, ~ ^uuui varunaa moui- j ance company. Columbia; ^Southern') Home Insurance company, Charleston: j ^Southern States Fire Insurance com- i I I pany, Greensboro, X. C. ^Southern i ! ' Underwriters Greensboro; St. Pair. ! Fire and Marine Insurance company. St. Paul, Minn; !*Under writers of ! Greensboro. G~( Pn?borc, T'nion Fir;: j | Insurance co.r jv\ ' Frmidence. There iDgv be a -i-n'ter of other j ,r,"'):'niis w.'iich H3'? if-main. Some i j of the above named may retire. "In addition to these I am attaching ! herewith the names of a number o: j mutual companies and inter-Insurers ' which were licensed last year, and whieh I think wiM be licensed this next ~ '1' 1 - ? 1 ~ ? ~ ? t Via nrtniOfl ' vear. i in* i;>i i-uu iu ui v/uinv,vit I bnt T can furnish all innuirors with printed lists. (List attached includes jT mutual companies and inter-insurers). These mutual companies ar.d interinsurers generally cover only cotton mi l property, hardware dealers, lumber mills, cottonseed oil mills and the like. "In addition to the above, if the insurers will communicate with the li censed brokers in this State?cf whom a: the present time there arc the fol.e\v;:ig: W. A. MeSwain, Xewberry; Montasuc Triest, Char'estor.: I). G. Kiiison, Columbia; Lawrence M Pinc-kney. Charles'-on; E. A. Gilfillin, Greenville; \\\ K. Seaso, Orangeburg; C. C. huwards, Chester?these brokers will probably be able to place insurance in some other companies licensed in the ?tate or in companies not now licensed in the State bm which may be satisfactory to the assured." rile assured." McL U KI\ BROKJHT BKOKKRS FROM >EW YORK CITY McWaster Interfered?Visitors Left When Commissioner Inquired as to Their Status. Joliu L. McLaurin, State warehouse commissioner, replied as follows to Gov. Manning's letter o yesterday, making inquiry as to the insurance situation: V* a l^f f av rvf o rnh 1 a 1 11 a vi >uui nuvi iyi , asking rnc 'how fire insurance can be obtained under the existing laws,' etc., and I beg to say that I agree with 7011 I that ' he public is deeply interested, and entitled to any assistance that can be given.'' " As I felt that tlie people were in some measure looKing to me in tno crisis which was precipitated by the insurance legislation of the last session of the general assembly, I want Xorth accompanied by Senator J. Arthur Banks, to see the insurance people with whom I liad placed State warehouse insurance at svery greatly reduced rates, inorder to have some channel through which other classes of property in South Carolina could be protected if the threatened withdrawal oC the insurance companies took place. Dealt With Brokers. i "My dealings in New York have been through the firm of Samuels, Cornwall & Stevens, one of the largest and most responsible firms of insur???? An lYftn* Vrtflr T-n mt? /T on ' _ Ckll\V UiCU ill U1CT* ? WL XV. xu LXJ.J VIVO.* j ings with this firm I have found the senior member, George C. Stevens, a most elegant gentleman, and our relations have grown to he very cordial. j "I explained the situation to Mr. Stevens and he agreed to come to South Carolina for the purpose of advising mp linn- trv handle the sifiiafcion frOTP. an insurance standpoint. His firm gave me assurances or their ability to handle the entire insurance situation j in South Carolina- if necessary, ibut ' they did not wish to invade the terri- | tory of the agents if it could be : avoided. "Neither did I wish to do this, which would have put many of these men out of business, and as Samuels, Corn- ! wall & Stevens could get much cheaper j rates than any agent in South Caro- j lina, I was making my arrangements . for agents in the various counties to ! place insurance through Samuels, | Cornwall & Stevens, thus enabling . ' these asents :o continue to do "busi-1 ne?s. I.artre Proposition. "After iM"r. Stevens got here and j sition and my inexperience in insur- j realized the magnitude the propo- j ance matters, he consented to send for j his chief e'erk, Phil La Tourtettc, whom I know very well, and let him stay here in my office until we could get the situation well in hand. Before Mr. La (Tourtette arrived, I called ?fcf . McMaster, the insurance commissioner, over the phone and told him that Mr. | O - O. fifAn V>afA * * ? * A C11 + VvO f 7 ! a,cvcii? v>aj> utit ai*u oc^u. <* j bring them together in order to get?tbe j benefit of the experience and advice of Mr. Stevens in handling this matter. "Mr. McMaster seemed to think it j would be better for him not to meet I Mr. Stevens and told me to handle it I in my own way. As iMr. 'Stevens and Mr. LaTourtette handle a large part of our insurance. I appointed them State warehouse inspoetors. with special j reference to insurance, in order to | given them official standing in South j Carolina and to protect them against interference. "On last Friday afternoon, having hrrn awav from home for three weeks. I was obliged on aecoun.' of business affairs to leave for Hennettsville on the Seaboard train at 4:20 o'clock. The understanding was that Messrs. Stev. ns and La Toutette would go to Charleston for the week-end and meet me in Columbia again on Tuesday. I .elt a little uneasy over the situation and instead of remaining over until Tuesday 1 came back to Columbia Monday night. Instead of returning to Columbia these eentlemen left Charles ton for New York. "While they were in Columbia we had applications from all over the State (and they continue to arrive) to place insurance which had been cancelled or was endangered. State warehouse Xo. 2 in Columbia is in one sec ;:on or me o:a 'state dispensary ouiiain^. owned by G. A. Guignard. (The rate on this house had been 40 cents per $100. I knew that at any time In the past year I could get a 20 cent rate but Mr. Guignard did not carc to take advantage of this on account o:' personal relation 'between him and the agent who had the insurance. We placed through Mr. Stevens' firm in Xew York the insurance on this State warehouse property at 20 cents, just one-half of what had been paid. Senator Banks writes: "To give an idea of how excessive the rates in some cases were here is a copv of a letter from Senator J. A.! I Banks, showing a reduction of more ; than one-hal:' in the rate which he j was paying on his property in the town of St. Matthews, all of which goes to ! .show most emphatically that the rates on other classe of property can be rec -ced ly cutting off the excessive commissions and fees to useless agents j just as \\r. ha. o done wit S'ate wirliouse cotton: 'sSt. Mat.'hews, Aid, en :3, 1916. | "Hoi:, -thn L M< Lauriu CokimMx ! i S. C. "My Dear Senator: I have Just' r. A fT- ? iT- O t? 'll ,*r 1 fi A O era T"> /"?"17 J V* j/'evcu win an uouii.iat. a&tuv/j' j * Xcw York at a flat r?:e of 1 per cer... j per annum, or 2 1-2 p?r cvnt. for three. years, amounting :o fc.I 1-3 o: 1 per cent per annum insurance on property owned and controller by me in St. sMatthews. The ratf-s heretofore prevailing on this property under the operation of the S. E. U. A.: One build ing $1.3-'), another $2.75, another 72 cents, another 72 cents another 72 cents another 72 cents, another $2.90, another $3.50, another $1.70, another j $3.15, another $3.30, or an average' rate of $1.95. It would appear from these figures that the State is not des tiried to suffer greatly from the desruction of the S. E. U. A. Insurance was placed with Samuels, Cornwall & Stevens. " Yours sincerely, " 'J. A. Banks.' Rnmors of Actirities. "Mr. Stevens and >Ir. La Tourette ^O/N + /> A*? T 1 A) f ii'Qra AO Tin/? 4"r\ Oil oa-tui ua V dlLCi 1 L ncii m-u bu : the office d.' the insurance commissioner in response to a telephone mes-! sage to my office from the insurance commissioner, to the effect that the commissioner would have to see the law as to resident's license, etc., of those handling insurance in South Carolina.had been complied with. The itienranr>o r?rkmmissi<iner stated that rumors were flying: thick and fast as to the activities of Mr. Stevens and Mr. La Tourette in South Carolina and tha: it was his duty to be satisfied that they were not violating the criminal laws. "Mr. McMaster met G. A. Guignard on the street and told lum ne would not make inquiry a to any insurance placed by Mr. G-uignard, but that no agent not complying with the law as to license, residence, etc., had th& right to place insurance in South rCarolina and if they did they were liable to arrest. "Mr. MaMaster was entirely within his technical rights as insurance commissioner, but as these gentlemen were not soliciting insurance, having come here purely on State warehouse business and in an advisory capacity * L1 "? - i"U ? nnrn /locirp in wun me a.n<i wim & snimv. uvunv w render us aid in handling this complicated s=ituation intelligently they wrote me a letter from Charleston, saying they would not come back to Colum jia, but had gone to New York, as curing me that my State warehouse otccn would be taken care of and that it was a matter of indifference to them hether they got any outside business or not. "I believe that this situation can be handled through Samuels, Cornwall & Stevens, but there is no use for me to bring men of that calibre and character to South Carolina to aid me if they are to be threatened with arrest and made to feel insecure in the transaction of business. Analyzes Situation. "It might foe well , governor, for me * ~ " n'knf T AAM ci/? ft* o IU ^ivc y\ja v>nat j Lunoiuci a. analysis of the situation. If a patient is sick you try to diagnose the case and find the nature of the disease. "In my judgment there are four . things primarily causing high insur- j ance on fire risks in {South Carolina: | "1. .There are too many agents anc? ! .he number causes the excessive com missions which are paid to them. "2. The valued policy law. which j means that if I have a building that j costs me $1,200 and it looks like !t might have cost $1,500 and I take an ; inexperienced agent and say, "This building cost me $1,800,' and get threefourths o;* $1,800 insurance on it when J it cost me but $1,200; the value is >' fivrri hv thr agreement of the asrent. ; and if there is a total destruction the i insured can collect his full valuation. \ no matter what the facts'may he as j to the actual value, which enables a j crook to over insure property and the honest man lias to pay for it. "3. The municipa1 'axes in South Carolina. The 50 01 more companies entered in South Carolinn probably pay an a . erase of $500 at the lowest irr municipal licenses or a minimum total r> $25,000. " I ITU. -1 ?P . 1, ^ 1 -t. ' i nt: i:ictss <ji nic utupic iuc j companies. ailow to represent them is another great source of danger?peo| plo who have had no experience and j ':o knowledge of the business. Where a big commission means meat and ! j bread, the danger of over-insurance is | great. Fought Mc&istrr Bill. "As to the immediate situation, here I 1 is mv analvsis of that: You will recall that during the ession of the legislature, in a telephone conversation, I called your attention to house bill No. 40, known he McMaster bill, and that I directed ' the attention of Mr. Ock>m, chairman of the agriculture committee of the house; Senator Banks, Senator Laney and other leaders in the general assembly to the danger of this measure. | "Xow, I think the trouble is not the Laney-Odom bill, per se, dissolving ! the Southeastern and preventing them j from coming into the State and arbij tarily fixing rates, but the provisions that were put into the Laney-Odom j bill at Mr. McMaster's request, giving him the power of establishing what| ever rate in his judgment is the corrcr-t miP anH the onlv recourse that ! the companies would have being an appeal to the courts. The companies fear that this would keep them perpetually in litigation and subject them to a ?*onn of annoyance which makes it undesirable to do business in the State. "From the standpoint of the companies, the pro-vision requiring them to make oath at the end of the year that no agent of the company has violated any provisions of the act and fixing a heavy criminal penalty makes them afraid to do business. They say ' -! ? 5 ~ mat u is an irxipossiuiiu> iui <iu.> wfioer a." the company to make oath that no agent has violated the law, because he would not have knowledge of such a violation, and per contra it is equally as impossible for an agent of the company to make oath that no officer has vioated any provision of the act for the I reason that he could not know it. I Suggests M"odns Vivendi. "The affidavits are not required to be made until March 1, 1917. The rv.mnanies could be given the assur ance of the commissioner that they would be protected in their business, this assurance having fhe indorsement of the governor, and these hardships imposed by the act could be removed flia -nrti-f coccinn rV rhf> Ipjrislat.:! TP a I cut liV AL OV.OClV/ii w -o before tho affidavits are required to be made without interfering with the anti-compact part of t.he bill. "In conclusion. I deeire to say that my advice is that those who desire to place insurance in large amounts write to Messrs. Samuels, Cornwall & Stevens, No. 84 William street, and as to the small country insurance, that just as rapidly as possible mutual insur ancc companies, such as exist in several of the counties of the State at present, be organized. * "As soon as I learned tbat iMt. Ste ?vens naa returned direct to :\ew xorK from Charleston, I sent my deputy to New York nor the purpose of conferring with him and giving him assurances that he probably misunderstood the warning that he received from the insurance commissioner. Warehouse Unaffected. "T in mv nffio.ifll pacity and as an individual citizen of South Carolina to continue to handle the situation so far as I may 'he authorized to do so uni-Ier the law, provided I receive the support of the properly constituted authorities in the State. So far as the insurance on cotton in State warehouses in concerned, r it has not felt any disturbances and I do not now feel any concern that it may be endangered. With assurances of esteem, I am, "Yours very trulv, "John L. McLaurin. "State (Warehouse Commissioner. "P. S.?F. Wade Vaughn, general / agent for a number of mutual companies and the Georgia State \ice president of the National Association of Mutual Fire Insurance companies, has been to see me today and assures me that there are ample facilities in this country for providing safe in&uranee on every class of property in this State and that there is no reason for our people getting into a panic over this situation. Of course, it takes a little time to get the machinery ready, but )Mt. aughn came to Columbia^today to zo over the ?itua'ioi? and can . be reached by writing him in Atlanta care Empire Life building. I find upon investigation thac there are several hundred responsible mutual insurance "companies in the United States handling all classes of property. I do not refer to the local mutual insurance companies now operating for the protection of i"arm property in South Car- | ?lina on the assessment basis and which insure only for those who fcave stock in the companies. The insurance companies represented by 3dr. iVaughn insure all classes of property on a premhim basis and cover the entire country." DOJOMTK RESIGNS AS PEOPLE'S ASSISTANT ? - n i __ Va unci ^rFec! 1 nree i?irs?tmes Iteason?Will Piuctice Law at dewberry. Columbia, March 14.?Fred H. Dominick, for the past three years assistant attorney general, resigned this morning. Mr. Dominick announced his resignation in tlie supreme court immediately after concluding the argument for the comptroller general brought against that official by tne board of regents o the State Hospial for the Insane. The resignation is effective immediately. Mr. Dominick will continue to discharge the duties of his office until Attorney General Peeples appoints his successor. The - i- i ? attorney general saia ne Knew uuiumg o Mr. Dominick's intended resignation until last night, and had not given any though.: to naming a new assistant. Neither Attorney General Peeples nor Mr. Dominick had any statement to make. Mr. Dominick will return to Iiis home in Newberry and continue the practice of law. He is a candidate for congress in the third district against Congressman Aiken, and will probably begin an active canvsas for that place. Mr. Dominick Has a splendid record as assistant attorney general, and in his three years' administration of his position has argued and "won several big cases froth in the State and the United States supreme courts. His ability as an attorney is accorded wide recognition and his administration or hio. rlntips "has boen characterized bv an entire absence of any partisan practices and he considered every proposition entirely* on its mari^s. He carries with him to his home the beet wishes of the officals and the people w TT" 1 CiA IJ . ?' * '