The herald and news. (Newberry S.C.) 1903-1937, March 17, 1916, Image 1
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 . ?' *
'