The Clinton chronicle. (Clinton, S.C.) 1901-current, January 29, 1953, Image 13
Thursday, January 29, 1933
THE CLINTON CHRONICLE
Picre Five
SOMETHING WRONG IN SCHOOL
BUS OPERATION, AGENTS SAY
Columbia. — Insurance losses
growing out of a total of 368 acci
dents in less than six months is
credited with having caused can
cellation of South Carolina’s school
bus insurance policies.
That data was included in an
information bulletin being distrib
uted to members of the South
Carolina Association of Insurance
Agents. It was that association
which initially entered into the
policy with the State of South
Carolina for the insuring of school
buses.
Last month, after finding that
the half-year premium of $24,000
was so greatly exceeded by the
incurred losses, totaling $51,000,
the National Surety Corp. (which
was carrying the insurance) sought
to adjust the premiums. Failing in
that effort, the insurance company
served cancellation notice and 30
the
days later, Jan 15, cancelled
policy.
Meanwhile, the insurance of
school buses has been transferred
to another company, the Manufac
turers Casualty Insurance Co., of
Philadelphia, at an appreciably
higher premium, something like
$72,000 annually as against the
original $48,000 specified in the Na
tional Surety policy.
Director Sam B. King, of the
State Sinking Funds Division, said
he did not feel justified in going
along with proposed adjustments
of* the original policy. Such ad
justments would have \ meant pe
riodic re-fixing of premium rates
and Mr. King said the state was in
terested in having a fixed annual
rate in effect.
According to H. Pierce North,
manager of the Insurance Agents
association, those readjustments
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would have provided for somethirg
of an “(escalator clause’’ in the pol
icy. Continued high rates of acci
dents would have meant increased
premium rates, where as lowered
accident rates would have reduced
the premiums and made for returns
to the state.
In his bulletin to the association ^
members, Mr. North said that thej
unexpected volume of losses was
“an indication that something must j
be seriously wrong in connection
with the operation of these buses.’’!
“We are not prepared to make an.
appraisal of the difficulty at this;
time,” Mr. North continued, "but;
obviously some major operaion
must be taken in connection withj
this matter to guarantee the safety j
of the bus operation as well as toj
guarantee reimbursement of those j
whose property or persons have;
been injured by school buses.’’
The report to the insurance,
agents concludes with this para-;
graphj
“Nothing in. the analysis we have
made would indicate that the ad
verse record can be directly at |
tributed to student drivers as such..
Naturally, the accidents for the >
mosf part have been the result of;
careless driving or lack of proper;
attention, but that doe§ not neces-;
sarily mean that student drivers as
a class should be condemned.
“It does mean that a very mucnj
greater effort on the part of all of.
us must be, expended to get the |
school bus driver, v^hether be be;
adult or student, in the proper i
frame of mind so that a great many |
of these small accidents can be:
avoided. Cjrtainly the impact of
the tragic accident at Manning
should impress every school bus
driver that a small accident with
a little bad luck can be turned into
a tragedy.”
Balanced Budget
Comes Ahead of
Tax Cuts — Byrd
Washington, Jan. 25.—Sen. Byrd
(D-Va) said toda ythat individuals
and businessesses are entitled to a
cut in taxes but the federal budget
must be balanced first.
"This can be done, if the people
of this country demand it,” Byrd,
only Democrat asked by the Repub
licans to head a congressional com
mittee, said in a radio interview with
the Gannet News Service.
—q'.fre—viegifHan—is—staying—-on—-as-
chairman of the Joint Congressional
Committee ’on Reduction of~Non-
Essential Federal Expenses.
“Federal taxes are now imposing
a cruel burden on both individuals
and business,” said Byrd, who -also
is a member of the tax-writing Sen
ate Finance Committee. “Both are
entitled to relief.”
He cautioned against cutting tax
es, however, “until we have reducetl
federal expenditures to balance the
budget, eliminating the necessity for
deficit spending and increasing the
debt.”
iByrd suggested two ways of ac
complishing this and allowing a fed
eral tax reduction.
1. Congress should trim former
President Truman’s spending budget
proposals of about 79 billion dollars
by slightly more than 10 billion to
equal estimated government reve
nues.
2. Congress should adopt a single
package appropriation bill so it
“could get the entire fiscal picture
of the government at one time.”
Appropriations now are split up
into 12 regular annual bills plus nu
merous supplemental measures.
Byrd said the single appropriation
bill should include a limit.on spend-
of both old and new funds, to return
actual control of the purse Strings to
Congress. He estimated there is a to
tal of about 100 billion dollars now
in unspent appropriation balances.
He said the Truman budget pro
posed adding 140,000 new govern
ment employes to present payrolls
that now include more than 2 >2 mil
lion persons.
Instead of this, Byrd said 150,000
present employees could be dropped
“without impairment of efficiency.
He said the 290,000-person payroll
cut “would save more than a billion
dollars.”
Byrd said multi-billion dollar re
ductions must be made in the de
fense and foreign aid programs.
All foreign economic aid should
end, the senator said, with such
spending limited to “our own defense
and the preparedness of our allies.”
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