Great Falls weekly tribune., 1895-04-26

a Rate War Going on Among the In.ur-
aMce COInpnnies in the West.

ancc companies in the West.
j. T.. McClelland and Phil Gibson re.
turned Monday from Butte, where
they have been attending meeting of
insurance men who took the initial steps
toward forming state board of under
writer's who should control the insur-
ance business in Montana. Heretofore
the business Of this state has been under
the control OF the Pacific Insurance
union, which controlled tho business Of
California, Oregon, Washington, Mon
tana, Nevada, Idalo, Arizona, Utah,
British Columbia and Hawaii A few
months ago come of the large companies
IN the Pacific union Withdrew as a result
Of quarrel. The Pacific board Of under
writer's was then organized t0 take the
place of the Pacific union, but some OF
the companies were left out IN the deal.
The result has been bitter fight be-
tween the board and the non board com
panIes and Insurance. premiums have been
cut all to pieces in many of the western
cities Tho var extended to Montana
some days ago and tho non.board com
panirr cut the rate in Helena about %
per cent In MIaspula a similar attempt
was made, but here the board companies
met the cut and went the non board
cpmpunirs one better. At Butte the To-
cal agents met and decided not to be
draw. INTO the war and refused to cut
ra 'cs either for the board or ants. The
following dispatch was received here
few days ago by the local agents:
SAN FrANclsco, April 10, 1890.
To : Board rate hereby reduced
~ per cent IN your city, excepting Bpe-
cla hazards rating 30 per cent or over,
Non cancellation cla'Ine TO b" attached
to cA AiBting policies on reduction
ALFRED STII.i.MAN, Gen. Manager
a leading insurance man in this city
speaking of the telegram said that, taken
by itself, it carried !; wrong impression.
They had no authority to cut rates
unless the non board companies com
monred cutting rates as they had in
other cities, in which event they were
authorized To meet the cut with 20
per cent reduction. Hs further SAID
that IN the opinion OF the local agents
rate war on insurance would be very
disastrous thing for the assured. Where
Il company took risks ut less than liv-
ing rate it WAS bound to got even in some
way, either by contesting Losses or by
raising the rates above fair figure after
the war WAS over. IIo deprecated the
publication Of the dispatch HI calculated
to create wrong impression in the
minds OF readers, and said that later dis
patches received by agents cast different
light on tho ono furnished THE TRIBUNE
and showed that the authority to cut
rates 20 per cent depended on an at
tempt by outside parties to capture the
business Of the board in this city.
Regarding the organization Of state
board he said that it would be an ad-
vantage to the assured in many ways.
At present survey is made only once
u year, and often times when an extra
hazardous business moves out OF a
building it's successor has to pay the
same rate till the board surveyor comes
around to change the rating. With
state organization and state surveyor
and adjuster losses could be paid more
promptly and reratings made expedite
ously. Again it is claimed that q read
justment Of rates is very much needed in
Great Falls, some rates being too high
and some too low. This could be
accomplished better under the now or
ganization, which would be practically
controlled by the local boards. The rate
war had not yet reached Great Falls and
he did not think it for the best interests
OF the assured that it should.