The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-04-22
YESTERDAYS MEETING
PROCEEDINGS Of the Underwriters Not
ali Public Yet.
AS TO CUTTING THE RATES
Butte IL a Profitable Field for In
suranoe Agents and They Pro-
pose TO Do Business II Ii
Is to Be Done.

BUTTE, April 2l.-The executive board
which was elected at tho first meeting of
tho new State Underwriters association.
last evening, held o meeting this after
noon, but did not transact any business
or Importance. Another meeting will be
held in the course of o week or two, at
which q set of rules will be formulated
and general manager and surveyor
elected. The majority of the members
of the association manifest a great secrecy
about its aims and objects and state that
II was instituted. simply to promote good
fellowship and fraternal spirit among
tho fire insurance agents of the state. 1t
~ a fact, however, that the principal
objec. in organizing the associa-
ton was to prevent a threatened
genera. cut in rates at one
time, growing out of the trouble which dis
rupted the Pacific Insurance union several
months ago. The Pacific union exercised
jurisdiction over the following states !:
California, Oregon, Washington, Mon
tana, Nevada, Idaho, Arizona and Utah,
British Columbia and Hawaii. The board
of fro underwriters succeeded the Pacific
union with the same territory, but a num-
her of prominent companies refused 10
become members of the new board and
this action precipitated vigorous rate
war which would have already reached
Butte had it not been for concerted action
on the part of the local agents in refusing
III cut rates.
Nearly all Of the companies of both fac
tions have representatives in Butte, and
II was with the greatest difficulty that the
rate war between the two factions was
kept out of Butte.
The non-board companies cut the rates
in Helena rs per cent. and in Salt Lake
they were reduced so and 60 per cent.
When the rate war was first threatened
the local agents in Butte of both the
board and the non-board companies held
a meeting at which it was decided not to
reduce rates and each agent put up a GER
titled check as guarantee of good faith.
The agents were opposed to a general cut
on rates through the belief that IL such
action was taken the rates would be
higher inside OF q year than they are now
on account of the expense of readjust-
ment, which they believed would surely
come inside of that time and instructions
from the opposing factions to cut the
rates have gone UNDECIDED. Only q few
days ago the secretary. of the board of
underwriters telegraphed the agents in
Butte that the board rates had been re-
duced 20 per cent. but no action was
taken on his message.
The cutting of the rates in Helena, how
ever. by the non-board companies led to
n general fear that the war would spread
al over the state, and the State Under
writer's association was organized to head
off such a contingency and make a war
impossible. II is possible that the nom
board companies may now appoint new
agen Is and proceed to cut the rates to
pieces in spite of the new organization,
but in such event the agents of the board
companies have instructions to offer
a premium for policies if necessary to Sc
cure the business.
Montana is one of the most profitable
fields for insurance business in the coun-
try and this is especially true of Butte,
which facts makes the local agents very
independent. The companies want the
business from this section and the agents
propose to secure it in their own way.
Some of the rates now in effect in Butte
are very low while others are very high
and an effort will be made to secure a
general readjustment of the rates as soon
as the new Association gets fairly to work.