Pine Bluff daily graphic., 1914-01-04
MAYOR BLOOM IS
 PLAIN SPOKEN Gives Version of "Insurance Trust" That Has Arkan-
 sas In Control. STOPS COMPETITION
City Complied With Instructions and Remand and, Like Hot Springs
 Found Rates Were Higher.

] Hot Springs, ,Jan.. Mayor Dr. J l w. McLndon has received from Mayor Simon Bloom, of Pine Bluff, a letter relative to the insurance situation then, in which the Pine Bluff mayor discusses the insurance trust" in Arkansas in the plainest and most em- phatiC of terms ana sets worth the sit uation in the following:
 Pine Bluff, Ark. Jan. 1, 1914. Hon. J. w. McClendon,
 Hot Springs, Ark.
 My Dear Mayor:
 Replying to your favor of yesterday relative to increased fire insurance rates. l will not delay answering your communication, for the reason that I am somewhat posted on the new Insurance Trust in Arkansas When the various insurance com panies called me into a meeting with them several months ago and tried to convince me that Pine Bluff would save from ten to fifteen thousand dol lars if the city would increase the fire department by adding on two more more men and purchasing twenty five hundred dollars more hose and other equipment simply put this question back to them: Will you gentlemen, guarantee if the city,eccm- Elies with this that our insurance will be decreased all along the line or will you make certain reductions in places and increase in others and in the end take more from us than you are now getting, by raising the rates on sthe congresses, cotton warehouses, lum Der mills, etc
 This qustion was evaded, l would not go into any promises. They then went before our commercial bodie" and made this statement which looked good and was inGorsea by them and the matter placed before the city council who without giving much thought passed an ordinance appropriating twenty-five hundred dollars to make the purchases. Being chairman of the Board of Public Af- fairs and knowing our financial em- barrassment, I did not comply.
 In the early part of December the adjusters came down here from Lit tie Rock, and anothr meeting of the Chamber of Commerce was held. At this meeting Mir. Mccain explained under the new rates now being printed and they didn't want to leave Pine Bluff out. If we wanted to come in under the nv rates now being printed we would have to say so without fur | ther delay, or the rates would be SC l increased that they would be prohib- itive.
 At our very next meeting this mat ter was again brought up and with out dissenting vote the Board of Public Affairs was told to make pur- chase.
 Now find that after we have com piled with their instructions and made our fire company stronger and more efficient in every way that we have the following results: The cot ton congresses have been raised from S2.6O per thousand to $7.13 per thou sand. In fact I find that all special hazards have been raised from one hundred to three hundred per cent. In taking this up with our local agents they claim that when the peo- pie comply with the rules and regu- lations of their companies and spend lot of money for more protection the rates will adjust themselves te the advantage represented.
 l The thing that has not appealed to me in this insurance rate is the fact that the State of Arkansas through Senators Rainey and Rodgers passed the bill in our last legislature and slipped one over the people in Arkan- l sas, creating one of the most gigantic trusts ever thrust upon our people ENTIRELY ELIMINATING ALL COM PETITION.
 Just at this time it would be harf to advise just what action to take My opinion would be that every com