Great Falls daily tribune., 1919-01-24
WOULDN'T RAISE
! INSURANCE RATE
Underwriters Secretary Sc
States on Proposition to Re-
duce Fire Department.

Claims that reduction of the fire de-
partmcnt Wolld mean an increase Id
rates, the contention Of those WHO have
opposed the plan which Mayor a. j.
Fousek has advanced to help meet the
deficiency in revenues caused by the
passing of the saloon, are knocked into
a cooked nat by letter which the mayor
has just received from j. H. Branscomb,
district secretary of the board of under
writers for the Pacific district. with
headquarters at Butte. The letter was
written Jan. 81. On the point of whether
the reduction of the fire departments re-
duction would mean an increase in rates,
this paragraph OF the letter is illuminat-
ing:
Mr.. Fousek, Mayor of Great Falls,
Montana.
Dear Sir: Yesterday / was in
formed by property owner Of
Great Falls that. in the interest Of
economy, you are in favor of drop
ping eight men from your paid fire
department members. In connection
with the information, | was asked to
state whether such action on the
part of your city would have an
adverse bearing On the fire insur
ance rates for Great Falls and,
after considering the matter, | stat
ed as my opinion that in view of
the excellent record Of your fire de-
partment for the last few years. re
duction of the fire department
might not bring about a direct in
crease ii rates, but that it would
certainly operate against any fur
ther reduction.
This statement was based on nv
intention OF causing re- rating OF
your town this year under n sched-
ule which, in general. produces lower
rates for better classes Nj property
in towns where the last five years
have been below normal.
Mayor Fousck points out that the let
ter takes some Of the props away from
the tax boosters, who would meet the
deficiency by passing il IN to the prop
crty owners. many of whom are trying
to pay for their homes out Of their saw
ings from their weekly pay check, and he
says that the letter. on the other hand,
gives no assurance Of any relief from in
surance rates, even if the fire depart
ment is increased, as the underwriters 5
secretary calls attention to the fact that
his resuryey would only "in general pro
duce lower rates for the better classes
of property in towns where the fire
losses for the last five years have been
less than normal"
"It is true that our fire losses for
some two years have been quite low. due
to good fortune, plus good judgment and
a good fire department. said Mayor
Fousek. 'But it is also true that we
have just experienced fire that far
outcasses any two or three fires We
ever had and makes the totals mount
very high. SO viewed from the statement
of the letter Of Mr.. Rransromb there il
little hope of any reduction because of
our fire department. Furthermore, |
might say that the last reduction that
was granted us was on the basis of Il
fire department Of 20 men. We now
have SO. and we have added thousands
of doll& r. in equipment. but there has
been no reduction announced by the un-
dcrwriterS If that IL their attitude, IT
seems Il sound conclusion that If our
rates are based On a department nj ~
men, We have far more than performed
our end Of the contract
Mayor Fousek suggested that only
seven firemen be dropped. which would
still leave the department siX men above
the size when the last reduction was
made. but in the face Of the present size.
it has recently developed that certain
risks within the city have been increased.
even before the resurvey Of which Mr..
Brascomb speaks.
1t appears that Alderman al III Huh
bard stated 10 the city council an Tues
day night that be had called Mr. Brans
comb I'M telephone and thc alderman H
statements arc said to have icit the irt-
ference with some then present that Mr..
Rransccmb had indicated the decrease n
the department waald mean an increase
in insurance rates. though those who
have mentioned thc case do not recati
that Mr.. Hubbard stated in definite