Great Falls tribune., 1922-02-22
!.
AT INSURANCE
RATES IN CITY
Commercial Club at Mayors
Suggestion Will Request
Downward Revision.

Protest against the future operation
of the present fire insurance rates in
Great Falls, which are declared to be
unreasonably high. will be telegraphed
at once to the Butte office of the ma
tional board of fire underwriters by
President l.. l.. Galloway and Secretary
l., E. Jones of the Great Falls Com
mercial club, in accordance with in
structions issued Tuesday afternoon
by the board of directors. This action
alton of letter from Mayor II. M.
Armour to President Galloway, in
which the mayor stated that he had
been informed by the Butte under
writer's office, that the proposed re-
rating for Great Falls would be vir-
tually the same as the present sched-
ule.
you are possibly aware that last
summer" the letter to President Cal
laway reads, Representatives of fire
| insurance companies made a re-survey
of the conditions in the city with ref
erence to fire hazards, with the idea
Of establishing for this city new rate
for fire insurance This examination
covered Of fire fighting equipment.
water mains, pressure, supply, and
every other detail which, in their
opinion, in any manner had bear
ing.
" Intend Little Change
| Il understand that the prospects are
! that they will not make any material
change in the present rating. Of
course, they make a great many sug-
gestions, the compliance with which
would break the city. To carry out
| their suggestions in small way. and
as recommended by our local fire chief
| understand that it would cost us
from SIS. 900 to 100000, with fixed
permanent overhead of from $4,000 to
$4,000 more than we are now carry
| ing in that department. OF course, that
department is like many other depart
ments of the city, it must be main
tanned, and yet the good people IN their
wisdom through legislative enactments,
| fail entirely to make any adequate pro-
vision. The provisions of our laws
now for city Of this kind are probably
about IS per cent inadequate.
Il am frank to say that ! am not
able to grasp the idea of the fire insur-
ance companies. It is true that IN the
last two or three years, in small towns
over the state, there has been consider
Equal to Other Cities
/ .'It is, of course. the function of the
city to provide fire fighting resources.
even though we have no funds provided
or permitted to be had by law. / believe
Great Falls has fire fighting equip
ment, water supply, pressure, etc,
reasonably equal to that Of any city
it's size: and that we are entitled TO
a rate such as other cities in our class
have.
The fire chief advises that through
out the state, during the five. year
period ending in 1920. the total fire
losses paid were S1O,6S5, 139. He also
advises that during the same period
that the gross collection of the insur-
ance companies was 500. ,5o5O1,
showing a gross profit for that period.
in this state alone, of $12,O2S, ,36607.
Covering the 10 year period, 19l2-
1921, both years inclusive, the fire
chief advises me that the total amount
of fire losses paid in this city alone
was SS12152: while the total premiums
collected in this city was S2.134, ,0O499,
a gross profit Of $1,321 ,S52.99.
Entitled to Lower Rate
The average yearly loss during this
period was SS1 ,215. and the average
premium collection was S213, ,4O0.49.
AS stated before. it is a municipal
question for the administrative body OF
| the city to handle In the way OF pro-
viding, irrespective of funds. fire fight
ing equipment, etc 1t is. however
properly not the business of the
municipal corporation to go into the
question of fire insurance rates. This
is purely commercial question"
! Mayor Armour. in his letter. urged
the Commercial club to place the rates
question before the board of fire un-
| derwriters Immediately. before the new
rates are established, with the idea Of
convincing the board that Great Falls
is entitled to greatly reduced rate for
the next several years, over which
period of time, the last underwriters
report controls.
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