Montana labor news., 1935-08-29
MIR. Garrison Talks
On Insurance Law

August &c. 1885.
Montana Labor News,
Butte, Montana.
Dear Sirs:
Pursuant to your request | am going
to give you a resume of what has hap
pened in the insurance law.
The law very plainly states that the
accepted rate is TO be charged, in other
words if Butte is paying forty cents,
they still only pay forty cents, and Sc
cure their insurance, and in addition
get tornado, cyclone, windstorm, hail,
flood and water damage, and a full x
plosion policy. They in reality have
nine beverages, where at the present
time they only have the one,
If the rate in Helena is $500, they
continue to pay 500. We all know
that the average rate over all in the
State OF Montana will run less than
S2.20 per hundred, which on $54,000,0O0
worth OF insurance you can easily see
that the difference between 500 and
$l.40 reinsurance cost will leave 80
cents a hundred or 100000 over a pc
Rod of three years, which is equivalent
to $4,000 annually. With interest,
this will, over a period Of approximately
eight years, accumulate the million dol
lars which is needed before no further
premiums are collected from the State
or any of the political subdivisions, nor
will any premiums be collected until
such time as this fund is depleted to
100000 and then they continue in the
regular way.
However, I am inclined to believe
that at such time when the fund
reaches 81 100000, that the State can
buy an exces policy for the interest on
the fund alone, which will take care of
any and all losses.
In regard TO why this part is SO i'm
portant to labor. AS you know, the
Anaconda Company, the Montana
Power Company, Rank Road Lobby,
nor the Telephone Lobby has never
had any power in Helena. The power
has always been with the Insurance
Lobby, and the reason is very simple,
it is, that forty per cent Of the mem
bership of both Houses have been in
surance agents. If the insurance
agents are defeated in this fight, you
may rest assured that it will be very
difficult for any insurance agents to
secure a seat in either house, and with
this done, it will be possible to abolish
Plan 2 Of the Corporation Law, Sc
cure a hydro-electric tax, a natural gas
tax, a mines tax, in fact place some Of
the taxation where it rightfully be-
longs.
Mr. Holmes in e~ndeavoring to defeat
this law has misinterpreted same and
has given to the Associated Press a
rate of $3.50. The next day he gave
out a rate Of $3.55. Then a week later
he gave out a rate of $2.20. Now he
does not know what to charge and has
asked the Attorney General for an in
depreciation of the law which any six
year-old %youngster could read. He will
wind up charging just what the law
calls for that is the commonly and ac-
cepted rate, but in the meantime he has
been able to give the enemies of this
law ammunition to work with and am
munition to discourage the men who
are fighting to keep this law in force.
As you can readily see, a flat charge
is unfair and would work against some
communities, and you can also easily
see that a frame school house at Ram
sey, where they have no fire protection,
is not entitled to the same rate as the
Silver Bow County Court House, from
the standpoint OF insurance.
The Supreme Court has passed on
this law, and it is a good law. Neither
you nor | have seen a more progress
sive piece Of legislation put through in
the State Of Montana, and surely with
out any question, it is entitled to the
support Of every progressive in the
State Of Montana.
l might add at this time that the
North Dakota law speaks for itself.
They have accumulated a surplus of
over three million dollars; Wisconsin,
after having all Of the difficulty which
we are now experiencing has accumu-
lated a surplus OF over four million dol
lars. South Carolina, they have accu-
mulated a fund of over four million
dollars. Our enemies have stated that
this law is the same as the Oregon law,
which is a very erroneous statement. In
Oregon they did not purchase any re-
insurance, they did not pay any pre-
miums, they operated entirely on an
assessment plan. Consequently they
did not have any fund when they had
a loss in the Capital, but will have to
all Of the political subdivisions to
take care of the loss.
I am certain that you will agree with
me that Mr.. Holmes duty is not to
sign referendms to abolish laws which
the Legislature put on the books. 1t is
duty to see that these laws are put
into operation whether they are good,
bad, or Indifferent.
Trusting same is the desired infor-
nation, | am,
Yours very truly,
B. GARRISON.