The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1937-01-15
The State Herself Should Or: IN ze
A Mutual Fire Insurance Goa
pany for Properties OF Cities
Counties and S<E.Ool Districts,
By H. LOwNDEs MAURY

premiums to a fund to cover fire
losses on state property and never
again renew any policy against
fire. Opposition to this bill first
showed the people that there
existed q foreign insurance COM
pany lobby in Montana. Since
then it is apparent that the 1900
licensed insurance agents can and
do organize sOlidly and quickly to
prevent any legislative curtail.
ment of the insurance racket. FL
CURES since 1923 show loss on pro-
perty by fire Of less than ten thou
and dollars and premiums paid by
the state government Of nearly
one half million dollars, indicating
a profit to foreign investors in
Montana or at least a loss to the
state government at the ratio OF
fifty TO one.
No such continued profit could
exist 50 long unless sustained by
persistent paid false propaganda in
Legislative Hobbies, actual agents
as senators and representatives,
and sturdy work at the polls.
The inurance Commissioner Re-
port for 1885 showed the business
balances for 1884 Of II Domestic
Farmers Mutual Fire Insurance
Companies that operate under
state law. The amount Of insur-
amce carried by these was SILL
79,775.3O fire losses incurred
$24, e03.60-expense during year
$50, 579. 72-caSh on hand SAL ,298.-
al. Overhead Of one mutual fire
insurance company for all city,
county, school property would
probably equal the overhead Of
two Of the twelve Farmers Mutual
Companies. Except in Missoula
where the Montana Power Com
pany owns the water works and
has insufficient pressure, schools,
court house, city hall, etc. are less
exposed to fire loss than farm
houes usually far from organized
fire protection
All politicians in this state who
use sails and never steam straight
ahead against the wind are care
full never to offend the insurance
ring of 1900 agents. The silence
about insurance was noticed in
the Governors message. Napo-
Icons tactic was TO feed his army
on the invaded country, and then
carry back to France everything
that was left. The profits of for
eiRn insurance companies on our
citizens goes partly TO nourish a
bediamOnded lobby TO turn our
state government against US. Then
there is enough profit left over
to provide q hundred percent re-
turn the year on any loss ever
paid in this state. This has been
| going on without exception for so
years. 1t never has failed in any
| year.
There is no other business ir
Montana as profitable as the in
surance business. In 1885 the for
| eign fire insurance companies re-
ceived in net premiums here, ST.
; $50, 1914. They incurred losses
Of $1.341 ,S10.02. In other words
they made net profit approaching
800 per cent. In 1894 they tool
up in net premiums here, $685..
0S1.48. They paid net losses o.
$929,761.S1. In that year the peo
pie paid for fire insurance NOR,
than So to 81 received back il
losses.
Z ! have, three years ago, pub
lished figures which were neve
disputed that in e years-19O5
, 1881, fire insurance companies alb
sorbed in premiums from Montani
people 2,299 ,563.86 and in tn
same years they paid back in loss
es, $45,407 ,OS8.07 leaving a bal
ance in favor of fire insuranc
comp anies Of $685., 526. 7e
: slightly more than 102 per cen
per annum profit.
Life insurance companies ar
worse for our general welfare. /
1888 lie insurance companies too
In premiums from Montana peoule
$7,492,98S.s7 They incurred lose
= to Montana people Of $2,697. CSC
"a. In 1884, life insurance com
), panles took in premiums in Nor
tana, $6,912,401.2S. They mai
back in losses less than % Nc
cent Of this amount, to-wit-s2
115,41S.S1. N
The record Of life ;rsr~.ro
COMPANIES =, 4ha;- ..--- 80 ~ elA1c