The people's voice., 1943-12-10
Free Enterprise

So far least we haven't heard any plea ree enter
prise injected into the propaganda for the bill pending
the senate which has already passed the house under gag
rule exemptng the fire insurance companies from prosecu
ton under the antitrust act PERHAPS even the fertile minds
the propagandss have unable tie their arguments
in favor this bill to the standard claim that threatens free
enterprise promcuousy connection with other
activities of private enterprise.
The pending BILL if enacted into by congress and
approved by the President would eliminate danger faced
by the insurance trust action before the United States
court and would permit the Insurance Executives As
socaon and their regional rate making boards to continue
unhampered their gougng of the public in collection of
called for fire insurance premiums.
The fire insurance industry collects than billion
dollars year in premiums 1t is under the control of the
Insurance Executives Association which composed OF the
heads of $50 stock fire insurance companies It, of
will admit to membership only the companies who are amena
BILE to control in other words companies which will
be competitive with the others.
The association supports the regional underwriters boards
which fixes the premium rates Here Montana the Pacific
Board of Underwriters fixes the rates which have
for fire Insurance. and cut those
rates and remain in good standing There is competition
rates in Montana The companies selling point
state that is probable that dividend will be paid at the
end of the insurance period and at least of the
panies do dividend but there nothing in the insurance
policy that guarantees such dividend.
It is generally recognized that the fire insurance inter
ests with their myriad agents. in each community
in the state constitutes of the most potent political nst
with which the legislative assembly has to contend
These agents in most will be found active in bust
social and religious organizations in their respective
mune and will more than likely be on friendly terms to
the least with of the elected as
to the state legislature And in practically every instance
these agents will be active uherng the interests of the
privileged in the state The fact that the state of
has paid hundreds of thousands of dollars in fire in
premiums its fire proof structures, evidence
enough of the political influence of the fire insurance
panies through their local agents.
The defeat of the pending legislation is of the greatest
Importance to Montana and the nation The people of the
country will continue to be numerically gouged premium
long the regional boards tools of Insurance Execu
tves Association continue unhampered their fixing OF exo
bant rates. and their right to boycott companies that fail
abide by the rules which they lay down.
Rural mutual fire insurance companies in this state have
unbemshed record for paying losses from fire and yet their
much lower than the socad board rates that
comparisons almost ridiculous But these mutual COM
panies are barred from the large urban field.
Every purchaser of fire insurance in this state and the
nation should realize that the defeat of the pending bill is Of
direct interest him. he shouldn't let himself be kdded
about state control palaver about Estate rights.