The Bismarck Tribune Newspaper, July 20, 1931, Page 2

2 COMPENSATION FUND RECEIPTS REDUCED Data for Six Months Show Cur- tailment; Payments Con- tinue to Mount > %na letter addressed to the general public the state workmen's compen- sation bureau Monday revealed the manner in which the fund is being reduced by curtailed collections and increased payments due to the exist- ing business situation. | The statement follows: | In view of the fact that the Work- | men’s Compensation Bureau has as- sumed the responsibility of not in-) creasing the general level of premium | Tates, notwithstanding the inroads; being made by the general depression and the consequent actuarial recom- mendation to meet those inroads by an increase in the general rate level. it is felt advisable to keep the people | of the state informed as to the con- tinuing status in order to elicit great- er cooperation and also to quiet any Possible fears there may be concern- ing our action in that respect. | Our figures are now complete for j the first six months of 1931. They} show the following result for each of | the years indicated: i | i Year Premiums Payments 1927 $201,393.95 $195,673.64 1928 . 138,482.28 208,977.75 | 1929 . 313,065.51 254,106.96 | 1930 . a 311,346.75 258,916.39 | Averages . $266,072.12 $229,418.68 | 1931 $256,841.22 $277,629.32 | Receipts, therefore, for the first six, The piers, left, will serve as lighthouses. Atop the 476: months of 1931, are $9,230.90 below| cables will support six traffic lanes and railway lines. Joseph B, Strauss, designer, is shown in the center. Builders of Highway Span Planning the average for the same months of | the four preceding years, while our; payments are $48,210.64 above the av- erage for those same years. That means that our reserves have been “invaded” to the extent of $57,441.54 during the first six months of 1931. ‘This, of course, is in addition to the} invasion of $78,000.00 made by the! twelve months of 1930. Our original estimates of two} months ago, upon the basis of which we declined to make an increase in) the general level premium rates, al- though encouraged to do so by con- sulting actuaries, are altered very slightly by these actual figures, and in our favor. Unless, therefore, the! two “bad” months — April and Sep-|to make of the highway bridge, tember—materially change this “in-/ world’s longest suspension span, on Jocal condition, vasion process” for the worse, we shall| which is to be started soon in a f@- floor could move aan With a center span 4,200 feet long, Golden Bridge to {Elaborate System of Flood- lighting and Specially Pre- pared Paint to Be Used San Prancisco, July 20.—()—A gol- laen bridge to match the Golden Gate. total of six feet. That's what designers have decided the be able to weather this depression pe- | mous scenic setting. riod satisfactorily. That does not| mean that those who are primarily|to massive cables from towers interested—the employers and the workers—can “play fast and loose”|he coated with a gold paint developed with the situation. Every effort must | be made to prevent unnecessary acci- dents, and we again make our special) appeal to those counties in which the| accident record continues above the average. Last month's very “bad boys” were the counties of Barnes, Cass, Dunn, Pembina and Richland. May we hope for better records from them for July? Soldier Is Jailed After pleading guilty in district | court to a charge of carrying con- cealed weapons, Gordon Williamson. Ft. Lincoln, Monday was sentenced by Fred Jansonius to six months in The fabricated steel work hanging the TE SOUS rnaneises. cnc, the proposed new Golden Gate bridge Match Golden Gate carry passengers to glass enclosed ob- |Servation platforms, |. The four 36-inch cables from which | the 60-foot roadway will be suspended | will be contraction and expansion due to temperature changes raise or lower, {the floor in the main span’s center a/ ! | To cope with any streas due to pos-| sible earth crust movements or any it is declared, the in the center a total distanc2 of 21 feet in either direction without disastrous results. The nat- ural sway of the bridge will be sev- “foot towers, right, will be aerial beaco eclipses the Hudson river structure. ns. The 36-inch COAL AWARDS ARE Scheme for Workmen's Compensation Chief Gives Detailed Data on Rate-Making Plan Detailed explanation of the theory upon which the state workmen's comi- pensation bureau this year adopted a new rate-making scheme, the man- ner in which the bureau hopes it will work and the benefits which it is hoped to obtain is contained in the following article, written for The Tribune by R. E. Wenzel, bureau chairman. ne BY R. E. WENZEL You have asked me to state what the benefits of the new plan of rate- making are expected to be. I shall endeavor to state. Repeating ® previous statement made by me, let me say that it should produce a more reliable, a factory rate structure. That, of course, is ® generalization, and there should be some explanation t~ sup- port it. or bad, is better than no plan at all. Business is system. Business with- out system is just guess work, and the worst thing any one can do with a business as technical as workmen's compensation insurance is to guess. First and foremost our plan con- templates a preliminary step, which had not been employed prior to last year. That is to determine, upon the basis of past experience, how much income will be required to take care of the probable losses which careful estimating, based on past experience, discloses as likely to be incurred dur- ing the year immediately following the rate-making. Having made that. calculation, the next preliminary step is to figure the general rate level for GIVEN 10 PUBLIC Different Firms Get Awards for 94,205 Tons of Fuel From State Board Contracts for 94,205 tons of lignite coal for state schools and institutions have been awarded by the state board of administration at a cost of $17,151 under the 1930 price, according to fig- ures announced by the board. The bid for furnishing a portion of }as lighthouses for San Francisco har- On Weapon Charge} >«. \height of the Woolworth building will eral feet, ie oe at the area of science at The new structure will reduce the| Wahpeton was 72 cents a ton under present crossing time of 34 minutes, 18St year’s price, while coal will be by ferry, to eight minutes. \ to resist the action of fog and salt air and to reflect the sun's rays. This will keep the Golden Gate, truly golden. By night, an elaborate system of flood lighting and colored lights outlining the cables and struc- tural lines of the three spans, towers and approaches, will give the grace- ful structure a beauty observable for many miles. The towers will be surmounted by aerial beacons, and the piers will serve elraere ss normal school at Dick- Tt will have a maximum capacity of | 4750". Cents a ton less than a 250,201 automobiles each 24 hours, but Yee! 8g0._ Tn only one instance is the \it 18 contemplated that not more than! Price higher, part of the lignite for 5,870 cars will use it daily the first the State training school at Mandan year, working up to 28,000 »y 1970, , being furnished at a figure five cents With six lanes for traffic and provi-/® 'on above that of last year's price. sion for electric trains, the bridge is The Truax-Trayer company, which expected to repay its cost of $32, ,000,- | Oberaves mines at Voltaire, Columbus 000 and accumulate a surplus of $17,-/%24 Wilton, was awarded contracts 000,000 in 40 years. |for the largest amount of coal. The Joseph B. Strauss ts chief engineer! Knife River Coal company, with of- and chief designer. fices at Bismarck and mines at Beu- |lah, received the next largest order. Other successful bidders were the ‘Republic mine at Zap, the Kamines Eastern Mine War company at Zap, Pittsburgh Coal To achieve symmetry, the side span on the Marin county shore of Golden Gate will be the same le:-~ as that on the San Francisco side (1,100 feet), although virtually all of the former will be over land and a company at Dickinson, the Baukol| ctassifications, we may find that the ints in -aetion P 2 shane any one of the defendants july 18th 4 D. 1981. : : ir Portion of the hill will be blasted to obtain clearance. Two miners were killed en route to| In addition to unusual concessions work at the Raymond City Coal! to beauty,.the structure will posscss;company mine in Putnam county| numerous engineering distinctions. | Monday by shots fired from a ‘woods | The central span, measuring 4,200 some distance away. feet between piers, will be 500 feet; Clarence Kyle, 23, a motorman’s longer than any other bridge, built helper, died instantly and Cyrus or projected. Shelton Spaulding, 41, & motorman, The center will be 242 feet above a few minutes later. mean high water, making the bridge floor the highest ever built over a! When in dire straits, the Chinese navigable stream. believe they may expect the souls of Fast elevators within the 746-foot their ancestors to come to their towers, also the highest ever con- rescue, but only if the remains have the county jail. Originally charged with ifrst degree robbery in connection with the hold- up of Louis Klein, local taxi driver, July 2, Williamson pleaded guilty to the less serious charge after testi- mony had been heard tending to show there were extenuating circum- stances. Kline testified that Williamson had apparently been an unwilling accom- plice to Ernest Portwood, now serv- ing a five-year sentence for the same crime. He said Portwood had threat- ened Williamson with a gun and ordered him to go through with the robbery. TOO LATE TO CLASSIFY LOST—By tourist Sunday between | 21st Street Bismarck and Flasher, N. D., black suitcase containing children’s clothing and pattern with name “Mrs. Alfred Heyer, 2106 West Clark, Milwaukee, Wis.” Finder Please return this week to Tribune office or write above party, reward. FOR SALE—One 16-inch I. L. G. exhaust fan, $35.00, one 36-inch cell- ing fan, $30.00. Melville Electric Shop, 408% Bdwy. G. P. Hotel Bldg., basement. DRESSING TDVN WHILE THE THERMOMETER RISES. A four-year-old cow owned by J. H. Hooks produced 1,411 pounds of milk in a month to lead all cows in Georgia. SUMMONS, State of North Dakota, County of i In Di 8 rict Court, Fourth Judicial District. Alfred 8. Dale and Jennte A. Dale, his wife, Plaintiffs, vs. Margaret Dion, Marie R. Dion, H. N. Dion, F. E. Dion and W. F. Dion, the sole heirs of Henry Dion, deceased, Harriet Barclay and all other persons un- known claiming any estate or in- terest in or lien or incumbrance up- on the property described in the complaint, Defendants. The State ‘of North Dakota to the above Defendants: You and each one of you are hereby summoned to wer the complaint in this action, which is filed in the office of the Clerk of the District Court of Burleigh county, North Da- kota, and to serve a copy of your an- Swer upon the subscribers at their office in the city of Bismarck, in Bur- leigh county, North Dakota, within thirty days after the service of this summons upon you, exclusive of the day of such service, and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the complaint. Dated at Bismarck, North Dakota, this 18th day of July'A. D. 1931. Geo, M, Register and eorge S. Register, Attorneys for said plaintiffs, Office and post office address, Webb Block, Bismarck, North Dakota, g, THE LEFT, ABOVE . 1S A PALE PINK LINEN MESH COMB INATION ‘WITH DETACHABLE GARTERS. IN THE CENTER IS A SEPARATE PANTY WITH MESH YOKE AND SIDE SECTIONS. AT THE RIGHT IS A LACE BRASSIERE TO BE WORN WITH LOW CUT FROCKS. Drecony BELOW 1S A COOL NIGHTIE.OF FLOWER- EO GATISTE. “THE FITTED CHEMISE IN THE CENTER 16. OF PRINTED dants: You will please take notice that the above entitled action relates to the following described real property wit- in the city of Bismarck, in Bur- North kK, in Burleigh That the pur- county, determin y pose of this action is to ‘Verse claims to sa real proper ané to quiet title in said real property 4n the plaintiffs herein, and that.no Bersonal claims is made agai nts in said action or any of the defendants in said and iter, ts ota. j University of Grand Forks, structed for bridge purposes, will been properly buried and kept intact. agricultural college, Fargo, ‘mine at Noonan, and the Stevens) Char! . Va. —(P)—~ 2 money cost of accidents for a partic- Gainers LuMaTea | jular classification (that is the total/ and the/cost) does not support the theory of theoretical hazard. It may be far too high, or much too low. This is -ue,| in much greater degree, in a stare like | ours, where there are so many low-/ total payroll classifications, and s0 many employers with only a few em-| Ployes. Certain definite and reason-| ably expected results are found, on/ the basis of these theoretical hazards, over long periods of years. Even here, we shall eventually reach 50,000 to 100,000 separate claims in a particular classification, and we shall then find| mine at Garrison. The successful bidders. price per ton, f. 0. b. institutions, to- gether with a comparison of the 1930 Price, follows: 1931 1930 9,000 tons—4 inch; Vol- taire mine .............. $3.10 $3.50 Institution for Feeble Minded, Grafton, 7,000 tons—crushed; Voltaire mine ..... 3.10 3.25 90 tons—4 inch, Voltaire wees Y othe sa 3.50 $00 tons—crushed; Knife River mine .... 3.00 3.00 3,500 tons—4 inch; Tru- ax-Trader mine ..... 3.27 3.67 State normal school, Valley City, 3,000 tons—crushed; Knife River mine . 3.50 3.39 State training Mandan, 1,000 tons crush- ed; Knife River miine.... 2.25 235 hed; Re. 2.35 2.05 2.35 2.35 2.10 3.20 2.65 2.60 3.62 367 3.00 3.15 Voltaire mine .. 2.70 2.80 Normal & Industrial school, Ellendale, 800. tons — crushed; Knife River $80 tons; Republic mine.. 3.17 3.27 School for the Blind at @ definite type of injury predomine: ing throughout, with a certain aver-|- age fixed cost therefor. 3.07) tirely different from the average ,re- sult eventually attained. 3.01) ple; we find that Manual 9062, the ‘School cost injuries, with few permanent dis- 2.65) ability cases and a very small num- ber of deaths. all of the classifications (the fund as a whole) that will develop that nec- essary income, with the reasonable requirements of administration and reserves added, of course. Never before having planned in: such manner, we were never able to/ do more than guess at what would; be the result of rate-making. But there isn’t much use of employing! 8 general definite plan, without, also, establishing an equitable method of distribution among the classifications. | There can be no such equitable meth-| od of distributing rates without some equitable method of distributing loss- es—because losses, in the last analysis, determine the rates. Now, theoretically, each classifica- tion (Manual Number) has its! known hazards. We know, for exam-/ ple, that the office classification has no “explosion hazard,” although va- rious types of “explosions” may oc- cur in offices. We know, also, that the classification of Poultry dealers (especially where livé poultry is pre- pared for marketing) presents a cer-, tain definite and distinct “infection hazard.” We know, again, that any; classification in which live current is) handled or manhandled will produce serious cases of shock and burn, and that classifications requiring men to work high off the ground will result in many permanent disability cases! resulting from fractured bones... ..| In the ‘attempt to allocate theoretical hazards to the particular t= | But while this experience is gather- ing, and particularly in North Da-| kota, periods of five, ten, or eve. more years, will show something en- For exam- Classification, produced two; ths in one year in one little town Jess than 150 population. Yet it is well known that the School Classi- fication ought to and does, in the long run, produce large numbers of small- ‘The need, therefore, is for # definite plan. that will work over the actual Produced losses into a continuing fac- tor that will approximate the result that may reasonably be expected to be the final one, or rather the long- time average one. If the plan can be worked out, it will enable the adop- more stabilized, and a more satis-)classification, but only to the extent In the first place, any plan, good) THE BISMARCK TRIBUNE, MONDAY, JULY 20, 1931 / Gives Advantages of New State Bureau Tellable, from the standpoint of ac- curacy, any of the other used factors, and is certainly not to be Gavoona i te na ge of “accuracy vel Past through the ap- Plication of the actual loss “@ of the various classifications for rate making. The many, many instances of small payroll exposure, and the very generous allowances for certain severe types of injury are enough to Fequire no further ‘argument. The use of the modifier developed by the application of the NORMAL touch with the whole scheme. The EXCESS losses, how- ever, can not be eliminated. must be taken into consideration. Just shoving them into a pile or dumping them into the general surplus hopper, as has been suggested at times, would make rates purely arbitrary, though, Perhaps stable. So we take into con- sideration the EXCESS losses of each of 40%, the remaining 60% being rep- resented by the EXCESS loss experi-| ence of the Fund as a whole. In the; past the full total of losses, normal and excess, were left as a charge! against the classification; hence, sud- auite the-ubuel and ordifery thing i qui usual and or thing, if experience was to goverh at all. Eveh in states where the payroll ex- | posure is thousands of times as much as ours, and where a highly accurate total accident record is developed in| one or two years by reason of the| fact that the total number of injuries runs to 200,000 and 300,000, even there fluctuations, unfortunate “runs” of} bad accidents, occur. New York, for} instance, @ state in which accidents; run to several hundred thousand a year, we find a record showing that in one year death losses ran 54% above the normal. Hence, methods| of “distributing” excess losses over| long periods of time are employed. That distribution is now made avail- able by the use of the plan adopted, the pure jum represented by 40% of the ‘CESS pure premium of the classification being added to that) represented by 60% of the Excess pure | premium of the Fund as a whole. As indicated in a previous illustration the result, in a certain “unfortunate” classification, the new rate developed Manual rate: 000 or 200,000 accidente—and, by the but because tl way, it is no secret that even with the Tecords we are gid Per 1,000 of population, it would take us about 15 to 20 years to reach a total of that proportion. May we be permitted to repeat an- other point recently made. That is that the adoption of this plan, or any other plan, can have nothing to do with the general level of rates (actual pure premium for the whole Fund). There is only one thing that deter- mines what that general level -is, and that is the total cost of proved claims 8s compared with the total payroll exposure. The cost, of course, de- pends on the number of claims and their severity, as modified by the {liberality or close scrutiny of the ad- ministrative officers. The reason, therefore, why the general level of rates was not raised this year,’ not- withstanding the original recom- a time when thi Commissioners sufficient surplus on hand care of the ex! is making here as and because, finally, other opportuni general increase event that the should continue over September tion of the people tended during this Commissioners fee! only possible overlook contradict their expectatior satisfactory results. Ge thae mendation of our consulting actuary, was not because new scheme of| 000,000 pins every week. Cheapest Insect Sp FLYTO Tokes Less To Kill — Surest, Quickest Death to Files, Mosquitoes, Roaches, Bed Bugs, Ants, Moths RTIS HOTEL Tenth Street, Third to Fourth Avenues Minneapolis Guest Room Rates to only $1.73 as against $2.09 whic’ would result from strict application of | the terms of the law. | May we say again that even with} the small total exposure, the com-; paratively small annual total of ac-; cidents, and the large number of! small classifications and small em-' ployers, the first application of the! plan demonstrated beyond doubt that: it will result in equitable distribution of excess losses, that it will, there-' fore, stabilize the rate structure, and that it is Mkely to advance, by 15 to 20 years, the time when we may say,| with some degree of certainty, that! the rates charged, whether high or| low, are correct. We do not pretend to say that this; One Two Person Persons 76 rooms, private bath, double bed $2.00 $3.00 451 rooms, private bath, double bed 2.50 3.50 $3 rooms, private bath, double bed 3.00 4.00 21 roomy, private bath, twin beds 4.00 44 rooms, private bath, twin beds 4.50 21 rooms, private bath, twin beds 5.00 * 21-rooms, private bath, twin beds 6.00 Other rooms En Suite, with private baths $5.00, 6.00, 7.00, 8.00, 9.00 and 10.00 All rooms with outside exposure and soft water baths—tub and shower Main Restaurant England makes use of about 520,- ray You Can Use Most popular throughout the world Porisrore U he Commissioners did not wish to plan an additional ball den upon North Dakota industry at eee! heed in 7 yburdened; also, becal Se talooer ‘felt that the Fund had traordinary and Un- ie chich the “depression’ ’ usual inroads wae yel as elsewhere; : there will be an- & ty to make such & next year in the ve “depression’s effects’ 1 into Aug’ 3t or of 1932, With the coopers of this ene the trying period, 1 they need fear ed factors to mn of more tion of rates more or less stable, and if more or less stable, they will, or should be, more satisfactory. ‘The new plan seeks to and does distribute the actual losses produced upon the basis of a sound actuarial and insurance policy. It can not do it with absolute accuracy, but it will be 80 close an approximation after the first three years as to justffy the statement that it approximates ac- curacy. Such @ plan must, of course, be enough to be applicable to all of the classifications. It must also take into consideration peculiar conditions that play not only upon! the whole structure but upon in- dividual units. Our very first application of the plan demonstrates, at least to the commission, that it does make equit- able distribution of heavy losses and supplies a normal loss basis that is quite reliable. That does not mean it certain not have to be altered. For example, the fact that we start, after thorough study, by using 95% of the pure prem- ium developed by the NORMAL loss- es of the particular classification some of the classifications by the new tem was either too high or too low! to’ “justify making the complete; ’ change at once: ! In our studies we found that no; actuarial expert dissented seriously, from our views as to the amount re- | quired by way of reserves to insure! solvency, That being true, we are in! Position to start from this point and/ ‘work prétty close to an actual “cost”: basis. ‘There was really no way of do-! ing-it under the old system, at least not for some time, and I doubt very) seriously if it could have been donc} under that system, or lack of system, | even after we reached a total of 100, At Entire ‘stock of Ford Parts, New Ford Cars, Trucks, Used Cars Parts Bins, Shop Machinery and Tools, Safe, Cash ister, Adding Machine. Below Cost. a 2 ‘Latest model new Ford Tudor sedans ............. $567.00 eo 1 New Ford truck, dual wheels, box ................ $738.00 1 Fordson tractor and plows 1 Model T Ford Touri 1928 model ; 1 Model. TT Ford Truck 1 Model A Ford Coupe, 1 1 Chevrolet Coupe 1 Model A Ford Coach, 1930 1 Nash Coupe 1 Model T Ford Coach ‘1 Oakland Coach ‘ FORD OWNERS: ‘ This is the time and place to b parts for your Model T or A Ford at from 13 to 1-2 off.” - : Ford transmission bands, per set of 8 .................... 500 Curtain fasteners, each .$ .01 Headlight bulbs ......., .20 afl Switeh keys ........... 05 Tallfind dash bulbs °° “10 Tire pumps ......... 50 _f alaatamenie 71.95 Fordson Tractor Parts, 1/, off while they last - Auction Sale Every Day at 3:00 Pp. m, x Max Motor Sal “MAX ford Dealers NORTH DAKOTA: