The Nonpartisan Leader Newspaper, October 14, 1915, Page 6

HE i i1 11 it} i 2 ; § 1 ! - pulsion,” PAGE SIX Facts For Those Who Like Hail Insurance and Those Wkho Don’t. (By G. E. Anderson) There is in the state a department known ,as the “State Hail Insurance Department of North:Dakota.” The most that can be said for this department is that it is a step in the right direction, even though it is a short one. . The fact that the Ilaw requires that the premium must be paid in cash in advance, before any benefits are derived by the farmer rohs it of greater success. The department makes a charge of 30 cents per acre premium for hail insurance and demands ‘“cash with order,” whereas the old line com- panies will accept the farmer’s note. This explains to some extent the reason why the farmer makes a pref- erence in favor of the private insur- ance companies even a high rate, the average of which is 43 cents an acre. Again, the state makes a loss max- imum of $8.00 per acre whereas the private companies make a maximum of only $6.256 per acre. Thus does the state add a large value to the crop at a comparatively reduced cost of insurance. In the year 1913 the sixteen old line companies doing hail insurance business in this state collected in premiums for hail insurance $1,079,- 813.62 and paid in losses $500,109.10. Says W. C. Taylor, Commissioner of Hail Insurance in his cirecular let- ter, “If the peorple insuring with the old line companies that year had taken out insurance with the state, the premiums collected by the state would have been approximately $578.000.00, thus leaving a balance of $75,000.00 over and above the amount paid for losses. You can thus see that if the farm- ers had taken out state hail insur- ance in 1913 they would have re- ceived 100 cents on the dollar on all losses -and still have around $65,- 000.00 to apply on the business of 1914 after all the expenses of ad- justing, etc., were taken out.” As a rule the farmer of this state does not have the “necessary cash” in the spring and summer months to advance on his hail insurance, espec- ially is this true of the farmer of the western part of the state. He steps up to the banker and asks him to advance a loan. What for?” asks the banker. When the farmer answers. that it is for state hail in- surance he is at once confronted. by the agent of some old line company who proceeds to produce all sorts of arguments against the system of the state hail insurance. His credit -is also made a question but is systematl- cally forgotten lf he takes private: ins nee. . b however, the loan is advanced, the money is turned over with the application, to the County Audltor. ““thence to the County Treasurer who ~in turn turns:it over -to -the State Treasurer -and the State Treasurer turns it _back to the banker. - " Thus is the -farmer again made the:bank- er’s’ pack mule. If the farmer takes out hail in- .surance with an- old line company it is a different thing. ' He gives his note in payment and his credit is: not questioned. So ‘does the- mexorable law work™ out to the . d)sadvantage © of! ‘the department of state hail in- surance and ~al¢o to the dlsadvan—', i tage of the farmer.. “Had the state hml Jinsurance been based upon the principle of “toom- | all the farmers in | each| district would - have: reaped the ad- vantages and born the burden of such insurance, thus reducing = the cost’ THE NONPARTISAN LEADER Points About Hail Insurance and the Rallroads eliminating all private profits and high rates. for insurance. In the year 1914 the farmers of the state were robbed, in a lawful way of course, by private insuranca companies, for hail insurance in the L sum of $424,980,44. In the year 1913 in the sum of $579,704.61. The system of compulsory hail in- surance is .no longer in the experi- mental stage. - The farmers of the province of Saskatchewan have dem- onstrated its success. They have demonstrated that where no profits or. dividends come in question the insurance- can be enjoyed at the small cost of four cents per acre and a maximum of $500 per acre for total loss. The legislature of Saskdatchewan made a provision that whenever 25 or more municipalities’ (which cor- respond to our counties) make ac- ceptance of the system of State Hail Insurance then the law becomes op- erative. Each -municipality contains nine townships of 36 sections each. The electors at their annual munici- pal election vote on- whether to ac- cept or relect hail insurance. The law also provides that when- ever the total number of municipali- ties under this law falls below 25 this department of State Hail Insurance becomes non-operative. It is very impressive to note that whereas the Saskatchewan system of hail insurance made a charge of $856,994.00 in premiums for insur- ance to the amount of $122,000,000, the 17 private companies doing bus- iness in this state charge the farm- ers of this state $1,631,264.00 in pre- miums on the small amount of about $23,000,000 of hail insurance. Still the Saskatchewan department has. a surplus on hand of $348,391.55 and collected in premiums in 1914 the small sum of $856,994.19. The question of insurance, however is only one item. But a department of State Hail Insurance, a state -de- department of rural credits and the state terminal and storage facilities will blaze the way for the proverbial independent farmer. The farmers, in order to get these things, must. get together and hold the balance of power, must go into politics, not in the blind individual way as heretofore, nor by lobby work, the tactics of big business, but-in a live and honest legislature, selected by the farmers to do the work that their constituents direct ~them to do. o BURDICK DISAPPGINTS FRIENDS Williston, N. D, Oct. 12.—Many of Mr. Burdick’s friends here are keen- ly disappointed in his political plans. This is not due to any lack of con- fidence they have in Mr. Burdick's ability to handle. the office of gov- ernor, should he be elected, but his friends argue that he could have had the senatorship for the asking, while a fight for the governorship may- see it . go = glimmering at that. With Hanna and McCumber in the race di- viding the “stalwart” wvote, Burdick would have had a walk-away on cap- turing MecCumber’s seat in the sen- ate, they say. The reason for Burdick’s refusal to enter the-race for senator have led a few. to-.contend that he has en-, tered into an-alliance, thh Hanna to reciprocate ‘in- supporting each oth- er’s candidacies. for the senate and governorship, respectxvely Whatever |" may ‘be true’ in. this’ regard ‘there is]: no: getting away from the Eact that the fnends of Usher . Bi rdxck are -..l'vnlues. S0 that th get prospenty dollar that. comes over farmers” products later. to earn dividends upon the basis of ] : ha italizati Railroads Seck To|t=t «pilsr,, o, Tl le of physical valua- ation of Its Property - aids or harms the railroads. The pub- lic has a right to know the real val- ue of the property used in the trans- portation of freight and passengers. ; But it is obvious that such a valu- (By Angus McSween) ation to be useful must be made by Washington, Oct. '16.—Efforts by |disinterested persons, having.in view the railroads to control the govern-|the determination of -the truth, re- ment’s valuation of the physlcal prop- | gardless of consequences, . erties of the railroads way clearly Attempt of the railroads to con- disclosed today in arguments by rail- [trol the valuation should beé resented, road representatives before the inter- for, if it succeeds, it is likely to de- state commerce commission. feat the very purpose for. whmh the The railroads had asked for the|work was organized. ~ hearmg in order that they might im- press upon‘the commission theic own’ease today were Pierce ButIer, uf the views of the manner in.which their | Chicago, Milwaukee and St.!Paul, for properties should be valued and to.,the western. carriers; George Stuart urge the adoption of these views by, Patterson, of the Pennsylvania sys- the commission. It was also disclos: tem, for the eastern carriers; W. G. ed that the aim of the railroads is Brantley for the southern railroads to use the valuation as a basis for and Sanford Robinson. increased issues of railroad securi-| It is the hope of the railroads, as Railroad attorneys who argued the the railroads. ties, So patent was this at one stage of the proceedings Commissioner inter- xupted to ask if the railroads had al- ready prepared to make use of the facts which it is anticipated the in- vestigation of railroad values may disclose. Today’s proceedings and attendant circumstances rather discourage the belief that any great good is t, re- sult from the prorosea valuation of this valuation was enacted thrce years ago. It authorized the inter- state. commerce commission to ascer- tain the value of all property used in the transpertation of frelght and passengers, as a basis of rate-mak- ing. X ! -The law also defined in- a general way what the commission should at- tach value to, but left to the com- mission the actual solution of . the graver problems accompanying the task assigned it. Little Progress Made. Former commissioner Prouty res signed from the commission to take charge of the valuation work, but thus far, little, if any, progress has been made beyond the division of the country into districts and the rartial organization of the valuing forces. More energetic and with a much clearer understanding of the purpos. es intended to be advanced, the rail- roads organized valuation committees; decided exactly how they want the property valued and asked the coms mission: that they be permitted to co-operate in the undertaking. The hearing here was the result of this action by the railroads. The one point insisted upon by all the rail- road attorneys is that the valuation must be made in such a manner that the railroads will be able to obtain a return upon 4l their capitalization. | Everythmg else wa.s subordmated o this, Regardless of whether that .capi- talization is compoSed chiefly of wat- er or is due to the tremendous appre- ciation of terminal zholdings in large cities, the railroads contend that it must all be legalized through the pro-. posed - valuation and the railroads placed uron a footmg where ' they can: demand such rates as will give| an actual return upon all cap:tahza- tion.. Rallroads comxmssmngto The law authorizing! expressed by these attorneys, that the commission .shall not reach any conclusion as-a result of the physical valuation which shall in any way de- preciate the market value of present, outstanding securities or unreasonah- ly curtail the further issue of securi- tles. ' It was during the-argument ¢f Mr, Brantley that Commissioner Clements interrupted him to ask if the carriers 'were mnot anticipating, in their ar- guments, the use «of such facts as may be collected. Mr. Brantley promptly replied that he and his colleagues would greatly regret to see any method pursued by the commission in its valuation work which would in any way produce a result less than the total value of the railroads as figured by themsel- ves. Mr. Brantley especially emphasned the ‘carriers’ distrust ‘of a valuation ° which might be purely an mventory of stock. Mr, Brantley stated, in refernng to the uses to which the valuation will be put when completed, that this country has reached the stage where & man who invests his money in any !public utility, including a railroad, is entitled to get his return and alsc his capital stock back whenever he desires the latter., HEAVY CATTLE RECEIPTS, St. Paul, Sept. 14.—With flous: pric- es sagging as the new wheat crop is being threshed, still another dent in the cost of’ living is forecast by de- velopments the. last week in the cat- tle market at South St. Paul and the other packing centers. - If beef prices to consumers &o not slump soon, it will be because’ the sweeping cuts ‘have not pelcolated through. "Heavy Receiph Cause Decline The extremely heavy marketing of cattle throughont the West, and re- celpts last week at South St. Paul, were the largest on record except in the fall of 1907;. has enabled: packers |to buy. cattle at. discounts’ varying from 50c to $1.00 a 100 pounds, as ,comparedfthh ‘those at-the opening | of ‘the month. In ‘Fome instances ev- en greater ‘cuts have been reported. I’-,ckcrs Pass. ong the Cuts : That the packers have passed zlonv the? reduc‘hons is evidenced by the ties which cost originally only 'a few a hundreds of t}ronsands and hawc since |/ from: ‘Europe. to ‘buy gunpowder now { been' capitalized for as many nn!lrom' il not be there to come over: for the may contmue to be the basis of ‘such mn ‘and- therefore, entx'cled : new“mschedule of wholes le prices is-