The Nonpartisan Leader Newspaper, April 22, 1918, Page 10

by this tax, the funds are pro-rated among the farmers who have suffered hail losses. ' This un- eertainty as to whether losses can be paid in full or in part is a bad feature of the Saskatchewan plan, for which there are two simple remedies: 1. The Alberta plan, which makes an additional levy on land under crops, can be used, or, 2. A higher flat rate can be levied on all land. The first method is probably the better until the people be- come better educated to the importance of shift- ing more of the tax burden to land held out of use, but at the same time the flat rate could be grad- ually raised. At the present time the Alberta flat rate is 1 cent higher than that of Saskatchewan. It is all-important that the farmer suffering a loss should be assured a 100 per cent payment. The Saskatchewan payments of losses from the time its system was put into operation, have been as follows: : B R b AR 100 per cent b e e AP TR 100 per cent FOLD roe i aiiy s vend momialas 100 per cent 1916 (great hail loss).. 40 per cent ROV osatsision o, i o asistions 51 per cent EVERY FARMER INSURED AND THE COST CUT A fluctuating rate arising from the fact that hail losses are heavier in some years than others, can be easily avoided by the Alberta plan of setting rates ‘more than sufficient to cover the losses in good years and borrowing money to cover the losses of an unusual year. After a few years’ experience these rates can be set. with mathe- matical certainty. __Another feature distinctive of these two systems . of state hail insurance is that every farmer is automatically insured. He is protected from this Joss. beyond his control and in no wise due to his On’ His Visit HE farmers of the United States are loyal. Labor is loyal. The National Nonpartisan league will be the salvation of the farmers and of the country if the men in the organization steer straight, keep their feet on the ground and cling to sound principles.” Those are the sentiments of Captain S. A. Smith of Washing- ton, member of the Federal Farm.Lean board, who came to St. Paul to attend the appraisers” institute of the Federal Land bank of St. Paul April 8 and 4. Captain Smith came to Minnesota with the idea in his mind that the Nonpartisan league was a “disleyal, I. W. W. organization.” He had read unfair newspaper attacks of the farmers’ organiza- tion and had believed them. When Captain Smith, who is regarded as one of the best farmers in the United States, heard of the Nonpartisan league program, however, he made a terse observation. “That is not disloyal. That’s sense,” he said. ' “FARMERS MUST HAVE MORE TO SAY” Captain Smith is an old navigator. He formerly was assistant secretary of the United States de- partment of agriculture. He knows more about actual farming conditions in the United States, probably, than any other man in the national capi- tal. As a modest Scotchman he would deny that. The estimate of the man was given by E. G. Quam- me, president of the Federal Land bank of St. Paul. Captain Smith also knows the rural banker and the politician, the latter not always rural. The last lingering thought that the Nonpartisan league might be an evil force in the country was brushed away, when Mr. Quamme told him in white hot enthusiasm how the ;Nonpartisan league had saved the federa‘l farm loan system from destruc- tion in congress. “There is no question that the farmers should have a greater voice in government,” Captain Smith said. “I regard the organization of the farmers as a healthy symptom. In their efforts to better their economic condition, however, the farmers should watch their step. There is danger if unsound principles are adopted.” Captain Smith was given' an outline of the League’s program both in Minnesota and North Da- kota. He was asked to express an opinion on the #“soundness” of state‘owne'd' elevators, warehouses, —Courtesy the Canadian Government Here is a rural elevator on the Canadian prairie. While the farmers of the Dominion have te contend with many unfavorable conditions progressive laws such as that providing state hail insurance help to lighten their financial burdens. flour mills, packing plants, stock yards, cold storage plants and creameries. Captain S. A. ‘Sinii,h, who came to St. Paul on the business of the Federal Land bank and learned the falsity of the propaganda issued by the-big inter- ests against the League. - : . PAGE TEN . po ability or lack of ability as a farmer. By being spread over the whole state rather than being con- fined to certain sections or to those farmers willing to insure under private or mutual systems, the hail insurance can be furnished at much lower cost to the individual farmer. If state insurance were confined to one or a few sections of the state, heavy losses in those parts would be hard to bear. Although no one can predict where the hail will strike, it is absolutely certain not to strike the whole state. The average hailstorm rarely covers more than seven miles in Minnesota. Hence, by bringing every one in, the average farmer obtains a lower rate than he otherwise could even under a state system based on some other method. HOW THE MONTANA PLAN FALLS SHORT At its 1917 session the state legislature of ,Mon- tana provided a state system of hail insurance which, while better than nothing, violates the fundamental principles noted above. The income is derived from a levy of not more than 60 cents an acre on hay crop lands; idle land held out of use for speculation bears none of the burden. The system is elective with the farmer. This and the failure to tax idle land for the hail fund raises the cost of the insurance beyond what is necessary to the man operating a farm. Whenever losses exceed the amount collected, the fund on hand is pro-rated among those who have suffered loss; consequently a farmer can never be sure whether he is fully insured or not. The losses are limited by law to $12 per acre for grain crops and $5 per acre for hay crops; consequently full losses can not be paid in many cases even when there are sufficient funds in the treasury. The Montana plan is a good illustration of the (Continued on page 23) - Washington Official Is Converted to St. Paul Captain S. A. Smith of the Farm Loan Board Approved o the League’s Plans and Showed. He Understands Them ‘ “That program is good sense. I see no disloyalt in it. I believe in such a program.” e Some of the planks in the Nonpartisan league platform adopted at the convention in St. Paul were unfamiliar to the Washington man, and he express- ed a desire to make a study of them before giving an opinion of their worth. ? State hail insurance was one of the planks ques- tioned. “Is there any need for state hail insurance in the Northwest ?” he asked. HIS OPINION OF COUNTRY BANKERS iICaptain Smith gave his unqualified approval to the establishment of rural banks. “The average country banker is a narrow-minded, hide-bound obstructionist, who places his own in- terests before those of his community. Rural banks Sh?(;lld give the farmers the relief they need,” he said. A more equitable system of state inspection .and grading of grain was emphatically indorsed by the Federal Farm Loan board member. “The farmers of the United States will be powerless to obtain their just share of the product of their toil just so long as they let others control the markets and the law-making machinery,” he said. “Organized labor is in exactly the same posi- tion. Labor will be given empty promises and be patted on the back by the politicians, just so long as labor remains out -of politics.” x Captain Smith cited the progress made by labor in England as a result of the formation “of the Labor party. 3 The prime cause of ‘the organization of the League was explained to Captain Smith by Mr. Quar_nme. The latter told the story of the Minne- apolis Chamber of Commerce, which is only too familiar to League members. The captain’ mani- fested a deep interest in the story and expressed astonishment at its conclusion. WISE BUSINESS INTERESTS PREPARE FOR CHANGES “There will be a great change after the war” Captain Smith declared. “The business interests might just as well prepare for it. The men Wwho work, who produce, are going to take the reins of government. The farmers will play an impor- tant part in the new democracy. The ehange; I hope, will: be an evolution, rather than a revo U L TR =