Oakes Republican. (Oakes, N.D.) 1898-1906, 1901-05-31
THEY WON'T PAY
The Wahpeton Hail Insur-
ance Company Suing
the Farmers.
A Test Case to go to the
State Supreme Court.

State Supreme Court.
Dickey county farmers who are in
terested in the Red River Valley Mu-
tual Hail insurance company will be
interested in the following account of
the attempted collection of an assess
ment by the receivers:
A case that will be of great interest
to many of the farmers of the state
who at one time or another was con-
nected with the Red River Valley
Mutual Hail Insurance company,
brief history of which will refresh the
memories of some who have forgotten
some things in connection with the
defunct concern. The company was
organized early in the spring of '9S,
as mutual insurance company and
sent out agents all over the state to
S. olicit insurance and took applica-
tlons from the farmers for three and
five years policies and in payment
took notes of the farmers, for what
they thought would be the assess
ment for the first year, these notes all
falling due the first of October, '9S.
In September, 80, an assessment of 5
per cent was levied against the pol
icy holders and shortly after this
time the company went broke, Geo.
s. Montgomery of Wahpeton, where
the head offices of the company were
located, being appointed receiver in
December Of that year. 1t is said
that few if any of the losses were paid
by the company, though the farmers
paid most of the notes that had been
given in the spring of '9S, falling due
that same fall.
In one case where the receiver sued
for the '99 assessment the supreme
court held that those who had paid
their notes given in '96 could apply,
the amount of the note on the assess
ment Of '99, for the reason that there
was no assessment levied in '99 and
the result is that where the notes
were paid the company cannot re-
cover the amount OF the '99 assess
ment.
After the above case was decided
the company discovered that one of
the bylaws of the concern provided
that all the assessments should be
paid at Wahpeton and within short
time farmers who had been policy
holders all over the state were sued
at Wahpeton for the amount of the
'99 assessment and as the cost Of
lighting the case would in many cases
be greater than the amount of the
claim where the farmers lived at a
distance, number Of them paid up
in preference to making fight.
A number of the Nielsen county
farmers, however, have dubbed to-
gether and will fight a case to the
last ditch. 1t is the case where Mont
gomery as receiver for the insurance
company sued L. H. Peterson for the
'99 assessment, and was given judg
ment by default for something over
$42, including costs. This is the
case that has been appealed to the
supreme court, and the farmers will
fight the case to the limit.
AS regards the agents who took
the applications they stated to the
far mers when the company started
business in '9S that while the appli-
cations were tor three and five year
policies, all policy holders could sever
there connection with the company
at any time by paying the first note
they had given and at once notify
the company that he was through
with the entire deal, but never re-
ceived any reply regarding the mat
ter from the Offices at Wahpeton.
In the case which has been ap.
pealed by L. H. Peterson, backed by
the farmers of Nelson county B. G
Skulason of this city, Of the firm of
skulason g. Feetham, will make the
fight for the farmers against the de-
mands Of the receiver Of the .insur
ance company. The case is one that
will be watched with a great deal OF
interest as hundreds of the farmers Of
the state are interested in the deal,