The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1907-05-01

the benefits must be assessed against
private lands so benefited. Here
tofore, the railroads have escaped
this assessment on the ground that
they were paying a gross earnings
tax in lieu of all other taxes and
assessments. This law requires
them to stand their share of the
assessment burdens. The three laws
are regarded as the most important
work of the present session of the
legislature, so far as they affect the
whole people.
Another measure of great import
ance to the farmers all over the
state is the township drainage law.
The bill was passed two or three
weeks ago. Already several farm
ers of the state have commenced to
operate under it, and it is believed
that a happy solution of the drain
age problem has been reached for
the southern-central Minnesota ter
ritory, where the broader state and
judicial ditch law could not be rem
tdered operative.
The insurance legislation enacted
by the present legislature has been
comprehensive and far-reaching, at
the same time, every interest has
been treated with absolute fairness.
Most of the measures recommended
by the committee on uniform legis-
lation have been enacted into law.
These bills have particular reference
to level premium life insurance com
panies and comprise the establish
ment of standard forms, which are
not compulsory, and standard provi-
sions, which are compulsory in the
absence of the use of the standard
forms; prohibition of deferred divi-
dends and limitation of contingent
surplus, accounting in classes for
surplus accumulated on account of
deferred dividend policies hereto
fore issued; prohibition Of discrimi-
nation; contents of annual reports
and, generally, system which will
tend to produce fair and open com
petition, the fullest possible pub
licity, while at the same time giving
each company the fullest opportun-
ity for the exercise of its own in
dividuality, if that term may be
used.
Second in Importance is the bill
regulating fraternal insurance asso-
Citations. Fraternal associations or
gained in the future are required
to provide for the use of the Ma
tional fraternal rates, but those al
ready organized and admitted to
this state are left free to work out
their own salvation. Under the
provisions of the Minnesota law the
fraternals will be given an oppor-
tunity Of adjusting their business
upon a proper, scientific basis, and
will be fully protected in so doing
Practically the same course has
been pursued with regard to assess
ment life and casualty companies,
with this important difference. that
such companies are required to de-
post their reserve with the state
and to place ten per cent. of their
receipts in the reserve until it
amounts to $4,000. Their expenses
are limited to application fees and
forty per cent. of assessments or
premiums collected. No new assess
ment life or casualty company can
be organized until $4,000 has been
deposited with the state as security
for its policy holders.
One of the most important bills is
that with reference to mutual fire
insurance companies. Heretofore
those companies were allowed to
carry the contingent liability of the
policy holders as net asset. The
present law does not permit this.
but provides that the policy holders
shall be contingently liable and that
the company shall only be required
to carry a reinsurance reserve Of
one-half the amount required of
stock companies. This reserve in
cash funds. together with the con-
tingent liability Of the policy hold
ers, will make the mutuals abso-
lutely safe Another provision of
the bill authorizes the accumulation
and maintenance Of guaranty finds