Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-02-11
Communicated

Editor Tribune I'm answer to the
criticisms that have been made OF the
life insurance bill, Senate No. 1854, |
feel it duty to my constituents and
myself to explain what led me to i'll
troduce this bill.
l have been resident of Bottineau
county for something like twelve years
and my residence has been in the west
ern half of Bottineau county and at the
time of taking up my residence at this
place | was homesteader; therefore l
have experienced the development OF
free government land to what is now
beautiful well-settled farming COM
munity. In studying the conditions
fro milne to time l have realized what
our country has had to contribute in
the way of excess interest rates. Until
1901, our loan limit was three hundred
fifty dollars per quarter, at twelve per
cent interest. In 1901 we were success
full in getting our rate increased to sew
en- hundred dollars and interest rate
reduced to ten per cent, the interest
rate continuing the same until 1905,
when a life insurance company made an
examination of our country with a
view to investments and placed their
money so that the farmers could secure
money at eight per cent, and this rate
has continued until the loss of the crop
in 1910.
When the funds of the life insurance
compan were exhausted, as they are
comparatively small insurance cor.
poration. then our rate increased until
the residents have to pay nine per cent
for the loan. This ,mpany has in
vested in Bottineau county $186 100000
Never has had foreclosure and but
very small percentage of delinquent in
terest. Therefore, if all the larger in
surance companies had a copy of their
field notes and would have the same
confidence as this company in the sta
bility of the loans, our rate of interest
would be as cheap as Iowa or Illinois
farmers are paying for their money, in
my Judgment, which / think is Sub
Stimulated in the statement of the in
surance company that has been circu-
lated over this country in the daily
papers, as they refer to the evil results
of the compulsory investment law as
one particular reason for its inadvisa-
bilitv to become law in the following
language:
"The company would be restricted in
its investment in the securities OF a
comparatively small section. AS a num-
Der of the companies would, OF neces-
sity, be in the market for securities at
the same time, the better class of Sc
curities would be high in price and in
consequence the interest rate would be
below the average profit rate: or Sc
curities of more or less doubtful value
would have to be purchased"
There is to my mind no question but
what the investment in first farm loans
in North Dakota up to forty per cent
of the cash value is just as safe as rail-
road bonds of any railroad company,
and if all life insurance companies had
complete field notes so when the owner
of a piece of real estate applied for a
loan the companies could refer to those
field notes and know what the loan linn
it value was, that our rate of interest
would be as cheap as other productive
agricultural countries of the United
States. They say this is unreasonable.
What does company in New York
City know about the value of land in
North Dakota? My contention is that
it is just as easy and as reasonable
for them to familiarize themselves with
the real value of the land of North Da-
kota as it is for fire insurance conf
pany of New York to know what the
insurance value is on building locat-
ed in any city or small town in the
state.
My reason for including the county
clause in the bill is to demand of the
life insurance companies that they get
acquainted with the stability of the diff
ferent counties as today they are max
ing a distinction. They loan in the
eastern part of the state at from one to
three per cent cheaper than in the west
ern part of the state. Now these peo-
pie are all producing the same kind
of commodities, therefore they are in
directly taxed by interest rates to CON-
pete with the people producing the
same kinds of grain within the borders
| of Our own state.
Grant S. Trimble,
| Senator. 47th District.