The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-01-23
Unusually Hard Yea,

Mr.: Gilbreath called attention Ia
the fact that the past year was an
unusually hard one for hail insur-
ance companies and that while the
state company had paid only 66 cents
ga sne dollar the settlements had been
made on q very liberal basia He
states that one Of the great troubles
N settling the losses was due to the
!ai!ure OF the proper officers in some
instances to perform their duties. The
report states that there has come to
the ONCE Of the commissioner recom-
mendations that the rate should be
IoWeFeo to as low as fve cents per
acre with the idea that everyone
would come in for that rate but he
caiis attention to the fact that nearly
every acre in the state would have to
De insured to make that rate practi.
cal and that there is no power to bring
about that condition. In closing the
commissioner says:
Farmers Get Greater Value.
Those who advise an increase Of the
present rate base It upon business
principles. contending that twenty
cents per acre IL inadequate to nay
the probable losses. The rate in old
line insurance is practically six and
one-half per cent on the dollar. IN
otner words. an old line company Will
insure 160 acres Of grain for Se6. loss
not to exceed $1,000. The state haii
acres Of grain for $32. and fixes the
loss maximum limit at $3.50. This
gives the insured twenty-oight per
cent greater value to his crop in the
state than in an old line company.
while the actual cost 10 fifty per cent
less in the former than in the latter.
passed upon 9 total loss. But It should
be remembered that no old line com.
pany will accept . risk Of over one
hundred and sixty acres out Of Sec
ton. providing the entire section -
state takes the risk Of the entire
farm. and hence the cause Of some
very heavy losses in several parts Of
the state In 1919. When It 10 recalled
that the rate In the state hail 10 axed
at two and one.half per cent, g com.
pared with elk and one.half per cent
IN an old line. the ratio Of payments
should be at least over twice as much
greater per acre by the latter than
by the former.
Less Than Halt.
Those who insure their property
against hail. do SO TO secure returns
for their labor and expense in the
event OF loss. Two elements enter
into the transaction Of Obtaining in
surance. namely. the cost Of the same.
and the amount to be received In the
event Of a loss. The old line com.
pany charges II Ia cents per acre.
while the state accepts It for twenty
cents. or q trifle less than one.half.
The overhead expenses for conduct
ing the state hail insurance business
for 1919 was 7.46 per cent. which in.
cluded the outlay for printing. clerk
hire. adjustments. postage. etc. So
far. as we are able to obtain figures,
no state hail company has been able to
reduce its expenses to less than 1898
per cent.
Changes Are Needed.
With proper amendments to the
law. the appointment Of adjusters. an
Increase In fees to county auditors and
assessors change in the system Of
reports and payments. there Is no
doubt but what the state hail insur-
ance will become a great beneficiary
organization for the farmer.
II the rate in 1911 had been thirty
have paid its losses In full instead Of
seventy cents on the dollar. II the
rate in 1912 had been thirty-five cents
per acre the payments would have
been one hundred cents instead Of
afty-five. This in lieu Of very liberal
The question Is whether the law
should not be changed to read thirty
I've cents per acre instead Of twenty.
Ind thus create surplus. This in
'iew Of the fact that 1872 showed ex-
,essive hail losses and the further fact
hat old line companies charge sixty.
I've cents per acre in the eastern and
middle parts Of the state and seventy.
i've In the western part.
The legislature could FIX minimum
.ate of five cents or less per acre and
evy a general tax on real estate In
Herewith which would
cover insurance for all. and thus make
, rate so low and satisfactory for hail
purposes that 1t would not bo Q bur.
aen to any.