The Ronan pioneer., 1917-05-25
The American
Society Of Equity

~OOA0~J VI A4u1IJ
Inc largest farmers organization
III the state, is warning it's members
against participating i'm the state hail
insurance law, which is now being so
widely advertised by the various
county assessors. for the reason that
the law is not practical in its provi-
sions, and that there are serious
doubts if the methods of it's operation
are wholly legal and proper.
AS is well known, the Equity So
ciety has advocated state hail insur-
ahce FOR over two years. Equity men,
bers have gone into the question very
thoroughly; have studied state hail
insurance laws in the United States
ana Canada, noting the defects and
antiquities in laws which have
ialled, and the cardinal features of
the laws which have been successful.
Armed with this data, the Equity
Legislative Committee drafted a
measure for the recent Legislature,
which possessed all the qualifications
OF a real state hail insurance meas
ure. Other state hail insurance bills
were introduced, one particularly be-
ing the O'Shea-Morris bill, which was
introduced zy two benkcrs. The
Equity faithfully endeavored to show
the proponents of the O'Shea meas
ure where its weak points were, how
prepostelOus it was from a practical
standpoint, but all of the influence
and machinery at the disposal of
those back of the O'Shea bill was
used, with the result that it was
passed during the closing days of the
session and the Equity measure side
tracked.
At the time of the hail insurance
bllIs passage, as well as subsequent
ly, the Equity stated it's reasons for
opposing the law. Being farmers
organization, it naturally favors leg
1slatlon that gives the farmer a
square deal, and is not slow to oppose
those things which are make-shifts
or miSnOmers.
The Equity has an Insurance De-
part1nent which wrote more hail in
surahce last season than any other
company in Montana. Last years
business was not written for profit,
but to give farmers mutual protec-
ton at cost. The Equity did this
only as II means of giving the farm
ers temporary relief from the high
premium rates of "old-line" compan-
les, the society being anxious to dis
continue it's hail business if the state
would take over that responsibility.
Even when the O'Shea bill became a
law, the Equity decided to discontin-
ue it's hail business, notwithstanding
the fact that they believed it would
be bad measure and disastrous to
the farmers. 1t was discovered at
the time, however, that no provisions
had been made in the O'She, bill to
finance it's operation, and one of the
state officials assured the Equity that
it could not be operated legally-the
Legislature having overlooked the
appropriation for it. Upon the sup
position that no attempt would be
made by the state to write hail in
surance, the Equity set about to take
care of the farmers in the same man
ner as last year, and give them Sc
cure protection at cost.
In warning it's members and the
farmers generally against the state
hail insurance measure now being
promoted, the Equity is actuated by
one motive solely-to save the farm
ers from placing their risks under the
provisions of a law which is imprac-
tical and which is being operated in
a manner that is not strictly legal.
Farmers, under the law, are not as
sured of any definite sum to be paid
them in event of loss, and, if paid,
there are doubts if the loss will be
rn11npfAlA1n of tC for
The state hail insurance board
places no limitations on the extent of
liabilities they will accept, for under
the law, they must accept the appli-
cation of every farmer i'm Montana
who so elects, and the hail board
must take the business i'm each local
ity that is offered. Thus the state
hail insurance board assumes a great
er hazard than any insurance COM
pany would dare to accept. Farmers
are required to pay only 60 cents
premium per acre, and they are led
to believe they will get $1,000 per
acre in event of total loss, whereas
they will get only their pro rata share
of $1,000 per acre loss, after the ex-
penses of administering the hail in
surance board have been paid.
1t goes without saying that with a
hundred or a hundred and fifty adj
justers in the field, the "overhead"
expense in operating the insurance
board will be tremendous, and if
losses are heavy, will greatly reduce
the money available to pay the losses.
Hail insurance laws, very similar
to the O'Shea bill, in operation in
North Dakota and Canada, have PROV
EN- to be failures, sometimes paying
out only % cents on a dollar.
1t is understood that the expenses and
the loss account of the state hail insurance
law are to be paid by warrants drawn on
the state Treasurer. 1t has also been said
that these warrants must be drawn in their
numerical order and they must be paid in
the same numerical order. II is not un-
reasonable for the farmers of Montana to
ask the State Officials if this is true, and,
il it is, and the amount of funds collected
is insufficient to pay the loss and expense
account. those bO paff heir mt.