Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-02-19
INSURANCE
COMPANIES PLAN
TO LEAVE STATE

PANlES yPLAN
TO LEAVE STATE
CONTINUED from Page ~
bur made before the committee yes
terday afternoon.
%As q citizen Of North Dakota 1
wish to protest against this bill on
the ground that 1t IL a poor business
policy for the state and its people be-
cause 1t attempts to foist upon North
Dakota an experiment that has ended
In. Wisconsin in miserable failure.
II protest against 1t OF the further
ground that 1t is undemocratic in
that It seeks to compel the county,
city, school and village boards Of
erty they seek to conserve by insur-
ing it in q so-called insurance scheme
that the vast majority Of the people
of Wisconsin, after fifteen years ex-
pertinent, have rejected.
And AZ this is probably the last
time I shall appear before this COM
mittee, I wish to state that it is my
fire insurance company can submit
to the hostile legislation that has
been enacted at this session. and that
in order to protect the funds which
they practically hold intact for policy-
holders In ~forty-seven other states OF
this union, ordinary business judg-
ment demands that they withdraw
from the state as they were forced
to withdraw in former years from
Missouri, Kentucky and South Caro-
lima.
Quotes Paddock's Position.
That this bill launches the state
l nf North noEN$n m ~- inAyoo~@1
scheme that is unsafe and the ~solvency
of which can be ~jeopardized by COM
panies not bound in any way to this
state. has been frankly admitted by
r. A.. Paddock Of the legislative bu-
reau. You will recall. gentlemen, that
when he appeared in behalf of House
Bill 90 he declared tina the obtec,
Of the bill was to compel stock fire
insurance companies to share with
the state the>risk on public buildings
and he frankly declared that IT they
declined to share that risk Under this
bill they would not be able to write
any insurance in North Dakota.
II submit, therefore. that the pro.
posed remedy is not n remedy al
all. He argued before this commit.
tee that if the stock fire insurance
on public buildings they would MOI
be permitted to write any business ir
this state. That gives no protection
but instead. it provides that If 8
company that is writing insurance or
the South Dakota capitol, for in
stance. declines to write that portion
Of the risk on u own capitol thai
shall be compelled to cancel all it,
policies in North Dakota, including
those on county, city, and schoo
buildings that this bill forces to in,
sure in this so-called insurance funt
that it Is admitted at the outset cal
be rendered insolvent by a compan,
not domiciled in North Dakota.
II repeat, therefore. that the pro
posed remedy is no remedy. but tina
1t merely makes the trouble worse.
Compulsory on Subdivisions.
II maintain that it is undemocratic
in that it seeks to compel counties
insure in this fund. when it is a mat
ter OF notorious record that the coun
ties. cities. villages, and school dis
tricts Of Wisconsin,. where the Law
is voluntary, decline to jeopardize
the property Of their taxpayers b,
insuring it in the discredited stat
fund.
1T is frankly admitted. gentlemen
and by others with whom I hav,
talked. that this bill is made compul
sorry on counties. cities, villages an
school districts because If 1t were no
made compulsory they would not in
sure in the fund. In other words
the proponents Of this law admit a
the outset that it is against the hes
judgment Of the county, city, villag
and school district boards. Of Nortl
Dakota and therefore they attemp
by legislative enactment to over-rid'
that sound business judgment an,
force them into an experiment tina
has been tried in Wisconsin and ha
failed"
Then Mr.. Wilbur read from tn,
1913 report of the Wisconsin insur
ance commissioner, showing that. aft
er fifteen years trial. Of II Wisccn
s~urance in the state fund; that Of al
the cities and villages in the Badge
state only seven je~opardixed theiI
property in the state fund and not on,
OF them had a population of $50
and most Of them were under the /,
900 mark; and that Of all the librar
boards in Wisconsin,, only one riske'
it's property in the state fund.
Herman Ekern drew this substi
tute bill. or at least the first drat
Of it," said Mr.. Wilbur. II submit
that this il rhe second joker, il
may use. that word. that the forme
Wisconsin commissioner attempte,
to put v here. The first was Il
connection with the workmen's com
pensation fund when a provision h
offered would have permitted tn.
mutual companies whose specia
pleader and attorney he is to com
into the state and. through the dec
laration Of a dividend. put your pro
posed compensation fund out Of bust
ness by writing from ten to twent
per cent under it. when the dividend
we're in. Mr.. Paddock caught tina
move, and the clause did not 90 int
the bill.
Now he seeks to foist on thi
state the same scheme that has faile.
in Wisconsin. Mr.. Ekern's forme
home was in Whitehall. Wis. TIL
Whitehall property is not. insured Il
the Wisconsin state fund. The White
hall school district property is not in
sured in the Wisconsin state fund
The Whitehall library-and l presum
they have one, is not insured in tn
Wisconsin state fund And yet h
drafts a measure to force on the coun
ties, cities. villages and school dis
tricts Of North Dakota that sort o
scheme which his neighbors in Wis
consin rejected.