The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-08-25
BUNGLING If NOT
MALICIOUS LAWS
CURB INDUSTRY
Head of Large New York Con-
Germ Declares Loss of Big En-
terprise May Result
COMPENSATION ACT COSTS
Price of Insurance 500 Percent
Greater Than That of
Private Companies Al
COMPENSATION ACT COSTS


based on his personal experience OF
H. R. Bonny, general manager of the
A. G. F. F. Operating corporation OF
New York city.
This company, according to Mr..
Bonny, is seeking to operate the first
modern flax fibre mill in North Da-
kota, utilizing the thousands of tons
of fax straw which is annually burn
ed by North Dakota farmers. But the
unjust rates charged by the state
compensation bureau under the law
prohibit his company from operating
in this state, and in all probability
this mill will be moved to Canada.
"The American Grown Flax Fibre
Operating corporation is national
concern which takes the raw flax
straw and turns it into fibre to be
ultimately made into rope, twine,
paper, canvas and almost anything
that can be made from cotton" said
Mr. Bonny today in discussing the
plans of his company locally.
State Compensation Unjust
''In order to operate in North Da-
kota we must take out workmen's
compensation. This is perfectly just,
both to the workman and to the en-
ployer. We both need this protec-
ton. But my chief objection to the
law. as it is enacted in North Dakota
by the Nonpartisan league, is that we
must take out our insurance with the
state, paying a rate of $3.35 on each
$1OO of wages, when can obtain the
same insurance at &C cents per hun
dred from companies that have been
in the business longer than the state
bureau has existed and have paid
out the slightest hitch.
I'm other words. the NOnpartisan
league says that must take out my
insurance with the state bureau at an
increase in rates. ot. 500 percent over
:, what can obtain the same insurance
from outside companies. How Town.
ley's followers ever expect new en-
terprises to come to North Dakota as
long as they will have these unjust
and exOrbitant premiums forced
down their throats. without the priv
ilege of getting insurance from per
fectly stable companies that might
charge lower, rates, is more than !
can understand.
'We intended to put in factory
in Bismarck that would employ $50
and more people and my company
was prepared to invest large sums OF
money in this enterprise. But with
these obstacles in our way, we will
probably move to Canada, where busi-
ness enterprises are fostered, instead
of throttled.
State Official in Ohio
Il went to the workmen's compen-
sation bureau about my premiums.
was told by the secretary that our
plant comes under the head of textile
manufacturers. l told him it did not
and that dictionary defined a textile
plant as place where textile was
manufactured. This we do not do.
"Then he said there YVES no provi
sion in the law for our particular
class of business. This official said
he would have to communicate with
the bureaus acting actuary at Colum.
bus, O.. for instructions. He could
not explain why the states insurance
actuary was located in Columbus and
not in Bismarck.
"A large cotton manufacturer in
Providence, R. l., the cotton manufac
turing center of the United States
wanted to know if l thought it advis-
able to. build 4 factory at Bismarck
as they can use our product and man
ufacture the finished product right
here and thus save immense freight
rates. l told him. Decidedly no.
would not advise you to invest one
cent in North Dakota as long as the
state government is run as it Is
Loses Paper Mill
Another instance Of how Bismarck
is losing out on obtaining large in
dustries through the working of the
compensation law: A large paper
manufacturer of New York also want
ed to build a factory near our plant
pointed out that the Missouri river
would furnish all OF the water he
would need for his operations and he
would use some of the by-products oi
our plant, but that he would be com
mitting commercial suicide and
would be morally dishonest to risk
one cent of capital in North Dakota
uuucr lue PTcScuL Sldle sOVcluulcIlL.
Since North Dakota has become q
state. her farmers have burned up, OF
otherwise destroyed more than o.,
100000 tons of fax, according to fig
ures l have received. Everyone o
those tons could be utilized by oul
company. If we are forced to get ou
of the state because of these unjust
laws, the farmers can continue tt
burn up their fax instead of getting
an average Of So a ton for it. In fact
l have paid as high as SIS a ton fol
what has in the past been considered
so much waste.
II was born in this country ant
have voted Al consecutive times ant
as an American citizen l believe tha
l am entitled to earning a living II
my own country. but if the Nonparti
san league continues to enact sucl
legislation as it has and enforce'
such laws as workmen's compensa
,tion act. l will move to Canada. con
duct my business there and raise m!
family in purer civilization that
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