Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1920-02-19
PACKARD SHOWS UP
FIGURES ON STATE
HAIL INSURANCE

tie Hail Seventeen Million
Acres Paid Tax Without
Receiving Benefit.
Bismarck, N. D., Feb. 17.-(Spe-
cial. )-Assistant Attorney General
F. e. Packard in a statement issued
today asserts that the declaration of
the Townley press that state hail in
surance saved North Dakota $1,000
600 in 1919 is on par with previ-
ously published assurances that the
Bank Of North Dakota has made
$4,000 for the people of North Da-
kota during the first five months ex-
istence.
According to the state insurance
department" says Mr.. Packard, ''the
total risks written by private COM
panies in 1918 were $3G,097,911.64;
the gross premiums paid were $2,-
696,697.17; the losses paid were s2.-
694,412.20, and the net profit to the
insurance companies was $2,284.85.
The average premium was Is GEMS
on a $10-per-acre risk. The maxi
mum risk under the state law was 81
per acre. On this basis the old-line
premium was 521k cents an acre.
'Still quoting the insurance de-
partment," continued Mr.. Packard,
"the three-cents-an-acre tax levied
by the present law on 2S,006,990
acres produced revenue Of $780,
2O9.70. The number of acres pre-
sumed to have been insured total
1914 million, but owing to errors
in listing the indemnity tax was lev
led against only 100000 acres,
which, at 25 cents an acre, yielded
$2,75O,00O. making the total gross
revenue under the act S$ .s59e.2Qlsas79
The total risks assumed by the state
were about s77,00O,000.
Applying last years average old
line premium of 52k " cents an acre
to the 100000 acres insured in
1919 under the state law, we get $5,-
775,OOO as the gross premiums. To
arrive at the cost under the state de-
partment we must deduct from this
cost under old-line insurance the
cost under state insurance, namely,
|$3,59O,29O7O. This shows saving
of $2,1S4,709.03.
"It must not be forgotten however,
that the three-cents-an-acre tax was
levied on more than 28,000,000
acres, while there were only 11,O0O,-
600 acres insured, leaving more than
100000 acres which paid tax of
three cents an acre without deriving
any benefit To get at the actual
saving to the people of the state,
this tax of $510,209.70 must be de-
Quoted from the saving above ar
rived at, further reducing it to ST.
674.499.33.
Instead Of saving the farmers OF
the state $7,00o,o0o, the state hail
insurance plan saved them $685.
900. In other words, the Townley
press exaggerated a trifie better
than four times, which is fair bat
ting average.
"There is another phase of state
hail insurance under the present
law: The insured who suffers loss
must wait until tax is levied and
paid, the greater part of year at
ter he actually suffers loss for his
money, or he may discount his war
rant at a local bank or cash it at par
at the state bank. In any event. IN
terest must be paid on the whole
loss for period of many months.
Complaint is very general that
the adjustments were too conserva-
tiye-that the actual loss was not
always paid. This would appear 10
he indicated by the fact that while
there was considerable more tnan
twice as many acres insured In 1919
as In 1918, that the loss paid was
only. rs per cent more.
"Taking these two considerations
into account, It is exceedingly doubt
full II the present act is any great
Improvement over private insurance.
That the law could be made to pe OK
considerable benefit to the people OF
the. state is indicated by the expert
ence Of South Dakota. In North Da-
.kota the cost per acre runs approx
imately 80 cents for 9 $7-an-acre In
surance. South. Dakota furnishes q
81 s1o-an-acre protection, q $1o-an-acre
projection for 35 cents an acre. Haa
North Dakota furnished the cos.
would have been within e.s cents ol
the old-line average premium n
1918. a real state . hail insurance
act might have saved the people q
4hax. .tata several million dollars.