The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1920-03-25

space In the press for anything, ex-
cept when departmental reports must
be published as required by law. But
the appearance of such statements as
the one published by Mr.. Packard in
the Tribune for February 18th, as well
as your editorial in the same issue,
makes it imperative that the false and
misleading conclusions presented,
should be refuted or corrected.
had hoped that the State Hail In
surance would escape such attacks. It
was generally supposed that the prin-
ciple was acceptable to the entire peo-
pie, and unassailable therefore, as
such. Not that the law is perfect, in
itself, nor the management of it; not
at all. Being responsible for the sue
cessful administration of this law, we
welcome any constructive suggestion
and wholesome criticism. But, does
the article referred to contain any
such? &. ~, .t@0z.--,., =
Mr.. Packard states that according
to the State Insurance DEPARTMENT
(meaning the Annual Report Of 1918
business) there were $36,097 7,911.64
written by the line companies in the
State, at an average of rs cents an
acre on $1,000 risks, or 521s for
$500 indemnity, which is the amount
paid under state insurance. The in
| terrence here is, of courses. that this
rate is not excessive, as the line COM
panies profit for the entire state was
only little over $4,000 for that year.
It is true that the companies have
operated, even at loss, some years.
But agents never did. Fifteen to 20
per cent for getting the business is a
big item, and this is reduced under
the state system to less than $500
for every $4,000 paid in premiums.
It is hardly correct to state that the
average premium paid line companies
in 1918 was rs cents per acre. All
the companies, Except the two nu-
tuals and the State), charged two per
cent more, or 95 cents an acre on all
business written west of the river, al
so on all barley, rye and speltz over
the whole state. This would probably
bring the rate up to 85 cents an acre
for $1,000 insurance for 1918.
But, why apply 1918 rates to 1919
business? Let us, therefore, discuss
and compare the cost of State VS.. line
insurance on the basis of rates and
conditions prevailing during the East
season. The fact is, that no insurance
was written in 1919 except by the
State and one or two mutual compan-
les, at less than 10 per cent of $1.00
per acre on $1,000 risks. This makes
70 cents an acre on $500 risk. But
this is not all. On the west side of the
Missouri a premium of IL per cent
was charged and this rate was applied
also to barley, rye and speltz over
the entire state. AS this rate was also
charged in a block of several counties
in the central part of the state, it is
evident that the average must be
much more than $1.00 per acre on $40.
risks.I have no figures to show what
acreage would be subject to the IL
per cent rate, but we know it must be
considerable. Now then, it is probably
safe to assume that IL per cent or II
cents an acre would be fair average
cost of insurance for $500 protection,
for the IL million acres (approximate)
insured in the state fund during 1919.
This gives US $7,240,000 gross prem
iun1s, based on line companies rates
that our farmers would have had to
pay for the same protection that they
now get for s3,84O,OOO, or at saving
Of $5,4OO,00O. Granting that we must
refund the 3 cent flat tax on the 16
million acres of uncropped land,
amounting to $48O,00O, which has been
donated for the benefit OF. those who
enjoyed the protection we simply
charge it up to their IL million acres:
Adding an extra levy of a cents an
acre will turn the trick, Or, in other
words, it would then cost us 80 cents
an acre instead Of % cents plus the
8 cents on tillable, uncropped lands,
now paid.
| It will thus be seen that the diff
ference between State insurance and
line insurance is 45 cents an acre or
d tOCItl VI 4O,ROO3VVV VA II1O 4a AAIAAiOAA
acres insured.
Then Mr.. Packard goes on to point
out the loss the insured suffers on
account of waiting until the tax is
paid to get his money. This is partly
true. If all the insured would pay their
premium tax when due, as they must
| if insured in a private company, it
would not be true. Therefore the
claimant is partly to blame, himself.
If he should get extension in paying
his premium to the private companies
he would pay more in interest.
When Mr.. Packard undertakes to
criticize the accuracy Of judgment OF
our adjustors, he ventures upon a
theme, which is most likely foreign
| to him. / doubt whether the farmers
would accept him as authority. It has
more often been intimated that the
state adjustments are too liberal. The
Iline adiustors, ! have talked with, say
that while some Of our men showed
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