The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-01-24
HAGEN WILL
URGE } new BILL !.
ON WARRANTS
Insurance Department Wants
Treasurer Ordered to Pay
Immediately
TO ASK FOR AMENDMENT
Proposed Measures Would Gre
ate Revolving Fund to Meet
Hail Indebtedness

' Hail Indebtedness
.at ~ Iii. .'.-
Officials of the state hail insurance
department. according to Martin s.
Hagen, manager of the state hail in
surance department, asked six months
ago that the hail warrants be paid as
soon as the money was available. =
= Obert A. Olson, former treasurer.
declares that the letter was received
three weeks before he went out of Of
flee and that the reason he did not call
them at that time was because Of the
effect it would have had on the states
financial condition.
Wheat Down. r..
AT that time says Mr.. Olson.
wheat was waydown. II had called
them many of the farmers would have
been forced to sell their wheat i'm
mediately and i would have forced
the closing of 100 banks in ten hours.
II discussed this matter with many
of the bankers of the state and all
agreed with me that right at that time
it was better to withhold payments
Many of the warrants had aieady been
sold to eastern financial interests. and
therefore much of the money would
have gone outside the state just as the
time the situation here was the most
critical" s -
4.. Pays Warrants. "a,
When Mr.. Steen took over the treas
urer's office there was on deposit in
the Bank of North Dakota $772,000 OF
the hail insurance fund. Mr.. Steen be-
gan at once to call in the warrants
and all of the 1919 warrants have now
been called. F.,
Mr., Hagen says that his depart tment
favors an amendment to the hail law
which will make it mandatory for the
state treasurer to pay the warrants
as soon as the money is available.
. The past two years. according to Of
ficials of the hail insurance depart
ment, has developed many weak
points in the present, statutes. The
most important Of the changes which
the department will present to the
Legislature will be the creation of a
permanent and revolving hail, insur-
ance fund which would be permitted
to- accumulate through. four Dr. five
years and thus provide money with
which to pay hail losses Immediately
after adjustment, and to be replaced
in the fund when the tax money is
paid. ' e -.
Under the present law at fiat three
cent tax is imposed upon all tillable
land in the. state, some 27,OOO,OOO
acres. This provides about $S0O,OOo
yearly. Approximately 100000
acres of cropped land was insured in
the state department at a cost of
twenty-five cents per acre. Hail loss
es in 1919 were $3,492,OOO and the
cost of operation of the department
was over 100000.
. r May Fix Rate.
The department already empowered
to fix the rate for hail insurance,
which for two years has been twenty
five cents an acre. Now it will ask
that the proceeds from the fiat three
Scent tax on all tillable land be set
aside for a period of six years. The
department then proposes to increase
the hail insurance tax on insured land
about seven cents an, acre thus pro
viding sufficient money to pay losses
and maintain the department, but
without touching the 100000 year
ly from the three cent tax.
South Dakota has a. similar law
and we need it. 1t would make the
department more efficient explained
Mr.. Hagen. .... IS.
May Increase Sum.
. Another amendment to be- asked of
the Legislature would make it posi-
BILE for a farmer to apply to the de-
partment for an increased indemnity
by paying an increased tax. At pres.
ent the maximum indemnity allowed
is 81 per acre at the rate of Is cents
per acre charge. 1t is proposed to
let farmer increase this to $40 or
S12 an acre by paying pro rata in
crease in indemnity tax. ;
Further changes would be made 80
that all Withdrawals by persons wish.
AAAo W OS ooSCooCu Ilc luucllulLy w
state protection tax, shall be made to
the state office instead of to the coun-
ty auditor. Delays in transmittal and
lack Of coordination under the pres
ent system would be obviated by "a
direct withdrawal, say the officials.
The proposal of Tax Commissioner
George E. Wallace for the creation
of the office of county assessor, to be
filled by appointment and civil service
examination, is enthusiastically en-
dorsed by the hail insurance depart
ment. Under the present system there
are many flaws in the method of list
ing lands for hail insurance taxation.
say the officers. The county asses
sor would and should be made respon-
sible for the correct listing of all tilla-
Continued on Page 3
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