The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-10-29
HAIL WARRANT
NOTES SOLD BY
N. D. OFFICIALS
Warrants Will Be Paid in
Cash and at Face Value as
Result of Note Sale
Governor in Statement Says
it would be Futile to Call
Body on Hail Law


The State Industrial Commission
has sold s1,7OO,OOO "more or less" OF
notes TO make possible payment OF
state hail Insurance warrants in cash
as soc1 IS issued by the department
and state auditor, it was announced
today.
At the same time Governor K. A.
N,stcs, in response to inquiries, said
that he would not call a special ses-
sion of the legislature for the pur-
pose of either increasing the hail
tax beyond the SO cents and II cents
levy or TO permit the depletion OF
the surplus or revolving fund by
paying a part of the hail claims out
of that.
The ntes which will be sold to per
nit hail warrant payments are. IS
sued under the 1923 law. A syndi-
cate of Twin City official houses will
buy the notes at $98.85, and will take
81, 100000 more or less. The amount
of notes to be issued depends upon
the collection of taxes this fall. The
average maturity of the notes 10 five
mcnths. they running from three to
ten months. 4,
In the last two years the warrants
themselves. through debenture plan
have been sold at prices varying
from month to month. Under the
lpresent sale the notes based on the
warrants are. sold. and warrants will
be paid to their face value. The
notes bear 6 per cent interest. Of
fcials believe good price was OBJ
tainsd for very short maturity notes
In his statement on the question of
an extra session of the Legislature
Governor Nestos said:
"The record plainly shows that to
call an extra session of the legisla.
ture for this purpose would not only
be an unwarranted expense upon the
taxpayers of the state but would in
all probability be absolutely useless
"The legislature has already ex-
pressed itself on this subject in un-
mistakable language. The hair law
of 1921. Of which Senator Ingerson
was the author, reads:
Provided. further, that if the
SUM collected by the maximum
levy go cents and II cents)
should be insufficient to pay the. j,
losses in any one year, the pay
ment of losses shall shall be pro-
rated
This act. including the above pro-
vision, was adopted in the senate by
a vote of 35 to 0. and in the house
by vote Of SO to 0, indicating that
the legislature was then unanimous
ly of the opinion that the hail tax
should not exceed the so cents then
and II cents per acre provided
and that if the hail losses in any
one year proved so great that this
amount would be insufficient to pay
the losses in full that then only such
percentage Of the claims as could be
paid by the indemnity tax collected
should be paid. Of the 1873 who voted
for this law in 1921, 70 are now
members of the legislature and pre-
sumably still feel the same way
about it.
During the last session, Senator
lngerson again. with the counsel
and assistance Of the hail insurance
department, prepared bill to amend
the 1921 law in every particular in
which it had proven ineffective or
not in accordance with what appear
ed to be the peoples desire, but the
clause providing Tor pro-rating the
hail claims when the indemnity tax
should prove insufficient, was not
changed or stricken out by any pro-
vision Of the Ingerson bill, SO ap-
parently it was still the feeling of
the hail insurance department and of
the peoples Representatives that
losses should be pro-rated if the
payment Of 50 cents and II cents.
respectively, SHOULD prove insufficient
to pay the losses in full.
But not only would It be likely
to prove useless and great ex-
pense to the taxpayers to can an ex-
ira session of the legislature but ii
seems plain to me that it is also
needless. 49,
I'VE have in our constitution .
provision for, the initiative ana ref
erendum. The presidential primar-
les and the township elections will
b: held on MIfch 10. 1924. It would
therefore seem to; me- that rather
than 70 incur the expsnss Of an ex-
ira session o. NE legislature with
ITthe small ch1nze II securing !
change Of the law. thst Il We believe
that the reorle would wsnt to ir-
rv@sse the NH tax to more than lthe
. csrtt ara - cen4s. ar slse TO de-
rscte their revolving fnnd ~ usinss
hart Of the strnlns to nav por
tions of xtha hsil 16ssns. instead so4
fcontinusd on Pass 4j