The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-10-25
MAXIMUM TAX
NOT SUFFICIENT.
TO PAY LOSSES
Unless Way Out Is Found,
Farmers Will Receive
About 81 Cents on the
Dollar
REMEDIES SUGGESTED
Favorable Interpretation of
Law or Special Session of
Legislature Suggested

"The hail tax for 1928 will be 30
cents an acre for 500 per acre pro-
lection and 81 cents an acre fol-. $3.OO
additional Insurance." says an an
nouncement by Martin Hagen. mana
ger of the state hail insurance de-
partment today. This is the max
imum as provided by Section OF the
Hail Law. Even if the maximum is
levied it will be seen that the total
tax will not be sufficient to pay all
the indemnity in full, and unless
some way can be found, it evidently
will be necessary to prorate the IN
,lemnity."
The hail losses for 1923 totalled
25. .63O and exceeded any other year
in the history Of the department.
The insured acreage decreased
from 1922 about Is percent, or l,439,-
600 acres.
The total indemnity is $4,66s,Ss1.-
72.
The tax of SO cents an acre on
s7.OO an acre insurance and 81 cents
an acre on $500. an acre additional
insurance will amount to $3,94b,96S.-
81.
It may be necessary to prorate the
indemnity, paying persons who SUI
fered hail losses 81 percent of their
I. insurance award. 80.
May Pay 81 Percent
.The total indemnity plus other
necessary items. to be considered in
the levy equals some $4,844,3S1.72,' y
said Mr.. Hagen. ''It will therefore
be seen that only 81 percent of the
indemnity can be paid unless it is
found that part Of the accumulated
surplus from sources other than the
flat tax, which had accrued prior to
July /, 1923 might properly be used
to pay part of the losses this year
1t is more than likely that such in
terpretation might be put on the
: provisions of the law pertaining te
the surplus fund, and if so, no pro-
rating of losses will be necessary. II
however, that may not be done, the
only other possible remedy, as thu
Department sees it, will be for the
Governor to call a special session o.
the legislature for the purpose o1
amending the hail law to the effec'
that 100000 of the $2,909, 900 in tn
surplus hail fund may be either uset
outright or be borrowed from th'
fund to be repaid when possible il
the future. Since the hail insurance
surplus contains over one million
dollars accrued from other sources
than the flat tax, it would seem ad
visable to use. such money to pay tn
farmers their losses in full instea,
of prorating the indemnity, especial
ly this year, when prices on farm
products in general are so low as t.
make very small If any profit for tn
farmer"
Mr.. Hagen stated. that the Commits
sioner of Insurance and the Indus
trial Commission are negotiating
with financial concerns relative t
the sale Of hail department securi
ties in order that warrants may b
paid in full and promptly immediate
ly after December /. He said tina
he believed deal would be mad
whereby the state treasurer will b
able to call all warrants for paymen
by New Years" This year, he sale
interest on securities will be born
by the hail department, so that dia
count Of warrants will be unnecei
sary.N
The year 1923, Mr.. Hagen said, i
a record breaker in hail losses, ez
= cept in. the year 1916 when the losse
Z, were greater. He said that in 191
the losses numbered q little over IL
600, for 1920 about $4,000, for 1872
$1,000 and in 1922 little over 1900
He said that reports from private il
K surance agencies were to the effe'
that the 1923 hail losses are til
greatest in years, and that sewers
companies would retire from til
Canadian field because Of unfavol
able experience.
"Dope" Upset
The "dope" was upset, Mr.. Hage
said.
1T has hsiled repeatedly in se'
tions where hail was not expected
he said. 1.-THE experience has bee
turned upside down. Localities r
earded a. more Or less immune ha,
yielded the companies disastrous r
suits. The dope Aheets Of the pa
have been worthless % . guide +,
this year. The shewdest and keene
underwriters in tho business sho
for 1928 just about the same exper
ence that the companies which ha,
s not made particular stndy of Il
WI hail business are able TO exhibit"
Commissioned Of Insurance Olsnel
IS declared thst s.tlss stats hail depar
/ L ment is cb.ifronted with seriol
situation." 90 F.sss: ~ b M a
ssThe losse incurred amount
lContinusd ten Pa4s y