The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-01-17
HEAVY LOSSES
REDUCE BOND
FUND SURPLUS
Slope County Case Hit State.
Insurance Fund Hardest
During the Year
MANY OTHER UNITS
Public Apathy, Lax Laws Are
Blamed by Manager for
Difficulties
MANY OTHER UNITS

Heavy losses during the past year
have reduced the surplus Of tn"
State Bonding Fund, in the depart
m,nt Of Commissioner of luSur ncc
S. A. OlsncSs, mntcrially, according
to tho balance sheet of the fund rs
Of December 81, 1928. Dlsbursc-
monta during the year exceed the in
come OF the department by $2S.6oG.53.
The heavy judgment obtained
against the fund in the slope coun-
ty bonding case was Il material fac
tor in losses of $j&,Gs3.39 paid dur-
ing the past year. Other expense
included premiums for reinsurance
of $9,755.00 and operating cost OF
$G.8SS.UG The gross income Of the
bonding fund for the year was $40
1902.
The state fund has $4,000
bonds in force, shows a surplus of
500, 7Gl.62. premiums uncarncd of
$74,O79.25 and total losses paid since
the fund was started Of S18,965.93.
Numerous law suits are now pend
ing in which sums in excess of the
surplus are demanded. The depart
mcnt,s according to Harold Hopton,
Manager. is confident Of resisting
many of these claims and keeping the
fund solvent.
In his annual report Mr.. Hopton
cites many cases Of the difficulties
which have besct the bonding fund
in the last year. Among them is he
says. the apparent desire Of officials
OF counties and juriss TO stick the
state
The Indifferent attitude OF the
public is largely responsible for the
general tendency and desire to seek
redress from the state when govern
ing bodies OF political subdivisions
find themselves face to face with
losses caused by carelessness on
their own part or by their chosen
officials" says Mr.. Hopton.
at seems so natural and easy to
ask the state to paw and few stop to
think that a state department is gov
erned largely by the same law of
responsibility that rules in business
generally. This is an experience
which is not limited to the State
Bonding Fund but to all public de-
partments handling liabilities"
"All too often, he says, "tht
state is stuck on unfair claims be-
cause the jury sympathizes with the
imaginary 'underCipg' in the shape OF
political subdivision. In its at
titude the jury is supported by pub
lie apathy or indifference"
Mr.. Hopton blames RECKLESS ant
thoughtless legislation for much o.
the difficulties. He declares iGuci
of the trouble could have been avert
ed if the various political subdivis
ions would have cooperate with hi!
department without being swayed b.
political prejudice. The depart
ments chief source of trouble, h
asserted, was the initiated measure
of 1920 which permitted Withdrawal
of some funds from the Bank o
North Dakota. No depository lax
accompanied it, he said. New liahl
ity was created. The department, h.
said. saw trouble ahead and tried t
secure the cooperation of subdivis
ions for the protection of funds, blu
many would not cooperate.
zone custom which cannot bt to
strongly discouraged under our pre-
sent system Of handling the stat
bonding fund.-" he says, sis for poll
teal subdivisions to choose the ioca
banker as treasurer. This custol
has led to great losses for the al
fected subdivisions in all parts of tn
state"
He urges the Governor to recon-
mend that the next legislature pas
laws so that there could be no douE
as to where to place responsible
for inadequate surety and otherwis
safeguard the fund.