Newspaper Page Text
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VOL. XXXV, NO. 33.
BUSINESS OF FIRE INSURANCE
Bismarck, N. D., Nov. 7.—That the
business of insurance in North Dako
ta is drifting straight towards the
recks and shoals of state regulation
•I Tates, if not state rate-making it
self, was the opinion expressed by
Insurance Commissioner W. C. Tay
lor today. "This fact may not be ap
parent to the casual observer," said
Mr. Taylor, "nor even to the insurance
companies, but the straws showing
which way the wind was blowing are
tying thick and fast around the de
partment of insurance, just the same.
'"Pake the matter of fire insurance
rates for example. A good deal of
re-rating has been done in this state
dering the past year, and from inquir
ies, complaints and protests coming
to this office it would seem that in
each case the rates are being revised
upward. If such is the case, can that
sort of revision be justified?
"During the year 1912 the average
loss ratio in this state was a fraction
•v®r 53 per cent. In other words, for
every dollar paid the fire insurance
companies for premiums, 53 cents
weref returned by them in payment
of losses. That would leave 47 cents
•ut of each dollar for operating ex
penses and profit. Statistics show
that the operating expenses of all fire
insurance companies doing business
in the IMted Stiates during 1912 aver
aged 38.6 per cent, so that on the
basis of last year's business compan
ies operating in North Dakota earned
or saved 8.4 per cent over and above
ali expenses. This saving was on the
underwriting end of the business
alone, and does not take into account
the profits arising from the investment
of capital and interest on surplus and
unearned premium account.
"Another consideration: The last
legislative assembly enacted a law es
tablishing afire marshal department,
and this department has been in ac
tive operation for several months. It
is reasonable to suppose that its ac
tivities have tended to miminize both
the physical and moral hazard attend
ant upon the fire insurance business.
The cost of maintaining this depart
ment—which is not inconsiderable
imposes no additional burden upon
the fire companies with the exception
of domestic mutuals. An- increase of
rates, in the face of this additional
Measure of protection, would seem to
require some explanation, to say the
"An action has been commenced in
the supreme court the purpose of
which is to restrain this department
from putting into operation the state
'bonding law enacted by the Thir
five Years IsGiven
Party By Employer
New York, Nov. 7.—Mary, the maid
in the home of Mrs. D. E. Kraemer,
went about her usual .duties today,
but with the new distinction of being
publicly recognized by her employer
as the "perfect maid." Mary has been
in the employ of Mrs. Kraemer for
twentjr-five years and was honored
yesterday with a party to which twen
ty-fiVB of Mrs. Kramer's friends were
invited. When luncheon was served,
Mary occupied the place of honor and
Mrs. Kraemer was on her right. An
other maid served Mary and the
Mary had presents showered upon
her, each guest handing her some of
ferine as she received them in the
Kraemer home. The gifts included
silver toilet articles, silk stockings
and gloves, and Mr. Kraemer present
ed Mary with $1 for each year she had
been with the family.
Mrs. Kraemer, and her husband
praise the cooking and general work
of Mary highly. One of the lightest
and biggest rooms in the apartment is
occupied by the maid. She is shown
every consideration, and during the
winter is furnished with theatre tick
ets at least once a week.. Mary has
been careful in her savings, and Mr.
Kpawner' has invested some of the
jpgney for her.
Six Hunters Lost Near Vancouver.
Vancouver, B. C., fNov. 12.—Six
hunters aboard a launch are believed
to have perished Sunday night in a
storm on the Gulf of Georgia. There
is no trace of the craft. The party
intended returning Sunday night.
NORTH DAKOTA IN BAD CONDITION
State Commissioner of insurance Makes Per
tinent Remarks Regarding Rate Making
And Rate Regulating.
teenth Legislative Assembly, and dur
ing the pendency of that action it
would be inappropriate for me to dis
cuss the matter. However it should be
remembered that the judgment of the
court will probably turn, not upon
the intrinsic merits of the act itself,
but upon its constitutionality. What
ever may be the outcome of this liti
gation ,the significant fact will re
main that the premium rates for fidel
ity and surety bonds were increased
several hundred per cent, as a direct
result of which the state intervened
and said it would undertake to bond
counties, cities, towns, townships and
school districts against loss by default
of any officer.
am not now and never have been
in favor of rate making by the
state. So far as fire insurance rates
are concerned, I believe the subject is
entirely too intricate and technical to
warrant the state in attempting to
formulate rate schedules. Nor has
that sort of innovation worked out
well in practice. But this does not
mean that the people of North Dako
ta h^ve no rights in the premises.
They have. They have a right to
know whether the rates which they
are compelled to pay for fire insur
ance are fair and equitable or not. If
the business of insurance is of a quasi
public nature—and it is—then the
public is entitled to at least some
quasi-information on the subject of
"Fire insurance rates in North Da
kota are determined and promulgated
by the General Inspection Company of
Minneapolis, Minn. But property own
ers in this state do not know and
have no way of knowing whether
these rates are fair and equitable,
considered as a whols or in respect
to the various classifications. The en
tire mattei a closed book. The as
sured is supposed to pay the prem
ium, ask no questions and look pleas
ant. So in respect to the enormous
increase the rates charged for fi
delity and surety bonds—an increase
whch seem to have been reached as
the result of- a friendly agreement be
tween the companies writing this class
of business. This sort of thing must
be justified, or the companies may ex
"I beleve in fair play and the square
deal nor do I share in the prejudice
which is too commonly entertained
towards big corporators just because
they are big. But we should have
light. Let the insurance companies
open their books and show cause.
The people demand this."
MRS. IDA LECKWOLD
ACQUITTED HELD TO
HAVE BEEN INSANE.
Minneapolis, Minn. Nov. 8.—Mrs. Ida
Leckwold was acquitted of murdering
her 9 year old daughter, by the dis
trict court jury last-night. She was de
clared to have been insane at the time
of the murder and at the time of her
confession to the authorities.
Mrs. Leckwood was arrested Sept.
30, soon after the death of her daugh
ter and subsequently confessed to the
crime, blaming her husband's cruelty
for the act.
Found An Old Army
Sword in Pasture
Golden Valley, N. D., Nov. 12.—Fred
Giestz found a sword of an officer in
his pasture in this county and near
the place were some human bones.
The sword was that worn in the war
time period by officers and is supposed
to have been carried by some one with
General Sully's army in the campaign
against the Indians. An effort will be
made to discover the name of the of
COUNTY CORN SHOW.
November 20, 21 and 22 are dates of
the County Corn Show. iOn the 21st
of November the school officers of the
county will have their annual meeting
and probably all of them will take in
the corn show also. On November 24.
25 and 26, the rural teachers are going
to have a three day's institute at thfc
Court House and a great many teach
ers will no doubt arrive here on Sat
urday for the corn show and stay over
the educational meeting.
THE WEEKLY TIMES-RECORD
VALLEY CITY, NORTH DAKOTA. THURSDAY, NOVEMBER, 13, 1913.
President of the Newly Organized
Middlewest Loan and Trust Company
DEATH TOIL ON GREAT LAKES
Thrilling Story of terrible Gale by Wrecked
Steamer Captain—Number of Wrecks and
Many Lives lost.
WALDO HITS RE6F AND FOUNDERS IN LAKE
Detroit, Nov. 12.—The worst blizzard
of the season which raged over the
Great Lakes for 4S hours began to
subside today and the waters wash
ing the eastern Michigan shore cast
ashore their dead.
No one, perhaps, will ever know
how many sailors lost their lives. Ves
sel owners said it will take a month
to definitely total the damage. Ship
ping on Lake 'Huron, Detroit and the
St. Claire river, suffered a loss of
several hundred thousand dollars.
Tonight, guarded by wrecking tugs,
a black bottomed freighter which
tosses in Lake Huron, keel upwards,
is still unindentified. The belief it
was the steamer J. M. Jenks of the
Hawgood line of Cleveland was dis
pelled when William Livingstone,
president of the
Lake Carriers asso-
ciation announced the Jenks safe in
harbor in the Georgian bay near Mid
Three bodies were found on the
west shore of Lake Huron, two near
Port Frank and one above Point Ed
ward. The latter was probably a
Probably 25 to 40 persons were
drowned in the overturning of the
freighter. Five unindentified bodies
were washed ashore opposite the po
sition of the freighter.
Cleveland /JDead Numbers Five.
Cleveland, O., Nov. 12. With fair
and warmer weather predicted for
tomorrow, Cleveland tonight is hope
ful of a speedy cessation of the dif
ficulties that have beset it since the
worst snow storm in its history des
cended Sunday night.
A resumption of the blizzard would
be fatal, as it would cut off relief from
the food scarcity which the city faces
As a result of the disturbed con
dition on Lake Erie, a new menace
has developed. The drinking water
has turned brown and the health de
partment has warned all to boil the
water to obviate a typhoid epidemic.
The -total dead was increased to
five when one was killed by a roof
of a bouse collapsing under the weight
of snow. Another was frozen to death.
Work of cleaning the city is pro
gressing rapidly. It is believed the
steamer G. J. Grammer, aground1 off
Lorain, can be saved. The property
damage to the city will be two mil
lion. The schools will probably be re
/Waldo HKt Reef on Superior.
Oalumet, Mich., Nov. 12. Captain
Duddleson of the steamer L. C. Waldo
of Detroit, which has broken in two
at Gull Rock, Manitou island, told a
graphic story of the wreck, upon ar
riving with his crew of 25 men and
two women on board the tug Hasard
at Houghton tonight.
The storm struck the Waldo at mid
night Friday. Mountainous seas tore
oft' the forward house, pilot house, and
all structures in the forward part of
With the compasses lost, a small, in
accurate compass was the only guide.
The boat headed for a passage be
tween Gull Rock and Keweenaw point
in a blinding blizzard.
After being tossed 18 hours, the boat
finally struck a reef, and the crew was
frequently in danger of being washed
overboard until the arrival of the
Captain Duddleson believes that his
vessel is a total loss.
Whaler Wrecked on Arctic Coast.
San Francisco, Nov. 12.—News of
the loss of the whaler Elivra on the
northern Alaska coast was received
from Circle, on the Yukon river. Cap-
Peterson and a crew of 15 are
The message said the entire fleet
of vessels in the Arctic or along the
Alaskan coast is ice bound.
(Continued on page eight)
By T*R Representative
PILLSBURY FAIR A DECIDED SUC
GRAIN TO MARKET.
The people of Grand Prairie are
very busy hauling their grain to mar
bet these days.
Mrs. John McKay and daughter Mrs.
Haas Skonnord returned Friday from
Valley City after spending a couple of
Pete Sannas took a load of grain to
Mr. and Mrs. Loupfs Taylor called
on their daughter Mrs. W. McKay last
O. E. Sunde was seen grinding feed
at Wolff's Friday.
Mr. and Mrs. Hans Skonnord of
Grand Prairie were callers at the
Skonnord farm on West Prairie last
Those who attended the fair at Pills
bury last Saturday are as follows:
Ben Nortbridge, O. E. Sunde, Pete
Sannes, H. S. Lindquist, Will Niel, W.
McKay and hired man.
Jake Gibson drove to town Saturday.
Harold Nelson drove to Valley City
Sunday returning home early Monday
morning with the school ma'ams.
EXHIBITS TO CORN SHOW
MAY BE SENT PARCEL POST
People having exhibits of grain and
corn to send to the Corn Show and
who for any reason will be unable to
come to the show in time to enter
their exhibits may send such exhibits
by parcel post. This can be done at a
very low cost and should be taken ad
vantage of by those who cannot at
AND TRUST GOMPANY GRANTED
OPEN FOR BUSINESS IN NEAR FUTURE
New Concern Will Be One of the Strongest
Financial Institutions In This Section of
the State—Well-known Men Will Head
Company—All Local Capital Invested.
With a capitalization of $100,000
practically all of which is subscribed,
and the backing and investment of
some of the strongest men financially
and in a business way In this section
of North Dakota, The Middlewest Loan
and Trust Company, will within a
short time open its doors for business,
in Valley City.
The charter for the new company
was granted at a special meeting of
the banking board held at Bismarck
Saturday evening. Ordinarily, the
board meets only quarterly, but in or
der to facilitate the organization of the
company, and that they might begin
business sooner, representatives of the
company visited the state banking de
partment at Bismarck, and as a result
tne governor called a special meeting.
The Middlewest Loan and Trust
Company will have the backing of
some of the strongest men, financially
and in a business1 way, in this section
of North Dakota.
Frank White, for more than thirty
years identified with the history and
progress of North Dakota and Barnes
county, will be president. Major White
fust came to North Dakota in the early
eighties, and spent a number of years
on his farm properties south of Valley
City. Later he moved to Valley City
and engaged in business, giving it up
temporarily in 1898 to take service in
the First North Dakota regiment in
the Philippines, during the Spanish
Returning to Valley City, it was only
a short time until he was called upon
to lead the Republican party of the
state as candidate for governor. He
served two terms, and retired with a
record as one of the best governors
North Dakota has had.
Shortly after the close of his politi
cal service, Major White organized
Valley City's first Insurance company,
The Middlewest. For four years he
was at its head, and to his business
acumen must be laid a large part of
the great success which that company
enjoyed while its headquarters were
at Valley City.
During the three years just closing,
Major White has represented the
Northwestern National Fire Insurance
company in the Northwest and for the
past year the Hail Insurance branch
of the Middlewest Fire Underwriters
BANNER FOR VALLEY CITY.
W. E. Parsons, of Bismarck, who is
the secretary of the North Dakota Ed
ucational association, arrived in the
city last evening with the banner
which was awarded to Valley City for
the best enrollment in the Second Con
gressional District at the recent meet
ing in Fargo. In this contest Grand
Forks won the banner for the best en
rollment in the First District. Valley
City won first prize in the Second Dis
trict and Golden Valley in the Third
District. The banner which Mr. Par
sons brought will be hung in the of
fice of the county superintendent at
the court house.
North Oakota 1913
Crop Above Average
MINNESOTA LEADS ALL STATES
THIS YEAR BUT WE ARE IN
Washington, D. C., Nov. 12.—North
western states produced normal or
better than normal yields of all crops
combined in 1913, according to figures
which has been compiled by the de
partment of agriculture and announc
Minnesota leads the northwestern
states, and the entire country with the
crop reporting board at 114.6 per cent
of the average or normal crop. As
compared with the 1912 crop the 1913
production of -all cropsi in Minnesota
is 97.7 per cent.
North Dakota's crop for 1913 is
placed at 98.2 per cent of normal, or
the average, while It is 70.4 per cent
of tha 1912 crop. In South Dakota
the 191S crop is declared to be 81.8
per cent of the average and 72.9 per
cent of the combined crop of last year.
Montana raised a crop equal to 93.9
per cent of bar normal crop and equal
to 99.6 per eeat of the crop of last
PAGES 1 TO 8
His connection with the new company
will help insure its success from the
start, according to prominent bankers
and business men of the state. A wide
acquaintance, and reputation for lt»
tegrity and honest business dealings
will secure confidence for the company
while his insurance agencies and busi
ness relations will bring business from
every corner of the state from the
T. Melvin Lee, secretary of the new
concern, is a Barnes count.v boy, bor*
and raised here, and who has gained
the larger part of his business exper
ience with home business institutions.
I •. Lee spent several years with the
State Bank of Kathryn as assistant
cashier, was later employed in the
Twin Cities, and for the past several
months has been employed as an ad"
juster in the insurance branch of Mr.
White's business. He is a son of T. J.
Lee, a well known farmer and property
owner of southern Barnes county, and
has an excellent reputation in a busi*
I ness way, wherever he has been em
ployed. Mr. Lee's uncle, Ludvig Lee,
a retired farmer of Kathryn is also a
stockholder and director in the com-
The directors of the company, as
named in the articles of incorporation,
are Frank White, .Melvin Lee, E. A.
Mikkelson, cashier of the State Bank
of Kathryn, J. E. Jones of Valley City,
C. F. Mudgett, Herman Winterer, Lee
Cowell, Ludvig Lee, and Sim Mason,
All are well known in Valley City and
throughout the county and state, and
will add much to the Trust Company's
The Middlewest Loan and Trust
Company is organized under the North
Dakota Surety and Trust law, and will
conduct a general 'business in surety
bonds, real estate loans, investments,
receive deposits, write insurance and
conduct such other business as comes
within the powers of such an organiza*
While it is not stated definitely
when the new concern will open for
business, it is anticipated that it will
be about the first of December.
The place of business of the new
companywill be at the former offices
of the Middlewest Fire Insurance
School Board's Pur
chasing Power Cur
tailed by Law
Superintendent Vibness, superinten
dent of schools of Burleigh county, is
sued the following warning to district
school boards of that county, which
we reprint for the benefit of the school
boards of Barnes county:
Reports have it that certain school
supply agents aie plying their trade
selling articles of greater or less
value to school boards at prices much
above what they really should be. To
protect school boards against such
agents the last session of the legisla
ture made a law that school boards
should not purchase such things as
maps, charts, encyclopedias and the
like until the county superintendent
of schools has given his approval.
Certain agents who find this obnox
ious of course are very anxious to im
press upon school boards that this
law was forced through by the coun
ty superintendents for the purpose of
giving them an opportunity for graft
that the law would not "hold water"
if tested in court
No doubt sucih an opportunity for
graft is offered to the grafting super?
intendent by agents who thrive by
grafting. But the county superinten
dents of North Dakota as a general
rule are men and women of high
er ideals than that. "The law intends
to prevent the sale of articles exploit
ed by agents selling things that are
made for the sole purpose of "to sell"
and which have absolutely no educa
tional value in the common school
room. It means a saving of thousands
of dollars to the taxpayers of the state.
It is well that the school ^boards
keep this in mind when smooth
tongued agents come around.