Democratic Sentinel, Volume 4, Number 17, Rensselaer, Jasper County, 4 June 1880 — An Important Question Answered. [ARTICLE]

An Important Question Answered.

Editors Western Rural: On Nov. 8, 1878, insured my barn (which is considered, by all whe have seen it, one of the best in the country) in thu “American Insurance Company,” Chicago, 111. Will you let me know what you think of the solvency, etc., of the said company? lam insured for $3,000, but in case of loss could not rebuild for less than about $6,000. S. A. P. Jonesburg, Mo. —We have frequent inquiries of this character for the reason that the American Company has advertised considerably in the Hural, and consequently does a large business among our readers. The American Insurance Company of Chicago has done an active business for twenty-one years, has issued 350,000 policies, and paid over two millions of dollars for losses. It confines its business to the insurance of dwellinghouses, private barns, their contents, farm property, churches, school-houses, and insures not to exceed $5,000 in any one risk, or that would be liable to burn at one fire ; it writes no policies in Chicago or any of the large cities. Consequently it is not exposed to the results of a great conflagration like the Boston and Chicago fires. The rates are reasonable, yet ample ; it is responsible for the safe termination of five-year risks ; has cash assets amounting to $880,070.93. The amqunt necessary to re-insure all outstanding risks Jan. 1,1880, $381,131.28, and has a cash surplus as regards policy-holders of $498,943.70, in addition to which the company held Jan. 1, 1880, installment notes amounting to $1,319,170.53. The following statement, taken from the sworn reports of thirteen of the companies doing the largest business in the State of Illinois, shows that the American received more money for premiums during 1879 than any other company doing business in the State : American, Chicago, $188,274 ; Home, New York, $181,031; JEtiia, Hartford, $174,397 ; Hartford, Hartford, $159,802 ; Phenix, Brooklyn, $144,673; GermanAmerican, New York, $124,844; Traders-’, Chicago, $118,961; Rockford, Rockford, $111,774; Continental, New York, $106,598; Insurance Company of North America, Philadelphia, $99,464; Phoenix, Hartford, $94,821; Fire Association, Philadelphia, $93,165; Agricultural, Water town, $91,388. The American Insurance Company is the oldest insurance company doing business in Illinois, and one of the oldest farmers’ companies in the nation, and farmers and those owning detached dwelling-house property we believe cannot more safely insure than in this company. The purchasing of an insurance policy is unlike buying an agricultural implement. The purchaser who gets a machine for half its cost to manufacture may get just as good a machine, one that will do his work just as well, as though he had paid more. Not so with the policy of insurance. A policy of insurance is good in proportion to the responsibity of the treasury of the company issuing it. Something in insurance cannot be had for nothing. The association of a few together, and calling their association a mutual fire insurance company, does not in the remotest sense make the contract signed by some of their members, as President and Secretary, a guarantee that, in case of loss their families will receive the amount named theirein. For a time a few losses may be paid—all depends upon whether it is for the personal interests of the members to pay. The idea in the start is to save money by getting up a township or county mutual insurance company, and when more money is asked than the regular insurance company charges there is danger of the association becoming a mob which does not always pay, and the loser cannot make them pay, simply because there are no funds to pay with. So long as there are no losses the assets will remain the same. Nothing from nothing, nothing remains, but something from nothing you can’t, and that is the end of it. Since local mutual insurance was adopted we believe that every ten years’ experience will show up many of such associations as an absolute failure. We do not hesitate to urge our readers to insure their homes in some good, sound insurance company, than which we believe there is none more responsible and Worthy of patronage than is the American of Chicago.— Western Hural.