Jasper County Democrat, Volume 4, Number 18, Rensselaer, Jasper County, 10 August 1901 — Cheap Farm Insurance. [ARTICLE]

Cheap Farm Insurance.

The Democrat has frequently referred to the cheapness of co-op-erative farm insurance as compared with the rates of old line companies. It has also had something to say regarding the Farmer’s Mutual of Benton, White and Jasper counties, little of which is known about Rensselaer or in the northern portion of the county. This company was formed by prominent furnn*rs, residing just south of Remington, and has been very successful from the start. Mr. Biddle, its president, writes us that it now has over SI,(XX),O(H) of insurance on its books. The olticers would like to get the farmers of the centrnl and northern portion of the county interested in this company, and with this end in view Mr. Biddle asks us to give space to the following statement of insurance of this chaiacter: A comparison of the cost of insurance iu the Farmer’s Mntual and old line companies. Having been requested to make a statement of the cost of insurance in the Farmer’s Mutual of Benton, Jasper and White counties in the

state of Indiana, and compare it with the cost in old line companies, I submit the following report: The Farmer’s Mutual issued its first policies March 15, 1897, and had been doing business four years on the 15th of March, 1901. We will take policy No. 8, for $3,000, which is only a samplo of all the policies issued by the company, fexcept the membership fee has been raised. In the Inst four years there has been paid on policy No. 8, the following payments: March IS, r<97, Membership Fee $1 ; premium *». Total $4 00 Jan. IS. l'-OO ns per assessment No. 1 4 50 Jan. 15, 1060ns per assessment No. 2 6 00 Jan. 15, 1901 as per assessment No. ;t. ... 315 Total Cost for 4 years .. . .$1765 The whole of assessment No. 3 is not counted in as it only took 1(H cents on the SIOO to pay our debts and run us to the end of the fourth year. This policy, if insured in old line companies on the installment plan at the usual rate of 50 cents on the SIOO annually, would cost the holder sls when issued, and sls per year for the next three years, which would cost in four years s<iO. Subtract the cost in the Farmer’s Mutual, $17.65 from $60.00, we have a net saving in the four years $42.35 in favor of the Farmer’s Mutual. To get at the actual cost of insurance we must add to the cash paid the interest from date of each payment to the end of four years, which we will do at 6 per cent, compound interest will amount in the four years on sl7 65 paid in Farmer's Mutual $1.89; total cost including interest $19.54; we also add 6 per cent, compound interest to the S6O paid old lino company, which is $9.54, total cost including interest $69.56; from which subtract total cost in Farmer’s Mutual $19.54, leaves a net saving in ft\vor of Farmer’s Mutual of SSO in four years. Making the annual cost on the SIOO in the old line company 57 19-20 cents and 16J cents in Farmer’s Mutual, including interest in both. The average annual cost of insurance in the Farmer’s Mutual companies in the state of Indiana is 18 cents on the SIOO for a period of several years. Borne companies are running on 10 cents and less; the Montgomery and Fountain county company has 11,700,000 in force and has run for the last thirteen years on 8| cents on the SIOO annually.

The saving in 10 years when insured in the Farmer's Mutual loaned at 6 per cent, the interest will keep every policy in force and have a surplus. If our members will be careful about the use of steam power, rod their buildings, put ground wire on their wire fences twenty rods apart, keep Hues in safe condition, and exercise a general care in the use of fire, I believe we can run on 10 cents or less on the SIOO annually. There are but very few accidental fires while there are a great many that are the result of somebody’s carelessness. Respectfully submitted, J. It. Biddle, Pres., Farmer’s Mutual Insurance Co., of Benton, Jasper and White counties. Indiana.