Jasper County Democrat, Volume 12, Number 1, Rensselaer, Jasper County, 3 April 1909 — MORE ABOUT MUTUAL INSURANCE. [ARTICLE]

MORE ABOUT MUTUAL INSURANCE.

Editor Democrat—ln reply to the communication last week by “Blood Sweater” on Mutual insurance, would ask him what he knows about the meeting reported to have been held in Indianapolis in January, 1904, of the stock companies doing business in Indiana for the purpose of devising means to stay the tide of business toward mutual companies? And report has ft that there was a fund made up to give agents special inducements where they secured business from mutual companies. ,/!If it is the case Mr. Blood Sweater, you were sent here to help the boys, get your pay out of the special fund and the boys their regular commission. Again, Mr. Blood Sweater, was it the farmers or the insurance stock companies who engineered the bill through the legislature to restrict mutual companies to one county territory? I say “bill,” —it was a “rider” to some other bill —and it was expected to get it through without any detection until it was a stationary law. But, thanks to Governor Marshall for his veto. You also infer, Mr. Blood Sweater, that stock companies can not fail. Let us see: Out of 160 companies doing business in San Francisco barely 60 companies are doing business to-day. You speak of mutual Insurance a failure in the Philipines.” That’s all bosh. Let's talk about mutual Insurance in Indiana. There are some 60 companies in the state and there never has been a failure. If there had been you would have published It all over the continent.

The Mulberry mutual was organised in 1869 and has run 50 years. Insurance in force, $8,823,048; s Hamilton county, organized 1876, run 33 years. Insurance in force, - Montgomery and Fountain counties, organized 1877, run 31 years. Insurance in force, $6,059, 247; Jefferson county, organized 1877, run 31 years. Insurance in force, $1,843,442; Allien county, organized 1878, run 30 years. Insurance in force, sl,3®8,620; Aid Association of Elkhart county, organized 1870, run 39 years. InSfirance in force $8,656,235. I have simply referred to a few that have been doing business for a number of years. Now you can say that mutual insurance is deterioating, and are afraid we will be out of business in a year or two. Too bad. Let us seeT about it:

In comparing mutual with stock insurance we find just this difference: In mutuals we carry our insurance at actual cost. In stock companies we pay them a profit for carrying it. The general average cost of mutual insurance for the year 1904, by the reports of the twenty-seven companies at that time members of the State union, was twenty-two cents on each SIOO. The amount of insurance in force in these twenty-seven companies was $57,840,786. Premiums collected, $126,808.47. For the year 1907 (last report) thirty-five companies were members and reported the amount of insurance in force $91,917,313,00. Premiums collected, $210,690.88. 65,428 members; average cost of insurance 23% cents on SIOO. By those two reports we we find that $34,076,527.00 of insurance has been written in the last three years, or an increase of 59 per cent. •

For the year ending December 31, 1904, there were 100 stock companies doing business in the State of Indiana. Of .these 100 companies nine were Indiana companies, sixty-four foreign companies. These companies had risks at large of $26,511,045,326.00 Premium charged, $302,064,574.00; giving them a general average fixed income of $1.13 on the SIOO. These same companies were doing business in the State of Indiana alone, December 81, 1904, as tolows: Amount at risk, $785,813,710. Premium received, $5,799,229.83; at an average cost to the insured of 74 cents

on each SIOO. Losses paid, $2,622.613.70. Net income above losses, $3,376,607.13. Total income to each company, provided they did an equal share of business, would have been $317,660.77. From the annual report of stock companies December 31, 1907, we find 146- companies doing business in the State. Twelve were Indiana companies; 106 companies of other states, and 29 foreign companies. The 146 companies had risks at large of $34,468,554,963.00. . Premiums charged, $381,772,995.00. A fixed income of $1.13 oh the sloo. Amount in force In Indiana alone, $914,859,--088.00. Premium received, $6,935,762.62. Average cost to the insured, 76 cents on the SIOO.

A MUTUAL MEMBER.

Get in on the Home Grocery’s flour deal this week. Clara Treanor has again opened her millinery store across from the depot at Remington,