Orleans independent standard. [volume] (Irasburgh, Vt.) 1856-1871, 1859-03-04
From the Bennington Banner.
Insurance.--Fact versus Fancy.

The transformations Of the " Farmers
Mutual Fire Insurance Company" are
too fitful for constitutional health. They
beteken excessive and diseased secre-
tions; and foreshadow speedy dissolu-
ton. We have now another isSue achich
floods the State:
GEORGE W. BAILEY, President ;
JOSEPH POLAND, Secretary; SAMUEL
WELLS, Treasurer.
S10,51O, 223.G0 at risk, 465, 1882 IA
notes in force. Cash capital on hand
Sl2,54O.64.
To this statement is attached las a
kind of pickle to gre the reliSD a letter
from Farmer" published in the Has-
6urgh Standard. This farmer-cor-
respondent has evidently strong emotion;
and a very diSintereSted desire to pro-
mote the welfare of his =" brother tarm-
erS." He has been a farmer all his life;"
q is not ashamed of his profession =
and feels impeIled to make plain ap-
peal to has brother farmers upon tie sub
ject Of Insurance.
Now this farmers letter was doubt
less concocted in the Office of the COM
pany,-w written by its Secretary 1t has
his full ear-mart' in its conception
and production,-a most /" diSintereSted
appeal But we propose for mo-
ment to look into the figures of these
gentlemen.
By the last annual report of this COM
pany it appears that the losses and ex-
penses during the last year are S14,692.
80 on less than S9,50O,000 at risk. Now
the amount of risk says President Bal
ley, in his fy-leaf with the farmer at
tachment of his Secretary is SI0.510,-
223.00 and the cash capital So, 540.64
This great cash capital is held up as
full indemnity against assessment. Now
if S14693.32, is expended in carrying
S9,500,000, at risk, for t,Oelce months,
how long would S12, 540.64 carry SIO,-
51O,223.O0?
The Secretary, if ingenious, doubtless
could figure this to a practical result VITA
out resort to -logarithms, and there is no
mathematics ct known outside the Office
of that company, that could carry him or
his company beyond nine mOntts,-such
must be its " time Of CESSATION"
Had the Secretary been strictly ingen-
ious and honest, he would have frankly
said,
"In' starting new companies a small
advance payment, like the Washing
ton County Company" IN, y which is
not yet forgotten, when there is little at
risk, and new members are constantly
joining the company and paying them
money, will always keep company On
its legs awhile; but when the amount at
risk enlarges, and the losses increase in
like ratio, assessments become inevitable.
or the company fails. The TO-, prints
Of the " Washington County Company"
are fresh in the memory OF the farmers,
it smells in the nostrils Of the 4" people"
This company had upon the same plan
a" Merchants and MeChaaics Glass;
Two years ago, the company appealed to
the people to insure in the class, that
they could do so cheaper than in other
companies, but that has had its day, and
has sunk below the reach of line or plum
met. The farmers class has approached
1t has S10000,O0O at risk and its
whole cash capital (haIf Of which is in
the hands of irresponsible agents. is but
Sl2,000.00. The policies in force on
the average run about three gears /; and
the avatlabie cash capital will not meet
the losses on the sum at risk Jiue months
The result is inevitable. We must at
the end of five months make very oner-
GUS assessments, as the Washington
County Company" did, and as we did in
the " Merchants and Mechanics class"
unless the people will consent to be duped
and t9eeced again. IF the farmers Will
join us and pay their money TO meet the
losses on property heretofore insured. we
can defer assessments for one gear, after
that we shall be compelled to assess the
new members, not only to meet the losses
or new risks but also upon the old
Had the Secretary said this he would
have been frank, truthful and honest
He would at least, have saved his char
acter, though he had sunk his company.
From the statements of the company
1t will take at least S50,000.00 TO meet
the losses and expenses on the sum at
risk until the termination of the policies. !
This sum must be paid by the incoming
members or by assessments. If the pre-
miums Of the incoming members is ex-
hausted in paying the losses on property
now insured, who will pay the losses on
property that is being insured?
These hunl6ug statements, got up by
the company under the fiction of I
"farmer correspondent" signed ga
Farmer" yet the insertion in the news
paper paid for by the company as an ad-
Vertisement, and blazoned forth to delude |
and decoy the innocent and unsuspect-
ing, should be exposed.
If the company is sound and stable
what is the need Of resorting to these
hypocritical appliance, and these false /
pretenses +? 1t is idle to pretend that
the officers of the company do not kn0ag
what Is obvious to every man acquainted /
with the insurance, that these adrance /
Payments-the cash capital is Inadequate
to meet the losses on the propertysat |
rlsk for one gear; and that the cash DGg-
neatS have for a long while been ex-
hausted in preceding risks; which detcrs
but makes inevitable s. day of reckon /