Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1871-02-14
CCommunlcated
The Madison Mutual insurance Com
pany.

pany.
EDITOR HERALD The last mum.
per OF the Herald contained an article
rom the pen OF Luther BasforJ Esa.
director OF tho Madison MntnaI IT,.
surance Company, imparting infor.
nation, no doubt interesting e 70 those
who have availed themselves Of tho
indemnity offered by his comnany
That he should feel IL his dntv ~
make careful statement of tho
standing and soundness" of his com.
pany, is not surprising. But whom
ho parades mis- disconnected and
questionable list of notes. bills re-
ceivable, amount due from agents.
&C., &c, and then asks the people of
Grant county to "see that the COM
pany is perfectly sound and reliable"
II is astonishing-especially so, com.
ing as 1t does from an insurance man
OF ten years standing.
do not charge Mr. BasforL Of
knowingly misstating the facts in his
letter; but that misstatements occur
therein | propose to show, by the
sworn statement of the Secretary Of
the Madison Company, made the same
day that the Director dates his COM
municati0n. as follows: Tue first
discrepancy | notice in these state
men's Is amount paid for losses
Mr. BaSford says:
"We hav ng paid' SI55 0o0 On
The See'y states amt paid losses l37.25S 90
DISCREPANCY Sl7.74l 81
Again, Mr.. Basf0rd states:
Real Estate belongingto Company 1892 80
Inc Sec'y reports value OF Real
Estate 1882 IS
Discrepancy $4,000 90
You will perceive that these two
items alone reduce the assets OF the
company below Mr.. Basford's state
ment S77741 SO. | have remarked
that these assets are questionable. +"
The company hold promises to pay,
now past due, to the amount of S85.-
9l581 These notes have been ac-
cumulating for years, and the parties
| giving them are not in the State. or
II In the State, many of them are
not responsible. And as the com
pany cannot pay losses with such
assets, their cash value is q problem,
which when solved may nett the
company 335 to so per cent. on the
dollar During the past year over
SAG, 900 more of these bills receiva-
Bile have been gathered into the COM
pany's vaults for safe keeping.
Mr.. Basford informs US that the
company met with losses every ff-
teen hours during 1870 J" and by ad-
ding other expenses of the company
we find that the daily expense for
the year past has been over 1862,
and the income only 1874 daily.
This gives expenses over income of
sos per day. Such diet may do for
a time, but when taken every day
in the year is not considered condu-
Give to health or long life.
Although according to Mr.. Bas.
ford's judgment the company is all
safe, yet we are informed that ain
order to quiet the fears of the oldest
members the company is bound tc
fail with a capital in premium notes
of over million dollars" and to make
assurance doubly sure, the Director,
resolved to ask little from each
one. And then comes the very mod
est assessment of % per cent. on pre-.
MUM notes, equaling so per cent. OF
the amount originally paid by the
policy-holder. This assessment was
entirely unexpected by large num-
Der OF the policy-holdcrs who had
been influenced TO insure with the
company by the promises and repre-
sensations made by the agents Of the
company, that the company was all
right-never doing SO profitable a
business as now; and 'if you fear an
assessment | will pay it myself,
"will hold myself responsible" Evil
pledge you my word as man e
stand between you and an assess
ment."
Bat 10 those who had taken the
trouble to inform themselves, il was
no surprise, Ii WAS inevitable. Ii
must come.
When laws are violated with i'm
punity the penalty must follow, soon
or or later; and the Madison Mutual
will prove no exception TO the rule
Three hundred mutual fire insurance
companies have been dashed TO pieces
on the very reef toward which she is
steering. And with her cargo Of $64,-
100000 at risk, with declining income
and increasing expense, and her nj
terly insufficient available assets, her
future history may therefore be writ
ten in these words: Assessment |!
Another assessment One more
assessment Several assessments |!
Bankruptcy f. M. DURAND.
Lancaster, Wis., Feb 10, 1871.
ray Mark Twain threatens TO cease