Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1872-04-16
The Madison Mutual Insurance Com
pany.


EDITOR HERALD: ID. Worthington.
Esq, Secretary Of this company. fa-
vors the Herald readers with reply
TO observer" evidently intended to
silence that individuals obs .rvations
for all time. The Secrelary's first
and last paragraphs charge, that the
article by the "obscrver' was an
Anonymous production. Suppose
tho same Ia been signed by John
Smith, would the facts stated have
been changed thereby? Or suppose
the name Of J. L Nils had follow ed
the statement, would it have IN
creased the Premium r sceip,s If the
company. or diminished the pereont-
age paid to officers and agents? Had
the criticism appeared over the sig
nature Of Gogernor Was hburne would
Secretary Worthington have mani
tested greater degree Of satisfaction?
| think not He would have charg>
cd the Governor with prejudice;
Judge Mills would be Non Conipos
MentiS, aud John Smith tho State
agent o! another insurance company,
or some euch absurd imagination
would b. framed 70 persuade the
reader that an ujastiiab'e assault
had been made upon his company.
II Mr.. Worthingtos has been
wounded be will have the satisfaction
of knowing that ho furnished the
weapon and invited The blew His
sworn statement, relieved Of is dra-
perry, and returned to him with its
ugly proportions exposed, so bewid-
ers tho Secretary that he ka0los MT
his 0wA, ana he denounces tho prodi
gy ia the phrasaoiogy peculiar to
his company. Can the intelligent
owner Ola Madison Mutual Policy or
any candid and Discerning reader,
find Ia the Secretary 5 reply those Il.
emcnta Of strength and solidily,
Which, if they exist, sh0uId be pro-
claimed by one occupying Ills poai-
1on ia tho company. H. asserts
that the Troy, Ill gaukee. and
Rock River companies did not fail rs
mltu3is, they were more ia analogy
with stock companies than with the
Madison Mutual. IAey attempted 10
do q stock business oithom Glequatc
capital Such was the case with
the Troy The Milwaukee was 30!
a mutual company for the last four
years Of its life, and the Rock River
died Of the Iastqlimsat Plan"
Let US trace this proposition in an.
alogy q little, We may perchance find
a family resemblance between these
companies and the Sacretary's mlu-
ner Of conducting the Madison Mu,
tual. AS q starting point: Those
companies we're mutuaIs; his cOmpa-
ny is the same They received pre-
MUM notes; 50 does he. they also
accepted notes for the cash premium.
These TreaSUrerS constitute about one
third Of the entire cash assets Of his
company. They paid liberal .sa!erios
and missions 70 officers and
agents. Can we charge his compa-
ny as being less maenanimous when n
we ascertain from bis statement that
about sjxiy-fiFe per cent OF tha en-
tire premium receipts for 1871 was
lodged ia the pocUets Gf its officers
and agents? IHcg attempted to DO d
stock business iojthout aiequate capital
Has not this Stock plan beeu made q
Special feature by the Madison Mutu-
al for some years. and that, too. wher
the company had not one dolidr OIL
S'o"k CapdaL III It's possession
Whcu hungry for money their mod.
esiy ha, permitted them to levy bur.
dcnsome assessments On their mem
bers. The practice Of the Madison
Mutual has not proved an exception
- the rule 10 this respect, and, al
though the Secretary informs ~ thai
tho Rock River died uf the instdIimen
plan, we find that H., company has
adopted this instalIment feature and
i issuing policies notwithstanding
such fatal precedent
Assuming the above statements to
be true, we fad the companies refer.
red 10 ny the Secretary are more in
analog with the Madison Mutual
than ho was wiling "a admit; that
they belong 81 the same family, and
are, IN fact Trim Sisters, whose de-
misc vas fastened 5y causes which
should serve rs warning to the
Secretary and his company. Prom
mont among the causes Of the failure
OF these companies may be mention
ed tie character OF he risks assumed.
Their lavish expenditure Of money,
aod their inability 20 collect a sufi-
eiont amount to meet their liabilities
from large amount uf premium
notes aad unsecured bills receiveab!e.
| quOlo10r tho consideration OF the
Secretary from The report Of the In
s0gance q )mmj.-ioul of the STATE of
New YORK for 1869 IN this point -
mFarie8 must manage la .acb q
mtnleF IL to collect set premiums
enough TO pay losses, or the sinking
OF capital viii Inevitably result 10 the
ruin and dissolution Of such corpora
tons. lfpromiums arc inadcquately
adjusted 10 risks, or if expenses
and commissions arc so largo as
practically to result in a diminution
of rate, or il business is not kept in
hand and within the control ard
knowledge Of the officers. aud a gem
eral lastly Of discipline is allowed
to peryade corporation, insolvency
must follow as inevitably as the pen.
atty follows the violation of any of
the physical laws Of nature"
OBSERVER.
TnE FIRST DAY.-lIon. Alex Graz
ham, of JanesviIio, received the fol-
lowing letter from gentleman 10
Madison on Saturday iasL; l am
sure you viii be interested in know
ing something OF the operation Of