The Grange advance., 1874-03-04

/ k5Ss9 ~ M own o1po00e. IN 0V03oO>AVes
with the abovs the fast that IN effort 10 be-
ing made 70 organise . stock company to
insure farm property clearly indicates ana
accounts for the labored argument OF the
report in favor. Of the stock system OF in
surance and against cooperative insurance.
The first point attempted to be made in
the report against our Association is upon
ito organization. Sherwood has made that
subject q specially; that is the reason he
is so explicit upon that point He helped
organize the Southern Minnesota Railroad
Company, an organization of doubtful va
lidity. But Why did not this sub committee
give the P. of H. the benefit of the opinion
Of the Attorney General upon that subject,
which they obtained through the Insurance
Commissioner. Was it because his opinion
was favorable to the Association? Surely
| this committee with the s0hole interest of the
P. of H. resting heavily upon their shoulders
to omit from their report an unfavorable
in wise discussion of this subject they come
to the very satisfactory conclusion that they
don't know, and will therefore leave it to
some one else to find out.
It is perhaps sufficient to say in answer
zstion Of our Association were unfortunate
ton, but the law wisely provides that Sec
ondary evidence may be introduced to es-
tablish the fact, and we believe we have
| ample proof Of that character to establish
the legal organization of our Association.
Sherwood's committee profess to be una
BILE to determine upon what plan the opera
of h0 EC~uonro, ot.
ed. They say the plan is neither what is
they are correct. The plan is that of Coop
Grafton. 1t is the only purely cooperative
association known in this State. There are
no middle men to appropriate twenty-five
per cent. of all premiums charged as COM
missions. There are no stockholders to
divide 10. Is or 25 per cent. Of profits upon
the insurance business annually. There
are no accumulated funds to loan to Presi-
dents, directors and committee lobbyists
upon collateral security. There are no accu
mutations with which to erect massive
stone edifces at cost of 100000, with
sumptuous Presidents Secretarys' and Di-
rectors' rooms, heated by steam and fur
nished with the richest upholstery.
The farmers have simply associated to-
gether for mutual protection against the
casualties of fire and lightning, and have
agreed to pay each his proportion of such
losses, and the expenses Of managing the
| business, whatever that proportion may be,
no more and no less and to avoid the delay
and expense Of collecting assessments to
pay each loss as it may arise, the members
of the Association deposit in bank two per
cent. upon the amount insured, to be drawn
against for losses and expenses, and the
balance with interest returned to the men,
ber at the expiration Of his insurance.
Thus the members obtain their insurance
at first cost.
To illustrate the operation Of this co-ope-
rative principle: The losses and expenses
to the members of the Farmers Associa-
ton for insuring each $1 900 for five years
from 1869 to 1874, has been $15.35. The
amount charged by the St. Paul Fire and
Marine Insurance Company and other SINH
lar stock companies for insuring the same
| amount, the same time, at the minimum an
nual rate established by those companies
for the best detached farm risks, is $37. so.
1t has cost the Farmers Company to pro-
tect SO, 622, 884 Of property insured during
the year 1873, the amount Of $36, 6,271. The
amount charged by the St. Paul Fire and
Marine, and other stock companies for in
suring the same amount is $72,171. The
net profits then to the stock company which
might have carried the risks of the Farm
er's Company for 1873 would have been
$35, 900. The saving effected by the Farm
er's Company to its members during the
single year Of 1873, has been the same
| amount of $35, 800! The total saving of
insuring all the property carried by this
| Association since its organization, as COM
| pared with the cost of insuring the same
property at the minimum annual rate
charged by the stock companies amount to
more than $150,000!
Is it any wonder that the officers Of the
! stock companies are anxious to get rid Of
the Farmers company and that they can
afford to appropriate small portion Of
their expected profits to the maintenance of
lobbies and the education of investigating
! committees ??
The committee profess to regard the pro-
visions of the bylaws respecting the duties
Of Treasurer and the deposit money, as ir-
reconcilable. The fault is in their compre-
hension, and not in the bylaws. The
Treasurer has custody Of whatever funds
may belong to the Association as corpora
tion, as for instance, the proceeds Of an as
sessment upon the members, which was the
mode originally provided for raising funds
to pay losses, before the deposit system was
adopted. The deposit money is the proper
ty Of each member depositing until an as
sessment is made on it, and the Treasurer
has nothing to do with it.
The committee "say they could not COM
mend the financial ability Of the officers Of
the association who have loaned the funds
Of its members for years to National Banks,
at seven per cent. interest"
The officers have done no such thing.
The member loans his own money, and re-
CeiVes and holds tho cart;6coto of ?onos;t