Bradford opinion. [volume] (Bradford, Vt.) 1874-1881, 1877-10-13
The Farmers Mutual.

The Farmers Mutual.
Al the iWtHI''i,.'nS "''u'o, ',I",.
G of the Farmers Mutual Fire Insur
o ance Company, the Directors nc
company the announcement of it,
y first assessment with the tOllowin.
p explanation Of the causes:
\ THE DIRECTORS TO THE MEMBERS
. In laying a small assessment ,h,
9 present year. the first TIM since the
D organization of the company
measure rendered necessary 10y the
unprecedented losses of the pas
I two years Gin which every other in
. Suramce COMPANY has fully shared
, so far as our knowledge extends -
r the directors of the Farmers Mu
tual see fit 10 accompany its an
nOu ncement with a word Of eXpla
! nation. though by no means OF
apology.
, A quarter of century ago, be
tore the business Of fire insurance
: had become a subject of so much
competition and so often abused
it was comparatively safe to esti-
mate the per centage of loss upon
the safest classes of property, such
as the Farmers Mutual was char
tered to insure. especially with the
assurances placed with proper pru-
dence and discrimination. Boz: h
the soundness of this theory, and
the wisdom of acting upon it, is
fully established by our experience
for twenty i've years. During that
period, and a little more, the ratio
of loss was so wisely forecast that
the fifteen per cent paid in advance
was not only sufficient to meet all
the losses and expenses of the com.
pany, but left surplus in the
treasury fully equal to carr, ing out
all the policies then in force, pro
vided the future losses were no
greater, proportionately, than the
past. With an experience so
lengthy and so well defined, the di-
rectors cherished an apparently
wall orOnnd",l haliAf that th",- Ill
struck the golden mean, and that
the company was as secure from
assessments in the future as it had
been free from them in the past.
But about the beginning of the
twenty.Sixth year the tidal wave of
losses, which swept over the whole
country. visiting alike all insurance
companies without discrimination
and without mercy-and which
still holds on its way, until inSur.
arce men and companies are filled
with doubt and anxiety for the tu
ture-changed the whole aspect of
affairs. Since then our losses have
been more than double what they
were during the twenty-Six years
previous, upon the same amount
INSURED. At this excessive rate
OF loss the fifteen per cent paid in
advance prior to November LIST.
1876, was only sufficient to cover
the loss e. and expenses for three
years and nine Notwithstanding
one year and three months to be
met by assessments. Therefore no
was left but to follow
the provisions of the charter and
assess those members who in pay
ing but fifteen per cent failed to
pay their proportion of the losses
and expenses during the time their
policies were in force. In laying
I he assessment, great care has been
to follow both the letter
and spirit Of the charter, and do as
EQUAL and exact justice as possible
in reaching the end sought. 1t az I
fords the directors great pleasure to {
add that, unless our future losses
Exceed even the present rate (Which |
hey by no means anticipatr), those
members who have insured since
November LIST, 1876, and therefore 9
Dald twenty per cent, have paid Y
sufficient to meet their liabilities \
Turing the life of their policies. !
We have said no word of apology 4
would be offered. None is de. !
Our losses, are heavy. II
md must be paid. The charter r.
this method of pay. u
ng them, and makes definite pro
'iSiOn for the same. 1t has never
~en resorted to before, for the sole {
easOn that hitherto the advance :
'ayments have been sutlicien t. .
While our losses have been severe. "a
hey have been less, in proportion IL
D the amount at risk, than any u
ther company in the state. Un- l
ueStiOnably too large per cent ~
ge have been tinctured with fraud; "
mt of what company is not this IL
lOre true than of the Farmers Mu- .
NALL For certainly, lis directors u
ave been untiring in guarding 81
gainSt temptations to commit
aud. aud in detecting and pun az
hing the guilty. Witness the fact 'e
nat they have, within the past ut n,
Par, secured the conviction of four ~
three of whom are Ut u.
DIV eXpiatiug their crimes at Ell
indsOr. Including the ASSESS pc
ent now laid, no other insurance io
i'm existence has furnished ar
cheap insurance to the people of uu
ermOnt as this; and no company d.,
rs done an equal amount of bust
'ss without Il very much larger
of cost. Not IA dollar
the cOmpany's funds has been ers
Dlen. or hazartied i'm speculative bi,
"a, but sacredly applied to legiti- Il.
ale ends, according to the best We
lowledge and belief of the direc- rel