Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1877-10-08
THE FARMERS MUTUAL.

In the forthcoming annual report of |
the Farmers Mutual Fire Insurance
Company. the Directors accompany the
of its first assessment |
with the following explanation of the
causes
In laying small assessment the
present year, for the first time since the
of the company meas
ure rendered necessary by the unpreced-
ented losses of the past two years Gin
which every other insurance company
has fully shared, SO far as our knowl-
edge extends THE Directors of the
Farmers Mutual see fit to accompany
its announcement with word of expla-
nation, though by no means of apology.
A quarter of century ago, before
the business of fire insurance had be-
come subject of so much competition
and so often abused, it was comparative
ly safe to estimate the per centage of
loss upon the safest classes of property,
such as the Farmers Mutual was char
tered to insure, especially with the in
surances placed with proper prudence
and discrimination. Both the sound
ness of this theory, and the wisdom of
acting upon it. is fully established by
our experience for twenty-five years.
During that period, and 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 company, but
left a surplus in the treasury fully equal
to carrying out all the policies than in
force, provided the future losses were
no greater, proportionately, than the
past. With an experience SO lengthy
and so we'll defined, the directors cher.
ised on apparently well-grounded be-
lief that they had struck the golden
mean, and that the company was a.
secure from assessments in the future az
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 companie
without discrimination and withou
mercy-and which still holds on it
way, until insurance men and compan
les are filled with doubt and anxiety fo
the future-changed the whole aspec
of affairs. Since then our losses hav
been more than double what they wei
during the twenty-six year previous, W
on the same amount insured. At tn
excessive rate of loss the fifteen pr
cent paid in advance prior to Novembt
l, 1876, was only sufficient to cover IL
losses and expenses for three years an
nine Notwithstanding one year ar
three months to be met by assessment
! Therefore no alternative was left but
follow the provisions of the charter ar
assess those members who IN nnuir
but fifteen per cent failed to pay the
y proportion of the losses and expens
during the time their policies were
force. In laying the assessment. gre
y care has been exercised to follow bot
' the letter and spirit of the charter, al
do as equal and exact justice as possib
. in reaching the end sought. 1t affor
> the Directors great pleasure to add tia
L unless our future losses exceed even Il
present rate (Which they by no mea
y ANTICIPATED, those members who ha
= insured since November l, 1876, al
e therefore paid twenty per cent. ha
u paid sufficient to meet their liabiliti
y during the life of their policies.
- We have said no word of apoloy
~ would be offered None is demande
. Our losses, are heavy, and must be pal
The charter contemplates this method
y paying them, and makes definite prov
L ion for the same. 1t has not been resort
u to before, for the sole reason that hitht
l' to the advance payments have been 81
u fcient While our losses have be
" severe, they have been less, in prop,
~ tion to the amount at risk, than a
a. other company in the state. Unqu,
y tionably too large per centage ha
u been tinctured with fraud but of WI
ie company is not this more true than
70 the Farmers Mutual? For certain
its Directors have been untiring
P guarding against temptations, to conn
e. fraud, and in detecting and punish
u the guilty. Witness the fact that tn
d. have, within the past year, secured
lie conviction of four incendiaries, three
re whom are now expiating their crimes
ID Windsor. Including the assessmt
is now laid, no other insurance company
ar existence has furnished so cheap ms
P ance to the people of Vermont as tn
no and no company has done an eq1
rs amount of business without very mu
y larger percentage of cost. Not dol
nd of the company's funds has been stol
ne or hazarded in speculative uses,
Nv sacredly applied to legitimate ends,
OF cOrding to the best knowledge and
be lief of the Directors. These things
ay ing true-and we challenge even