The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1877-10-05
The Enrmers, Mnfnnl.

In the forthcoming annual report of
the Farmers Mutual Fire Insurance
Company, the directors accompany the
announcement of its first assessment
with the following explanation of the
causes:
In laying a small assessment the pre-
sent year, for the first time since the or
ganization of the company-a measure
rendered necessary by the unprecedcn-
ted losses of the past two years Gin
which every other insurance company
has fully shared, so far rs our knowi-
edge cxtcnds)-thc directors of the
Farmers Mutual see fit to accompany
its announcement with II word of ex-
PLANTATION, though by no means of apol-
ogy.
A quarter of a century ago, before
the business of fire insurance had be-
come a subject of so much competition
and so often abused, il was compare
lively safe to estimate the percentage 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 tina. 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 surplus i'll the treasury fully
equal to carrying out all the policies
then in force, provided the future losses
were no greater, proportionately, than
the past. With an experience so lengthy
and so well defined, the directors cher
ished an apparently we'll grounded be-
lief that they had struck the golden
mean, and that the company was as Sc
cure from assessments in the future
as il had been free from them in the
past. But about the beginning of the
twcnty-sixth year the tidal wave of
losses, which swept over the whole
country, visiting alike all insurance
companies without discrimination and
without mcrcy-and which still holds on
its way, until insurance men and COM
panics are filed with doubt and anxiety
for the tuturc-changcd the whole as
pect of affairs. Since then our losses
have been more than double what they
were during the twenty-six years pre-
vious, upon the same amount insured.
AT this excessive rate of loss the fifteen
per cent. paid in advance prior to Nov.
|, 1876, was only sufficient TO cover the
losses and expenses for three years and
nine notwithstanding one year and
three months TO be met by assessments.
Therefore no alternative waslcft but to
follow the provisions of the charter and
assess those members who in paying but
fifteen per cent. failed to pay their pro-
portion of the losses and expenses dur
ing the time their policies were in force
In laying the assessment, great care has
been exercised to follow both the letter
and spirit of the charter, and do as
equal and exact justice as possible in
reaching the end sought. II affords the
directors great pleasure to add that, I'M
less our future losses exceed even the
present rate (Which they by no means
anticipatc), those members who have
insured since November |, 1876, and
therefore paid twenty per cent, have
paid sufficient TO meet their liabilities
during the life of their policies.
We have said no word of apology
would be offered. None is demanded.
Our losses are heavy and must be paid.
The charter contemplates this method
of paying them, and makes definite pro-
vision for the same. II has never been
rcsorted TO before, for the sole reason
that hitherto the advance payments
have been sufficient. While our losses
have been severe, they have been less,
in proportion TO the amount at risk
thon nthpr. IN iotn
Cnqucstionably too large percentage
have been tinctured with fraud; but of
what company is not this more true
than of the Farmers Mutual? For GER
tainly, its directors have been untirin9
i'll guarding against temptations to COM
nit frand, and in detecting and punish
ing the guilty. Witness the fact that
they have, within the past year, secured
the conviction of four incendiarics,
three of whom are now cXpiating their
crimes at Windsor. Including the as
sessmcnt now lahl, no other insurance
company in existence has furnished so
cheap insurance TO the people of Yer
mont as this; and no company has done
an equal amount of business without a
very much larger percentage of cost.
Not n dollar of the company's funds has
been stolen, or hazarded in speculative
uses, but sacredly applied to legitimate
ends, according to the best knowledge
and belief of the directors. These
things being true-and we challenge
even our enemies to show the contrary
we confidently leave the present and
future interests of the company in the
hands of those who have made trial oft
for more than II quarter of a century.