The Morning herald., 1878-12-11
For the MORNING HERALD.

.'sM Hu.t-t
For the MoRNING HERALD. e
The Farmers Insurance Company o.
this city, is the only company in the state
its age that has ever secured
sufficient insurance or assets to make it
v wJrthy Of the name cf an Insurance Con,
psny. They have according to their last
report premium notes of 1927 ,S6, - cash
assets, $1s5, ,2s4 and about $l1,25s, AS at
risk. Now this is a geod showing, but as
It is q Mutual Company why should they
collect from year to year from their men,
bers, double the amount necessary to pay
their losses and expenses?
If the principle of Mutual Insurance Is
correct, company that has 8 - in prem
ium notes needs no other assets The
statement of the Farmers for 1876 and 1877
shows that in those two years they collected
from. their members $lOO,l0S and during
the same time they paid for losses $3l, ,o54'
Collections over losses, $69,O54. N,wI
am told this surplus all belongs to the
policy holders, but it appears at the same
lime that the policy holders can not get it
Ny neighbor has his notes in the Farmers
Insurance Co., for $500, on which think
he pays in cash $500 every year. In ten
years be has paid them $3.50, and by the
Co.'S statements find that about 3-5 Of
their interest or collections on their prem
ium notes pay their losses and expenses,
therefore, 2>5 Of the payments made by
their members are over payments or pro-
fits. My friend then has about $50 stand
ing to his credit on their books. Now as
times are hard and money is very scarce,
this 500 weuld be very convenient for my
friend to have. 1t would buy his winters
coal and carry him over hard winter
when work is not to be had. He called
at their Office to inquire about the matter
and he was informed that it was all right
that he was getting his Insurance very
cheap, aud that he had large credit on
their books, but when he asked for the
money he discovered that he could not get
it. If he remained in the company in order
TO realize or get what was his own he
mnst cancel his pals and draw out Of the
company. The matter was explained to
him in this way; that the company wished
to accumulate large cash fund that would
answer the purpose of capital stock so
that they could transact business upon the
stock or cash plan. Now that is all very
nice, but people do not insure in mutual
company, and run the risk of assessments
upon their notes from year to year and pay
double the cost Of their insurance for the
sake Of creating capital stock, or large
surplus for the Directors and officers to let
down upon to do cash or stock Insurance.
If the managers Of the Farmers Insurance
Co., want capital stock to experiment on
let them put it up, they are all men Of
large means and the paltry sum of quar-.
ter or a half million dollars to them
would only be what twenty dollar bill is
to the great majority of their policy hold.
ers. When times are close and money
scarce IL is very poor consolation to man
whose family is suffering for the necessities
Of life to inform him that there is large
sum Of ready cash belonging to him which
10 safely invested in U. s. bonds tha,
! are securely locked up in the v, ults o.
some bank, its all yours but you canno
get it. owe it to you but Twill not pay, fo,
lhe reason that l propose to change my
plan Of business and I want your money
to give me credit.
| We have no doubt but what the large &C.
cumulation ofthe Farmers Insurance com,
pany is perfectly safe in the hands of tn,
Company, but it is equally safe in the hand
of the psople to whom it belongs TIL,
great trouble with this country to-day il
that the capital is all concentrated in thu
hands Of few large corporations, ant
THUS it is withdrawn from the hands Of tn,
reeple, and we find an irrepressible con-
hiet between the old and the strong an,
the young and the new. ..'.
| Let all corporations pay the largest divi
ldends possible, let their fat treasury's b
depleted and let the pockets of the peopl
be filed