The true northerner., 1879-08-08
Grne Nortberner.
Paw Paw, MrcureAN. AuG. s, 1870.
TO THE MEMBERS OF THE FARMERS
MUTUA FIRE ms RANCE COMPANY: i


la the issues OF three OF four OF the count
papers OF the frst week in July there appeare
what purported 10 be communication to thos
papers-but WHICH was evidently paid adver
tisement-mahng sweeping charges against h
Mutual and against its present Board, chargin
them with extravaganza, misrepresentation
and dishonest practices.
rhe members OF the present Board deny tn
whole charge in general and in particular AM
for The inro,maticn OF the policy holders OF th
Company. give herewith somewhat detaiet
comparison OF the Company as it now is will
its former conditions.
The drst charge made by the person TO,
cowardy 10 give his name, but calling himself
"Underwrter,' is, that under the present ad
mlnistration the expenses we're five times a.
great in 1878 as in 1868, as shown by the sworr
statements OF the two years compared. This
statement shows that the one who made II
either deliberately stated what he knew to be q
iIe, or else he does not know word of what lac
pretends to be talking about. The Company
IA 1868 were DONG business under it's first
charter. By section IS of the old charter each
member joining the Company must pay the
Secretary S150, and ten cents on each hundred
dollars insured. He also, by section 10 of the
BS Laws, received two per cent. on all moneys
pad and five per cent. on all moneys collected.
Now, by the report of 1868, which this wise
reviewer refers to, the Secretary received be-
sides his two or five per cent collection fee
tue sum OF s2SS20, which Is not put into that
report. Adding these to what the Company
nasI him 2 ,aaLa
present Secretary gets $500 and no perquisites
whatever. The policy holders paid in 1868 at
least sl,23i. Or this sum not less than 81 per
cant. was pad to the Secretary. In 1878 the
policy holders paid S2,763 and OF this sum less
than eleven per cent. was paid the Secretary
Tue annual reports OF tie President and Secre-
tary do not show the full expenses or receipts
o. the Company until 1875, and that year the
Secretary received $50. In 1868 the expenses
OF 'he Company, exclusive OF losses were over
$i23. In 1873 they were S72S29. strange
authmstic the Underwater has that makes
$728 tive times as great as $423 Again, S207
o. tins 1928 was expended about business that
arose prior to 1878. During the present Secre-
tarys term not dollar has been expended for
attorneys fees nor TO Justices or Constables in
collecting assessments. In 1869 the Companv
paid Si0 attorney fees; IN 1875, S68 IN 1876.
$25
Tho tradlcers OF the Company have taken
1868 to compare with 1878 because the losses
wers exceptionally small that year. Let US
compare 1875 and 1878. The liabilities OF tho
Company, Dec 81, 1875, were S3.25)5O: Dec.
3l, 1873, they were S75i.20. In 1875 the ASSESS
ments levied were $1,000, The moneys actually
collected were 96,42S16. The expenses OF {
running the Company were IN 1875, exclusive ,
o. Losses paid, Sl12O.65; IN 1878 they were
S72s.23. The rate per cent. Of assessment for
1879 were S4.35 per thousand IN 1878. $3.50 |
per thousand. In Dec 1874, the unpaid assess q
ments amounted to over $2,5OO in Dec. 1875 |
they footed Up S9.3li; in Dec 1878 they were I
1922. So
Thus 1t will be seen that assessments were {
made year after year, that were not collected. r
The clever. good -natured but unbusiness like 8
way OF assessing members, and collecting of Ii
those who were wiling to pay, but not enforc- Il
ing payment from anybody, was followed until +
Ihe Company had over $4,000 of uncollected v
assessments. and was over $4,000 behind in v
paying losses Without incurrlng dollars b
expense to the Company, except paper and Il
postage, the present Secretary was able to re- O
port Dec. 1877, only s16465 uncollected OF D
he thsn last assessment, and in Dec. 1878. d
there remained S12996 only uncolleced. Which m
secretary has done the business most to the
'dvaotage OF the honest paying memters? -
Tue number OF policy holders from year to :.
'ear rs as follows: 1868, s49 1869, $50: 1879. u
S2, 1871. LIP; 1872, f145: 1878, 11O4: 1874
'OSo' 1875, go; 1876, 1884, 1877, 694 1878 10
l3. 1t will be seen that during the years 1876 si
nd 1877 there was large falling of apparently " ~
q numbers 'e
This OF course s claimed, by those who want u
1e Tees OF reinsurance, which they think they a"
ouid get, by breaking down this Company, as sc
root that the Company is fast running down. ~
Those who are acquainted with history of W W
he Company know that it was reorganized in oe
$40, and new policies taken. and tha, many pi
ssatisied with the clever but inefficient I'd
Management. hereinbefore described went out oi
tho Company The principal cause however, io'
the apparent falling off IN numbers. arises an
)t from persons voluntarily Withdrawing but III
'cause the Company adopted an entirely ihe
nerent practice, namely, 10 cancel every pu
,Iicy whose holder did no, w,thin 60. gla
ne. pay his assessments. This change OF no
ac'ice diminished the numbers OF the Com
ny, bui not Its efficiency, or its PAVING 'isi
smbers. OF
When the Company was reorganized, il adop "a"
1 different rule. namely to insure only NY
o-thirds the value OF buildings, instead of 81
rss-fourths, as under the old rule. Tl;. ~ anN
nrs9 reduced the amount insured. Than Ane
ain al! values went down so per cent. and no
'rs' aud 1t s safe to say that the real worth 'na
the property insured to day. is as great as il iep
's was, al any period Of the Coupanv,s AKA
story. our
Tue anonymous article charges that tbe eoil
mpany have lost every suit where thew have cnii
sisted payment. An honest and inteIIiuen, JUST
SINNER Of the records of the courts. would ing
We added, that every other Insurance Com cnii
ny That ever resisted payment in this county. case
Tered the same fate. No jury in this county al IL
'F decided a case in favor OF an Insurance