The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1880-06-23
s52,Is7 81 sl2,sl4 40


s52,ls7 81 sI2,3l4 40
The above amount, s52ls7s7, is the entire
amount charged upon our books for premiums
on business in Indiana. IL does not In
clude agents commissions, and upon this
point beg leave TO make the following ex-
PLANTATION:
This Company was organized in 1913. for the
purpose OF insuring property of farmers 1t
was, andkhas ways been, purely mutual, but
its charter allows the Company TO receive a
fixed premium in full without any further
liability on the part of the policy holder, and
this is the plan upon which all our business is
transacted. The object from the first has been
TO give insurance at actual cost, and the tact
that the Company is mutual and has no stock
holders entitled TO dividends enables us to fix
our rates at point to cover only losses and
expenses. IL was the Compapy's policy to
insure the very best farmers in every COM
mun1ty, and by keeping them thoroughly
informed OF the object and condition of the
Company, to so interest them in Its success
that they should voluntarily work to promote
its welfare. The location OF the Company al
LIE Roy, village OF Medina County, ohio, Is
extremely favorable to Company OF this
kind. II is a small village In thickly settled
community. By the policy adopted the best
farmers of the County and adjoining Counties
became members, and have, II ON the first,
been actively interested In the success OF the
Company. The same policy has made the
and much OF our best business comes to us
through The Efforts OF members who are not
agents. SO general is the interest in the vel
fare OF the Company among Its members that,
at the annual meeting, the attendance is very
large, at times there being as many as 5000
present.
years afterward) here was no Insurance de-
partment In OHIO, and the Company was not
required to make any public report Of its busi-
ness. We have endeavored to simplify our
business IN all its details, and In carrying out
the idea OF economy and simplicity In book
keeping it was from the first made the rule 10
char ge the agent just The amount due the
Company on each risk instead OF charging an
amount larger than was required of MIN for
rna 40 "a NJ QrQdifinU him the excess
which we did not ask or expect him TO pay I;
and we required agents and members report
ing risks to report only the net rates OF tnsur-
snce fixed by the Company. The commission
was regarded as a matter between the farmer
aud the agent or member who reported the
risk. Thus the rate OF commission was very
uncertainty quantity. In very large num-
Der Of cases no commission was charged. and
only a policy fee was paid. There seemed t0
the directors no necessity for keeping record
of commis sioDs, and no such record has ever
been kept. The Ohio insurance Department.
was organized in 1907, and we made our first
report for that year IL was our understand
ing OF the law that only the moneys actually
received should be accounted for, and we
made our statement in accordance with our
books. AS DESTROYS of showing large bust
ness. it would have been to our interest to
show commissions as well as premiums, but
this We did not and could not do.
Since the organization of the Ohio Depart
ment the Company has been three times thor
Oughly examined in every detail by the super
intendenJ his deputy. Hon. W. ID. Hill.
Superintendent Of Insurance, under date or
April q. 1878. referring to the examination
the Examiner shows that the examination
has been very thorough and complete. The
entire report, including all the items cOmpOs-
ties and everything else pertaining TO the SOL
vency and management of the Company, has
been carefully reviewed by me and approved
am perfectly satisfied with the examination
and report made by Colonel Ewing, together
WITH my Owl Kn0wiedge OF ane S0mP ~,
vent, and IL has the confidence OF this Depart
ment."
ain 1877 the Board OF Directors determined TO
apply for admission TO do business in the State
OF Indiana. Our rep NJ was presented to your
predecessor, and authority granted. We came
line of business that had so signally succeeded
in Ohio We sought only competent and
solicit the risks OF the very best farmers. We
believed the organization OF the Company was
such, its accumulation OF assets so large, and
its advantages so easily presented that the In
teIligent farmers of Indiana would appreciate
the Company as fully as 1t is appreciated In
Ohio. We were not disappointed, and con:
hdently claim for the policy holders OF
our Company In Indiana thBt they are OF
the very best citizens OF the state. We have
for the interest taken In the Company's well
fare. In July, 1871, we made our first tax state
ment to your department. 1t was a full and
true statement of receipts from Indiana, as
shown by our books. We started our Indiana
business on the same plan as our Ohio bust
ness, and we have no record or commissions,
not always filled out. That statement was as
follows: Premiums charged, s., 392 ~; losses
PAID, 81; balance, 81 390.2 6-
Upon this we paid a tax of per cent,
amounting TO Sill. Had commissions been
added at the high estimate OF 20 per cent, the
additional tax would have been Sl7 IS, sum
so Insignificant that no one will for a moment
believe the report was knowingly made con-
trary to the ruling of your department to effect
such a saving. II we had so understood The
blank upon which report to Indiana was
made, or If any ruling Of the Ohio Depart
ment Ead required us TO report commissions,
they would have been reported. Before the
next statement was required by your depart
ment, January 1, 1873, Hon. E. Henderson,
Auditor of the state of Indiana, appointed a
representative to examine the Company. He
visited Bhe Home Office and made a thorough
examination of the Company. personally
statement OF our method OF books eeping,
which he approved and expressed himself
pleased with the simplicity and economy of our
system, as indeed has every Examiner who
has visited US. Our succeeding statements
were msae in the same way, and we had no
idea until called upon Dy Hon. Mr. Finch that
our method of making statement for taxation
was not IN accordance with the laws of Indi-
ana and here wish to say. with all the en-
myself and the officers of the Company, that
we never thought that the Company was not
to the uttermost syllable complying with the
laws OF the State of Indiana. II we have erred
IL was because misled by the Interpretation
paced upon the law: After the examination iI
Johnson, the President Of the Com:
pzny, and myself with you and
the Attorney General, we knew for the
first time that we had made an error. When
this was explained by Mr.. Finch we requested
him TO inform of the amount we shoud
have paid had commissions been reported.
He then made examination of the receipts
from Indiana and by the highest estimate he
could make upon any hypothesis the sum of
S392 was found due. This amount was imme =
diately placed IN his hands as a teuder,
though we believe an examination of the APP
plIcations would show IL excessive by at least
800.
Here beg leave to add that as our business
is carried on as TO give the farmers time
when they desire, we must of course fail TO
collect some of the premiums, yet we report
all notes for premiums as cash, and
pay taxes on them as cash. Policies are can
celed for various reasons, and the premiums
never paid. The amount annually unpaid
exceeds the total commissions received by
the agents 1 mention this to show that the
State has In reality lost nothing, for the error
OF not reporting commissions is balanced by
reporting as cash. much that the Company
never did and never will receive. have
aimed TO make this statement frank, full and
explicit. II IL LACKS anything, or is too full, 1t
Is not an Intentional error.
The Ohio Farmers Insurance Company has
for thirty years dealt fairy, honorably and
satisfactorily with all, and Justly deserves the
0nr4aA a. In hao