River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1886-12-16
Arrangements and Insurance of Farm
Buildings.

"a paper read by j. W. Barrett before the
Farmers Institute held in River Falls Dec. H.
know of no better way to present
the subject of Arrangements and In
surance of Farm Buildings, than to
give a short statement as TO the work
ings of the River Falls Fire Ins. Co.
This company was organized on the
first day of July, 1879, and commenced
business on the second day of January,
1887, and has been doing business and,
as l believe, a profitable and satisfae-
tory one to the policy holders, for the
space of ten years. 1t is a mutual
cOmpany-a farmers company-and
does notinsure city or village property.
Now, to give the probable cost of
policy in this company,-and we may
justly judge of the future by the past.
Let us suppose, for instance, Mr..
Blank takes policy of 81 900. the
premium and policy fee would be $3.50,
the policy to run five years. In the
first term of five years an assessment
of $500 was made, making $3.50. At
the end of five years new policy
must be made, and the same fee paid,
during the second term of five years
two assessments were made, one of
mills and one of mills on the
dollar. Mr.. Blank would therefore
pay policy fee $3.50, first assessment
$500, second assessment $500, max
ing total of $3.50, on $1,000, for
10 years.
Now. as a comparison to Stock
Companies, / will say right here that
the lowest rate stock companies charge
is so cts. per 500, and a policy
of $4,000 for ten years would cost the
farmer 800, and to judge from past
experience there is doubt about get
ting pay, in case there is loss by fire.
The organizers of this company have
spent their time, and have been to
considerable trouble to get this COM
pany started and it should be patron.
lied by those having farm property
to insure.
The farmer should insure because
of his property being isolated-far
from help-no fire apparatus for ex-
tinguishing fires, no loud sounding
cymbal or bell to call his neighbors to
his aid, as in towns and cities.
The amount of assessments thus far
made is perhaps not larger than what
each farmer would give in charity to
his neighbor who had sustained a loss
by fire. 1t is a well known fact the first
term of five years is apt to be the
most expensive, as blanks, blank books
ETC., cts, must he purchased. Should
the company close up its business to-
day and the surplus cash in the hands
Of the company be distributed pro
rata, Mr.. Blank would receive enough
to make his insurance but $3400 for
ten years, $40 a year, whereas a
stock company would charge $40 a
year. The company has paid several
minor losses other than those in which
an assessment was made, all of which
goes TO show that the farmers plan
is the safest and most economical.
The running expenses are but a small
sum, no salary being paid to the Presi-
dent or Treasurer, and but fifty dollars
to the Secretary; no office rent.
Stock companies pay their agents
fifteen to forty per cent. They pay
percentage to the state for the privil-
eye of doing business in the state;
they pay high salaries to Presidents,
Treasurers, Secretaries, Directors and
Adjusters; they my large amounts for
railroad fair, for office rent and fur
niture, or what is more probable.
build fine marble-frOnt buildings in
distant cities, and when all these and
more are paid, they still have large
amounts of money to distribute among
the bondholders, as dividend.
Now, Mr.. Farmer, how much of
this do you pay Would it not be
better TO insure your property in
company that you may know some
thing about, the policy holders of
which are your neighbors and acquain-
tances. and in which you have voice
and vote at the annual meeting, in the
election of officers and the transaction
of other business What say you!