The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1886-01-15
Insurance of Farm Property
PAPER READ BY SAMUEL NENHARD Attic
MEETING OF THE STATE BOARD OF
AGRICULTURE AT BLooMsBURG,
ON THURSDAY, DEC.
3, 1885.

,erty against fire has so grown III pro |
,ortions during the past 100 years. that
it is now considered by majority OF
property owners, a necessary and ord
mary incident in the expense account
property ownership.
Insurance of property is that system
f guarding against unforeseen
nd possible loss, by paying certain
nm for a specified period, as the price
indemnity in case the loss should
,ccur In effect, it consists in taking
he aggregate loss of property III cen
raj, and by comparing the loss with
he total value of property considered,
We find the percentage of danger, by
dding to this percentage the prob
able percentage of cost in the manage
ment of the business, we get basis
%. determining the probable cost Of
.asurance. There are two general
s,sitms by which the business of in
surance is carried on. One plan is
<uown as the stock plan, and the other
,s the mutual plan.
In the stock plan, fund is raised.
or supposed 10 be raised, as capital,
oy those interested, and they assuming
~ matter of business, the indemni-
ication for losses, agree to reimburse
hose who insure with them, upon their
paying a specified sum, which is based
upon the percentages above mentioned,
and to which is added such further
sum as by experience may be neces-
sary to cover the risks of capital and
the profits desired, or attainable IN
carrying on the business.
In the mutual plan there being no
capital involved, and the risk of loss,
being mutually undertaken, by all who
are seeking, insurance only a small sum
is charged in the first place primarily to
meet the incidental expenses, and sec,
ondarily to be used toward the pay
ment of losses the losses however, are
over and above what the small first
payment affords, made up by assess
ments pro rata among those who have,
by their connection with the associa-
ton become mutually liable, one to the
other, for the losses as they may occur.
| Each of these systems have their ad-
vantages and disadvantages. l will
only remark here, that on the one hand
the insurers in mutual companies, be-
ing really the owners and controllers
of the affairs of the company and be-
ing widely scattered, it is claimed can
never give its affairs that close and
careful attention, that stock holders do
who having their money invested in
he stock, and looking to their capital
for profit, must nessarily attend closely
to its management, IN order to protect
| themselves. On the other hand, it is
claimed that this very matter of seek
ing large profits from capital invested
necessitates the laying of high cash
, premiums, and that unless the stool k
companies do get in revenue mnch
larger than the actual risk, they be
come unsound, ana are swept away by
any unusual ontingeucy.
, If mutual company is carefully
/ and properly managed, the saving il,
profits on capital, and the greater
amount of security by having ali the
insured property liable for each par
ticular fire or loss, Is certainly a great
advantage this is great considera-
tion for the farmer, whose small pro
fits, at his business, makes the slight
est gain at any point important.
With reference to the risk, farm pro
perty is much more desirable than
town or city property, Notwithstanding
the great danger to farm property
from lightning and the want of facil-
9 lies for putting out fires in isolated
buildings when started, and the inham-
. ability of much of q farmers personal
= ! property, yet in a town incendiarism
and ne aruess to other buildings, with
the aggregate carelessness of many
: people, rs well as the various more
dangerous vocations carried on in
towns and cities, makes the risk in
town property, as has been shown, far
e in excess of that on farms; it has been
= shown that in cities one third of the
: fires are caused by incendiarism
There is another element of differ
S ence in safety, that | will mention here,
: and that is the temptation occasioned
: by business losses and hard times this
in towns and cities, effects not only
!, those who are moved by such tempta
= lions but the properly of innocent
owners who are affected by the burn
ing or destruction of their neig hbor's
! property. The farmer however, sci
: dom is the gamer by such fires his
/ buildings are generally too valuable tc
5 the farm itself,to be sacrificed for theil
own intrinsic value, and the inconyen
+ ience of being out of house and home
C or shelter for stock, as well as the
= danger of losses to uninsured and un
!" insurable property, 60 a great ways to
prevent the offer of any temptation tC
J; get out of financial difficulty by in
g cendiarism On the part of the insured.
4 II the farmers can have well con
IA Quoted mutual company of their owr
they can certainly insure each otheI
). much better than by any union Of
operations with town or city property