The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1893-06-09
THE lola REGISTER.
FRIDAY, JUNE 0, 1898.
Farmers Mutual Insurance

Business Man" i'm Article No. :
tries to point out some "serious errors
in No. l. There were some and they
were so serious after it appeared in
print that the committee did not know
parts of it. Perhaps tho penmanship
was to blame SO it was impossible fOr
the editor to read it, but be that as il
may the committee had not intended
to endeavOr to have them corrected
had it not been for Article No. 2.
What the committee intended to say
in that was that we would have to
organize under the law of the State
and to do so 100000 OF property
would have to be insured in order
to get charter and that ON this
amount premium notes would have to
be given to the amount of the per cent
insured and an example was given.
A insures $1,000 worth of property and
suppose the rate was one per cent for
8 years he would give note for $1,000,
one fourth of which under the laws of
the state has to be paid down, or $3.50.
But this was given only as an exam
pie and not stated that one per cent
would be the rate for years. The
company only can determine that.
Another thing the committee stated
was that according to the Commits
sioners of Insurance the average
rate of insurance in Kansas fer 10
years, from 1871 to 1890, was S1.55 on
each $4,000 and that the per cent of
loss paid TO premiums received was
little less than A per cent or S4S. S6.
In other words, for every $1.55 receiv-
ed in premiums the companies paid
$3.50 in losses, which leaves q little
over Sill to the companies for the
risk, which is nearly 80 per cent pro-
fit. OF course, of this amount the
agents get part, but your committee
thinks it so inconsiderable a part that
it would not make much difference to
them anyway, the solicitude they feel
that the farmers of the county shall
not be swindled is almost wholly
feeling of philanthropy on their part.
Your committee hopes this will be ap-
preciated. That an association of far
mers not because they are any better
or worse for being farmers were run
ing an Insurance Company that was
entirely voluntary and that it was
satisfactory to them and were doing
it at great saving is true and would
have been doing so today but for the
interference of some if not all of the
agents of this county is well known.
1t was to keep on in that way that
your committee was appointed to
take the necessary steps to organize I'M
der the law of the state and try and
keep the large per cent of our losses
at home to be used among Cur own
people instead of going to build great
buildings and enrich those out of the
state.
Business Man speaks of different
property being taken at different
rates. We have dealt with the aver
age rates so as to present as near as
possible correct statement. "Good
business sense dictates different ratesn
that is just what was done. And
now about that statement that was
Every faulty notwithstanding. Again |
the average rate was used as basis |
but allow that Business Mans figures |
for ST years for $4,000 1.-The highest |
farm rates" would cost Through any
reliable agent" S1625.00 Now from
that take the actual loss for 81 years
S552.75 would leave $1075.24 as net loss
to those insured and so much gain to
agents and companies which would
seem to be doing a pretty profitable
business. Again the regular rate for
"the best farm property" through