The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1894-12-14
HAT-PASSING INSURANCE.

Another mutual insurance company
| has sprung into existence. Not having
kept pace with the experiences of the
past on this line, the farmers of Clacka-
mas county have gone into business
they have never been trained in, and
evidently hope and expect to make the
business of fire underwriting both pleas
ant and profitable. They even expect to
"nake it easy for the assured" if the
Oregon City Courier is to be taken as the
company's mouth piece. It does seem
strange, that in this day of universal
knowledge, enlightenment and improved
business methods, that the the farmers of
Oregon have failed to read the lesson,
that all success depends, in this day, up
on capital; business tact; untiring, cease
less, intelligent effort; coupled with
| trained head and hands, in the different
| lines of human endeavor.
Within the last two years, fifty or more
fire insurance companies have either
failed, reinsured or stopped, and less than
half a dozen new ones have entered the
Pacific coast field. Many of these COM
panies above mentioned were 1nutuals.
No insurance company can long with
stand the trying vicissitudes~of competi-
ton, losses and expenses that depend eu-
tirely upon passing the hat'' for the
| necessary funds with which to 1iquidate
them. If companies with large capital,
managed by men of large experience
and careful training for the business OF
underwriting, have not been able to cope
successfully with the fire 6end, and have
been compelled to abandon the busi-
ness, how, and by what process do Clack-
amas county farmers expect to get, hold,
and take care of the business? The fire
losses on the Pacific coast for tae last
thirteen years have been $47, 500 600; and
for the last three years. over $4,000, 600.
The average apparent profits in the
| United States for 1892, were per cent,
| (the figures Of '93'not al handy but the
unearned premium account completely
wipes out this apparent profit.
Had we the space, many more interest
| ing figures could be given, but it seems
sufficient to say, that with the appalling
annual fire waste in America, of from
$I5o, 600, 900 to $2oo, 600, coo, the fact that
thirty of the largest American and tor
eign companies in the last decade have
actually lost in hard coin over $50, 100000,
over and above their income for that
period, taken togethcr5with the further
| fact, during the stringent times of the
past two years, the premium receipts of
all companies have fallen off to a great
extent, and the prospects are good for a
further decline, it would seem that the
Farmers Cooperative" had been organ
lied out of.time, and but one fate, abso-
lutte failure, can possibly await it. The
only safe way for farmer, or any one
else, to insure, is to place his fire risks
in thoroughly reliable companies with
abundant capital, and long, careful,
successful business career behind them.
Such companies pay their losses in coin,
not in, n,,promises often broken, nor in notes
whose payment is long deferred
Pour Oregon companies in the last five
years have either failed OF reinsured, and
gone out of business; and they were
stock companies with considerable
amount of capital paid up, upon which
to do business, and gave them standing
with the insuring public. If they could
not succeed in their own home field, how
is it possible that a 'hat-passing, or
assessment concern can hope to meet the
requirements of successful underwrit-
ing? It takes coin to pay losses. Moth
ing less will restore theEruins of former
home or business.