The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-21
SOME OF THE MINNESOTA COM
PANIEs ARE EMBARRASSED By
SUMMER STORMS.
MANY FARMERS GRUMBLING,
TIONs WERE MADE IN SECUR-
ING THEIR POLICIES.
COMMISSIONER DEARTH SAYS
From Interference by the State,
Although They Report.

The hail storms which visited GER
tain parts of the state during the re-
cent crop season are bringing the US
ual flood Of woes down on the heads OF
the men who manage the cooperative
hall insurance companies in various
localities. The law under which these
companies are incorporated seems to
be very satisfactory until there Is a
general damage by hail. when the Sc
verify Of the losses impairs the resili-
ency of the company's treasury-that
in as cheerfully and promptly as nee
essary to pay the losses.
The law of 1885, under which these
companies are operated, was designed
to enable the farmers of the state
to secure such insurance at rate
much less than they had been paying
stock insurance companies, whose
charges it was believed, were extor-
tionate. With this end in view, every
facility was extended to permit the
cheap management of the companies,
and it was provided for a very sim
pie system of accounting and pay
ment. Any twenty-five people with an
aggregate realty holding in the state
Of not less than $4,000 may organize
such a company, file articles and Sc
cure a certificate of authority from
the state insurance department. These
companies may provide for the collec-
ton from their various policy holders
at the end of the crop season, of a
pro rata share Of the total loss claims
filed and found just, except that there
is fixed a limit, above which the rate
of assessments shall not go. This limit
in some cases, it seems, has been eX-
ceeded by the losses during the last
year, and in many sections serious
complaints are being made of the in
ability of the companies to return a.
talr protection to their members.
The Farmers Mutual Hail company,
OF Waseca, is among those heavily
hit, this company having been COM
PEELED this year to assess it's full limit
of per cent on it's policy holders
Many Of these are FESTIVE under the
heavy charge, claiming that it was
represented to them that the chances
FOR an assessment to the full limit
were very remote.
A number Of Norman county farmers
claim to have been assured that the
Minnesota Mutual Hail and Cyclone
insurance company, of Amboy, would
not assess more than 1 per cent. al
though it's authorized limit was A.
When 1t sent out notice of per
cent assessment, a number of citizens
at and around Marsh Rover issued the
following circular:
To the farmers OF Norman county who
nave insured with the Minnesota Mutual Hail
and cyclone Insurance company:
we, the undersigned, took insurance in the
above company for a period of five years on
our crops upon the representations of their
agents that he cost of insurance would be
one per cent only Of the amount insured and
that at any time such policies could be can
celled without cost. Now we find that said
company is trying to collect four per cent
or four times the amount for which thew
agreed to insure our crops. This we stamD
as plain case of fraud, and we would urge
all farmers similarly situated to confer with
US in regard to said matter that some con-
certed move may be taken to prevent the
consumat!on Of such fraud upon the people
Of our county.