The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1898-01-06
MANY FARMERS &
-. GRUMBUING.
Claiming that Misrepresenta-
t1Ons were Made in Securing
Their Policies.
The Companies are Practically
Free From Interference by the
State, Although They Report.

cent crop season are bringing the u.s.
ual food of woes down on the heads ol
the men who manage the co-opera.
tive 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
is to say, the assessments are not paid
in as cheerfully and promptly as nee
essary to pay the losses.
The law OF 1886, under which these
companies are operated. wasdesigned
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, extortionate. With
this end in view, every facility was
extended to permit the cheap mana
cement of the companies, and it was
provided fora very simple system of
accounting and payment. Any twen-
ty.five people with an aggregate real
ty holding in the state of not less
than $25,0OO may organize such a
company, file articles and secure d
certificate of authority from the state
insurance department. These COM
panies may provide for the collection
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 limit, above which
the rate of assessments shall not 60.
This limit, in some cases, it seems,
has been exceeded by the losses dur
ing the last year, and in many Sec
tions serious complaints are being
made of the inability of the CON-
pany to return fair protection to
their members.
The Farmers Mutual Hail com.
pany, of Waseca, is among those
heavily hit, this company having
been compelled this year to assess it's
full limit of per cent on it's policy
holders. Many of these are restive
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 farm
ers claim to have been assured that
the Minnesotr Mutual Hail and Cy.
clone Insurance company, of Amboy,
would not assess more than per cent,
although its authorized limit was 4.
When it sent out notice of a 4 per
cent assessment, number of citizens
at and around Marsh Rover issued
the following circular:
To the farmers of Norman county
who have insured with the Minnesota
Mutual Hail and Cyclone Insurance
company:
We, the undersi igned, took insur-
ance in the above company for per-
lod of five years on our crops upon
the representations of their agents
that the cost of insurance would be
one per cent only Of the amount in
sured and that at any time such poll
cies could be cancelled without cost
Now we find that said company is
trying to collect four per cent, or four
times the amount for which they
agreed to insure our crops. This we
stamp as a plain case of fraud, aud
we would urge all farmers similarly
situated to confer with us in regard
to said matter that some concerted
move may be taken to prevent the
consumation of such fraud upor
the people of our county.
Peter Ostenson.
"A. Bergstrom.
Lars B. Foss.
Ole X. Olson.
Edward Edgebretson
-Gabriel Aamodt.
Christian johnson.
$. Isaacson.
H. G. Asgaard.
Hans Rasmussen.
Ole M. Olson.
&C. G.. Wolberg.
j. P. Viste.
! Henry Aamodt.
| John jacobson.
4 -Esbjoin johnson.
! The Moorhead Independent pub
fishes the following as an incident il
the experience of Clay county man
| One of the prosperous farmers o
the county insured his crop agains
hail and paid $12-premium on tn
policy. His crop was damaged ant
the loss was "adjusted" at $25. In
stead of receiving this amount tn
farmer was the recipient, a. few day
ago, OF the following communicate
and a check for so cents-just 2 pc
: cent of his loss:
Home Office of State Mutual Hal
Insurance Co. uncorapted unde
the laws of the State of Minnesota
W1NNEBAao C1rY, MINI, Dec. A.