The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-07
FARMERS INSURANCE UNION.
President Jones Shows the Vast Prof
it's Old Companies Make.

The Indiana Farmers Mutual Insurance
Union, an organization formed one year
ago met at the Statehouse yesterday, with
about fifty farmers in attendance. the
purpose of this organization IS 10 roster
and promote the interests of farmers mu-
tual fire insurance companies organized un-
der the laws of 1877 and 1881, which provide
that such companies can be formed to do
business over not to exceed three counties.
The president of the organization, Aaron
Jones. of South Bend, in his annual address
set forth the advantages gained by mem
bership in these companies. He said that
twenty-six of the companies Joined the
union one year ago in answer 10 call py
the Governor and others, and that the Or
ganization sought to secure greater uni
formity in the business methods or the
companies, and also to adopt methods OF
inducing the insured to properly safeguard
their property from fires. He thought
Also that the union would be means OF
strengthening the smaller companies and
of saving money to its members
The president said that he had made a
thorough Investigation of the most of in
surance in stock companies, and had ar
rived at the conclusion that the premiums
paid by the people OF the united states
year. while the losses paid aggregate only
$50 coo, 600, thus leaving the sum of $50,00OO 900
to represent the profits of the stockholders
the salaries of agents and other costs of
management In Indiana since lofz the pre-
miums paid to stock companies amounted
to $5S,OoOO0O and the losses TO about $ZS-
600 600. The amount of business done by the
mutual companies in the State is not
known, but it is very large. The president
hoped that the union would obtain Stats
teal data on the subject by another year.
He gave figures, however, showing that
the mutual companies Of the states or In
diana, Connecticut New York, PennsylVa-
MIA, Ohio, Illinois, Michigan, Iowa, M1ssou-
ri and Minnesota did business OF $780, 600
at saving of ST. 250 900, as compared to
what old-line insurance would have cost.
Continuing, the president spoke of the re-
sponsibility resting upon the directors of
the companies in the matter Oh placing
risks. OVerinsurance was another matter
referred to. In these days OF ialllng prices.
he said, the people scarcely realize that
buildings can be erected at two-thlrdS the
cost of ten years ago. lie thought that no
risks should be placed for more than two
thirds the cash value, whether the property
was real or personal Reckless manage
ment," he said, will soon wreck a COM
pany, and the failure of one company hurts
ALL as it tends to discredit the system. In
closing, he said that he was in favor OF
exacting cash premium equal TO one
years insurance from new pollcy holder
and yearly assessments in advance there
after, and also of placing a clause in each
policy not to pay in any case more than
so per cent of the cash value IN the event
OF fire.
Governor Mount made a short talk to the
union in which he said he had insured in
mutual companies for twenty-five years
and that he found the cost to be about one
half that of the old-line companies The
farmers of the state are now saving $4,000
year by placing their Insurance III the
mutual companies. long discussion en-
sued on various phases of the business
There was some talk of urging the Legisia-
ture to provide for windstorm insurance
companies but the matter came to no con-
clusion. The old officers of the union were
reelected, as follows: President. Aaron
Jones' treasurer, ]. l., Thomas; secretary
Joshua Strange.