The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-03-02
MUTUALS WIN MONEY
NOT THE POOL ROOM VARIETY,
BUT THE FARM INSURANCE
COMPANIES
RURAL RISKS AT A PROFIT
Reports to Insurance COmHlissIOner
O'Shaughnessy Show That They
Have Been Able to Garry With
Advantage Business Which the
Old Line Companies Could Only
Handle Mt "a LOSS.

Some very interesting and significant
racts come to light through a compila-
ton of reports made by township mutual
hre insurance companies that has Just
been completed by Insurance Commits
s1oner 'Shaughnessy. These companies
make most satisfactory showing, de-
spite the fact that 1t is well established
that farm business is considered least de-
sirable by old line companies.
Mr.. O'Shaughnessy states that he be-
lieves the key note of the success of these
companies is the fact that every man in
terested serves In the dual capacity of
the insurer and the insured, and, of ne
cessity, greater precaution is taken to
prevent fires.
The moral hazard" is thus reduced to
a minimum, and ten years experience
with these companies has clearly demon
strated the utility of cooperative insur-
ance among the farmers. This is espe-
cially true, Mr. O'Shaughnessy says.
when consideration is given the fact that
old line companies have invariably lost
money carrying farm risks, at double
and treble the cost of the cooperative in
surance.
During 1899 these companies. of which
there are l26, paid in losses $153, $3.50. The
item of expense was comparatively small,
being for all the companies $685. or
about five of the eighteen cents that 1t
cost the farmers to pay these losses
Some years the rate is lower and seldom
does 1t exceed 20 cents. The old line rate
would be in the neighborhood of 80 cents,
so 1t can be seen that by carrying their
own insurance the farmers of the state
save 80 cents on every 800 worth of in
surance carried.
Ten years ago there was In force less
than $25,00O,00O carried by the township
| mutuals. The report that has just been
completed by Mr.. O'Shaughnessy gives
the total insurance in force as 10000,-
900.
Mr.. O'Shaughnessy figures, on the basis
of the figures which he now has before
him, that the farmers of the state saved
| approximately $35000 last year through
this agency, and during the last ten
years he believes the agriculturists have
proflted to the extent of $2,500,00O In one
" " the IL france in force increased $14,-
100000, and since the township mutuals
first became popular there has never been
q decrease in the business done during
any current period.
The officers are few, and, as fer
salary, they receive none. Whenever
there is a fire the directors get together,
adjust the loss, and an assessment is lev
led to make 1t good. Notices are sent out
through the towns, and when the usual
method is employed the farmer pays his
assessment at the postoffice when he
comes to town, or some other convenient
place. There is no dunning or bad bills.
If sufficient interest is not taken to pro-
tect him from loss the delinquent mem
Der has his insurance Cancelled. The in
surance is confined exclusively to farm
dwellings and farm buildings, and the
law says that no one company shall do
business in more than fifty towns, and
that they shall be contiguous to each
other.