The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1900-05-11

this year shows but eight. The recent
taxation law hit these companies rath-
er hard, the former license fee Of $25
being raised to $780,
Such companies do not have lodges
and oyster suppers and social dances;
they are a group of men who run the
business themselves and often make a
very good thing out of it.
1t was reasoned that they were not
benevolences. The department fire.
quently receives letters complaining
that the assessment in these compa-
MES has been increased. and the vic
TINS ask If they are not entitled to
insurance at the cheap rate at which
they We're originally admitted. The
answer is that the companies have re-
served the right to increase these as
SesSmentS when necessary to pay debt
claim. | heard of an old gentleman
the other day whose assessment had
been advanced some $500 year in one
of these assessment life associations.
He has had cheap insurance all these
years, but deaths are falling in rap
idly now on the company. He was sur
prised to find that his assessment
could thus be advanced; but, of course.
he does not want to fall out now and
he sends in his check though it makes
him vince.
The Fraterna1 Orders.
Of course. the fraternal orders do an
enormous business, and the millions
they scatter each year to widows and
orphans are a justification. Some Of
them have reserve funds: others are
adopting a reserve; and those who do
not care get along without reserve
so long as their membership is re-
cruited each year by new blood. Later
they must get on a reserve basis, or
greatly advance their assessments.
One Company's $4,000 Policies.
OF the" Old-line companies" it is in
teresting to note the 'WiscOnsin bust
ness" "IndustriaP' companies which
issue policies to poor people in great
numbers, burial benefits. etc, in return
for perhaps fifteen or % cents week,
lead off with the number of policies.
Thus the Metropolitan has over &c.
600 policies In Wisconsin, carrying an
obligation Of S5,600,OO0, and the Pru-
Dental 10000 policies, carrying $4,6O0,-
0OOin amount. The face of these policies
is small as shown by comparison with
the Wisconsin business of the North
western Mutual Life, which had in
force on the same date only "a, 100 pol
icies, but carrying ten times as much
face value. Of the Big Four" old
line companies the Northwestern
Fourth in rank in assets, of course,
leads in it's own state with its 400
policies. The other three companies
have outstanding in Wisconsin be-
tween 1900 and 7,40O policies each.
These companies are the Equitable.
the Mutual Life and the New York
Life. These totals have considerably
increased, the figures given being from
the latest reports at my hand.
Some Things About Fire Insurance.
AS to fire insurance most of the bust
ness is done through the stock compan-
les. AS competition for them, how
ever, has sprung up in city and village
mutual companies. These are in COM
petition with old-line insurance. There
are about thirty doing business in this
state. Their premiums are from one
third to one-half Of what the stock
companies charge, but they keep their
expenses down. The biggest one is the
Badger Mutual Life Of Milwaukee.
Last years report showed that it has
$2,500,000 at risk and the expense for
Officeholders, ETC., was but So, 400. The
losses paid were 81 900. The Cream
City, has risks Of over 100000 and
it's only loss in 1899 was $92. The cost
of conducting the company was less
than 81 300. West Bend has one of
these mutual fire companies with ST.
100000 risks; and the little village of
Theresa, in Dodge county, has a com
pany with 100000 in risks. In Jul
neau, Dodge county, operating in eight
counties, the cheese makers protect
their plants. For less than 5000 they
protected $4,000 worth of cheese
factories, 1O5 risks. the average insur-
ance on each being $1,000. The maxi
mum risk is $4,000.
The plan of insurance is this: Each
cheese factory pays a trif1ing premium,
and when a fire occurs, if there is not
enough money in the treasury to pay
the loss the members Of the association
are assessed.
The Artisans of Milwaukee sus-
pended business last year, being hit
to the extent of S11 900 by the big Port
Washington fire Here was a case
where the management did not attend
to it's own knitting. The mutual town
insurance companies, of which l shall
speak shortly, do a small local bust
ness. The members know each other.
A number Of farmers get together and
agree to insure their farms. No one
makes anything ION the side.'
Care Needed at This Point.
These city and village mutuals, on
the other hand, are often started by
some bright fellow who wants to earn
a salary as secretary and the practice
has sprung up of sending out agents,
paying commissions and picking up
business anywhere without respect to
the risk. AS a result, the policyhold-
ers do not know each other and can
not watch their affairs as lot of
shrewd farmers do in their own COM
pany, which, if a man takes to drink,
will expel him rather than take the
risk of his dropping a match in the
barn loft.
The old-line men say that while it
is cheap enough to get into these city
and village INITIALS. no one can tell
what it will cost to get out, as was ex
l. EOIl