Mower County transcript., 1903-12-09

raul grab IS finished.
LIVE STOCK INSURANCE
An Interesting Letter From the Secre-
tary Of the Largest Mutual Insur-
ance Company in the Country.
The following letter from the Sec
retary of the Farmers Alliance Insur-
ance Company, the largest mutual
insurance company in the country,
will be good reading for all those in
terested in live stock insurance in the
Mower County Farmers Fire and
lightning Mutual Insurance which is
now working under similar plan.
The local company's bylaws read as
follows:
Sec. 51-In the event of loss of cat
tie, horses, mules or colts under any
policy issued by this Company, the
Company will pay a sum per head of
such stock SO killed to be ascertained
by dividing the amount of insurance
carried on such cattle or horses, mules
or colts by the number of head of such
cattle or horses, mules or colts owned
by the assured at the time of such loss,
not exceeding in any case, however,
$4,000 per head on common cattle;
$4,000 per head on recorded cattle
and $4,000 per head on common
horses, mules, or colts, and 5000 on
any recorded horse.
The Farmers Alliance Insurance
Company, of Mcpherson, Kansas,
which has membership of $4,000
Kansas Farmers, has been doing busi
ness for 16 years, being purely mutua
has had much trouble with the live
stock feature of insurance. .-.
The old plan of insuring was to per-
NIT the patron to take little or much
on his herd of cattle or horses, and 20
years ago there was hot insured 1-50
part of the live stock that is now in
sured. The conditions 20 years ago
were entirely different from what they
are now. Then, a man would ordin-
arily have three or four head of horses
and twice as many COWS, while today
the same individual may have from
to 20 head of horses and in cattle he
may own from 30 to 800 head; 80 with
the increased number of horses and
cattle has increased the hazard also. I
will not enter into the experience our
company had in reforming its Live
Stock Policy, but briefly give you the
facts in the most condensed form so as
to enable you to measure the results
as you go along.
Insurance in our company was cost
ing US $500 per $1,000 per annum in
1888 and we paid that year for losses
and expenses for live stock alone $6,-
00O.. The entire valuation of all the
live stock carried by this company as
given by the assured was $500, 600,
therefore, under our plan of insurance,
we only required premium on 1-2' the
valSaton, or in other words we only
had 100000 of live stock to assess,
which if assessed the same as other
farm property, would be $40 on each
800 per annum or on $400, 900 we
would raise $1,000. Therefore, our
Board of Directors recently saw that
If we paid &c, 900 for live stock losses
and only derived 81, 900 from that
source, the deficiency, $4, 400, would
have to be paid by the members of the
Company who had no live stock in
sured. This would be both unjust and
anti mutual.
In order to carry out the spirit of
mutuaity and cooperation and d.
what was right by each member, The
Board of Directors directed the Secre-
tary to. send out the following blank
MCPHERSON, KANSAS.
Mr.. Jno. Doe:
The Board of Directors of the Farm
ers' Alliance Insurance Company, be.
ing desirous Of making some changes
in the manner of insuring Live Stock,
and in order that Justice may be done
to every patron and the best interest
of all concerned and to the end that
each kind Of insurable property shall
pay its own losses and expenses, The
Board, most respectfully request that
you Eli out this blank and forward to
the company at the earliest possible
date.
How many horses and mules do YOU
now own? =s
Do you buy and sell cattle and
horses? ... 81
How many cattle have you owned
during the past 5 years9
How many horses have you owned
during the past Ave years? 5
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