The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-10-03
MUTUAL MEN MEET.
Take Preliminary Steps to Form
National Organization.

At a meeting of mutual insurance men
at Omaha on October I the preliminary
measures for the; organization OF a ma
tional mutg4l insurance company were
taken. Thi.a meeting was the outgrowtn
ef an agitation that has been going on
among mutual cooperative insurance
companies sall over the United states
for a year sor more past. Twenty-Five
men engaged in the nagement OF mu-
tuai cooperative insurance companies
attended tGe meeting and from their
number was chosen the provisional
board of directors that will have charge
of the incorporation of the organization.
The National Insurance company, as
1t is TO be scaled. is to differ from the
old line INSURANCE companies in the pur-
pose of itsS creation and its sources of
business rather than in the form or it's
organizatioA and management. It will
probably be Incorporated under the laws
of Nebraska with a capital stock or
100000, the bulk of which will be held
by mutual insurance men. In order to
enable it to do business throughout the
United States it will be necessary to
frame its articles of Incorporation
broadly. IL will not be organized as a
mutual coIhpany. The purpose of It's
establishment is to create a company
large enough to relieve small, local, mu-
tual companies which are unable to car
ry more than $1,000 or $4,000 in 1nsur-
anee upon a single risk. The national
company will be prepared to insure all
sorts of property including live stock
and marine risks.
W. b Gasche, president of the kan
sas Association of Mutual Cooperative
Insurance companies, attended the
meeting in Omaha and is a member
the new company. In discussing the
proposed insurance organization he said
toda@:
Its purpose is to take large risks off
the hands of local mutual companies
that are Enable to handle them. Sup
pose man wants $4,000 of insurance
upon his property. The local company
is not strong enough to carry more
than $4,000. so it will turn the other
81, 900 over to the national company 1t
is the purpose in the organization to
create a company which will accept
SUCH risks upon the same basis as do
mutuals. The company will not. how
ever, be a mutual company, because we
could noA get admission into many
states with that sort of an organiza-
ton. The. capital stock will pay no
dividends ! although interest to the
holders win probably be paid. Its man
directors. who will be elective by the
stockholders.
The objection can, of course. be
raised that there is nothing to bind
lied and starte! to work, against
throwing up its alliance with the small
er mutuals and starting out into BUSH
less on tie same basis with old line
insurance compatiies. However. the
moment that it attempts to do that the
Hlutuals will withdraw the business
given by them. It will be to its inter
est to cooperate with the small mu-
tualS in every respect.
Upon the plan of this cooperation
there halt not been made a settlement.
1t will be either a system of reinsur-
ance or CT concurrent insurance Under
the reinsurance plan the mutual COM
pany, which can take risk of only So
Gl0 alone. will take the entire risk, say
of $4,000. and will reinsare in the Ma
ttonal company to the amount of 1900.
On the concurrent insurance plan two
policies gill be made out to the owner,
one being given by the mutual company
and the other By the National AS vet
organizasio have been considered. A
chairmar of the provisional board and
the prelifn;naries to incorporation COM
pleted.'
The members of the provisional board
of directors are: Chairman. E. NJ .Cof-
fin, Lincoln, Neb.; ]. G. Furlong, Aus
tin, Mimi: w. D. Forbes. Des Moines:
NJ. C. Roberts; Chattanooga; F. D
Babcock, Ida Grove. Ia: w. A. Me-
EVAN, Milton, Wis: C. M. Mcmillan,
Denver Ill; F. J. Martin. Seattle: w.
B. Gasche, McPherson-Th There are 1000
mutual companies in the United States
and about Is in Kansas with mem
bership of 5000 people