El Paso herald. (El Paso, Tex.) 1901-1931, 1910-05-26
FAVORS MUTUAL
INSURANCE PLAN
Ri PasO Man Says 1t Is the
Salvation of the Ell
PasOans.
May 20, 1910.

4
Editor Ell Paso Herald:
Ahent your reference in last nights
Herald to the possibility Of the business
men OF Ell Paso applying the principles
OF mutual or cooperative fire insurance.
as partial antfdote to\the extortionate
rates now proposed by the old line com
panies- l would say that never were
conditions in a city of its size. more
favorable, nor the chances of it's success
along conservative lines-nore abso-
Lutte.
know the regular insurance agent
Will object to this statement. according
10 MS temperament he will either treat
II with derision, viii become bucoILc-
ally vitrialic or in a serious ~older-in-
the head-than-yOu" manner. trv na-
tiently to explain, by carefully selected
STATISTICS tselected TO suit his side of the
argument how impossible IL is IN Of
Ter any real security to the insured nm
der the mutual plan
AS TACT, there are at this writing 81
mutual fire insurance organizations do
ing business in this country all na wing
dividends or rebates on premiums TO
their policy holders, and of these four
are doing business in the state of Texas
IN two OF which I carried policies uo TO
iaSt year both paying yearly a dividend
IN the form Of rebate on premiums.
one rebate reaching 40 percent
In the New England states especially.
mutual fire insurance has proved rnosr
successful: naturally II has its Ii,nita-
lions but in that section. mutual fire in
surance is carried as far as IL is pos
sible.
How to Play Safe.
1 use the word limitations" advisedly
as IN the nature of things. the amount
OF risk carried per city block must be
limited; but allowing an insurance of
s onh
limits and cutting up that amount in
risks or $500 or less, even if the old
rates OF the standard cOmpa MES were
accepted as basis land not the flag
rantIy extortionate new rates with
which we are threatened) there would
be absolutely no doubt OF success. ex-
eept in case OF a "cOnflagration," and
under such circumstances what percent
OF the fire insurance companies doing
business in FL PasO would prove will
ing adjusters?"
The Frisco Incident.
At the time of the San Francisco dis
aster out OF 243 associations involved
but five old line companies came for
ward promptly and paid claims in full
upon adjustment, although a majority
paid 50 percent and over. after more or
less delay; of the 10 mutual associations
involved according to Best's special
repOrD only one endeavored TO scale its
losses; the balance settled in fun after
adjustment. The very fact that their
losses were limited. made il easier for
them to settle. AS an instance of a. most
prosperous mutual insurance Organiza-
ton, the Lumbermen's, is right to hand
II has returned from 40 percent to so
percent on its premiums (never less
than 80 percept) for years, and is more
prompt in settlement and its losses are
more readily adjusted than any of the
old line companies
Promises Relief.
If the business men OF Ell Paso de-
sire a relief from the unjust extortfon
of a lot of special agencies and AT
the same time perpetuate an object
lesson of what fire insurance really
costs, in FL PaSo, let them join in a
mutual enterprise of this kind. and.
givfn git their hearty support. get the
very best out of the cooperative prin-
ciples involved BY their hearty sup
port" 1 mean not only a proper pro rata
of their own premiums but a personal
interest in the propaganda and the ulti-
mate welfare of the movement. so that
they see that their friends, and their
friends friend, are fully acquainted
with the accruing benefits.
I have given several years now TO
study OF this subject and am convinced
applied and IL any OF your readers are
from Missouri I will gladly show
them
has side that especially appeals TO
me. 1t will keep your money at home.
Harry Pateman-