The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-08-19

wish to begin to insure at the same
time. No one feels that he can afford
to drop the policy he has to join the
mutual at starting time. because he
is charged extra by the company ne
drops. 1t is this simple provision OF
the law allowing companies to charge
more than a pro rata rate for a snort
term which enables the stock compa-
MES to combat the rmauo or mu-
tuals. For example. they charge you
$50 on d policy for a year. which Is
at the rate of $500 per month. but
if you want to help organize a mutual
company a month hence and only
want the policy for a month. they will
charge Q $500 for it. OF 800 ex-
ira: or If You get the policy Tor a
year and cancel II at the end OF a
month, the result is the same. Every
business man knows that there Is not
that difference in the trouble or cost
to the company. and that there ID an
other cas- for this enormous extra
cost. 1t is really an artfully conceal
ed war measure to fight the for
nation OF mutual companies. a simple
law prohibiting this in
crease of the rate for short terms.
while it would not affect existing con
tracts, would enable a man in the fu-
ture. when he found his rate too high,
to cancel his policy and join with 9th
ers to protect himself in a mutual
company. 1t would be easy enough to
get not only $500. 900 to start with but
81, 900. 900, in 1000 separate risks.
This would be perfectly fair to the
stock companies because if they can
not do the business at a fair price,
they should not expect to hold up the
public and do it anyway. II they
claim that they are entitled to extra
pay for the trouble Of cancelling a
nal1oxy 1At @ho~1 ahnrnn a foo for do
ing it commensurate with the trouble,
which is the same for all policies. I'm
der the present system, if they canoe
a policy with a $500 premium at the
end Of a month. they get 10 cents
extra. but if the policy has a $50 pre-
MUM. they get $500 extra for the
same work exactly. In this there is
neither common sense or justice.
North Cardinals Advantage.
Owing to peculiarly advantageou:
conditions this State car do what very
few, il any. other States can. Safety
lies in the distribution Of risks an6
they are distributed here as in NJ
other State. Less than Is per cen
Of the population is classed as ur
ban. and this is distributed amons
forty cities and towns. In Massachu
sets, for example. nearly SO per cen
is urban. Nearly one-fourth of thi
II III inv Wy otSI " ~ j
in five cities; oyer one-half of it is il
twelve cities. and any n Of thes'
may have a fire larger than any tow
in this State can furnish. One o
these cities has more than twice tn
entire urban population Of this State
five of them have nearly four time
and twelve of them have nearly ST,
teen times our entire urban popula
ton. 1t is the big city which is
menace TO the business We have n
big city; why should we tax ourselve
for the benefit Of these when we ca
get nothing in return? In thirty
three years the companies have col
lected from us nearly $43,O00,0 90
and returned s23.275,OOO in losses
The experience Of thirty-three year
shows that we have paid too much
and that u home companies. stoc
OF mutual, can carry all our risks,
2 all are given to them. While q fe,
: stock or mutual companies might nc
-be able to carry all the insurance
Massachusetts,, New York. Maryland
or even Virginia, they could with pei
feet safety carry all the insurance
8 this State. We do not need or re
+ ceive any help from outside.
. In Conclusion.
The trust is in the saddle in tn,
State and it will not be unhorse
0 without a struggle. 1t will deceiy
S and mislead the people. and some wi
aid in doing this who should kno,
g better. 1t will receive aid from SON
quarters where you may least expec
? But a bold, determined effort on III
IS part of your association will surel
d result in a victory for the cities an
|. towns and the people of the who
n State.
n III ATH nL> ND w