Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1918-11-29
FIRE ZONE MUTUALS.
TOWNSHIP INSURANCE COMPAN-
les OF STATE WILL BE
ASKED TO HELP

ASKED TO HELP
Insurance Department Bulletin: Not
only did the stock companies suffer
body blow as result of the forest fires
in northern Minnesota, but the small
township mutuals operating in that Sec
tion were placed in an exceedingly crit
ical situation. Although some of the
insurance journals have exaggerated the
condition and number of companies af-
fected, the fact remains that two Of the
farmers mutuals are seriously hurt and
a third may, with difficulty, survive
without help. The conditions are bad
enough without exaggeration and it is
for the purpose Of enabling these COM
panies to survive that the Commissioner
of Insurance is using his influence in
their favor.
In order to determine the existing
conditions, as we'll as to decide what
measures of relief were necessary, the
Commissioner Of Insurance visited. the
stricken district and made personal in
quiry of the policyholders and officers
of the companies involved. Very pitt
full stories were told of the sufferings
and hardships endured by the refugees
and the effect of that personal contact
fixed the determination that these hardy
pioneers must not lose their only re-
manning asset, their insurance indem-
nifty. In no case is there large amount
of insurance to value and under any
conditions the policyholders will suffer
a severe financial loss. In many cases
uninsured buildings and fences were de-
stroyed, while insured property was left
intact, thereby inf1icting financial loss
on members in addition to that which
may fall upon them by reason of their
obligations to pay assessments for the
losses of others. In addition to this,
many members Of these companies have
been called upon to bear loss which
cannot he measured in money values,
although entailing financial expendit-
ures, through the death and illness OF
friend and relatives resulting from the
fire and ensuing exposure and 1t soon
became apparent that many Of them are
in such circumstances that it would be
impossible to collect an assessment OF
any size. Not only would a rs per
cent assessment be beyond their means,
|but even per cent call would COM
pei them to surrender their policies.
Court proceedings would be valueless
even if judgment were secured, be-
cause many of these people have no
property which would not be exempt
from execution. This would automati-
cally increase the burden on the finan-
Of ho
panies and in many cases would prac-
tically result in coniscation of their
property. It therefore became evident
that if these settlers were to be helped,
the assistance must come from the out
side.
The cities and towns of the state have
already had an opportunity to contrib
ute to the relief funds through organ
lied solicitation which the country dis
trict have not enjoyed and it seems
peculiarly fitting that this opportunity
to help should be given to the farmers
Of the state. Probably more farmers
can be reached through the township
mutuals than in any other way and it
is believed that through these mutual
associations they will wecome an oppor-
tunity to come to the assistance of those
engaged in their own occupation in the
devastated region.
The insurance loss to the three farm
ers' mutuals already referred to is in
the neighborhood Of $278,000 and its
payment by these companies would ne
cessitate assessments ranging from 10
per cent to 33 per cent. On the other
hand it is evident that if this loss were
apportioned among the policyholders f
the $450,000,O00 insurance in township
mutuals in the state, the assessment
would be very small. Of course there
is no legal provision for such action
and no precedent has been established
by which to be guided, but with the
facts properly presented there should
he lite difficulty encountered in the
collection Of voluntary contribution.
In order to provide the machinery fo1
the prosecution Of this entrprise the
Commissioner of Insurance invited Mr..
H. E. Anderson, president of the State
Association of Farmers Mutual Fire In
surance Companies Mr.. A. D. Stewart,
secretary Of the state association, Mr..
John Thompson, treasurer Of the state
association, Mr.. VIM. L. Cavert and
MIR. S. B. Cleland of the Extension
Division Of the University Farm school,
Mr.. Hugh j. Hughes, editor Of Farm,
Stock and Home, and Mr.. D. A. Wal
lace, editor Of The Farmer, to call at
his office for the purpose of perfecting
an organization. At this meeting a
commenda'ble spirit Of cooperation and
enthusiasm was evinced and all appre-.
hension as to the success of TIE project
was dispelled. !"
It was the sense of the meeting that
the purpose of the work should be to
enable the stricken companies to help