The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-12

kOllF VI IS NODNlA Id OllN
Mrs. J. J. White. New York. /
garet Crooke. New York; Miss
Mabel Kittredge. New York.
county mutuals should furnish fire
insurance protection to the credit
society to the limit they will take on
the risk and become the agent OF
the multiple insurance league for
the surplus The county mutuals
should also act as the agents for
the multiple insurance league in
their respective counties for the
multiple insurance business, except
the fire insurance business which
the county mutuals would do direct
The county mutuals should be paid
a commission on all the multiple
insurance business done in their re-
spective counties by the multiple
insurance league. because the
county mutuals are now rendering a
quasi police service To their COM
munities in preventing fire waste
which costs our cities hundreds Of
millions yearly Under this ar
if the farmers have poor
insurance service. they would have
none to blame but themselves and
thu, remedy would be TO change the
Management Of their county mutu-
ais
Rove. showed there were three
classes Of farm insurance done in
Iowa in 1918 on the mutual plan;
fire insurance by the county mutu-
ais. tornado insurance by one assO-
citation and hail insurance by seven
exclusive hail associations. For the
tornado and one Of the hail aSso-
Citations Rowe made out Il good
case. but for five Of the hail asso-
Citations he made out very bad
case. which were severely criticised
by the Iowa Insurance commits
sioner. lie said no cooperative
effort had been made in Iowa 10
insure livestock against loss by
death or TO insure crops against
frost or other disasters other than
by hail or tornadOes. He sand,
however. that there were three
stock or old line livestock com
panies operating under the Iowa
law, which had proven anything
but successes.
County MutuaI> show Strength.
Rowe was continually seeking
the protecting arm Of the county
mutuals To- defend the record Of the
State mutual he represented az sec
rotary For instance. when asked
as to the assets of the county mu-
tuaIs. ne replied: with our county
mutuals. and practically all th'
State associations. operating under
what Is known as chapter ,. there
has never been any provision OF
even any suggestion that there were
to be any assets. They have simply
assessed. either after losses or made
kind Of estimate for the year
They have simply assessed fol
losses and expenses. never declarinE
any dividends, except with few
companies such as the Hardwar,
which collects the board rate. :
few Of them do that"
The fact that the Iowa insuranC
report shows those county mutual
closed their business in 1918 wit
Sal. 1852 assets. to only sl1.5l2.O
for ROwe's company. There are sew
eral of the county mutuals whic
have more assets each than his as
sociation. though they have nOthin
like the amount of insurance obi
standing the fact that his associa
ton operates principally in the town
and cities. and is thus subject I
the "Conflagration hazard" which
not the case with the county mutual
and his association should carry
much larger line of assets to pro
tect its policy holders against sue
hazard.
A member Of the committee sough
to ascertain from him the compar
ative economies in management o
his association and the six larges
life insurance companies. To that en-
the member asked him the the ques
ton IL the ratio Of the 1870 pre-
miums OF those six life insuranc
companies which was used in pay
ing 1920 salaries of officers and hom
office employees did not run from l.
to 3S per cent. whereas one OF tn
Iowa associations used 81 per cen
of its premium receipts to pay tn
salary of its secretary. To that ques
ton he replied. 1T does not. witt
the county mutuals and mutual as
sociations that I know OF or am con
nected with" Later on he was aske'
to examine the Iowa insurance re
port of his own associa ton. and h
admitted that in 1918 its premium
receipts We're s53,741.S1, and his sal
airy s4.S99.15. or 81 per cent OF tn,
premium receipts for that year. anC
he said that his salary this year wa!
$500. The Iowa Tornado Associa
ton had a premium income in 1911
Of SSS0.359. 60. or fifteen times tina
Of Rowe's association. yet the sal
airy paid the secretary of that tornado
association in 1918 was but s6,41S
which was less than q of l per cen
Of its premium income.
The advocates of the McFadden.
Kenyon bill contend that the county
mutuals must cooperate with a pow
erful and sound Federal multiple in
surance company il they hope t
reduce the expense of MANAGEMENT Of
their insurance