042 BOARD OF AGRICULTURE. 



There are many questions arising in regard to mutual insurance that 

 local companies have not tackled. Some of these relate to the manner of 

 doing business, the manner in which we collect our fees or assessments, 

 and the amount we collect. It would surprise you if 1 were to tell you 

 there are mutual companies in the United States that collect more from 

 their patrons when they write the policies than board rates. But they 

 pay that back at the rate of 20 or (30 per cent, when the policy is can- 

 celed. When the people become interested and understand this method 

 it isr I believe, just as satisfactory to collect just what we need as we go on. 

 In Iowa we simply abhor a reserve. We don't believe in taking money 

 from the people until we need it, and we always have been successful in 

 getting what we ask for and paying our losses and expenses. 



I speak of this to show you there are many things coming up for dis- 

 cussion in these State meetings we have not run up against before. There 

 is one point I wish to call attention to that ought to be considered by 

 every company — the classification of risks. Old line companies do this, 

 especially in mercantile risks. I think when you come to give this matter 

 serious thought yoii will conclude it is to your interest, or to the interest 

 of the companies, that you classify the risks. The necessity for this is 

 greater now than in years goiie by, from the fact that oiu* farmers build 

 now under improved methods. If there is any benefit in the protection 

 which modern improvements give, the man who insures the property 

 ought to ha\'e the credit for it. I remember years ago when we used to 

 write insurance out on the prairies we would take a risk if a stovepipe 

 was running through the roof. The people were poor and did not have 

 the money to buy brick for the chimneys. When we wrote the insurance 

 we took the chance. It was quantity and not quality we after in the 

 beginning. Now we will not write or accept any policy on a building that 

 has a stovepipe running through the roof. We have made that classifica- 

 tion, and buildings that were erected years ago are greater fire traps 

 than the modern buildings. 



I am going to call your attention to a fact that has been talked of 

 and discussed in our Iowa meetings in regard to lightning rods. That 

 will apply to the classification of your 'risks. For twelve years I was 

 president of the Sac County Farmers' Mutual Insurance Company, and 

 the secretary reports that he has GO per cent, of his buildings rodded. 

 The time has come when we should classify farm risks as well as mer- 

 cantile risks. If you do this you will save a large amount of money. I 

 made an address before the Iowa State Convention on the subject of 

 "Shall we take any measures to lessen the hazard by lightning"/" I wrote 

 to 170 fire companies and got 111 replies. The result of the testimony fur- 

 nished me by the 111 mutual insurance companies was that they were 

 saving 50 per cent, on all buildings rodded. That goes to show that we 

 have not yet reached the zenith of the cheapness of co-operative insur- 

 ance'. That Is one reason why our State and national conventions take 



