FARMERS MUTUAL INSURANCE COMPANIES UNION. 343 



hold of the matter of recommending the use of a good lightning rod. It 

 is not only a saving to the company, but it is a saving to the man who 

 uses it. You have only two-thirds of the value of your buildings insured. 

 If a farmer has a good lightning rod he is helping to protect the other one- 

 third. 



Now in regard to the State companies that do a general insurance 

 business. I understand you have none in this State. I would recommend 

 that you change your laws. You should have equal and just rights with 

 all other classes of insurance. Today a stock insurance company can 

 come into your State and meet the requirements of the insurance depart- 

 ment and organize any kind of company they see fit. You are hampered 

 and can not do this. Then if you have State companies you can reinsure. 

 You have a lot of people in your State that would like to take advantage 

 of the cheap rates by insuring mercantile risks in a mutual company. It 

 is perfectly safe to do this. We have some ten or fifteen companies insur- 

 ing mercantile property in the State of Iowa, and they are doing a suc- 

 cessful business. They collect a higher rate and what they do not need 

 goes back to the members. I would recommend that you appoint a legis- 

 lative committee to look after the revision of your laws for this express 

 purpose. We have a company in the State of Iowa that has some twenty- 

 six million dollars of insurance on town residences only. I think they 

 have made three assessments of one mill each in the last 11 years. There 

 is no reason why you should not have such companies; I know you can 

 run a State company just as well as a county company. 



We have been asked by many States to organize a national fire insur- 

 ance company. We shall attempt to organize a company that can go into 

 all the States and relieve the companies who would like to place a heavier 

 insurance than they can through their local companies. Such States as 

 Indiana that can not write mercantile property or town pi'operty, or that 

 can not place enough insurance in their home companies on farm propei-ty, 

 would be benefited by this. There are other States that write mercantile 

 "property, and all classes that need to reinsure their property, who would 

 be benefited by this system. This national company would not assist us 

 in Iowa because we have about enough insurance companies there to take 

 care of all the State insurance. You cei'tainly need such companies in 

 your State. You have men who are capable of conducting the business 

 of State companies. We have in Iowa and we are doing it. We have the 

 largest mutual company in the United States, if not in the world, all run 

 by farmers. It was started by farmers; it is a child of our State conven- 

 tion, and it now has one hundred and six million dollars of insurance. 

 The secretary is nothing but a practical farmer. I refer to the Tornado 

 Insurance Company of Iowa. We have a town dwelling company that has 

 from twenty-six to thirty million dollars of insurance. I believe it is the 

 cheapest fire insurance company in the United States. It writes simply 

 detached residences in towns and cities. 



