farmers' mutual insurance companies' union. 355 



Mr. Barrett: We had difficulties, but they were of a slight nature. 

 We have beeu running under this plan for ten years. We ran on the 

 level basis for fifteen years. 



Mr. Bray: If a man owns a barn with a metal or slate roof would 

 he have the privilege of carrying his insurance at a less rate than a man 

 whose barn has a shingle roof? 



Mr. Barrett: Yes, sir, because there is less danger from fire and 

 lightning. 



Mr. Bray: If a slate roof is struck by lightning the damage is much 

 more than it would be to a shingle roof. 



Mr. Barrett: A shingle roof is much more liable to catch fire from 

 sparks from a thresher engine. 



Mr. Young: We all know it is the custom for farmers to gi'oup their 

 buildings. If the house, the barn and the cattle barns are near each other 

 there is danger, if one catches fire, of its communicating to the others 

 more readily if they have shingle roofs. 



Mr. Jones: Did you ever examine the system of classification made 

 by the old line insurance companies as to the difference of risk between a 

 barn and a house? They make a much larger rate for insuring barns than 

 they do for houses. In fact, most of them will not insure a barn unless 

 the house is insured with it. If you will get an accurate report of losses 

 you will find that more losses occur on barns than on houses. They some- 

 times merge the two and make a higher rate on the whole. If you bring 

 them down to it they will tell you they have raised the rate on account of 

 the barn. 



President Jones: The difficulties you will find when you undertake to 

 classify a risk Avill be very great. It will be a very difficult thing to get a 

 classification that will be exactly equitable. In New England they make 

 twenty-five cents difference between property occupied by a tenant and 

 property occupied by an owner. You would not recognize that distinction. 

 An owner of property is apt to be more careful than the tenant. 



Dr. Saunders: The official board of the Madison County Insurance 

 Company has long felt the necessity of rodding buildings, and finally hit 

 upon the plan of reducing the assessments on rodded buildings. I believe 

 the plan will work satisfactorily. If there is any opposition to the plan it 

 is from the men who have buildings that are not rodded. The time is 

 coming, however, when the majority of our buildings will be rodded. I 

 believe this inducement will help the members and encourage them to 

 do so. 



