Part II: Insurance and Thrift 



UNITED STATES. 



THE ORGANIZATION OF FARMERS' MUTUAL FIRE 

 INSURANCE COMPANIES 



oFFiciAiv source: 



United states department of agricuxture Bulletin No. 530. Valgren (V. N. 

 (Investiiiator in Agricultural In-^urance) : Th.^ Organization and Management of a 

 Farmers' Mutual Fire Insurance Company. Wasbingtoii, D. C, 8 May 191 7. 



In a recent article (i) we explained the general conditions of mutual 

 insurance against fire in the United States and gave particular figures with 

 regard to Illinois. 



We wish here to recall only the rapidity of the progress of the com- 

 panies undertaking such insurance. In some States of the Middle West 

 fully three fourths of all insurable farm property are now insured by the 

 farmers' own companies. Companies of this kind are found in everj^ State 

 except Florida, INIississipi, Louisiana, New Mexico, Arizona and Nevada. 

 A study of the organization of these mutual associations which, while 

 generally founded on purely empirical principles, have yielded already 

 excellent results, is interesting. Their importance must increase, for the 

 government of the United States must seek to provide them with a more 

 rational basis and one which will be as much as possible uniform. 



The official bulletin, which is the source of our information describes 

 a typical farmers' mutual fire insurance company, susceptible of modi- 

 fication to suit the legislation in particular States, and practising methods 

 which in some points are an im]frovement on those now in use. • 



§ I. Organization and Administr.\tion of the Companies. 



a) Articles 0/ Incorporation and By-laws. — The organization of a far- 

 mers' mutual insurance company should be preceded by a certain amount 

 of prepar?tory work. The legal step of incorporation should not be ta- 

 ken until as large a percentage as possible of the considerable farmers in 



(1) Sec our issue for June 1917, page 54. 



