THE GENERAL CONDITIONS OF INSURANCE AGAINST FIRE 39 



52 muttial companies, and 59 other companies. In 1915 about 650,000 loss 

 reports were received and at the present rate there will be on file at the end 

 of 1916 over a million reports of losses sustained and paid by members of 

 the bureau. 



§ 2. Farmers' mutual fire insurance. 



One of the most successful forms of rural co-operation in the United 

 States is that of farmers' mutual fire insurance. Up to the present time 

 however it has received but little general publicity. Few men, even among 

 the farmers themselves, are aware of its importance. Many will be surprised 

 therefore to learn that there are at present nearly 2,000 farmers' mutual 

 fire insurance companies in the United States. These companies carry 

 a total amount of insurance exceeding $ 5,250,000,000. The property on 

 which this insurance is written is valued at more than $6,700,000,000 which 

 is more than two fifths of the value of the insurable property in the forty- 

 eight States. 



While mutual fire insurance in the United States dates from 1752, 

 the first farmers' mutual fire insurance company came into existence about 

 1825. New England and the Middle Atlantic States saw the first attempts 

 at this form of co-operation by farmers. It was soon shown that a consider- 

 able saving in the cost of fire insurance could be effected by its means and 

 the movement spread fairly rapidly from one community to another. 

 By the middle of the century- a considerable number of farmers' companies 

 of this kind were in existence, and more than half those now existing were 

 organized before 1850. 



Most of these companies were incorporated under special charters and 

 left to do business practically without guidance or supervision. Unfort- 

 unately these co-called " farmers' mutuals " in some instances failed to 

 limit themselves to the segregated risks of moderate value to which their vo- 

 lume of business and their methods adapted them. Hence their record in 

 this period is by no means one of uniform success. In spite -^^f this handicap 

 the movement continued to extend westwards and southwards from the 

 place of its origin. By 1875 there were about 400 farmers' mutuals and by 

 1900 there were at least 1700 of them. Their present number exceeds 1950. 



a) Legislation. 



The rapid extension of insurance on this plan after 1850 was due in no 

 small measure to favourable legislation. The first farmers' mutual insu- 

 rance law was passed by the State of New York in 1857. This law provided 

 that twenty-five or more persons residing in any township of the State and 

 owning a total of $ 50,000 worth of property which they desired to insure 

 might form themselves into a mutual insurance company. They were al- 

 lowed to insure only buildings and the goods contained therein. They could 

 insure no city or village property and could not accept risks outside the 



