THE GENERAI, CONDITIONS OF INSURANCE AGAINST FIRE 43 



accomplished, at least in some measure, b}- other classes of mutual companies. 

 The possibilities of further reducing the cost of insurance by the application 

 to losses by fire of what is called " the principle of stoppage at the 

 source " are believed to be great. 



A group of New England companies have reduced their losses on country 

 risks materiall}^ in the last few years by means of a system of inspection. 

 Companies and groups of companies elsewhere have recently begun enter- 

 prises of this kind. All risks should be thorouglily inspected at least every se- 

 cond or third year by a well qualified representative of the insuring company, 

 and its members duly warned against any dangerous conditions or practices 

 discovered. If necessary continuance in the compau}^ should be made condi- 

 tional on the removal of needless sources of danger of fire. 



The safe construction of farm buildings and their maintenance in a 

 safe condition should be encouraged by a reasonable classification of risks, 

 worked out with special reference to particular localities. It is hardly fair 

 to charge a man who builds carefully and guards his property against dan- 

 gerous conditions the rate paid by one who builds carelessly and gives little 

 heed to the subsequent safety of his property. Moreover unless the better 

 risks are thus recognized there is danger that in spite of the lower average 

 cost the best risks within the sphere of a local mutual company may be 

 picked up by larger insurance businesses which do not classify. 



Reasonable efforts should be made by every farmers' mutual company 

 to spread information among its members not only as to safe building and 

 the upkeep of property but also as to devices for checking any fire which 

 may occur. The causes of fires should be more thoroughly studied and more 

 carefully tabulated, and the reports on losses, which every member of a 

 company should see, should group them in accordance with their causes. 

 By such concrete examples members are best warned against such dangers 

 as those inherent in defective flues, dilapidated and weather-beaten shingle 

 roofs, the want of protection against lightning for buildings and fences, 

 accumulated soot in chimnej^s, the careless disposal of ashes, accumulated 

 rubbish in garrets or elsewhere, the use of the so-called parlour match and 

 the careless use of kerosene, gasoline and other inflammable substances. 



All that has been said is borne out by the reports presented at Spring- 

 field on 26 and 27 January 1915 to the eighteenth biennial meeting of the 

 Illinois Association of Mutual Fire and Windstorm Insurance Companies, 

 and the discussions at this meeting. The data taken from these reports 

 show at the same time the progress made by the movement for mutual 

 insurance among the farmers of Illinois, and the weak points of the organiza- 

 tion of insurance in this State and to some extent in the whole of the United 

 States. 



§ 3. Farmers' mutual insurance against fire in ielinois. 



The Insurance Superintendent of the State of Illinois reported on i May 

 1 915 that there were 232 mutual fire and windstorm insurance companies 



