18 BOARD OF AGRICULTURE. 



Another twenty-five per cent, will take the disease and may, 

 apparently, recover, and the remaining twenty-five per cent, 

 may escape entirely. Such have been about the proportions 

 observed here. 



Soon after its introduction into Great Britain, insurance 

 companies for stock were established, most of them with 

 immense capital. Tliey have in most, if not in all cases failed, 

 and that, too, notwithstanding the high premiums charged and 

 readily paid, amounting finally to six or seven per cent. 



Let us look, for a moment, at their operation. The " Far- 

 mers' and Graziers' Mutual Insurance Company " was started 

 in 1844. It had numerous, wealthy and influential patrons. 

 The list of members of the " mutual " soon ran up to an extra- 

 ordinary extent. The insurances effected, all paying liberal 

 premiums, swelled its treasury to vast proportions. The people 

 were justly and naturally alarmed by continental reports, and 

 glad to avail themselves of an opportunity of security. Now 

 "pleuro-pneumonia, introduced in 1842, cleared out stock after 

 stock and herd after herd in an incredibly short space of time. 

 The company raised its rates repeatedly ; " but the disease 

 stealthily spread, and the affairs of the company became hope- 

 lessly embarrassed. The books were closed four or five years 

 after it was established, and many still wait their pay for the 

 heavy losses incurred on insured stock. 



The " United King-dom Mutual Cattle Insurance Company " 

 started into being in 1845. It had a great business at first, 

 like the Farmers' and Graziers'. There was enough for both 

 to do. But the same cause, this insidious pleuro-pneumonia, 

 brought it down under an enormous load of responsibilities 

 which it had incurred and could not meet. 



Ten millions of dollars worth of stock was insured in the 

 first two years of the operation of these two companies. Their 

 business, and of course their receipts, were almost unlimited. 



What could be the cause of failure ? Some thought tliere 

 must be a defect in the mutual system. And so they got up 

 a stock company called the " Agricultural Cattle Insurance 

 Company, ^^ with a capital of two and a half millions of dollars. 

 The stockholders had great expectations, and so had the public. 

 The enormous capital, the high character and responsibility of 

 the parties at the head of the company, the reasonable rates of 



