1910.] Co-operative Live Stock Insurance. 645 



disastrous seasons. At each half-yearly meeting each 

 member brought an additional sum of one-tenth per cent., 

 or 2jcL, for every £10 of the value of his insured cattle, and 

 this was laid by against emergencies. Their union in ten 

 years had 64 societies affiliated to it, with 11,000 members 

 and ,£360,000 worth of cattle insured, and it is still at work 

 and giving satisfaction. 



A more scientific scheme in very extensive use abroad may 

 now be described. It takes into account not only the risks of 

 life, but the shortcomings of human nature, and recognises 

 that, even among co-operating farmers, frauds or attempts 

 .at fraud may occur and must be guarded against. The funda- 

 mental principles are these : — 



1. The local society must be limited to a small area, where 

 the neighbours all know each other, and exercise an uncon- 

 scious supervision over each other. 



2. The farmer must declare all the cattle he possesses, as 

 well as those he actually wants to insure. 



3. An examination and valuation must be made of all the 

 cattle, whether proposed for insurance or not. This is done 

 by appointed valuers, who are farmers elected for the purpose, 

 and must be members and must be insured. 



4. The indemnity must never be more than 80 per cent, of 

 the value ; the owner must take at least 20 per cent, of the 

 risk to ensure fair dealing. 



5. The local societies must affiliate with the central union, 

 and must re-insure with it a portion of their total risks (say \ 

 or J), handing over to it the same proportion of their total 

 premiums. 



6. Each local society elects a committee — a president and 

 secretary are appointed ; the secretary may be paid ; all others 

 give their services gratuitously. 



7. The local societies are autonomous; each society can 

 make its own modifications in the rules (which are drawn up 

 by the central union), provided such modifications meet the 

 approval of the central union and the Registrar. 



8. A member must join for one complete working year in 

 addition to any fraction of a year. Cattle under three months 

 and over twelve years are not eligible. The rate of mortality 

 on the average in many countries on the Continent is found 

 to be 2 per cent. 



