6 BULLETIN &0, U. S. DEPARTMENT OF AGRICULTURE. 
these pairs of spaces are in turn separated by a more pronounced 
line. The sample pages here given (Form 1, left-hand page and 
right-hand page) provide room for recording only 10 policies. In 
practice the pages should be made long enough for the record of 20 
policies. For convenience in tracing the record of a given policy 
across the double page, the horizontal lines separating each group 
of five double spaces should be ruled extra heavy or in a color distinct 
from the other horizontal lines. 
Tt will be noticed that the left-hand page of Form 1 is, in general, 
devoted to the description of the policy, while the right-hand page 
provides space for the recording of fees and assessments. The head- 
ings of the various columns are believed to be self-explanatory. 
More than two-thirds of the farmers’ mutuals write policies regu- 
larly for a term of five years, and partly for this reason no special 
column has been provided for the date of expiration. In cases 
where the company writes policies for varying periods of time, and 
the expiration for this reason is not readily ascertainable from the 
date of the policy, the upper half of column 6 may be used for the 
date of the policy and the lower half for the time of expiration. 
The left-hand page of Form 1, it will be seen, includes spaces for 
recording property insured by classes, as well as for the total amount 
of the policy. A strict adherence to bookkeeping principles would 
require that extra columns for increases and cancellations be provided 
in connection with each of the five class columns in Form 1, as well 
as in connection with the column for the total amount of insurance. 
Since to do so would make the pages unduly wide, however, and since 
the changes in a given class column will be relatively less frequent 
than in the column for total insurance, it was deemed advisable to 
handle changes in the class columns by the simple plan of crossing 
out the superseded figures and entering the corrected item above, as 
shown in two of the sample entries. The columns for insurance by 
class in the policy register do not need to be refooted to show net 
amounts after increases or cancellations have been recorded, since 
these items can be obtained for the period in question from the special 
book for increases and cancellations. 
While only a relatively small number of the farmers’ mutuals at 
present classify their risks, it is becoming recognized to an increasing 
extent that justice as well as expediency demands such classification.* 
1 Under the all-one-rate plan the owners of the better class of risks pay part of the 
insurance cost of the owners of the more hazardous class of risks. Larger companies 
which do classify can underbid a local mutual which does not classify, on the most 
desirable risks in the territory of the latter, even though the average insurance cost 
be considerably higher in the larger company. Lastly a proper classification constitutes 
one of the most effective means that a company can employ for the improvement of the 
risks in its territory, and hence for the further reduction of its insurance cost as well 
as for the conservation of the property of its members. 
A suggested plan of classification of farm property may be found in Department Bul- 
letin 530, entitled, ‘‘ The Organization and Management of a Farmers’ Mutual Fire In- 
