HAIL INSURANCE ON FARM CROPS. 17 
for hay or seed are, however, usually insured at the same rates as 
the grains just enumerated. For barley and rye the rates in most 
of the States are 2 per cent higher than those shown on the map, 
and the same is true for corn where protection is desired against dam- 
age to the leaves as well as to the ear. Tobacco is given a rate vary- 
ing from about one and one-half times the rates on wheat, oats, and 
corn in some districts to more than two and one-half times the rates on 
these cereals in other localities. The rates on cotton are even less 
closely related to the rates on cereals. In the South Atlantic and 
Yhe East South Central States the rates for cotton are in general 
the same as the cereal rates, and in a few instances even 1 per cent 
lower. In the West South Central States, on the other hand, the 
hail rates for cotton are from 2 to 4 per cent higher than the rates 
for cereals. 
In the extreme eastern part of the United States, as well as in the 
extreme western part, the rates on fruits and on garden vegetables, 
including peas and beans, even when raised as ordinary field crops, 
are in general from one and one-half to two times the rates on cereal 
crops. In parts of the West South Central and Mountain States 
these crops may be insured at a rate 2 per cent higher than the regular 
rate on cereal crops in the locality in question. The latter state- 
ment holds true for the North Central States also, except that such 
rates for this part of the country have usually covered garden vege- 
tables only. 
It is difficult to give any definite figures for rates of premium or 
assessment of mutual companies, since many of these continue to 
operate on the assessment plan without the application of fixed rates 
in advance. Where such rates are actually determined in advance 
by mutual companies they are usually somewhat lower than the joint- 
stock rates, although a few mutuals adhere to the commercial rates, 
returning a part of the premiums in dividends or rebates when the 
losses and expenses together are low enough to permit of such 
action. 
Only fragmentary data are at hand for the average expense ratio 
of the various companies writing hail insurance. Such figures as 
are available, however, point to an average expense of operation 
equal to about 35 per cent of the premium. This expense of opera- 
tion, calculated as a percentage of the premiums, will, of course, vary 
to some extent with the rates on the business written. Many over- 
head items of expense will be approximately the same for two poli- 
cies, each representing a thousand- dollar risk, even though one be 
written in territory where the rate is 3 per cent and the premium $30 
and the other in territory where the rate is 12 per cent and the pre- 
mium $120. Six dollars of overhead expense attached to each of 
these policies will mean 20 per cent of the premium in one instance 
and 5 per cent in the other. Hence, to the extent that the expenses of 
