THE NATIONAL NURSERYMAN. 
77 
NURSERY INSURANCE. 
Rates Appear to be Unreasonably High—Suggestion of Mutual 
Insurance Company—The Difficulties—National Or 
ganization of Mutuals—Committee to 
Report at Atlanta. 
George C. Perkins, Newark, N. Y., presented a paper on 
“Insurance for Nurserymen,’’ at the Detroit convention, in 
the course of which he said : 
When this insurance question first came up, it was suggested to me 
that if reliable data could be obtained regarding the average percent¬ 
age of losses sustained in the past upon nursery cellars, we might go 
before the National Board of Underwriters and make a showing that 
would enable us to secure lower rates from the old-line companies. It 
occurred to me also that, if unsuccessful in this, it might be possible 
for a few of the nurserymen to form an organization after the style of 
the Manufacturers Lloyds and, if so, these data would be a necessary 
prerequisite to that also. 
With these ends in view I had considerable correspondence with a 
business friend in New York, an insurance broker by occupation. He 
is really an expert upon matters of this sort, and has access to the 
records of most of the old-line companies. He thought he could pro¬ 
cure the statistics we wanted, and offered to do so for $100.00. I wrote 
a few of the nurserymen to ask if they wanted to subscribe $10.00 
apiece to defray this investigation. Nearly all replied favorably and 
I told my friend to go ahead ; but he found on attempting it that it 
was quite impossible to compile separate data of the losses upon 
nursery cellars, as there were no separate records of them, so my in¬ 
vestigations along these lines are without result. 
When I found I was expected to say something on the insurance 
question here, I also sent out some letters to a few of the leading 
nurserymen asking for information about the rates now required in 
their several localities upon both their own properties and, for the 
purpose of comparison, upon other risks of apparently no greater 
hazard. The information obtained has not proven very valuable, for 
the reason that there seems to be no uniformity of rates in different 
localities. 
Rates Appear Unreasonable. 
In a general way, however, the rates upon nursery cellars and their 
contents do appear to be unreasonably high. It would seem to an 
outsider that nursery cellars are a much safer risk than barns or other 
farm buildings ; yet the rates upon the former are two to five times as 
great. The average barn always has a litter of hay, straw or some 
such inflammable material; has wood floors ; the farmer frequently has 
to go to it after dark with a lantern ; if he drops a match, or a spark 
from his pipe, or if the cow kicks over his lantern, the material for a 
conflagration is right at hand. The nursery cellar has a dirt floor ; if 
burning matches are dropped on it, they go out; it is seldom neces¬ 
sary to go to a nursery cellar after dark, consequently lanterns or 
portable lights are rarely carried into them. 
I have also tried to draw some comparison between the rates upon 
nursery stock in storage and the stock of dry goods stores. It is diffi¬ 
cult to make a satisfactory comparison, because conditions vary so 
greatly and rates in different localities vary a great deal even when 
under about the same conditions. In general, however, the rates 
demanded upon nursery stock in storage average about the same as the 
rates upon dry goods stocks. The injustice of this is manifest. There 
is practically no risk of smoke and water damage upon nursery stock, 
whereas in dry goods stores the greater part of the damage is usually 
from these causes. Nursery stock is not easily inflammable, and at the 
time of year when it is in storage the buildings are kept so full of 
moisture that a fire would be very slow in gaining headway. These 
conditions are entirely different in dry goods stores. 
I think every one will admit that the most of us are paying much 
higher rates than are equitable, but what we are going to do about it 
is not so easily determined. 
There has been some talk of forming a mutual company. There are 
in the United States about two thousand mutual insurance companies 
in good standing, but I know of none that attempts to do business over 
so large an extent of territory as would be necessary to take in the 
majority of the nursery cellars Most of them are simply county 
organizations; or, at the most, cover only a few adjoining counties. 
The difficulty in doing business over such a wide territory is that the 
expense of adjusting losses upon such widely scattered risks would be 
very high in proportion to the amount of business done. 
Objection to Mutual Companies. 
I believe that mutual companies which have tried to do business 
over a considerable extent of territory have not, as a rule, been very 
successful. An organization was formed a few years ago among the 
florists for the purpose of insuring green houses, but it was very short¬ 
lived, remaining in existence only about three years, I think. 
Another objection is that no purely mutual organization which we 
might form could safely write amounts that would anywhere nearly 
cover some of the risks that would be offered. There are quite a num¬ 
ber of houses that would need to carry $25,000.00 to $50,000 00 on their 
stock in order to be even approximately covered and a few who want 
$75,000.00 to $100,000.00. In my humble opinion even $10,000,00 
would be too large a sum to be safely written on one risk by any mu¬ 
tual organization of our own ; indeed, it is difficult to get more than 
$5,000.00 from any one of the old line companies. 
I believe that relief, if we ever get it, is coming from mutual com¬ 
panies, but from those already in existence rather than by forming one 
of our own. 1 learn that many of the nurserymen who are located in 
small places, especially in Michigan, are obtaining insurance at very 
low rates from some of the numerous Farmers’ Mutual companies. 
Many of these companies have been in successful operation a long time 
and furnish very cheap and safe insurance. The amount accepted by 
any one company upon a single risk is usually small, but policies of 
$2,000.00 to $3,000.00 may often be obtained in several different com¬ 
panies. Since I commenced investigation for the preparation of this 
paper, I have found where we can place up to about $18,000.00 upon 
each of our two cellars in good mutual companies, and I think it will 
soon be possible to do likewise almost everywhere. 
A National Association. 
In a recent conversation with a mutual insurance man in Syracuse, I 
was told that the field of mutual insurance companies is soon to be 
greatly broadened. There is at present a National Association of co¬ 
operative insurance companies, whose president is W. D. Forbes, Des 
Moines, Iowa. This is a rather loose organization whose present field 
seems to be simply the calling of delegate conventions and attending 
to any matters of general importance in connection with mutual in¬ 
surance. It does not exercise any jurisdiction over the business of the 
various companies. 
I am assured, however, that there is a movement on foot whereby 
the larger mutual companies will be brought into closer relations with 
each other, so that the agent of one company may also write business 
in many others, and by thus dividing the properties among a number 
of companies, be able to safely cover quite large amounts. 
This is to be taken up at the next meeting of the National Associa¬ 
tion which occurs very soon now, and my informant seemed very con¬ 
fident that this new organization would be perfected and ready for 
business by the first of next year. 
I have had quite a lot of correspondence in connection with this 
topic, but haven’t been able to dig up any ideas of especial value. I 
haven’t anything definite to suggest, except that perhaps it may be as 
well to wait and see what is done by the national organization of mu¬ 
tuals. I trust something more valuable may be brought out by the 
other gentlemen. 
William Pitkin—“I had hoped that if there was any propo¬ 
sition for a mutual company, we would hear from it. Millers 
and the manufacturers in different lines are getting low rates 
by this plan. The matter might be referred to a committee 
to report at the next convention. We want cheaper insurance 
but we do not want unsafe insurance at any price.” 
J. H. McFarland— “I move that a committee of three be ap¬ 
pointed to report at the next meeting.” 
E. Albertson—“Why could we not form a company on the 
