Mutual Fire Insurance.

Manawatu Standard, Volume XLI, Issue 8192, 18 May 1906, Page 2

Mutual Fire Insurance.

(To the Editor). Siii,—The list of failures and retirements of alleged Farmers' Union Mutual Firo Insurance Companies in America, which you kindly published for your anonymous correspondent in Saturday's issue, of May sth, was circulated among tho members during the seanion, when the Mutual Firo Insurance Bill was before tho House. Such a movo had tio effect, for anyone can sco at a glance and your correspondent might have seen—that tho list is not what it purports to be, viz., a list of tho failures and retirements oi purely Farmers' Mutual Firo Insurance Societies in America giuce tho year ISGO. Your correspon dent is no doubt deeply interested in firo insurance business, hcnco his anxiety to give to tho public " another Bide to

tho quewtion." I am euro ho knows as well aa I do that merchants', manufacturers', and artisans' riuka are town risks. Purely (armors' mutual companies confine their operations to isoMed and non-haxardous risks. Then why did your correspondent swell tho number in tho published list of retirements and failures by including the names of such companies as Farmers' and Mechanics', Washington Farmers' and Merchants', Albany, Farmers and Mechanics, Alexandria, etc. 'i

Thero is no doubt about tho success of mutual insurance in tho provsnco of Ontario, Canada. From information received from tho Inspector of Insurance there, I cull tho following figures: —" Tho amount at risk in purely Farmers' Mutuals on December .Hat in Ontario was 169,827,'278 dol; number of policies, 112,793; average policy, 1:305 i dol; number of Farmers' Mutuals, 71 ; average premium note, about 1 per cent.; avcrago premium. I f dollars. Total losses year ending December is lst, 1901, 1*15,389 dol." There has not been a single failure of a Mutual Insurance in Ontario for a great many years, and tho business done scemd to bo absolutely sound. With regard to the volume of business required for safety, the Inspector nays that a new association feels fairly safe when its business reaches 200,000 dol (roughly j£}0,000). Mutual Fire Insurance was established in Ontario 68 years ago by a public general act of tho Legislature, passed in 1836. Sixteen have been in successful operation for between 10 and 20 years; £53 for between 20 and .'JO years ; 10 for between 30 and 40 years ; 10 for between 40 and 50 years, and 2 for more than GO years; total, 71 companies. So that Mutual Fire Insurance in Ontario has long since passed out of tho experimental stage. Tho Mutual* started in N.Z. are purely farmers' companies and insure farm risks only.— Yours, etc,, W. Hun-tick. Palmorston N., May IS, 1906.