USA > Missouri > Atchison County > Biographical history: Atchison County, Missouri > Part 29
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"We have hundreds of letters from home insurance companies in Eastern States, and even from Iowa, and all of these companies have proven a grand success. The Wis- consin company, as you have heard, has acquired an assessable capital of over $1,500,000 in fifteen years, and has had only eleven assessments, amounting to one mill each. Well, how much has that $1,500,000 of insurance cost the Wisconsin people in fifteen years? One mill assessment on $1,500,000 gives $1,500, and eleven assessments would make the total $16,500 for fifteen years' insurance. How much would that amount of insurance cost in Eastern companies? They charge at least $5 per year on each $1,000; that would make $1,500,000 cost $7.50 per year, or $112,500 for fifteen years. Subtract $16,500, what it cost to insure in the home company, from $112,500, the cost in Eastern
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companies, and we have $96,000 which it costs more than a home company for fifteen years. Gentlemen, if you to-day can organize a company that will save your people $96,000 in fifteen years, had you not better do so at once?
"In the Indiana company (at my old home,) which has been doing business for over twenty years, it has cost only $10 for $1,000 for twenty years, or fifty cents per year. Did you ever hear of cheaper insurance?
"Now, gentlemen, what the people have done in Indiana, Wisconsin and Illinois we can also do in grand old Missouri, where the ground waves with crops each year. We can and will do better than has been done in those states.
"We have met here to organize a farmers' mutual insurance company in Nodaway county, Missouri,-not only for Burlington Junction but for every township in the county, and we are going to organize at once. Some of the people of my county call me a crank on insurance. I hope you will help turn the crank that shall slip a belt on Nodaway county that will set all wheels in motion on home insurance, and save thousands of dollars to your people.
"When the company is organized let every man in favor of home and reform insure his property as soon as possible, and get everybody else to insure. Have confidence in your neighbors, singly and collectively, remembering that it is a mutual faith-while you are trusting them they are trusting you. Don't ask: "Will they pay?" But ask: "Will I pay?" In Atchison county the last assessment of nearly $300 was paid in less than ten days. Look for no law-expect no law but the law of dire necessity, which has always honor among men, bright as the jewels of the fabled mine. The law of necessity is upon your track, and don't you forget it."
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MUTUAL INSURANCE COMPANIES OF ROCK PORT. (Continued)
To show the rapid growth of the mutual insurance movement in Missouri and to give an idea of how the old line insurance companies were "bleeding" the people, we quote from a speech made by H. F. Stapel in St. Joseph, Mo., on March 4th, 1896, in which he mentioned some of the companies that have been concerned in the recent insur- ance scandals, and, in fact, Mr. Stapel at that time predicted these scandals. We quote from his speech as follows: .
"Mr. President and gentlemen of the convention:
"It is indeed a pleasure to meet so many mutual insurance men at our first state meeting in St. Joseph. Yes, we are always glad to meet in St. Joseph, because the people know how to entertain visitors to their beautiful and prosperous city. When we have been in other states, and, when returning, reach St. Joseph, we always feel like we are at home. We are also proud of the St. Joseph newspapers, for when the mutual insurance agitation was begun in the state a few years ago they made it quite interesting for the old line com- panies. Senator Cochran devoted column after column to showing how the people were being fleeced by those companies, and it was by his untiring efforts that the mutual insur- ance bills were gotten through the Senate.
"I hope we have met here not only for the good of ourselves but also for the people we represent, and that each one here will express his views in bold and meaning terms. We want all to know just what we intend to accomplish and the good that can be accomp- lished by mutual insurance.
"I have agreed to tell you about the beginning of mutual insurance in Missouri. On Sept. 26th, 1885, we issued a circular to the farmers of Atchison county for a meeting to be held for the purpose of considering mutual insurance, the circular being signed by hun- dreds of our best farmers. The meeting proved to be a grand success, for the Eastern agents as well as the farmers were there and took part in the discussion and tried to pre- vent us from organizing, but they were answered by our farmers in such plain terms that they never replied and they have never been seen in our meetings since. At that time
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there was no law for mutual insurance companies in this state, and we decided to wait until we got the Legislature to pass a law permitting farmers to carry their own insur- ance. Bills were introduced at each session of the Legislature and I went to Jefferson City at my own expense, a number of times, and tried to help get the bills passed, but the old line companies had their dudes and plug-hat men there and they had rooms rented where they invited the boys each day to partake of fine cigars and refreshments, and by such argument induced a sufficient number of members to vote against the bill that it was not passed until in 1889, when the people elected men who could not be persuaded in that way, and so an act was passed by which the farmers' companies exist to-day, and Atchison county was the first county in the state to have an organization under the new law. In 1890 we organized a life insurance company, which is now known as the Globe Lodge of the Farmers' and Laborers' Mutual Protection. After the first law was passed it seemed much easier to get other laws passed of a similar nature. On March 12, 1891, a law was passed allowing the farmers to organize a tornado insurance company in each congressional district, and we succeeded in getting a bill through amending the law so that a company with over $400,000.00 of insurance could insure property any place in the state. Our Missouri Tornado, Cyclone and Windstorm Insurance Company was also the first company in the state to organize under both of these acts, and we spent a great deal of time and money in assisting to get these two bills through.
"Let us look over the records and see what has been accomplished in our three com- panies-tornado, fire and life. The companies have over six million dollars of assessable capital and a membership of over six thousand. Now, let us see how much money we have saved the people. To insure $6,000,000.00 worth of property in an old line com- pany for one year, at a rate of $10 per $1,000, would cost $60,000, or $300,000 for five years. Our insurance for the past five years has cost less than one mill on the dollar per year, but we will say thatit will average one mill. That would make $6,000,000 of insur-
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ance in the farmers' company cost $6,000 for one year or $30,000 for five years. That is a saving of $270,000 to the people, saying nothing of the interest on that amount. Should the amount that it costs to insure $6,000,000 worth of property in an old line company be put on interest, at five per cent., the interest would more than pay the cost of the insurance in the farmers' company, and the principal would never be touched. Is it any wonder why the directors of old line companies are nearly all millionaires and pay their Presidents from $40,000 to $100,000 per year and erect the largest and finest buildings in the United States? The officers and directors of our companies receive no salary. If the people do not stop paying their hard-earned money to the Eastern thieves it will be but a short time until the Eastern sharks control all the land, the railroads, the legisla- tures and everything else. It is high time to quit patronizing them if we would be inde- pendent.
"The so-called level premium companies issue lottery tickets instead of policies, and it is high time for the people to put on the brakes. We never thought that the stock com- panies were robbing the people as badly as they are until we read the insurance reports from a number of states. We take the following from the report of Hon. Jas. R. Waddill, Superintendent of the Insurance Department of the State of Missouri, published Dec. 31, 1894:
"'The business of level premium life insurance continues to improve and is assuming proportions of interesting magnitude. The aggregate assets of the companies doing bus- iness in this state were, on Dec. 31st last, more than $981,000,000. Their income in 1894 was over $240,000,000. They received in premiums $2,548,308,941; interest, $551,671,- 532, making an aggregate of $3,099,980,473. Paid to policy-holders: Death claims, $891,100,141; endowments, $134,894,628; surrender values, $325,758,343; dividends,
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$285,440,176; annuities, $21,683'429; expenses, $431,852,774; on hands, $981,163,592; payments to policy-holders, $1,686,064,107.'
"Five years previous to the time of making the above report the same Superintend- ent of Insurance made the following statement:
"But in view of the enormous volume of assets and insurance, present and prospect- ive, it may become a matter of interest to inquire: How many companies are needed to do this business? How many can do it safely? Should there be a limit to each one's share? Three companies have assets of $343,000,000, four companies have assets of $173,000,000, seven companies have assets of $84,000,000; total assets of the four com- panies, $700,000,000.' Again Col. Ellerbe brings out this fact: 'With no insurance and no determination, except by death, the $516,000,000 of assets of the seven leading com- panies will become $850,000,000 in eight years more; $1,300,000,000 in seven years more; $1,900,000,000 in six years more, after paying $250,000,000 in losses matured by death.' Did Col. Ellerbe's prediction come true? Yea, verily, for it more than reached that amount in less than five years, instead of eight years, reaching the enormous sum of $981,000,000. Thus it can be seen that on the first day of January, 1895, thirty-six companies repre- sented the amount last named, taken from the people-over and above what was neces- sary to pay all death claims, endowments, surrenders, annuities and expenses of all kinds. This is a stupendous amount to be withdrawn from amongst the people, and no matter how gradual the withdrawing may have been, its effect is certainly felt with severity by those who have been unnecessarily deprived of it. But, strange to say, this accumulation has only begun to assume vast proportions in recent years. Here is the record: In 1859 there were fourteen companies with gross assets of $20.000,000; in 1869 there were sixty- nine companies with gross assets of $180,000;000; in 1879 there were only thirty-four companies with assets of $700,000,000; in 1894 the companies doing business in the state of Missouri had assets of over $981,000,000. It will be seen that these companies paid
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out over $400,000,000 for expenses alone, or more than half of what they paid out for death claims, which amounted to over $800,000,000. The fire insurance companies doing business in the state from the years 1885 to 1894 collected over $14,000,000 more for premiums than they paid for losses. During the year 1894 the life insurance compan- ies doing business in the state received premiums amounting to over $5,000,000, and paid death losses and claims amounting to a little over $2,000,000, thus taking $3,000,000 out of the state. If the same increase continues for the next thirty years they will have assets amounting to over six billion dollars. When the intelligent farmer and thoughtful business man consider these vast figures they will readily see that these so-called level premium companies are doing more to cause hard times and the shortage of money among our people than any other cause. This is a fact, because it takes the ready cash from all parts of the United States, and more especially from the Western states. The Eastern companies take more money for insurance and interest than is paid our farmers for grain and cattle. They get grain and meat for their money and we get a lottery ticket for our money, or a so-called insurance policy, and pay them millions of dollars for taking care of our money and business. The most of this money is invested in railroad bonds. The three leading companies of the United States have over one hundred and fifty millions of dollars in railroad securities. Nearly all these companies started out as mutual companies and none of the promotors put up a dollar, and there is not a dollar of personal responsibility connected with these vast robbing institutions to-day.
"We find the state of affairs in Missouri as follows: Amount of insurance in force Dec. 31, 1894, by Missouri level premium companies, $15,625,434; amount of business transacted in Missouri by Missouri level premium companies, $221,064.42; amount of business transacted in 1894 by level premium companies of other states, $245,367,232; premiums taken from Missourians by level premium companies of other states during 1894, $3,355,373.50; total aggregate premiums received by Missouri level premium com- panies from all sources, $40,522,000; total premiums received by level premium companies doing business in Missouri in 1894, over $250,000.000. Thus the citizens of Missouri can
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have the satisfaction of knowing that the money which they contribute to foreign level premium companies, with a reasonable rate of interest, not exceeding six per cent., in twenty years, will amount to upwards of $200,000,000.
"In an investigation ordered by the Legislature of the state of New York, in 1887, it was directly proved that Insurance Commissioners accepted bribes of large amounts and were paid to use their personal influence to secure legislation for certain companies. It was also known that Insurance Commissioners, with their little grip-sacks, went from state to state, from company to company, under the guise of making examinations, for no other purpose than to be able to extort fees and other considerations for services rendered, amounting to from several hundred to thousands of dollars in each case.
"The members of the investigating committee above referred to were outspoken in their condemnation of the course of a particular Insurance Commissioner, and in their denunciation of the manner in which these great life insurance corporations, working under the level premium system, did their busine s, expressed themselves in the following emphatic manner: 'Facts disclosed by investigation in relation to the prodigal and extrav- agant, not to say criminal, use of money in large amounts by many of the companies, to secure selfish ends, are so manifest that your committee would come far short of per- forming their duty if they fail to condemn, in the most positive manner, the practice which has been pursued by them. The officers and managers of these companies seem, in the minds of your committee, to have willingly misconceived the purpose of insurance. The law by which they are organized and the confidence reposed in them by the insured supposes that the affairs of the companies will be administered by their officers and directors, not for special purposes, but in the interests of the policy-holders and the pub- lic.' We are glad to say, however, that the Insurance Commissioners of our state have never been guilty of this crime. They have done their work well, so far as the law allows them. We think there should be a law permitting the mutual companies to advertise in the report the same as stock companies. This would be a great help to the companies,
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and, as the state pays for the printing, I think the mutual companies are surely entitled to be seen in that book. We realize that the level premium companies claim that a reserve is necessary to help pay losses, benefits, etc. We are ready to prove that all this howling about surplus cuts no figure whatever, except for the benefit of the officers of the various companies. As soon as the people realize how they are being robbed by these level premium companies they will organize, and the so-called level premium companies will continue to draw their immense sums for salaries and other expenses until the entire surplus is gone and the companies will go into the hands of receivers. How much do you suppose the policy-holders of the largest companies referred to, which have $150,000,000 in railroad stock, will realize on their policies? I will guarantee that it will be less than ten per cent. How much do you suppose the members of any defunct old line company receive? Ask the policy-holders of the Charter Oak, of Connecticut; the Life Association of St. Louis; the Continental, of New Jersey, and the American Life, of Philadelphia? The fact is that there was plenty of money for the promotors of these defunct companies, but scarcely a cent for policy-holders.
"We have heard so much blowing about mutual companies or fraternal protection being short-lived. While in Europe in 1895 we made a thorough investigation of insur- ance. We found that the mutual companies are the oldest companies in existence. We found the following companies in England that are doing business to-day: The Count De Winton Society, established 1168, age 727 years; the Loyal Evanus Society, establish- ed 1358, age 537 years; Norman, London, established 1693, age 292 years; DeFoe Friendly Benefit, London, established 1687, age 208 years; Society of Linlot, established 1709, age 186 years; Ovengton, Northumberland, established 1711, age 184 years; Goldsmith's, London, established 1712, age 183 years; Mutual Brothers, established 1717, age 179 years. And fifty-nine over one hundred years old. Eighty-nine exist that were established previous to 1800 A. D. More than one thousand exist that are over fifty years old. Total number of English friendly societies, 10,775; total membership, 7,000,-
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000. Of these the Royal Liverpool has now an actual membership of over 815,000, and the Royal Legal Friends of London, over 773,000, these two alone making a larger total than all the old line companies in this country. In the United States there have been admitted to the fraternal congress forty-two fraternal beneficiary organizations, with a membership of 1,497,525, and they have paid since their organization the magnificent sum of $235,698,985.23 to their beneficiaries. And to the credit of the fraternity benefi- ciary insurance it may be truthfully said that not one has failed in this country, while over seven hundred old line companies have failed with their millions of assets. And over seven hundred natural premium non-fraternal companies have gone down, but the fratern- ities have been faithful to their purpose and trust and have gone on paying their benefi- ciaries and demonstrating the strength and power of the brotherhood of men.
"But the fat-salaried officers and well-paid agents have relentlessly tried to smother these fraternities. Columns of mystic figures and atmosphere perpetually filled with smooth talk has kept a busy and unsuspecting public pretty well imbued with the belief that nothing is reliable or safe except these companies, accumulating large sums of money and squandering it.
"At the present time we find that more people in Atchison county have property insured in the Missouri Mutual Insurance Companies of Rock Port than there are land- owners in the county. This is indeed gratifying to the directors of those companies. The first of these companies was started over sixteen years ago (organized May 1, 1889,) and nearly all the farmers and business men of Atchison county have insurance in tlie com- panies. It is also pleasing to note that nearly every real estate owner in the county is a subscriber to The Atchison County Mail. We expect that our business will continue to be conducted in a manner that will save money for the people who deal with us, and thus be a source of pleasure and profit for all parties concerned.
"Through the kindness of Hon. A. A. Lesueur, Secretary of State, who wrote us last week, we learn that there are farmers' mutual insurance companies in the following
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counties of the state, fifty in all, viz: Warren, Osage, Ralls, Andrew, Scotland, Audrain, Bates, Livingston, Lincoln, Clark, Marion, Clinton, Monroe, St. Louis, Dade, Worth, Linn, Pettis, Macon, Ste. Genevieve, Grundy, Moniteau, Calloway, Clay, Cole, Jackson, Montgomery, Gentry, Gasconade, Perry, Harrison, Christian, Nodaway, Howard, Henry, Maries, Daviess, Platte, Hickory, Carroll, Barton, Mercer, Knox, Atchison, Saline, Chari- ton, St. Francois, Lewis, Buchanan."
The above were the only counties in the state in which mutual insurance compan- ies had been organized at the time Mr. Stapel made the speech in St. Joseph. Below we give a complete list of the counties where there are mutual companies at present, and the names of companies, viz:
Adair county-Farmers' Mutual Fire and Lightning Insurance Co. Atchison county -Farmers' Mutual Fire Insurance Co. of Atchison County; the Missouri Farmers'Tornado, Cyclone and Windstorm Ins. Co .; the Farmers' Mutual Hail Ins. Co. of Missouri; the Globe Lodge of the Farmers' and Laborers' Mutual Protection. Audrain county-Farm- ers' and Laborers' Co-operative Insurance Ass'n of Audrain Co. Barry county-Barry County Farmers' Mutual Fire Insurance Co. Barton county-Farmers' Mutual Fire In- surance Co. of Barton County. Bates county-Prairie Farmers' Mutual Fire and Light- ning Insurance Co. Benton county-Farmers' Mutual Protection Ass'n. Bollinger county-Bollinger County Farmers' Mutual Aid Society. Boone county-Boone County Home Mutual Fire Ins. Co. Buchanan county-Farmers' Mutual Fire Insurance Co. Caldwell county-Caldwell County Mutual Fire Insurance Co. Callaway county-Farmers' Mutual Insurance Co. of Callaway County. Cape Girardeau county-Cape Girardeau County Farmers' Mutual Aid Society. Carroll county-The Farmers' and Laborers' Co- Operation Insurance Co. Cass county-Patrons' and Farmers' Mutual Fire Insurance Co. of Cass County. Cedar county-Farmers' Mutual Fire Insurance Co. of Cedar County. Clinton county-Farmers' Mutual Fire Insurance of Clinton County. Christian county --- Farmers' Mutual Fire Insurance Co. Clark county -- The Farmers' Mutual Fire Insurance Co. Clay county-Patrons' Home Protection Insurance Co. Chariton county-The
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Farmers' Mutual Fire Insurance Co. of Chariton County. Cole county-Cole County Mutual Fire Insurance Co. Cooper county-Cooper County Farmers' Mutual Insurance Co. Crawford county-Crawford County Farmers' Mutual Fire Insurance Co. Dade county-The Farmers' Mutual Fire Insurance Co. Daviess county-Patrons' Home Pro- tection Co. of Daviess County. DeKalb county-The Farmers' Mutual Fire Insurance Co. of DeKalb County. Franklin county-Cedar Fork Mutual Aid Society; Clover Bottom Mutual Fire Insurance Co. Gasconade county-The Owensville Mutual Aid Association. Gentry county-The Farmers' Fire Insurance Company of Gentry County. Grundy county-Farmers' Mutual Insurance Co. of Grundy County. Harrison county-The Farm- ers' Mutual Fire Insurance Co. of Harrison County. Henry county-Farmers' Mutual Insurance Co. of Henry County. Hickory county-Farmers' Mutual Insurance Co. of Hickory County. Holt county-The Farmers' Mutual Fire and Lightning Insurance Co. of Holt County. Howard county-The Farmers' Mutual Fire Insurance Co. of How- ard County. Howell county-Farmers' Mutual Fire Insurance Co. of Howell County. Jasper county-Jasper County Farmers' Mutual Insurance Co. Jefferson county -- Farm- ers' Mutual Fire Insurance Co. of Rock Township. Johnson county-The Johnson County Mutual Fire Association. Knox county-The Farmers' Mutual Ass'n of Knox County. Lafayette county-The Patrons' Mutual Insurance Co .; the Freedom Farmers' Fire Asso- sociation. Lawrence county-Farmers' Mutual Insurance Co. of Lawrence County. Lewis county-Grange Mutual Insurance Co. Lincoln county-Lincoln County Farmers' Mutual Fire Insurance Co .; Monroe Farmers' Mutual Fire Insurance Co. Linn county- Farmers' Mutual Insurance Co .; Laclede Farmers' Mutual Fire and Lightning Insurance Co. Livingston county-Farmers' Mutual Insurance Co. of Livingston County. Macon county-The Farmers' Fire and Lightning Mutual Insurance Co. Madison county-The Farmers' Fire Insurance Co. of Madison County. Maries county-Lois Mutual Aid Asso- ciation. Marion county -- Farmers' and Laborers' Mutual Association. Mercer county- Mercer County Mutual Insurance Co. Moniteau county-The Hazel Dell Farmers' Mutual
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