"All  insurance  is  practically  mutual,   and  the  capital   stock  of  stock  com-

Eanies  is  simply  a  guarantee  to  the  policy  holder  that  the  contract  made  with
im  will  be  carried  out,  or  in  other  words,  that  the  policy  holders  in  the  com-
pany will  mutually  contribute  a  sufficient  sum  to  meet  the  losses  of  the  few
and  pay  the  expenses  of  management,  together  with  a  reasonable  per  cent
upon  such  guarantee  capital.  In  township  mutual  insurance  many  elements
of  loss  and  cost  are  eliminated ;  moral  hazard  more  largely  than  anything
else.  It  is  estimated  that  one-half  of  the  losses  by  fire  in  the  United  States
are  preventable,  growing  out  of  arson,  buildings  illy  constructed  and  care-
lessness. In  neighborhood  mutual  insurance  each  individual  policv  holder  is
interested  in  reducing  to  a  minimum  all  these  elements  of  hazard,  because,
in  doing  so,  he  protects  his  own  pocketbook.
"A  carefully  collected  list  of  special  charters  granted  by  the  State  of  Illinois
from  1835  to  1870,  numbering  over  270,  shows  that  the  first  farmers1  insurance
company  chartered  was  the  'Addison  Farmers9  Mutual  Insurance  Company9
on  the  15th  day  of  February,  1855.  It  is  yet  doing  business.  The  next  char-
tered was  the  'Crete  Farmers'  Mutual  Insurance  Company,'  February  20,
1861,  yet  doing  business.  From  this  small  beginning  41  years  ago  has  grown
up  an  interest  with  the  magnificent  showing  of  over  82,500  policies  in  force
in  nearly  200  companies,  covering  over  $112,200,000  of  insurance  at  the  close
of  1895,  as  shown  oy  the  returns  made  to  the  Insurance  Department  of  this
State,  being  an  increase  over  the  preceding  year  of  about  3,000  policies  in
number  and  an  increase  of  about  $9,000,000  in  the  amount  at  risk.
