of each and for the common good of all. Something of this sort must be done or our business will be thrown into greater confusion each year.

Vice-President Page-We have all heard the paper on a subject of vital interest to us. We have all had like experiences. Are there any remarks? I should be glad to hear from any one. If no one wishes to discuss the subject at this time, we will listen to the report of the Committee on Normal Standard Test, Mr. Frank T. Emerson, Chairman.

Mr. Emerson-Mr. Chairman, your Committee would state that it has been unable to obtain sufficient encouragement in relation to the subject to warrant an extended report. The opinion of the trade seems to be that the subject is too intricate to be handled by a Committee representing this organization, owing to many difficulties and the constant changes to which each season it is subjected. The different. seed dealers with whom I have talked in relation to this matter seem to think that the conditions of trade are such that it would be almost impossible to gain any great advantage by having the business cared for by a Committee. The sales of this year's crop are being made at the present time, and have been since June 1st, and will be carried on till long after the crop has been housed. The sales are made subject, of course, to the usual conditions.

The subject was threshed over very largely at our meeting last year, and there seemed to be such a variation in connection with the different types or different kinds of vegetables that no one seems to know how to best get at a remedy. Briefly, the idea is, that after the business is half done you then wake up, after the trade has been half accomplished and deliveries have been made, to the fact that many of the seeds that you have ben depending upon in a bad season are not suitable to your purpose; so it is almost impossible for any one Committee to attend to the business as it should be attended to. It is suggested that the Wholesale Seedsmen's League and the American Seed Trade Association can in conjunction have a Committee formed for this purpose; but nothing has ever been done in relation to this suggestion, as the

committees were located so far apart and it would require such an endless amount of correspondence to get the information together, so that in times past nothing in that direction has been accomplished. I do not see myself how anything can be done unless the business were conducted under some such plan as that operated by the Western Seed Dealers' Association in connection with the prospective condition of the crops. Their Secretary attends to that part of the business, writes to the different growers in the various sections of the country, and I suppose receives replies to his inquiries. I know that I reply to them; and in that way his reports being received at one central point can be handled and disseminated better than by a Committee of various members from different sections. It seems to me that that same plan might be operated in this Association in connection with the Normal Test which is changed from one year to another according to the conditions, and that thereby some good might be obtained.

Vice-President Page-Have any members suggestions with reference to this topic? If not, we will pass to the next paper, "Fire Insurance Expenditure-What a Loss Experience Teaches," by Mr. Albert McCullough, of Cincinnati.

FIRE INSURANCE EXPENDITURE-WHAT A LOSS EX

PERIENCE TEACHES.

By Albert McCullough, of J. M. McCullough's Sons.

Possibly the hardest proposition we have is to understand ourselves, our wants and how to secure them. In many instances it is particularly hard to look beyond our personal interests and desires, but some times it is expedient and necessary to recognize and grant the same privilege to others.

At this time we are all more or less wrought up and agitated by the work of the Insurance Companies in re-adjusting an advancing rate, which they claim is absolutely necessary if they desire to remain in business. There are two sides to all questions, and it shall be my endeavor on this particular subject not to take the side of either, but to be fair to both. It certainly did appear early in the year that our insurance friends were acting unjustly and unfair in the advancing of rates in our line of business, but we find upon a more thorough in

vestigation that the work is not confined to our particular line, but the re-adjusting is throughout their entire business, therefore when we begin to realize that we are not asked for any greater advance than other lines of business, we quiet down and look into the business more thoroughly and carefully.

The first question is, what have we done and what shall we do to justify this additional expense and cost per annum? We know that insurance today is our only safeguard, and without which we are liable to be wiped entirely out of business at any time. This being the case, it behooves us in making our selections to accept only such as we believe to be ample security to protect us. Every line of business is peculiar unto itself, but to the ordinary layman ours may appear to be worse than others. We, however, cannot consider it as such. In placing our business we should always remember the old maxim, "The best is the cheapest." Do we get what we pay for? If the companies are good, we do, and as long as there is no loss no questions will arise. When you, as a good business man, take out a policy, it is the first step to guard against a loss. The other steps follow. Those of us who have suffered losses readily realize the benefits that are derived by being careful at the starting point. Our policies should all be uniform and thus avoid complications in adjustment. Our stocks and stock books should be so kept that it is an easy matter to trace the individual items.

Within the past twenty years the business has entirely changed. The 'hazard risks have increased by the use of electricity and up to date appliances so that it has become absolutely necessary for the merchants and for the Insurance Companies and all parties concerned to keep up with the improvements of the times. We find that the Insurance people have from time to time, met through their various Boards of Underwriters and adopted rules for the inspection, equipment and installation so that today the electrical wiring and contrivances that were in use not longer than three years ago, would be condemned, and in many instances before any insurance could be had on the property, it is necessary to have it thoroughly overhauled so as to come within the rules in force at this time, thus bringing about a complete evolution.

Prevention of fire stands first in economy. I know of no waste equal to that of conflagration, therefore just because, our rates have been advanced we can not drop or reduce our insurance. The saving of first cost may prove an expensive allurement. The Insurance Companies figure that the probabilities are always favorable toward some salvage, therefore the 80 per cent. clause, for instance, if you insure 80 per cent. of the value of your goods you are entitled to a 10 per cent. reduction; on buildings only, 90 per cent.-15 per cent. reduction. We have never attempted to analyze their figures, but

evidently they are based upon facts, for instance, if we were to figure out closely the probabilities of fire and salvage on our stock to be only 50 per cent., and therefore carry only sufficient insurance to cover our estimated loss, in case of fire if we were correct, the Companies holding the insurance would be called upon for a total loss, whereas if we were carrying the 80 per cent. ́there would be considerable of a salvage, and it is self-evident that they could afford to carry the risk for less money. This rebate gives the insurance people a co-interest with the owners in the salvage.

It is the impression of many insured, that when a loss occurs all they have to do is to abandon the goods and charge them up to the Insurance Companies, considering the transaction closed the same as if they were an outright sale. This is a wrong impression. It is the duty of the insured to retain possession of his stock and immediately proceed to care for same for the account of whom it may concern, all expense attached thereto to be charged against the goods and the loss to be computed thereon. The cost of the goods at the time of purchase is not the proper basis for adjustment or settlement, but the actual cash value of the stocks at the time the loss occurs, be that greater or less than the original cost, and this can no be arbitrarily fixed by either party.

The adjustment of a loss is expedited very materially by the manner in which our books and accounts, and especially our stock books are kept. This is the foundation or starting point. We have never found it difficult at all to arrive at a settlement on the field seeds inasmuch as there is always an open market for almost everything on the list, prices fluctuating, and it is an easy matter for even an outside party to arrive at the market value when the grade is once established, and thus the article adjusts itself. For instance, if the value today of prime clover seed was $6.00 a bu. and the lot in question would sell for $2.50, the actual damage or loss would be $3.50 per bu. Now, of course, it is not quite such an easy matter either to arrive at the whole value of the damage on the general line of garden seeds. We have a suggestion to make, however, that if followed out will very largely, if not wholly cover the main difficulties, and that is to depend entirely on your stock books. We all know that the value of our stocks depends upon the grower and the vitality of the article itself, and that none of us on our stock books keep all of the growers even on the same article on the same basis, therefore at the time of a fire if our stock book is worked up showing the name of the grower and the vitality, this in itself will fix the value of the goods and to arrive at the damage it is an easy matter to make a test of the salvage which will clearly show the vitality of the article after it has passed through the trouble, and the difference will be the basis for loss or damage.

This hypothesis, of course, is based wholly upon the owner or only such as are thoroughly familiar with the stocks, handling them so as to avoid any mixture or loss of identification.

In a general fire such as the Baltimore conflagration, of course, anything of this kind would be impossible; the loss is total, and the amount of stock on hand and quality will have to be arrived at wholly from the firm's books and accounts, but in an ordinary fire where there is more or less of a salvage it is my judgment that a loss can be adjusted and settled with very little difficulty and on a satisfactory basis both to the insured and the Insurance Companies by using this method, in fact, I know where it has worked to perfection.

We all know that the rates insurance are based upon the risks and if it is shown clearly that our business is one of great hazard, it would be classified and rated accordingly, but in our judgment it is an error for the seedsmen to allow any such an impression as this to become fixed in the minds of those with whom we are doing business. True, it is a business that can not be run in a careless or haphazard manner, but once systematized it is an easy matter to keep track of and just any discrepancies. We have a complaint on some given article. The first thing we do is to find out when it was this party made the purchase, what stock did he receive, and the balance is easy if our records are properly kept, and it is not necessary to have an expert to trace this out, but it is an easy matter as soon as they become familiar with the system used, but in the case of a partial damage by fire the loss or damage to the stock can be far greater by the careless manner in which it is handled than by the smoke, fire or water. Our policies are to indemnify us and re-imburse us for the actual loss, therefore our duties are plain and our action must be taken accordingly.

Lastly but not by any means the least, is the item of credit. Apropos to this I cannot do better than read the following: In large numbers leading business men of the Ohio Valley were in attendance at the ninth annual convention of the National Association of Credit Men. The meetings were held in the large banquet hall of the Hotel Savoy, and during the three days' session many interesting matters were taken up and passed upon. The question of fire insurance came up for discussion on the first day of the convention and ended by a resolution being passed that it be the duty of every wholesale merchant who is a member of the association to impress upon the retail dealer the necessity of keeping his stock adequately insured in solvent companies, so that in the event of a fire loss his credit standing may not be impaired. The Board of Directors, was authorized and instructed to adopt the necessary means for carrying out this purpose, and all uninsured retailers will be immediately reported to the national office by local branches.