New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-12-19
Mutual Insurance Companies

10 ne Edff0fJ o. Inc ". y. IffOhHe,
There have been so many wrongs To-
flcted by some Insurance Companies upon indi-
yiduals holding their policies, that feel con-
strained 10 point out some OF the causes and abuses.
and 20 suggest remedy
There IS m nearly every county OF the State q
Mutual Fire Insurance Company, most OF which
were INCORPORATED IN 1885. These companies COM
and 90 business without capital aud for that
reason the managing agents ADD officers have
nothDg 20 make or lose ~ good or Ill success IN
are paid according % the eIfenf, not the safety Of
the business cone. Thsu pfOits depend upon the
njsr Of poi,css issued, aud upon the safety Of tie
risk not The greater less premium charged there
tor They get their fee ior each policy issued, who
tier 4 be on safe country dwelling, or on steam
sawmlll The last may burn the next day tho
MOI ~ 10 pay the loss does not come from The p0ck-
cts Of these officers but from the thousand policy
holders scattered throughout this sad other states
Then again there Is son or son-in Law OF one oil
these managers who happens to be lawyer. and no
has got to BE- supported by the Company in some way
The insured beng burned out presents his claim for
h. loss The files looked over and the survey Of
the premises made on. by the Compinys agent bus
tense By the iDsured) IS handed 70 TINS attorney.
n sees that their survey as incorrect IN stating the
dis,srce OF the Arrest building 10 De 20 feet whes
In fact II - Only 1874 feet lie OF course concludes
this 10 be a material mistatement OF material fact.
and De advises that the policy Is VOID AMI can't %
collected A suit 10 commenced His lawyer 40
ferds urging the half foot over above alluded 20 AZ
&c ense IL goes ough all the courts, the plainIa
IA succeeciI n EACH and the Company appealing
A. often until they appeal no longer. Hundreds
ard perhaps thousands OF dollars OF costs ara incur
rea and who pays these costs NO, Ms nana.
GERS Of the Company. bur the ten thousand strangers
who have seen oeiuced INTO joining tho Comp.ny'
by the peryuasIOns and false statements OF the inter
ested slenIs, by whom even d"eilihg In the iaLn -
fyeouentsd as oten as by beggars for Charity, ana
vh.n the assessment is collected good round snn
Is drst taken out OF u by TIE insurer ano hanoed
over 10 this lawyer sOn-ln'ia", "ho "a" SUCH ~
tenn IA the hat loot error. -.
out and who By FIRE bad lost his ALL has, 'of wam
Of his immediate pay, been hafassed MIN suis ana
costs and this very policy has perhaps, W JuoSos
order been transferred 10 receiver, aha perhaps
solc 70 some stt equator al oIe-bdlf us lace
The conclusion which this leads me 10 Ia, thai me
system Of Mutual lbsufarce Is rslicsay oeieo"sos
for the reason that the managers Of the company are
under o Responsibilities 70 airy body IN partcuief'
ana have no pecuniary interest Tor none OF much
amouII Ia the Ill succ ess oil tue company
Every Company should oerequiredto nave AZ ieess
kIOO 600 CO 20 capital which should BE- sole I'D COZ
tain PROPORTIONS FOR losses and for defending upsuo
cessful lawsuits Then there would DC an en-, ~
issuing policies for the mere p n1po,v aos ssrassnS
twelve 81 ling fee an end 10 deenolns ana na
honest cls1u sns for the mere purpose Of pocEeuns
the costs. ,f,,u.ts FADING them
Asalp. some Of these same hasuas nhsins Wei
Conoanies ia cisrsp1te As they oesefveoly He anu
snd,po : .ir q of IN their accustomed uumper o!
:. nal,ey fees nave recently made ne. shu. sne
,,e raising themselves of as STOCK Companies.
1sroTrrng ID their advertisements the term " nusuN
md retsinu the remainder Of Their corporate nAno
and calling their premium notes 20 much
and issuing policies precisely IKE tnose =. 80.
Compsnies receiving therefor annual cs'h premium
4 but mite. , u-.ht... "A m.
bel. ye all such policies TO be worthless Ano ua.
! oi,s",.h,e a frsud upon the holder and upon ina
,nens4Is Of the Company, for the reason that .aen
ebat,ers 10 not allow any such thins, AZ WEI appear
! By the following -. c.,oo.n,..
The p1ovisions Of all Mutual Insurance Compan,s.
occ1D1raso b. act OF the Legislature are tne sAms
! as ,bdse OF the Jefferson County Mutual wnlca
AS chartered March 8, ls36.--se" La~s Of 1910
! nag, AZ
The second section Of that law eracss that =" .,
n~r,on. who shall insure with said company snai
/ ,bsreby become members OF the COMPANY Int
fourth section enacts that any person VINO shall DO
corne member Of SAID corporation BY enect,ns 10
surarce therein, shall, brs he rsnsrs has pol'ey. o.
uoai his promissory note for such sum OF mos1
a. snail be determined by the Directors asa p,s
no,erceedlng per cent OF said note, snsn - !,
rneoiztely paid, and the remainder shsL DC "a ar
required By the Directors, TO pay ''s's'
TSls being the law Of the land css "a = sur,
Directors dlspense with these pro v"''h''
as above stated Ia, thai such poll !:
would Do W's'nie'' A- FAls DSALisa.