Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1856-03-01
VERMONT MUTUAL FIRE INsUR-
ANCE COMPANY.
CAPITAL IN PREMIUM NOTES,
$l.27o,8l4 81.
Semi Animal Report aud Statement Of the
DifeelOTs TO the MembeIs.

Directors TO the Members.
During The last six months, from August |
1865, TO February / 1856, there have been issued
2j17 policies, insuring property 10 the amount Of
81, 1853 ,0G2. and the premium notes taken On the
same. are Sol ,ss7 49, The whole number Of
policies in force Feb |, 1886, is 20,l2s, amount Of
property at risk Sl7, 5i7 ,9g8, and the amount Of
capital, premium notes in force, : .2TH,slfS7.
During the same time, n losses have been re-
ported, amounting to 1926 80. An assessment
Of u per cent. las been made, which with the
small advance payment q per cent? will pay all
losscs and expenses to date
In our first class, consisting ofdwellings, sheds,
barns and contents, 49, $50 policies are in force,
covering l3,0sl ,S89. The notes in force in this
class are s57b, SEQ 90 The losses aud expenses in
this class for ten years ending Aug l, 1855,
were, $l52, 1855 90
An receipts from said class for tho
same period, lse, 57274
Sl5,6g2 81
In other words the cost on This species Of prop
criy would have been Sl5.G92 81 more, had no
other property been insured, or " this class had
been separately insured during this period.
On the other Ave classes, deDominatcd hazard
Gus, 32Gs policies are In force, covering 81, 1885,,
l5i,-prcmium notes in force. s702, 93i ~. The
receipts for the ten years ending Aug. 1856, in
said five classes, were $ls3. 1924 02
The losses and expenses were d6,Tl3 10
-
OF this sum sl5.s92 81 have been paid for losses
on dwellings. and the balance remained in the
Treasury Aug, l, 1850
Por the first eighteen years, property insured
was divided into ticeire classes and the receipts
and expenditures in them ascertaine1 separately,
for the purpose Of establishing such rates on dit.
ferent kinds Of property would pay the losses
Before this, the Directors had no guide for rates
except the rates u stock companies, which were
soon found TO he unreiiable as basis ofinsurance
in mutual company.
At the expiration OF the above time, the Direc-
tors reduced the number Of classes to six, and es
tabl-hed such rates Of insurance for each class as
would have enabled It to pay It's own losses during
this periol.
But the losses on hazardous property have been
less in proportion than on dwellings for the last
Ten, Us compared with the first eighieea years.
The frsi class (dwelings) is the basis Of the
Company, and the rates thereon have not been ma
terially altered since the commencement Of the
Company. while other classes will always be
charged sufficient to pay their own losses.
The whole amount Of property insured from the
commencement ofthe Company TO August /, 1850,
| (twenty-eight years. has been S62.3Si.42l. All
losses and expenses for the same time, $9l7 G5O,-
/ 50. The average amount at risk has been nine
and one quarter millions Of dollars The result is
that this Company have insured for the people Of
Vermont the above sum at an average cost Of a
fraction over one-fourih Of one per cent. per an
nun, all kinds OF properiy;--On dwelling
houses, at onc-sixth Of one per cent, and other
kinds Of property at thrce-hfths OF one per cent,
on the property insured.
The property denomina,el hazardous, although
for the last ten years II has paid little more than
its proportion, has been insured At average Of
less than one-half what it would have cost 10 in
sure the same in sound Stock Offices. The pres
emf rates on hazardous property will be adhered to
until sufficient time has elapsed to demonstrate
with certainty that they are too high.
During the las, 81 years, the number Of policies
in force have increased from II $50 to 20,l2s aud
the amount at risk from so,73s,3se to SlI.5i7,-
0J3, and the premium notes from S62l ,5cJ TO
81 ,27g,Sli 81, thus indicating a very large and
successful business, and furnishing TO the people
Of this State the best evidence Of the strength and
stability Of this long and well established ustitu-
ton.
For a few years previous to 1850, the business
Of the Company remained nearly stationary This
was occasioned by foreign companies flooding the
State with agents, who Travelled from house to
house, asserting that the PeTaoai Mutual was
charging farmers too high that they were as
sessed no, only to pay their own losses but large
proportion of the losses factories aud other haE
ardous property; that the Companies, for whom
they acted. insured nothing but farm property,
and that the advance payment, 20 TO 40 per cent.
on the premium notes (which they were careful to
takc,) was all that would ever be required, as
their Companies had a large amount Of funds on
hand.
when the farmers found that they hal been
grossly deceived, and were called on to pay large
assessments. which, added to the heavy Giraaoe
payments, amounted to nearly double the sum
which II cost their neighbors, who were insured in
the Vermont Mutual, they began to surrender
their policies and returned to this Company. This
accounts in part for our largely increased and in
creasng business. To avoid the experse Of chan
ging their insurance from Que Company to anoth-
er, those interested would find il for their adsan-
tage, before making application for insurance, to
examine and select the Company best adapted to
furnish at the least expense what is proposed, A
SURE INDEMNITY IN CASH or Loss.
BY order Of Directors,
DAN'L BALDWIN. Prs,iisaL
CHls. DEWEY, Secretary.
J. T. TIIURsTos, Treasurer.
u See annual report Of 1885, page 5, for properly