Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1856-02-23
VERMONT MUTUAL FIRE INsUR-
ANCE COMPANY.
CAPITAL IN PREMIUM NOTES,
S1.279,8l4 81.
scmisAnhuai Report and Statement Of the
Directors 10 the Members.

DHttiots 10 thc mGmutfss
During the last six months, from August /
1865, to February /, 1856, there have been issued
2597 policies, insuring property to the amount Of
same, are s2Ol 1897 So. The whole number Of
policies in force Feb I, 1885, is ~, Us amount Of
property at risk Sl7 ,5l7 1893, aud the amount Of
capital or premium notes IN force, 81 ,2Tg, Sl4 &.
During the same time, Il losses have been re-
ported, amounting to Sli,sP5 30. An assessment
Of / per cent. las been made, which with the
small advance payment Of per cent, will pay all
losses and expenses to date.
In our first class, consisting ofdwelings, sheds,
barns and contents, II, $50 policies are in force
covering SIS, Osl ,s3q The notes in force in this
class are S575,ss 90 The losses aud expenses in
this class for ten years ending Aug. l, 1855,
were, S152, 2G5 30
An receipts from said class for the
same period. 1852 "a
sl5,692 81
10 other words, the cost On this species u prop
erty would have been ,692 81 more, had no
other property been insured. or IL this class had
been separately insured during this period.
On the other FIVE classes, denominaiel hazard
Gus, 326s policies in force covering -, 1885,
ld,-premium notes in force, SOP 93l ". The
receipts for the ten years ending Aug. /, 1855. in
said five classes, were SIs3, 1924 o.
The losses and expenses were 16C,7lS Is
slG,G10 81
or this sum sl5,692 81 have been paid for losses
on dwellings, and the balance remained in the
Treasury Aug, /, 1855.
For the first eighteen years, property insured
was divided iuio tlreirs classes and the receipts
aud expenditures in them ascertaue1 separately,
for the purpose Of establishing such rates on dif-
ferent kinds Of property as would pay the losses
Before this. the Directors had no guide for rates
except the rates Of stock companies, which we've
soon found to be uqreliaile rs basis Of Insurance
in a mutual company.
AT the expiration OF the above time, the Direc-
tors reduced the number Of classes to six, aud es
tabishel such rates Of insurance for each class as
would have enabled il to pay It's losses during
this period.
But the losses on hazardous property have been
less in proportion than on dwellings for the last
tea, as compared with the first eighteen years
The fri class (dwelngs) 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 l 1855,
overweight years. has been s62.Ssi.42l. All
losses and expenses for the same time, Sill, 6jO,-
81. 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 average cost Of a
fraction over one-fourth Of one per cent per an
mum, all kinds Of properly ;-on dwelling
houses, at One-siKth Of one per cent, aud other
kinds Of property at three-hftbs Of one per cent,
on the property insured.
The property denominstei hazardous, although
for the last ten years il has paid little more than
its proportion has been insured at an average Of
less than one-half what it would have cost 10 in
sure the same in sound Stock Offices. The pres
ent rates hazardous property will be adhered TO
until sufficient time has elapsed to demonstrate
with certainty that they are too high.
During the last 81 years, the number Of policies
in force have increased from II go to 20,i2 and
the amount at risk from IS, 73s, 1895 TO $i7.5iT,-
yJ3, and the premium notes from SCH ,5o9 to
sl,279,ol4 81, thus indicating 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 we'll established institu-
ton.
For few years previous to 1850, the business
Of the Company remained nearly siaiioHary This
was oceasioned by foreign companies flooding the
state with agents. who Travelled from house TO
house, asserting that the Permoat Mutual was
charging farmers too high;-that they were as
sessed not only to pay their own losses but large
proportion OF the losses on factories and other ha1-
arlous property; that the Companies, for whom
they acted, insured nothing but farm property,
and that the ad7anoe payment, 20 to 80 per cent.
on the premium notes (which they were careful TO
take,l was all that would ever be required, as
their Companies had large amount q fund.- oa
hand.
When the farmers found that they had been
grossly deceived, and were called % TO pay large
assessments, which, added to the heavy adraaee
payments, amounted to nearly double the sum
which it cost their neighbors, who were insured in
the Permoai Mutual, they began to surrender
their policies and returned to this Company. This
accounts in part for our largely increased and in
creasing business. To avoid the expeLse Of chan
ging their insurance from one Company to anOth-
err, those interested would find it 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,
SURE INDEMNITY IN CASE OF Loss.
BY order Of Directors,
DAN'L BALDWIN, PrssiieAL
CHAs. DEWEY, Secretary.
J. 7. THuRsroS, Treasurer.