Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1867-10-18
Vt. Mutual Fire Insurance Company.
FoRrIrTH ANNrAL rrpoRr.

For many year,, We have been in the
practice Of seru;inizing the Annual Report
of the Mutual Fire Insurance Company.
and always with satisfaction at the thorough
and minute exhiDi; which it presents We
see by its Fortieth Annual Report that 1t
holds on the even tenor of its way, both as
to the enlargement OF lts business and the
moderate annRl expense which has fallen
upon those who have insured IN it. 10 those
who are not acquainted with the principles
on which its business is conducted. il will be
of interest to state them briefly. The gen
eral principle which undcrlies the whole Is
that the insurers, as whole, shall pay, from
year 10 year, the actual amount OF loss IL
CURED by FIRE during the year and the ex-
penses incidental to carrying On the business
the expenses being always kcp; at tie
lowest mark consistent with securing a care
full, skilled. and reliable administration Of
the extensive business o. the Company-and
no more also, that there shall be as exact a
distribution OF this outlay on the insurers.
in conformity to the amount OF property IL
sured and the measure Of the 1isk, as care
full observation and experience viii admit Of.
To carry out this principle, the rule OF the
company is to issue policies TO run six
years, unless there are proper business rea-
sons f1- shortening the term, on not over
two-thiris the value Of the property insured,
and to take a note, winch acts as q first lien
on the real estate if unincumbered and when
Incumbered, with ample personal security,
for sum amply large enough to cover tic
total amount Of risk-the rate ct which
the property IL assessed varying with the
risk-and on these notes tie Losses as they
occur are at different times Of the year are as
sessed at & rate per cent sufficient to realize
from all the notes the amount needtul to
meet the loss. These assessments are sum
med up at the end Of the year, and the IL
sured are notified by public advertisement,
Of the total amount thus assessed. which sum
they are bound to transmit promptly % the
Treasurer's office. Failing to do So, the
Company can enforce by law the payment OF
the entire amount Of the premium note, 70
repay at the close OF the policy what OF the
svails has not been needed e. meet the annu-
al assessments This resort is. however.
very rarely if ever needed. Besides the an
nual assessments, there l. paid at tie outset
three per cent on the amount OF the Iusur-
Gnce note, which may be considered as an
additional assessment or halfoi one per cent
year, for the six years which the policy
has to run
The acreage annual assessment on the notes.
for the forty years Of the existence q the
Company has been but q little over three per
cent and it is worth noticing how little the
variation has been from that amount from
year to year. OF the forty years, flr tw5
years near the beginning %; l;s business,
tAeIe were no assessments. ga enc year, 10
was less than two per cent, on ten years. it
was Two per cent, or that and q fraction. on
fifteen It was three per cent, OF tina. and
fraction on nine years 1t was four per cent.
OF that and fraction; and On three years
it was five per cent.
The average annual cost Of insurance for
tie last SIX years on about seven oightls Of
the policies covering houses and barns and
sheds and c0utentsl has not been fourteen
cents on the hundred dollars insured On
the more hazardous property 1t has Of course
been more, and according 70 the degree Of
hazard incurred; but in all c-szs less than it
would be where Insurance is elected ilr the
profit Of s;ockholdcrs-