The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1870-11-05
The Board of Managers appointed by the

act to serve until an election under it's pro-
visions could be held, were Francis A.
Ellis, John Partridge, Henry S. Sites,
Henry c. Mackall, Benedict Jones, Joseph
Eaines, Allen Anderson, John NJ. Miller
and Benjamin B. Chambers.
The act authorized the Board to COM
mence business so soon as $4,000 worth
of property was offered for insurance; but
the Managers determined that no policy
should go into effect, and no premium note
be held responsible until at least $500, 900
worth of property was surveyed and en-
tered on the book of the Company and the
premium notes thereon regularly filed
Arrangements were made to receive offer
ings, and two surveyors were employed to
survey buildings and return applications
when made.
In the meantime, a committee, composed
of Messrs. Ellis and Partridge, were
charged with the duty of preparing a
series of Bylaws and form of policy.
Although letters were received from
some Of the best organized Mutual Com
panies, advising the establishment Of high
rates of premium at the outset, the feeling
of our citizens was SO strongly influenced
by the low rates of premium of the two
companies above referred to, that it was
deemed inexpedient to attempt the intro
duction Of higher grade of rates; and the
committee who framed the Bylaws, and
the Board of Managers in adopting them,
controlled by this general sentiment, uni
vcrsaly established a table of rates at SO
low figure, that on $500, 900 of property
insured, on the Goth day of April, 1S47,
when the first policies went into force, the
premium notes filed amounted to but
$3.50, and the annual premium payment
on said notes did not reach four hundred
and sixty dollars, ($460.)
On this scale of premiums, however, the
Company went into operation, on the day
above named, and premium payments for
sixteen months were received in advance,
up to the first Saturday in August, 1913,
that being the day fixed by the charter for
the annual meeting of the members and
the regular payment Of premiums.
Although the applications and premium
notes, and the premium payments thereon,
continued to increase, yet it so happened
that within ten months from the organiza-
/ ton Of the Company, before the first of
| March, 1913, two losses occurred, amount
ing, together, to $3.50; so that to pay the
same a special assessment of not less than
! : per cent. in addition to all premium pay
ments previously made in advance, became
necessary. In consequence, however, of
| the forbearance of Mrs. Hollingsworth, one
of the claimants, who volunteered to wait
until the annual meeting in August, 1S4S,
! the assessment was avoided, and the
amount due her was paid out of the receipts
of the annual meeting, for 1S4S, properly
applicable to the losses Of the new year
only; the means of meeting which, if any,
were thus largely reduced.
| Fortunately, however, the losses for that
year, and the four succeeding years to
August, 1853, were very inconsiderable,
and the Company, in August, 1858, had
/ accumulated fund of some five thousand
| dollars. But the next year, from August,
! 1853, to August, 1854, there came sweep
! ing succession of losses, amounting to
! 50. 600 all in Cecil county, except one
small loss of 800 in Hartford. This reverse
of fortune swept away the accumulation of
| all the previous years, and rendered a
heavy assessment, amounting in some in
stances, to Is per cent. ON the premium
notes of members, absolutely necessary
and unavoidable.
AS the five thousand dollars in the
| Treasury was the accumulation of the pay
ments of the earlier members, it was but
Just that they should have the benefit oft.
| To secure them this benefit, and as far as
| possible to relieve the new members from
the otherwise onerous levy, the assess
ment was SO adjusted that all premium
notes filed before the annual meeting, in
| 1S49, were exempt; while on these filed
during the five following years, the assess
ment was graded from 8 to Is per cent,
thus: 3, 6, ., 10 and 5per cent.
The experience of this year opened the
eyes of the Managers to the imperative me-
MUM 1t so happened that the "The Mill |
Creek Company NOW known as the The
Farmers Mutual Fire Insurance Company
of Delaware, had, in two years after the
organization of the Cecil Company, found
it necessary to double their rates of pre-
MUM to sustain themselves.
The proper steps were at once taken to
effect 4 change of the rates by the action
of the Board of Managers, to be confirmed
or rejected by the annual meeting, in 1855,
the change requiring the assent of two
thirds of the Board of Managers and two
thirds of the members present at the an
nual meeting.
| Controlled, however, by the prevailing
feeling in favor of low rates, which still
| existed, notwithstanding the palpable evil
dence given of the folly of such a course,
the Managers succeeded only in adopting a
table of rates, in which, in no single case
did the increase exceed so per cent. on the
original rates, while the rates on some
classes of property were not increased at
all. The consequence was, that for eight
years, from 1853 to 1868, the Managers were
obliged to make frequent assessments over
and above the regular annual payments, to
meet the losses sustained by the Company.
This was as annoying and vexatious to the
Board as it vas to the individual members
of the Company, a number of whom, from
time to time, unwilling to pay these extra
demands, surrendered their policies and
withdrew.
Seeing the necessity of more perfect
system of premiums, the Managers, in the
year 1862, caused a thorough examination
of the business of the Company during the
fifteen years of it's existence, to be made,
and from the table prepared during that
year. showing the premiums received for.
and the losses sustained in each class of
risks, guided by their own experience,
they caused to be prepared, and submitted
| to the members Of the animal meetinp