The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1877-02-23
FIRE INSURANCE.
Committees Report

VIE Committee appointed at the last
L annual meeting Of the members of the
Mutual Fire Insurance Company in Hartford
county, held January lst, 1877, to investigate
the affairs of the company and report thereon
to an adjourned meeting 10 he held on the
9th of February next ensuing, beg leave 10
submit the following report
That they have examined the books and
accounts of the company in the office of its
Secretary with us much care as the time they
were able to give to them would permit, and
that they found them to I've carefully, properly
and accurately kept by the Secretary.
Your committee further report that though
the contribution" levied by the company in
the latter part of the past year has been
onerOus to many of its members, and espe-
cially because of the general scarcity Of
money, yet such contribution has been neces-
sary only on three occasions since the nrgan-
ization OF the company, now more than thirty
years ago, and that the average per year,
including these three contributions paid by
the members since the formation of the COM
pany, as the cost of insurance, has been re
markedly low, being in fact little more than
one-iourth of one per cent. upon the value OF
the property insured. We doubt if any of
our fire insurance comp6nies-localo or foreign
can make a better, or indeed so good an
exhibit.
In this connection it is proper to say that
the last contribution was rendered necessary
by several unusually large losses which oc-
CURED during the year 1876 that it is impor-
tant it should be paid by the members at an
carly day in order that the company may
promptly NEST its liabilities therefor, and
Board of Directors be requested to collect by
legal proceedings all sums in arrears on said
contribution after the LIST of March next.
This company is mutual, entirely mutual, in
its character. Each member has the same
interests and rights as every other member.
All the members enter into an agreement
with each other that in case one of their
number suffers a loss by fire, all the Others
will contribute to make such loss good There
are no dividends and no profits to be divided
among Them All that each member receives
is the comfortable assurancc-the certainty
that if his property is destroyed by fire, his
fellow members will reimburse him to the
extent of thrcc-fourths its value. In this
respect that is, in its mutual character, this
company is essentially different from the
usual joint stock companies In them the
stockholders plcdgeu certain amount of CAPT
tai to pay losses by fire, and charge such
rates for insurance as upon reasonable calcu-
upon the capital so pledged. Their rates OF
insurance are higher than the rates of u is
company. If no unusual losses occur they
make money out of the insured, If very
heavy losses occur--noL an uncommon thing
when city or town property is largely in
sured--they frequently fail to pay the insured
the losses sustained In this company the
annual rates of insurance are fixed at the
lowest point which will probably meet ordi
nary losses, and if extraordinary losses hap
pen, a contribution is levied upon all alike
just sufficient 10 pay such losses, and their
payment is always certain, The whole of
the property insured by the company is
pledged TO the payment Of losses.
1t is this certainty OF payment OF losses
which makes insurance in mutual company
like ours desirable and sat. stactory; and the
fact that all the officers of this company live
among rs, and are personally known TO u.s.
that its accounts, books and affairs generally
are always open TO the inspection and eXami-
nation Of any member, that the money paid
for insurance goes TO make good the losses
upon neighbors and acquaintance, and that
whenever we become dissatisfied with the
management the remedy is in our own hands
by change of officers of the company; these
facts, in the judgment of your committee
ought to make this company acceptable 10 lis
members, and commend ii strongly 10 the
people Of Hartford and Baltimore counties
who may desire safe and low insurance.
In conclusion your committee desire to eX
press their confidence in the general manage
ment by the present Board of Directors o
the affairs Of the company, and their higl
appreciation OF the labors, responslblllie:
fuithfulness and efficiency OF the Secretary, tC
whom we are indebted for all desired assist