Daily Republican., 1878-11-27
THIRD EDITION.
A Gard.

wa(e State Fire and Marine Insurance
Company aud its enemies, comes fr0u
. misoompreheasion of the fsstsor frsm ,
malicious spirit on the part Of envious ii
walls who see no other way in which
they can compete for business with the
Delaware State Fire and Marine Insur.
ance Company. The Delaware State
Fire and Marine Insurance Company il
transactipg Fire Insurance business
only, and that principally on the mu.
tual plan. The company has to day
l77S policies in force, insuring o.,
92s, ,S73, and of this number 1919 are
mutual policies insuring sl,S04, OF.
on which the company holds the pre-
mium notes Of the assured for 1172, SOC,
leaving only l59 stock policies on tn.
books of the company, insuring alA,-
796. When ~ utual fire insurance CON-
pany holds premium notes to the amount
of 3 per cent. or over, Of the amount Of
insurance in force, it is regarded ~
sound and solvent by the insurance
laws Of every State in the Union
To make no invidious comparisons
VIZ will go abroad for an illustration.
The Lyconing Insurance Conpany the
Farmers Insurance Company, and the
Chester County Insurance Company,
are all OF Pennsylvania, each Of them
are good companies, and doing a large
business in Delaware, have not to-day,
and never had one dollar of capital
stock. The only assets they have now
or ever had are the premiurl notes Civ.
en- by the persons that insure in the
company aud the surplus cash they
have received from their policy holders
from year to year. None of the direc
tors ever put up any bonds or mortga-
g-s or money as security for the policy
holdris, not one cent, and yet no one
would assert hat those companies were
frauds, or that they we're insolvent;
and the Delaware State Fire a, d Marine
Insurance. Company would be just az
solvent as either Of these companies il
they had nothing in the world over and
above their present amount of premium
notes. And this is a fact that every
one who knows anything about insur-
ance knows is true. A mutual fire in
surance company is one thing, and a
stock fire insurance company is anoth.
er thug. The oldest, strongest and
largest insurance companies in Ameri,
Ca, to-day, are purely mutual, in fire,
life and marine Insurance. A mutual
fire insurance Co. when it has premium
otes at the rate of per cent, or over,
the amount it has at risk, if it is
economical and honestly managed, is
ust as good as its policy holders are.
If they are good, the company is good
The Delaware State Fire and Marine
Insurance Company, without one dol
lar of guaranteed capital, would be- just
As good and strong as any other mutual
lire Insurance company carrying risks
OF s., ,OOO, 900, with $500, 900 in premi
uin notes. What better security can
an insuranc" company have than de-
mand notes onAall OF its policy holders,
with the interest on th' same payable
annually in advance The inter st on
ih"s" notes will III all human probabI
ltr, afford sufficient revenueEto paw
all the losses and expenses; but in cas-.
Of genera conhagrdtion, or large or
unexpected losses, the company can
call Oh all of its members to pay their
pro rata share. But When mutual
fire insuran1" company has a guaran
tced capital, if thu directors are respou.
sibl" men, the company is that much
stronger. This capital can b. used in
payment OF losses when the other cash
funds Lave become exhausted, and it
may stand between policy holder and
an assessment. IT may facilitate the
prompt settl 'm~nt Of losses and relieve
members from a call, (always desirable
to avold); but it does not relieve thea.
from pecunlary loss, except in case OF
a great disaster, wien, by the misman.
agemrnt OF the officers in permitting
large accumulation Of risks, a sweeping
fire wipes out the whole assets, abso-
Lutte and contingent. In any other case,
the amount used must be restored by
the members, either by direct as s-ss-
lnrnt upon themselves or from their fu
ture profits. An illustration may facil-
ltat" IN understanding Of the argu
nrnts presented. The Ilolyoke Mutu-
al has a guarantee capital of $l0C 900. |
1t held January |, 1875, cash assets,
(not including the guarantee capital, }
$500, 900; premium notes, $347, 800
contingent assets, $695 90: Total as
setts, 81 262, 800 showing that the
company mus. sustain losses amounting
to nearly a million Of dollars before the
to the gurantee capital can
lose their Investments.
| will further say that the books, |
records. accounts, correspondence, and,
IN a word, any and everything pertain
ing to the business and affairs of tn.
Delaware State Fire and Marine Insur-
ance Company, are now and always have
been open for the Inspection Of all poll
cy holders, agents, Insurance men and
editors. We have nothing to conceal
or cover up; there is nothing in the
records of the company that We are
ashamed of. The gentlemen that arr
the most familiar with the company's
business are its largest policy holders
and warmest supporters. All opposi
tion to, and all -vi reports about the
company. come from those who have no
Insurance in the company and as a gen.
eral rule, from persons who have no
to insure, in this or in any
other company. While we satisfy our
directors and our policy holders, W. are
somewhat surprised at IN. great curl
osity Of our n-ighbors. Yours truly,
JAS. II. MYERS, Secretary.
VTNHE NICEsT PILLS - tAKrH ARE m. SIMm,