The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1878-07-19
For The Kyis Dc Mtelligencer.
Mutual Fire Insurance.

Within a few weeks past, canvassers, in the
persons of agents and sub-agents of New York
Fire Insurance Company, have called on some
of our citizens, for the purpose of recommend
ing the joint stock company which they repre-
sent, as being lar safer than ours, or amy other
Mutual Fire Insurance Company can possibly be,
and have distributed circulars, containing sta
tistics and plausible arguments to sustain this
assertion, which, it is scarcely necessary to con-
travert, because the good sense of our people
will be sufficient 10 protect them from being in
lluenced by the declarations ofinterested parties,
who expect to be paid well for the time and
trouble expended in their canvass, by the com
missions received from the assurances they may
effect. Let us briefly compare the two compa-
MES. This New York company is Joint stock
concern the object of which is to make money
for its stockholders; having certain amount Of
assets, the greater part Of which consist of
loans on mortgages, that may be good and may
not, but on their soundness depends the ability
Of the company to sustain itself.
1T has large corps of officers, agents, and
sub.agents, who, no doubt, are paid handsome
salaries and commissions, which of course must
come out of the amount paid by those who insure
in the company. 1t is foreign corporation,
organized in the State of New York. Ofthe char
acter for honesty and integrity of thote who
control its operations, we know nothing. They
may he gentlemen of the most undoubted prob.
ity, and they may be quite the contrary, but let
them be ever so corrupt, we would have no power
to change them. Our Mutual Fire Insurance
Company is not a joint stock concern 1t is an
association of all classes of our people, Farmers,
Mechanics, Merchants and Professional men,
organized for their mutual protection against
loss or damage by fire. Its assets or capital is
the property insured, which property is strictly
bound for the payment of all losses, thus afford
ing security of the most reliable character.
1t has but one salaried officer, its Secretary
and Treasurer, who receives the moderate sum,
annually, of $SOO-thc lowest paid officer per-
forming the same duties of any insurance COM
pany in the United States. The President and
Directors receive nothing, save their per diem
for attending the meetings of the Board, and
per cent. on the amount Of money collected by
them as interest on the premium notes. This
amount is but small one to each director, as
large portion of the annual interest is paid
directly to the Secretary and Treasurer, who re-
ceives no commission for payments made TO
him. Our company is home institution, Or
ganized under Il charter granted by our own
State. Its officers are selected by our own citi-
zens, and If at any time our people desire to
change them, they have II in their power to do
SO, by eecting Others in their stead In one of
the circulars distributed by the canvassers for
this New York Company, it is stated that, "No
one will be surprised when l state as matter
of history, that Mutual Companies alwdyS fail as
Soom as they feel tie heat Of the fires, the losses
from which they were created to protect. join
ing them for insurance against loss, is as though
a man should build wall of snow to protect
him from scorching heat. 1t will soon melt
and leave him fully exposed. For such oppres
slve assessments as those mentioned, must drive
every man out of the Company, and so it will
disband just when 1t is most needed. Forming
such Companies is like the man who built his
house upon the sand. 1t would do well enough
for Il home during fair weather, but when the
storms came, in which he needed protection, 1t
proved only trap that brought him to ruin"
Now, in reply to this, 1t is only necessary to
observe, that we are ignorant OF what has been
the fate of New York Mutual Fire Insurance
but oil our people know, that our
company has been pretty well scorched, not
withstanding which, it has paid its losses, and
it has been necessary at different times
to levy contributions upon its members, still, it
has not disbanded, nor is 1t ut all probable that
its members will ever disband, for the purpose
of seeking the uncertain protection of foreign
joint stock interpretations, against losses by fire.
HARTFORD.