Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-02-24
PANY.
Reasons Why the Present Board
should Not be Reelected.

To the Policy-holders Of the Mutual Fire T,lsnr-
ance Company OF the District Of Columbia:
The following are some Of the reasons the
policy holders have for desiring to express their
disapproval of the past management OF the Mu-
tual Fire Insurance Company by electing new
board of managers:
The company was organized about twenty
four years ago to furnish the people OF the Dis
trict OF Columbia with purely mutual IRE
insurance I zee company; There is no stock. I've
vote. WY >N' O''~
The report of the Investigating committee
SLOWS that 600 is loaned to the managers and
secretary at per cent. interest per annunl, eX-
cept in one or two cases, some OF which Is dated
back to February. 1870 1t is probable that a
like amount OF loans were made TO the managers
in former years at the same rate OF interest. IN
addition to this amount Mr.. Mckelden holds
si2 go a. making total Of S92, 120 q, which, as
business men, they doubtless could have loaned
out again at much higher rate OF interest than
6rer cent.
Many policy holders and others during these
years would have been glad to have borrowed
money from the company on approved security
at 10 per cent. interest per annum, and save
paying commissions, ii they had been allowed
the opportunity of doing so, and the difference
the assets many thousand dollars. When the
managers have funds on hand to loan 1t should
unquesti0nab!y be loaned to parties outside OF
the board OF managers.
The best Judgment and combined business
experience OF the managers prompted them to
buy the Marble Building at cost of $4,000
The total revenue from all sources from this
building since its purchase has been 81, 5j.I
total disbursements for taxes, expenses, &C..
sl6.40.53, showing 1t has cost the company
sS:9s4.19 over its revenues, in addition 10 the
purchase price and the loss of interest on the
amount invested. The treasurer, Mr.. Nickel
den. received bonus for the purchase of 81 400.
The report says that 1.-THE committee cannot
escape the conclusion that the loss to the COM
n
this building now amounts to S34,000." The
board OF managers In 1916 and 1876 received $500
per annum each and in 1877 and 1873 $500 per
annum each, including the president, Tor SER
vices as managers.
They admit these are excessive salaries for
lhese years, but insist that it was designed to
cover services as managers for former years.
1t can hardly be disputed that it is o settled
principle In the minds OF the people OF this
country that Congress or boards OF managers
should avoid voting themselves salaries for ser.
vices rendered in past years.
the board OF managers have never furnished
the pollcy-h holders with intelligent annual state
inents, showing In detail the receipts and dis
oursements and the assets OF the company. In
1act, the committee report that they could dis
cover no balance sheet during the past ten
years.
No tables or statistics of the experience of the
company have been prepared and kept from year
TO year during the organization. Showing con-
pdrallFe expenses, losses, Withdrawals, &c, for
the Information OF the policy holders, to enable
them to perfect and shape the working and
policy OF the company.
The company s assets are now about $206.G0j.
Five per cent. per annum on this amount is
Sl03o0. The average expenses and losses for
the past ten years have been a little over - 0Go
per annum. This demonstrates that with a
proper system OF accounts and adjustments or
interest on premium notes, the p0IiCy-h0ldcr5
would realize the full benefit OF a mutual fire
insurance company
The managers have been long and well known
in this community. They have, however. plain
~ ana certainly tailed to comprehend AID per-
form their duty by not carrying out the object
Tor which the company was organized since
they have been amply able to do so-yz: to
reduce the interest on premium notes, on poll
cles and On the old policies cease 10 require any
payments. There are many policies that have
10 The credit OF the holder a sufficient amount
That, should he apply for and Withdraw and
invest II at ) per cent. interest per annum. the
interest," would more than pay the yearly nsUr-
ance. Thus 1t has been and is unjust to require.
such policy holders to pay any insurance.
With the foregoing facts before the policy
holders IL clearly becomes their duty to so re-
cord their vote as will mark their disapproval
In such manner that no future board viii ever
so neglect the important duties intrusted to
lheHl. J. j. E.