National Republican. (Washington City (D.C.)) 1872-1888, 1879-02-24
THE MUTUAL INSURANCE CoMPANY.


Reasons why the Present Board should Not
he Re. elected.
TO he Policy Holders Of The Mutual Fire insW'
dnce 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 Mutual Fire Insurance Company by elect.
ing now board of managers:
The company was organized about twenty
four years ago to furnish the people Of the Dis
trict of Columbia with a purely mutual fire
insurance company. There Is no stock. The
policy holders are the only stockholders, and
every policy holder for every risk held has one
vote.
Tho report of the investigating committee
shows that $4,000 Is loaned TO the managers
and secretary at 9 per cent interest per an.
mum, except in one or two cases, some OF which
is dated back TO February, 1870. 1t Is proba-
bic that a like amount of loans were made to
tho managers in former years at the same rate
of interest. In addition to this amount MIR.
McKelden holds i2,720.2i, making total of
1902 1904, which, as business men, they doubt
less could have loaned out again at q much
higher rate of interest than per cent.
Many policy holders and others during these
years would have been glad to have borrowed
money from the company on approved security
NJ
paying commissions, If they had been allowed
the opportunity of doing so, aud the difference
in the rate of interest would have increased
the assets many thousand dollars. When the
managers have funds on hand to loan it should
unquestionably 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 a cost of $4,000
| The total revenue from all sources from this
| building since its purchase has been S9,756.3i
| total disbursements for taxes, expenses, &c.
| 16,7I0.53, showing it has cost the company
| S6,9Si 10 over its revenues, in addition 70
| the purchase price and the loss Of interest on
| the amount invested. The treasurer, Mr.. Nc
| Kelden, received bonus for the purchase o
| $l,40O The report says that the committed
cannot escape the conclusion that the loss t
| the company on account Of the unfortunate
purchase Of this building now amounts to S3l,
000." The board Of managers III 1915 and loI,
| received 800 per annum each and in 1877 ant
| 1873 $500 per annum each, including the presi
dent for services as managers.
They admit these are excessive salaries FOL
these years, hut insist that it was designed L
cover services as managers for former years
1t can hardly be disputed that it is set
tied principle in the minds of the people o
this country that Congress or boards OF man
ayers should avoid voting themselves salare
for services rendered in past years.
The board of managers have never Gurnishe
the policy holders with Intelligent anmuc
statements showing In detail tho receipts an
In fact, the committee report that they COul
discover no balance.sheet during the past te
years
No tables or statistics of tho experience
the company have been prepared aud keI
from year to year during the organization
showing comparative expenses losses, will
drawal &c. for the information of tho polio
holders, to enable them to perfect and shat
the working and policy Of the company.
The company's assets are now abont 5000
Five per cent. per anuum on this amount
10000. The average expenses and losses ft
the past ten years have been little Ovt
$1,000 per annum. This demonstrates ths
: with proper system of accounts and adjus
, ments of interest on premium notes the polio
holders would realize the full benefit of
mutual fire insurance company"
Il The managers have been long and we
known In this community. They have, hoy
ever, plainly and certainly failed to compr
bend aud perform their duty by not carryit
y ont the object for which tho company was o
ganized, since they have been amply able
do so--viz to reduce the interest on premiu
notes, on policies, and on the old policies cea
Q to require any payments. There are MAJ
: policies that have TO the credit of the holder
sufficient amount that, should he apply for al
d withdraw and invest it at 5 per cent. interC
:. per annum, the interest would more than p
4 the yearly Insurance. Thus il has boon al
J. is unjust to require such policy holders to p
}. any insurance.
T.. With the foregoing facts before the poll
a holders it clearly becomes their duty to so
# cord their vote as will mark their disapprov
n in such u manner that no future board W
o ever so neglect the important duties intrnst
n to them. j. j. h.
SnIitnlra Diamond Pin,