Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1880-08-05
LOCAL INTELLIGENCE.
..TRE LYCOMING."

"TAE LYCOMING"
Why the .stockholder.' - Of . Mu,ua, I,.,--
snce Company Complain.
Quite an excitement has been created in
this city and more especially in Columbia
within the past few weeks by the demand
upon policy holders Of the Lycomins
Mutual Insurance company for the pay
ment Of heavy assessments upon notes
which the company takes from those in
surfing in it. These notes though given
simply as collateral for the payment of as
sessments are for much larger amounts
than their drawers ever expected to pay.
and % per cent. assessment and the
threat Of prompt legal collection Of it il
delayed payment has caused quite 4 fiutter
among the policy holders. In Bellefontc
where they are numerous they held Il
meeting, had an investigation and moved
to ask for a receiver of the company, but
the sufferers in the Milton fire who are
looking to the company for their morey
beg that NO steps be taken to hinder them
from getting it promptly.
A gentleman Of this city who is we'll ac-
quainted with the Lycoming company and
its operation says IN it's behalf and in cx-
planation of the present position of things:
''The Lycoming fire insurance company
has for at least twenty years been a great
favoritc with Lancaster property owners.
and has on the whole done large and
profitable business with small expense to
the policy holders. 1t is only within very
fov ,ck <ho< -
losses and been obliged to call upon its
policy holders for extraordinary assess
ments ON their premium notes. The total
losses Of the company from May 1st 1877?
to May 31st 1880, foot up to the
enormous sum Of $3.50, 81. :;S
BY tho Milton fire alone the company
lost over 800. 900. 1t was these
heavy losses that made it necessary
to levy the recent extraordinary ASSESS
ment of % per cent. on the premium notes
of the policy holders which have created
such excitement here. These notes aggrc-
gate about 81, ,OO0, 900, and the 2j per cent.
assessment as above, ought to bring into
the treasury O,O0O, but the sum will bc
considerably smaller, owing to cxoner:,-
tiOns. failures, sales Of property, &c. The
amount Of the assessment on Lancaster
policy holders is about SO, 700. Although
the recent assessment of q per cent NAV
seem high, yet if it is considered in con,,cc
tion with the very low assessments mace
during period of twenty years it will no;
appear exOrbitant. A single illustration
may be given. A property insured in tl:c
LycOming ten years ago for 81 800 cost the
assured S6 per annum. Had the property
been assured on the cash plan the annual
cost would have been $11.225 per ann,,In -
We have no means Of ascertaining the
number Ofpolicics held in Lancaster no.
the amount of insurance covered by them.
The rates vary greatly. as the property is
more or less exposed to fire. Thus the
premium note for an insurance OF s ,OGO
on 4 substantial brick building is as low aS
$40, whereas on an exposed frame strife
ture in which fires are used the premium
note is sometimes as high as 5000 on the
s, 200.
All the insurance journals that have dis
cussed the recent troubles of the Lycomin.
company concur in stating that the conf
pany has been, generally, well managed :;
that no frauds or populations have been
committed by its officers, and that it's en-
barrassment has been caused by unusual
losses that could not reasonably have been
anticipated. 1t is acknowledged, however.
that the company for a few years past has
been spreading ITSELF and attempting t"
cover too much ground, especially in the
West but having lost heavily by its am
bilious designs, it has learned wisdom ani
will confine its operations mainly to local
insurance. It is also complained
that the company has been borrow
ing money to pay losses, instead "i
promptly meeting them with the necessary
assessments. Complaint is made too that
the cash policy holders have had an advan-
tagc over the mutual members, but the
company says the contrary is the ease,
though it is notable that no more policies
are to be written on the cash plan.
As to the refusal on the part of some of
the assured to pay the assessment laid
against them, able lawyers say there is II"
use of kicking the assessment will have
to he paid.
Experts in insurance seem to disfavor
the mutual plan and to prefer the stock
companies. While mutual companies arc
apt to grow weaker as they grow older,
the stock companies increase in wealth.
The North American Or the Pennsylvania,
could to-day quit business and clear 20
per cent. on their stock.
UNDENOMINATIONAL PICNIC.
Wet Day, but - Pleasant Ono.
The rain yesterday did not interfere in
the least with the childrens' enjoyment ut
the free picnic given by the Rockland In
denominational Sunday school in What
Glen park.
A more enjoyable picnic has not been
held this summer every baby was happy,
and each one tried to make others happy.
The attendance was large. The children