The Baltimore County union. [volume] (Towsontown, Md.) 1865-1909, 1883-12-15
Correspondence Baltimore County Onion.
MUTUAL FIRE INSURANCE COMPA-
MES.
BA1rmoRr COUNTY. Dec. 18th. 18S3.

BALTIMORE COUNTY, Dec. 18th, 1883.
Editors of the Union The notice given by the
Hartford County Fire Insurance Company, that
they would take no risks canneries after the
expiration of this year, has naturally caused much
excitement among those interested in the business
The determination of the Hartford company is in
my opinion much to be deprecated The canning
interest is but in its incipiency. The whole COM
mercial world is the market for their productions
and is not to be glutted by the few hundred farm
ers that have recently turned their attention to
this opening for small part of their unremuner
alive labor. l am largely and about equally in
sured in the Hartford and Baltimore county CON-
panies and wish success to both and feel free to
say that do not approve of the action of the for
mer company. These companies strictly
mutual, formed almost exclusively by the farmers
themselves for mutual protection. Raising vege
tables and fruits is legitimate part of their busi
ness, and should be fostered rather than crushed
Gamers necessary factors to the farmer; their
interests are identical. One writer has suggested
that the body of farmers should not be taxed to
sustain such hazardous risks. Well, suppose this
selfish view is to rule, is it certain that these
adjustments are so infinitely more dangerous than
other industries to which exceptions are taken
True, the Hartford company has been unfortunate
in these risks within the past year. The Balti-
more county has lost heavily during the year, but
not one dollar from cdnneries.
Your corr espondent alludes to the ridicutOusiy
low rates at which these mutuals insure, and adds
that their officers admit their injudicious manage
ment. When he undertakes to speak for these
officers he should not include those of the Balti-
more county company. That company has been
in existence thirty four years. The per centage
of their premium notes is but little more than that
of our respected contemporary, the Hartford, and
very much less than one of the most successful
ones in the State-the Montgomery-and yet the
average interest they have collected on their pre-
MUM notes for these thirty -four years il fraction
less than per cent, and they have merer made an
assessment This company, so far as am inform
ed does not propose to discontinue offering protec-
ton to all legitimate industries within their proper
field. They may change their relative rates from
time to time, as experience may seem to warrant,
but to discard such worthy enterprises or dfsxl6
them out of existence by excessive taxation, tbB
do not propose to resort to-
One other point wish to allude to before
closing One of the emissaries of the foreign stock
companies, who has busted himself throug hout the
county in traducing the standing of our mutuel
companies, has endeavored to make some of our
simple minded people believe that in signing these
premium notes they jeopardiZing the Whole
property upon which they are based whilst so Tar
from this basis being an exceptiOnable feature, It
is its greatest strength. The Baltimore county
company holds some six hundred and fifty thous
and dollars 1860, 000) Of premium notes, secured
bv liens upon over ten millions of dollars (Sl0,-
O00 0OO) pledged each to the other tosecure against
any loss that may be sustained, but as before re-
marked, thirty -four years experience has demon
strated that the apparently very small contribu-
ton called for has proved sufficient for all emer-
gencies. This company has ever acted on the
principle that more than enough to meet any de-
mand the wsest forethought might think could be
made upon them had better remain with the I'M
sured The more 50 as they have the certain as
surance that if it should be needed there is an
infallibe source upon which to draw.
One other point and l am done. 1t has been
the effort of the traducer to endeavOr to weaken
the confidence of some in this company by show
ing that by the companys exhibit they were bor-
rowing money. We'll, all know that with these
mutual companies all pay their annual interest at
the one time. This brings quite large ame,ist
of cash. Not having present use Tor 49, POr,,
ton of it, so much as may reasonably be supposed
will not be needed at an early day, is invested IN
some good dividend paying securities. If previ
Gus to the annual contribution there is not ready
cash enough on hand to meet obligations, these
securities are taken to bank and money obtained
on them at less than legal rates, such securities tt
be again redeemed as the annual interest comes in
trust that I may have been able to express
myself intelligibly, and that this communication
may not be too long. Yours, &C., d.