Montgomery County sentinel., 1890-02-28
The Mutual Fire Insurance Company
of Montgomery County, Md.


of Montgomery County, Md.
Mr.. Editor Being Director of the Mu
tual Fire Insurance Company Of Mont
gomery County, Md, my attention has sew.
eral times lately been called to an article
published in your issue of January 31st, 80,
under the heading, "Queer Business Man
agement," and signed by "Thirty Year
Policy Holder"
Now it has heretofore been the fixed
policy Of the Directors to take no notice of
these fiatterng (?) criticisms that annually,
about this time, find their way into the
county papers, protesting to come from
interested members OF the company, but
usually anonymous contributors. AS an
individual member of the company, and
not as director, propose to answer the
aforesaid communication.
Does it not seem little strange that a
Thirty Year Policy Holder" member OF
a mutual company, and consequently in
terested in its welfare and perpetuity, should
strive to find out all the vulnerable points
in his company and then advertise them
free, broadcast throughout the land? Giving
us away so completely to all competing
companies
Is it not also peculiar tina. he should pro-
pose to take up collection of $1.00 per
capita, among members, to institute pro-
ceedings in equity to make the company
show why they are increasing the per cent
yearly on policy holders" when one cent
postal card addressed 10 any director or
officer of the company would bring the in
formation that they have done nothing OF
the kind whatever. and that the rate is one
half OF one per cent. lower this year than
last, and will propably be still lower next
year.
Such seeker after truth would also find
instead of "Queer Business Management
the very best financiering, and conscien-
tious effort to transact the business for the
best interest of the whole company.
"Thirty Year Policy Holder" may mislead
some minds when he states "that $33 ,020 90
was loaned last year at 81 per cent, while
premium notes of policy holders are taxed
at 44 per cent. The above amount was not
new investment, but merely change of
investment of a portion ofsurplus fund held
by the institution. This surplus fund is the
solid rock on which our company rests, and
stands to day second, il not first, among the
mutual companies doing business in our
State, and it is "buSiHess" to have large sur
plus invested, even at so low u rate as 3t per
cent, and that too when members are pay
ing At per cent. on premium notes. | re-
peat it, sir it is "6usinesS." IL is all very well
to tal& about assessing premium notes-to
the. he.marines,-but woe betide the company
that depends upon that scheme to make up
DEFICIENCIES
1t is true that in theory the premium
notes are liable for collection to pay losses,
but it would be as "queer business manage
ment" to avail ourselves of that right as it
would be for farmer to sell hlR&am and
wagon yearly to pay his labor and1ertillzer
bills.
II my unknown friend were to move into
another State to reside and wanted insur-
ance upon his property, to decide which
company to patronize, he would first OF all
inquire into the moral standing and busi-
ness attributes Of those having the manage
ment then he would examine to see how
much surplus they had invested. He would
not even inquire the rate per cent OF their
investments, presuming that those in charge
would scrutinZe the securities and procure
as large Il rate as possible consistent with
absolute security. Next our friend would
want to compare the various companies as
to the ratio of expenses to amount of busi-
ness done, cost of insurance, &c. II he were
stranger Just coming into Maryand-and
must charitabiy suppose him to be from
his manifest ignorance vi the affairs Ol his
company-he would find that the Mont
gomery Mutual stands second, as To the
amount OF its invested surplus, among the
mutual companies doing business here by
examining the Insurance Commissioner
! Report he would find that the ratio of ex.
penses 10 the amount of business done in
our company is less than in any other, be
ing about one. fourth of one per cent, while
the next lowest is one third OF one per cent,
and it ranges from that To one and one
tenth per cent, and even higher. So he
would ind the work OF our "gredt company"
is done cheaply
In table of statistics prepared and pub
iishesi by ~ competing company giving the
average cost per annum of insurance for the
| last ten years on the 81 900 worth of prop.
erty, the Montgomery Mutual is set down
as costing an average of $40, the next two
lowest companies are respectively S3 81 and
| S4OS. 1t is true several others were given
whose charges prolessed to be less than ours,
but upon an examination of the Commits
| soners Report find their liabilities greater
than their assets, their expenditures greater
than their income, and surplus small
enough to please even IA Thirty Year Pol
! icy Holder"-a0ae | would ask my friend
! if that is the Kind of business he wants
The mutual aspect OF our company ls also
| questioned. we have Just passed through
| Il siege Ol rec0nStfuctlnS OIu pOllCleS 50 lIidI