Montgomery County sentinel., 1890-01-31
QUEER BUSINESS MANAGEMENT.
The Policy Holders Of the Mutual Fire
Insurance Company Growing Restless
Under the Burden of fTaxation-The
Law to be Invoked.

Mr.. Editor II feel it a duty for some
one to direct attention OF policy holders to
the Montgomery County Mutual Fire In
surance Cempany's statement issued TO pol
icy holders January 1st, 1890. | find in
that statement the losses by fire for the year
1889 were $5S, ,5S1.36; expenses for running
this great company, $7,726.40; making II
total Indebtedness of $66,307.76. To pay
that amount the company had on hand dur
ing the year, including investments sold
(what that was do not know,) 800, ,52235.
Now, mark you, instead of that amount be-
ing used to pay losses, $33, 10000 were in
vested or loaned at 81 per cent, while pre-
MUM notes OF policy holders are taxed at
Al per cent, notwithstanding the hardships
we are all experiencing to make both ends
meet. Does it seem right and just to make
policy holders in q Mutual Company pay
Al per cent. on their notes to enable the di-
rectors of the company to loan money out
at 81 per cent. Is that business? 1t looks
very much like there is some financial
scheme on hand that the policy holders are
not aware OF.
When from the same statement, January
lst, 1890, there were in existence in the hands
of the company premium notes amounting
to 81 1925, ,262 .66-every dollar of which is
subjected to be collected to pay losses when
necessary to meet the same-in addition the
company had invested in securities $4,000
w, due Tor interest on premium notes Janu-
ary 1890, interest on investments, cash on
hand, value of house and rents $74 ,503.45 I;
making grand total of assets on hand and
liable to pay losses $1,490, ,7661l, to pay
$66, Notwithstanding the losses and ex-
pences to be the same for 1890 as they were
In 1889, and they are not likely to bea great
deal more
Now, just think of it, with nearly one
and a-half millions of assets to pay say
$67 10000, the company was compelled to
increase the interest half per cent. on pre-
MUM notes. Does that kind of business
strike the old policy holders as any thing
very mutual! | am informed when the Off
GERS are approached on the subject, they tell
you it You do not like their way of doing
business you can draw ont OF the company /;
poor consolation for the thirty or forty years
policy holders who entered the company
as a Mutural Insurance Company and not
as financial company Draw out, that is
Just what they are trying to drive US to do
by the course they are pursuing One hun
dred thousand dollars or more would be
nice little nest egg to divide when enough
policy holders are driven out to make it an
object toido so. 1t strikes me the company
has grown too large from the object and
basis it started on--there is too much sur
plus, too much expense and extravaganza
in the management of the business. | find
another Mutual Insurance Company doing
business on the same basis that is not cost.
ing one-half as much in PER cent. or ex-
penses, and pay their losses rs promptly as
the Montgomery Company.
understand Il prominent lawyer will file
a bill in equity and make the company show
why they are increasing the per cent. year
ly on the policy holders while they have so
large surplus on hand 1t is high time
for policy holders to take IA practical view
of the matter aud act. II one hundred poi.
icy holders would contribute $l apiece, it
would be about the cost of such ii suit.
Thirty YEAR PoLICY HOLDER.