The state republican. (Jefferson City, Mo.) 1871-1896, 1895-07-11

As there IS no capital stock, they
should derive the benefit in getting
reduced rates. or rates lower than
stock companies can give, and If
prudcntly and carefully managed,
this result can and should be at
tanned. OF course, you are aware
of the fact that mutual compauic~
require an application for every risk
upon when Il policy is issued, and at
the time Of making out same, the
applicant must also sign a pro.
MUM note which covers the premium
for the life of the policy, to.wit:
six wears. the length of the mutual
term, the premium, or more properly
speaking, the rate, having been 81
~multaniou,ly fixed. With us, rs with
other m%utulls, the practice is,
after fixing the rate on an application
for insurance having the premium
note signed, and issuing tho policy,
we collect ten per cent. of the pre-
MUM note, which is credited on it,
and one dollar policy fee, AMI then
hold the note until the policy expires.
when it is returned TO the maker.
We have not made an assessment
since twenty-five years ago-Al
vlst the essltrsdAaHst ssss
time was the ten per cent. and pre-
MUM note and one dollar policy fee
for six years, or mutual term of in.
| surancc.
rs to the rates of our insurance,
they Of COURSE vary and depend upon
the Character of the risk, exposures,
moral hazard, etc, but are ueverthe-
Iess regulated by us, and fixed at Il
figure which is reasonable. We are
not governed nor have wc anything
to do with the rates that are from
time TO time formulated by the board
of underwriters. To give you Il few
instances of our rates, let me cite
the following:
On q good brick dwelling risk,
| well located, our risk would lie one
and one-hnlf mutual. Say the APP
p!icant wants $1,000, We figure it
thus: One and onc-half OF 81 900
is $1,000. Six times this (thc length
of the premium notc) i 500, which
would be the amount Of the note. on
which is paid ten per cent. or $500
and Sl.00 policy fee, OF a total OF
$1,000 the $500 being 4 credit on
the note, and III the hight Of our eX-
pericncc for the last twenty-five
years, this is all the assured would
bG required to pay. OF course, We
hold hi, premium note until the eX'
piratjon Of the risk for the balance
Of the 30 per cent, and then return
them.
There is very little probability o.
any of our members having to pay
more than above Indicated, in view
of the present condition of our con
pany besides, under the existing
decisions OF our supreme court, a
| recall them, we must exhaust gu
assets, or nearly all, before we cal
maize an assessment. On hricI
dwellings, nOn-eXpOsed, one four,l
to oHc-half per cent. more. Ga
farm dwellings, two to two and one
half per cent. On stocks, mcrcuul
chaudi9c, two per cent. and upw9r,
which | think makes the cost of IN
surancc cheaper, and c|onsiderabi,
50, in that of stock companic,
Under our charter VIC have also
right TO do Il stock or short tenn
business, but when we do any Of thu
kind Sc expect stock rates. As yo.
will remember, our company Wa
chartered by act of the Legislation
in lSGG, 10y Judge Krekel, V. Bechc
> and others. Now, however, compa
uic~ must organize under the genoa
law. That you may have an in>.gH
y of the t. Ondiliun Of the affairs of o.,
company, | send you a copy Of On
: statement for the year 1894. h0v
! hurricdly gotten down a few item
! responsive to your inquiries, and
Z trust they may be Of some service t
; You. Should you wish any furJhc
information, ! should be glad to giy
1t to you if | can. Your friend,
ii. j. S%CuoENICH,
The above letter should leave II
doubt in your minds as to the prope
course 20 pursue in this matter.
Trusting that we have made III
matter sufficiently clear for the cXcl
else OF your best judgment, we Ieay
The work to he finished by your
selves, Respectfully,
i. j.. LuCLErg,