The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-11-26

CARRY THEIR OWN RISKS.
Given . Chance to Protect Their
Property ~ . LATHE more Than .
Quarter the Ordinary Rates.

An opportunity has at las, been offered
20 the property owners o. this stats TO
insure their buildings at low rates. AT pre-
miums based on the actual losses sustain
ed and without any Of the expensive off,
eials and high priced agencies TO maintain,
as has been the case ever since the first
building was insured In this state. The
plan is based on the provisions OF the law
passed by the last legislature. making
mutual companies possible, and Is the first
chance here for the people 10 abandon the
payment or the enormous premiums that
have been necessary TO protect their prop
erty.
j. h Bridgeford, secretary Of the new
company, told last night Of seine OF its
plans He said.
tOid-line insurance companies are or
ganixed to make money. This company il
not: II Is an institution in which every
man who insures has a personal interest
TO increase its membership The more
members. or persons VINO insure. the
cheaper will be all their insurance. and the
moro certain the payment OF their losses.
In no event. however, can there be a re-
pudiation. as the company. under the law,
cannot issue policy until 1t has s5o.eoo of
insurance op its books: but in order to he
doubly safe. the extra precaution has been
taken OF not issuing any policies until the
make lower rates than would otherwise
obtain of immediate effect, and at the
same time be an absolute security.
''The feature OF this mutual organizing.
which has been in successful operation in
the Eastern states for the last thirty or
forty years. and in Oregon for a decade,
is that nc hazardous risks are taken, and
the maximum insurance on any one build
ing, or contents and building, is 81 COO II
buildings are more than Ia0 feet apart,
each may carry a policy. but II nearer
only one risk will be taken. no matter how
great u premium be offered. Only farm
buildings and residences in sparsely set
tied parts o. city VIII be insured as 1t
Is the Intention TO avoid In every partic-
uiar tho % ssibiiify OF loss that would
j,opariiize tile company.
''S-heneve, loss CT a member Is re-
por.cd al. assessment is levied but this,
under the state law, cannot be more than
10 per cent. OF the annual premium charg-
ed in like cases by old-line companies.
The surplus that Is on hand after the pay
mant 81 this loss goes into the treasury.
TO be applied on the payment Of the next
"a careful review OF the statements
made by stock insurance companies shows
that IS per cent. OF the gross earnings go
for operating expenses. and 20 Per cent.
In agents commissions. leaving IS per
cent. for the payment Of profits 10 the
stockholders and OF losses. There 10, there
cost that viii be saved a. once. not men
tioning the profits that have also been paid
by the people. So there Is at the most
only 10 per cent Of old rates to be charged,
and as only approved risks are taken this
Is bound to be lessened.
1T Is indeed the fact that the average
premiums OF the mutual companies that
have been operating In the East for many
Of the regular rates. and IN Oregon last
ance saved fseo90 in their premiums. the
average rate being III per cent. or but
iiffle more than Quarter of the regular
rates.
Taking It for granted that there will
be the same number OF members In this
state as In Oregon. based on the average
OF one risk TO the member. there viii be
81, 80, 900 worth Of business the average
Of risks being 3450 In comes a report OF
OF the old-liae rates (which will average
probably l per cent. per annum on farm
risks) Is levied. bringing In $l6.Si5 for its
payment. The average cost Of loss be-
ing s25n, this one assessment Is sufficient
TO pay over sixty-seveu losses.
The average number Of farm buildings
that are lost by IRE in this state during a
year Is 100. so on the same basis the total
payment Of these could not be more than
aaia per cent of the oId-lin rates, or one
and a half assessments, "a the first as
sessment paid two-thirds of the total years
losses. So one might speak indefinitely OF
the merits OF the property owners having
their insurance In their own hands. and
thus doing away with paying tribute To
mouse expense. and which declare large
dividends each year.
There Is no possibility OF the COM
pany's failing. which renders the insurance
absolute. This Is in marked contrast TO
the old.iine companies. thirteen Of which
have gone 10 the wall In Washington and
Oregon during the past ten years, with
large amounts OF the peoples money In
their pockets"
few business men have gotten togeth-
er to pioneer Z way out of the old line and
into the new They have accordingly or
gained the Pioneer Mutual Insurance As
ISOLATION. which was incorporated iast
month and expects 10 have the stated
$4,000 worth OF business by the middle of
December when policies VIII be issued.
The company Is organized with the follow
ing officers. President. O. T.. Sylvester.
president and manager Of the Seattle Trad
ing Company: secretary, ]. r. Bri5geford,
and treasurer. II. $. Jordan, cashier OF the
Posi-Tntelii9encer. The secretary and
treasurer are required 10 give heavy bonds
an safeguard against misappropr:ation of
funds
Mr. Bridgeford has for the past 1--WE
years been secretary and manager OF a
mutual insurance company in Oregon,
which is operated with the greatest sue
cess so that the management OF Q mutual
inst ance company is not = new venture
for aim. Mr.. Jordan In also q practical
ms rance man. having had ten years ex-
pei snce In tina. business. Tho head of1ce
is located In this city.