The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1899-08-16
AS GOOD AS A GOVERNMENT
BOND,
Is Policy in the Old Vermont Mu-
tual.

The world over, people are not much CIV
on to details in business The average per-
son is quite apt TO make up his judgment
upon few well established facts. II he
has money TO invest, government securities
appeal to his confidence. Security, solven-
cy, prompt payment of interest, quick and
easy conversion into cash, commend these
securities to popular favor. AS it Is in in
vestiug money, 30 is it in taking insurance.
The average seeker of insurance is very
much like the average investor of money.
He does not like to bother himself much
about details. He judges from few salient
facts.
In insurance affairs, as in the mineral
kingdom, all is not gold that glitters. There
are decisions in insurance statements as
well as in investment schemes, but there
are insurance companies whose policies are
as good as government bonds, and they are
not far to seek. One of these is the Yer
mont Mutual. The "Old Mutual is not
quite co-existent with the Green Mountains
but its birth was very nearly contempora-
neous with that of the Green Mountain
State. During the period of its existence
insurance companies have come and insur-
ance companies have gone, in Vermont and
the country at large, but the Mutual, like
Tennyson's brook, runs on forever" The
rivulet that had its rise among the twentes
of the current century has become SWELL
ing stream, into whose waters were launch
ed during its last fiscal year II ,479 new pol
icies, and floating on its broad bosom to-
day are nearly 52,000,0OO Of insurance,
protected by the capital of over 81 900, 600
its premium notes constitute, fund ade-
quate for the security of IL losses short of
universal humiliation of property.
During its existence the Mutual has in
demnitied losers OF property to the extent
OF So 900 900, and has now a cash surplus of
$4,000 This Company is strongly COM
mending itself to those who would insure
nj
erty, desire also reasonable assurance as to
the cost of protection, by maintaining sur
plus TO serve AZ an evener in the matter of
assessments. When losses are light, by
laying a fixed standard assessment repre-
senting the lowest cost of safe insurance,
this surplus grows; when losses exceed this
standard assessment, this surplus is drawn
upon to pay the excess, and the rate is not
increased. For example:-The losses in the
last business year were S191 ,079.11, to pay
which an assessment of about four and one
half per cent would have been necessary ;
but the Company laid the standard four per
cent assessment, and added thereto S16,-
835 drawn from lis accumulated surplus of
S105 852, and thus paid every loss and all
the expenses OF the year.
In further exposition of the wisdom OF
the existing policy of the Company and
the growth of its business, may be cited
some of the figures for the past five years
In 1894 the assessment was OF per cent; in
1895, per cent; in 1896, A. per cent, and
yearly since the latter time, per cent
The amount insured has grown steadily
from S39,457,477 in 1894, to SOL, 1883 in
1899, an increase of S12, 1926 ,072; during this
period the Premium Notes have increased
from 2,S13,636 to S4,05O,3O2, gain of
| S., 236, 665.
In the course OF three.quarters Of CEN
| tury OF continuous wise, prudent, honor
able administration, the Vermont Mutual
has acquired the habit Of successful man
agement, habit that inures directly to the
| advantage of the insured, its members.
This habit is the growth of succession Of
| able administrations, carrying the affairs
OF the institution forward to new successes
and new prosperity and this habit has be.
come az fixed as the hills round about the
place OF the Mutuals official habitaton.