The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1900-08-22
The Vermont Mutual,

The seventy-third annual report OF
the Vermont Mutual Fire Insurance
Company has recently been published
and distributed to policy holders. The
seventy.third annual reportl Does the
reader stop to reflect that this enumer-
alton carries the organization OF the
Mutual back to date that was only
about one generation after the first tree
was felled in the wilderness region
which is now the city of Montpelier
The early settlers of the town develop
ed surprising aptitude for business
enterprise of this nature, and one of
the most unique incidents in the pio-
neer history of Montpelier is the early
conception and founding here of
company designed to afford the settlers
indemnity for loss of property by fire,
as the permauency, growth and won
derful development of this pioneer or
ganzation into the "Old Mutual" of
the present day is one Of the unique
features of the city's later business his
tory, and the reasonable object of its
pride and glory.
The report shows that the company
has increased it's surplus in the last tis-
cal year from S,967.43 to S97,624 81.
The number of policies issued during
the year was 1850, insuring property
to the amount of ST., 1850, 7O2; premium
notes taken, $1,309,345, making the
whole amount of premium notes in
force August l, 1900, "a $50 GAL, and
, the aggregate amount at risk $54 BAL
496. The assessment is four per cent,
rate that has been maintained since
and including 1897
An inspection of the rate of assess
ment since the organization of the
company shows that it has varied from
two per cent to five and one-fourth per
cent. Only at rare intervals prior to
1897 the rate had been the same for
two successive years. The insured
could never know, except approximate
ly, what his insurance would cost. The
prudent buyer of insurance, as well as
of merchandise or other property, de-
sires to know first the cost. To reme-
dy this uncertainty the Mutual man
agement in recent years has establish
ed surplus to act as a rate evener.
Since 1897 the rate has thus been made
uniform at four per cent. If the as
sessment required to pay losses has
been greater than four per cent the ex-
cess has been taken from this surplus;
if less, the increase has been added to
the surplus. Four per cent has been
found to be the minimum rate of safe
insurance, in the steady application of
correct principles. And in respect of
this matter it is proper to say that but
for the powerful influence of the Mu-
tual in controlling, regulating and hold
ing down rates, property owners in
Vermont would today be paying much
higher cost on the insurance they are
carrying. v
The company is mutual. Its men,
bers. are the insured and, practically,
they have it in their power to regulate
the cost of their insurance. Fully one
third of all fire losses are from causes
easily avoidable. Even the Mutual's
present extremely low rate of cost may
be reduced if every member will use
greater caution and diligence in keep
ing watch and ward over those most
fruitful causes-chimneys stoves and
pipes, ashes, matches and lanterns.
Examination of the causes of fires
shows that out of the Mutual's 731
losses in the past year some 1856 are
traceable to those enumerated. 1t has
been also another "great year" for
lightning, 2l4 losses of buildings and
live stock being traceable to this cause.
Leaving out of the account these nat
ural and unpreventable causes there is
still wide margin for the exercise of
the care and attention of the assured,
and within which the assessment rate
uCpOhdo bhOiO dpOh bhCLu lhuh upOn
the company's officers or agents.
The Mutual carries liberal share of
the insurance on the granite, marble,
lumber and manufacturing interests of
the State, and beyond these branches of
business it insures large majority of
all other property thus protected in Yer
mont, its outstanding policies number
ing 1929, close approximation to
the aggregate vote for Governor in
1893, which was 1902.
From the beginning the growth of
the Mutual has been steady and sub
stantial. And its business has grown
and increased Notwithstanding the close
inspection and constant examination
of risks, the cancellation of policies
where hazardous conditions exist, or
overvaluations are discovered. This
very vigilance attracts desirable bust