The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1902-08-27
SEVENTY FIFTH ANNUAL
REPORT.

Montpelier was singularly fortunate
in the wisdom and enterprising char
acter OF the pioneers of the town,
"beneath whose sturdy stroke bowed
the woods. Among the settlers who
had gathered here, on the banks of
"Onion River, in a small opening
in the ''forest primeval," were men
of prescience, the men of mental and
business grasp, who understood the
need o. banding together to protect
themselves from loss through the des-
truction of their property by fire, and
they comprehended also the funda-
mental principle of organization for
mutual and effective protection
against fire. Hence, as naturally as
their dwellings arose in the wilder
ness rose also in the woods, a genera
ton after the first trees were felled
and the first cabin reared, the associa-
ton which was felicitously named
the Vermont Mutual Fire Insurance
Company. Its first annual report
was made seventy-five years ago.
This was about twenty years after the
Waterman had been established in
this same wilderness. Both institu-
tions have continued along their way
to the present, and from the beginning
have been important factors in the
affairs of the State in whose earlv
years they were founded. At this time
the Waterman company is publishing
the Seventy Fifth annual report of its
sister institution, which long ago,
following the Scriptlral injunction to
man to multiply and people the earth,
had multiplied and peopled all the
State with its agencies and had taken
into its expanding mutually Yer
mont property ow ners to the extent OF
two-tbirds The voting population of
the State.
In this connection it is a pleasure
for the Waterman and Journal to d.
rect public attention to some of the
facts of this fellow pioneers history,
its present standing in the State aud
among fire insurance associations.
The Importance of the Vermont
Mutual in the business affairs of the
State is shown by the fact that during
the period of it's existence it has paid
Vermont property owners more than
S6, 900, 900 for losses by fire. 1t has also
demonstrated the soundness and wis
dom of its plan of insurance, which
has not been changed in any essential
particular during the entire period
of its beneficial career. The mutual
plan is the original and oldest form
of insurance. 1t grew out of the first
banding together of a few property
owners to protect each other against
losses by fire.
The mutual plan is not only the
strong plan, but it is cheaper than
the later schemes of protection through
stock companies. The mutual plan fur
nishes fire insurance at cost, and cost
must necessarily be on basis of safe,
judicious and economical management
and administration.
The stock company is organized to
make money for it's stockholders. 1t
must necessarily make its premiums
large enough to pay its losses and the
expense of doing business, and large
enough, also, to provide dividends for
the stockholders. In the mutual plan
the policy holders are the stockhold-
ers, and they get their dividends in
the lower price they pay for insur-
ance. The stock company's expenses
are on basis of cost determined, not
up here in Vermont, where all the
items of cost, rents, salaries and Incl
dentals, are practically at minimum,
but on the scale prevailing in New
York, Philadelphia, Boston, etc.
Elucidation of this point is obviously
unnecessary. The mere suggestion is
sufficient
The Vermont Mutual is chartered
by the Legislature of the State and
its affairs are under the annual in
spection of the Vermont insurance