The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1903-12-22
IN TIE RIGHT DIRECTION.

IN THE RIGHT DIRECTION.
The lumbermen of Washington have
inaugurated movement that is likely
to revolutionize the insurance business
not alone in that state, but throughout
The country. 1t is the organization of
mutual insurance company, by which
members will, If good fortune attend
them, save nearly all of the vast sums
that are annually paid out for fire pro-
lection. The West Coast Lumbelnlan
thus refers to the new interpretations;
''Ihere are always a number of live
questions of expense around a saw mill
and the question of fire insurance may
be Justly termed a burning question.
1t is exceedingly monotonous to ray
out six to ten per cent annually for
term of years for fire protection and
see no returns for it. Still no busi-
ness man can afford to do without in
surance. In many sections of the
United States, mutual insurance COM
panies have successfully and econom-.
ically carried fire insurance risks for
lumbermen. There has been incorpor-
ated in this state the Lumbermens
Insurance Company. 1t is incorpor-
ated under the laws of the state, ana
is purely mutual. The liability of the
rarticipants is limited to the amount OF
one annual old line premium, that IS
to say, this company would charge the
same as the old line companies do,
and a member having paid his premium
has no other liability other than he has
in the old line companies. If losses are
less than premiums collected, the COM
pany will do as they see fit. This com
many has been thoroughly investigated
and at the present time over fifty pol
icies have been issued. The mills are
generally taking hold of this, and prac-
tically all of them have promised TO
support it. The funds of the associ-
alton are protected by public bond
ing company. The officers are some of
our best mill men whose integrity is
unouestioned. Perhaps no man has
taken hold of this with more vigor than
Harry Carstens of Seattle, where the
Headquarters of the company are. This
is something which every lumberman
should look into as it is a proposition
which will bear investigation.
In the action of the Washington
lumbermen is lesson by which the
people of this city will do well to profit
No place in the country pays so high
q rate Of insurance, when the excel
lence of the fire department is con-
sidered as does Astoria, and the OILY
justification offered for the extortion-
ate charges is "there is apt to be de-
fire at any time, and such-like
arguments. Some Astorians never
carried dollar of insurance and saved
much money py not doing 80, fortune
favoring them by saving them from
loss when fires have occurred. But
while good business policy would sug
gest the wisdom of covering possible |
loss by fire with insurance, it is plain
hat an enormous saving could be ef-
'ected by the organization Of home |
company on the plan adopted by the |
in our sister state.
Doubtless action in this direction 4
would have been taken long since had
here been anyone to take the initia-
i've, and the fact that among some of
he local business men there has for
everal years existed a sentiment in
avor of such a'plan indicates that un-
er competent leadership they would Ii
uickly fall in line and unite in the or
of an Insurance company of
leir own.