The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1905-01-27

COLLECTIONS.
Bel Air, Hartford Co, Nd, Jan. 80, 9O5.
RICHARD DALLAM, ESQ,
PRESIDENT OF THE MUTUAL FIRE ms
Co. OF HARTFORD Co.,
Bel Air, Md
! In accordance with the request contained
in yours of the 10th inst l have examined
the Charter of your Company and the vari-
! Gus amendments thereto, particularly the
| amendment made by the Legislature during
the session of 1904, and accepted in the same
year and also your new Constitution and
bylaws. your new schedule of rates and
! new form of Application and Policy. all
| adopted during the past year.
/ The amendment of your Charter is, in my
Judgment, a very wise one as it embodics i'll
! a great measure the experience of the best
| Mutual Fire Insurance Companies for many
years past in fixing full lutual premium
Inc most important of these changes as
| follows:-
l. The power to re-insure in other Compa-
mics any or all the risks carried by your Com
.. To borrow money as its needs may re-
quirc.
3 To purchase, hold and dispose of real
:. The abolition of premium notes and
the substitution therefor of applications for
Insurance wherein the amount of full Mutual
Premium is fixed and stated. upon which the
annual cost of Insurance is computed.
.. The ri Rht of any member of the Com
pany to withdraw thcrefrom at any time
upon surrendering his policy and paying all
arrears of assessments and proportion of
losses.
G.. The restriction of the members liability
to double the annual cash cost of the mem
ber's policy.
I. The restriction of the duration of all
policies to eight years or less. so that by
curing new policy, survey may be neces-
sary.
So far as have heard these changes dis
cussed by those friendly disposed it is genei-
ally conceded they are wise. Indeed the only
questions suggested about any of them are
as to the wisdom of restricting the members
tu-IrP pih
policy, and the so-called mortgage lien
which is said the Company has substituted
for the premium note.
The reason of the first criticism is the fear
that twice the annual cash cost of.each mem
bers policy may not furnish fund sufficient
to pay all possible losses and that by reason
of this restriction the Company may be
forced to hquidatc Indeed this was the first
thought that occurred to me when noticed
this change, but a sufficient answer is |
think, furnished by the fact that the expert
ence of the best Mutual Companies shows
that the fund which may thereby be raised is
much more than sufficient to meet all prob
able liabilities
The point involved in the second objection
grows out of a misunderstanding. The re-
cent amendment of the Company's Charter |
does not give the Company any mortgage or |
new lien; under the original Charter the |
Company, in case member failed to pay the |
interest on his premium note. could take that |
note into the clerks Office and record it, and |
by so doing make it a lien upon the members |
land by the amendment the amount which |
ber'S land is restricted to twice the cash cost |
of the policy actually due and in arrear to |
the Company by him, SO that the right to |
take the lien is really RESTRICTED instead of |
ENLARGED. This right of lien has rarely. if |
ever, been resorted to by your Company; in |
deed few people seem to have remembered |
that it existed. The talk, therefore, that has
been INDUCED in as to your Company having
abandoned the premium note in consdera-
tlon OF oeing gwen the right to take mort
gage on the members land, is entirely erro-
neous.
The new Constitution and Bylaws have
many improvements of admins
tration. The new form of application is clear
and explicit, and, in connection with the new
policy, forms contract which is easily I'M
derstood and has fewer technicalites than
are contained in the usual Stock Companys
policy.
All those who are interested in the welfare
of your Company are gratitied that these i'm
provements have been introduced and feel
that they tend to make Ike COMPANY
stronger and better than ever.
l have understood it has been recently |
stated that the movement which is under
way in this County for the formation of a
new Mutual Insurance Company has had its
origin in distrust of your Company.
AS one of those who have encouraged that
movement and taken an active part in it. |
would say that have never had any such
feeling; on the other hand, have engaged in
the movement because l believed that we
need more Mutual Fire Insurance Compa-
mics. The rates of the Stock Companies have
become high, the conditions and restric-
lions of their Policies so stringent and their
of losses unfair in many in
stances, that feel we must depend for the
protection of farm property upon the Mutual
Companies.
In fixing the new rates, the Company has
protted by its experience and is adjusting its
charges for each class of property in accord
ance Herewith, that the cash collected
from each class will pay the losses of each.
Generally then desire to commend most
heartily these changes. because l believe they
are improvements which must materially aid
your Company in giving economical and
safe insurance.
Respectfully yours