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

BEL AIR MD, Jan. "a, 1905.
RICHARD DALLAM, ESQ.
PRESIDENT MUTUAL FIRE ms, Co.
IN hartford COUNTY,
Bel Air, Md.
My Dear Sir
| am in receipt of your letter of the 10th
! inst. directing my attention to the several
changes recently made in the methods of the
! Mutual Fire Insurance Company in Hartford
County and requesting my opinion to the
wisdom OF such changes and the ability of
the Company to look after and properly care
for the interests of it's members.
Since the receipt of your letter have care
fully read in the County press, your commu-
nication addressed to the members of the
Hartford Company concerning the changes
referred to and the necessity thereof, and
anything l may here say fear will not be
more than REPETITION OF what you have so
well and already stated in your letter
The new Charter meets my unqualified ap-
proval. The most important feature ofwhich
is Section 6, which abolisheS the premium
note hereto passed by the member to the
Company. AS there seems to be more or less
speculation as to the full effect of said Sec
ton, will endeavor to restrict most of my
discussion to that section.
The Hartford Company is a Mutual Com
pany, a corporation, in which every policy
holder is member and contributes to the
general fund sum of money in proportion
to the protection he receives and the hazard
of the risk assumed by the Company. Under
the Company's original charter, the assured
was required to sign note, payable on de-
mand, for an amount determined by the in
surance taken and the risk assumed and the
annual cost of his policy or premium was the
interest on his note.
This note, from the time the policy took eff
feet. was made lien on the property of the
assured. and an obligation which he was
| bound to meet when called on; in other
words, if the revenues of the Company were
insufficient to meet its expenses, assessments
TO the full amount of the premium note could
be laid and collected, the members liability
ceasing only when his note paid in full,
and if he refused to pay his note, or any part
thereof, when called on, the lien could be en-
forced against his real estate to the full
amount OF his note. This condition never
did occur, however, and it is not likely ever
would occur, but 1 refer to it simply to show
the difference in that respect made by the
Cornpany's Charter.
Under the amended charter. there are no
premium notes; they are abolished, and the
members liability cannot exceed double the
amount OF his annual premium. Formerly,
| if a building were insured say for ST 900 at
the rate of s per cent, the assured would be
required to give his note for $50, and the in
| terest on that note at per cent. would be
his premium for the year. the Company hold
| ing his note asset, subject to assess
ment, as occasion required.
| The full liability of the assured under the
same conditions, under the new charter, can
not exceed $3.50 in addition to his annual
premium. and no lien is created his land
| and buildings except to the extent of his an
nual premium and assessments which have
already stated cannot exceed twice the yearly
cost of his insurance. Thus. if SO stated. his
annual premium is 81 so, the lien required by
the Company cannot by any possibility cN-
coed Sill 40 and costs of collection.
The other changes made by the Act of As
/ scmbly as they affect more directly the adj
ministration of the affairs of the Company.
have not discussed them in this letter, but l
! have no hesitancy in saying that approve
of them. that they steps in the right direc-
| ton and for the improvement and advance
ment of the interests of the Company.
| I represent a number of policies in your
! Company. and l have no desire to change
one OF them. L consider the Hartford Com
pany, working under its amended charter,
/ better able than ever to protect the interests
4 of its members. The amendments recently
adopted put the Company, which you repre-
sent its president, fully abreast with the
| best regulated Companies of the State and
entitle it to the fullest confidence of the peo-
| pie of our community and State.
Very truly yours,
| NOBLE l.. MITCHELL.