The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-05-23
FAILURE OF INSURANCE CO.
Seattle Corporation Has Gone to the
Wall in Queen City.

|
! The Western Fire Insurance COM
pany of Seattle, has gone into the
hands of a receiver. This is no sur
prise to anyone who has ever taken
occasion to investigate the affairs of
that company, says the Pacific Prog
ress printed at Seattle. The wonder
is that it has been able to keep out Of
the receiver for so long time.
AS might have been expected, the
stock companies at once circulated
the report throughout the state that
it was the Northwestern Mutual Fire
association. Others are circulating a
report that the Western is the same
class of institution as the Northwest
ern, and that the latter will soon fol-
low.
The history of the Western is very
amusing one to all except the few peo-
pie who have been buncoed. The
Western was started in the fall of 1901,
| by a Mr.. Price, who stole papers from
the office of the Northwestern, includ-.
ing sample policies circulars, instruc-
tons to agents, ETC., in order that he
might copy the forms for the purpose
of starting what he then called the
Western Mutual Fire Insurance asso-
| citation copying the name of the North
oy1,, ayoQnf
that he added some features, giving
the officers a right to use an unlimited
| proportion of their receipts for ex-
| penses.
The laws at that time required mu-
tual company to have applications to
the amount of $4,000 of insurance be-
fore issuing policies. The manager of
the Western made affidavits to the in
surance department, certifying that
they mad the required amount of insu-
rance, but it afterwards developed that
they had one-fifth less than the re-
quired amount of bona fine applica-
tions 1t is needless to say that they
were not very successful in finding vic
Tins.
The next year the company was sold
to Minnesota man, who had already
been connected with two defunct COM
panies. He commenced an aggressive
campaign for business and at the end
of the year reported that he has re-
| insured the company in another which
he had organized. The following fall
he resurrected the company and start
ed campaign for new business, drop
ping the word mutual and changing
the name to the Western Fire Insur-
ance company. At the end of that
year December 81, 1909 he reported
| insurance in force to the amount of
| Sill 900; losses paid, none.
A few months later he sold the COM
pany to another Minnesota man, who
commenced an active campaign for
business by mail, sending circulars to
saw and shingle mill owners, offering
to insure them at cut rates. His re-
port at the end Of the year, or January
| 1, 1905, as shown in the January num-
Der of the Pacific Progress. showed
insurance in force to the amount of
s405 ,092.00: cash on hand, $72700; H.
abilities, $2,513O2.
! From this it will be seen that the
| company was started as a counterfeit
in the first place. Mutual insurance,
like every other articles of value, mas
always been, and always will be, coun-
| terfeited, but that does not lessen the
value Of the genuine article. 1t would
be just as sensible for a man to say
that he would not accept another sill
| yer dollar, because he knew Of one be-
ing counterfeit, as for him to say that
he would not have mutual insurance
because of this countrfeit.
There are still fakirs connected with
mutual insurance, but there have been
more Of them connected with the stock
companies. The success of mutual in
surance. like every other business un-
dertaking, depends on the management.
RESERVE YOUR ROOMS FOR THE
PORTLAND FAIR NOW.
Through an agreement with the
Portland Service Co. we are in a posi-
ton to reserve rooms in Portland for
a limited number. It Is not necessary