East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-06-27
FIRE INSURANCE
AT LOWER RATES
NORTHWESTERN MUTUAL OF Sc
ATTLE CUTS COSTS BY
40 PER CENT.
SAVES FoRTuNEs on POLICIES.
Interesting Disclosures in Connection
With Demand of Board Concerns
For Higher Charges.

In the face of the promise of the
board line fire insurance companies
that Spokane would be favored soon
with a reduction of rates, upon the
completion of the water system, which
will be ready for operation July 10,
the statement of ]. d. Coleman of
the Home Insurance company, that
the rates will be raised 25 per cent in
the next 80 days. comes as a disap-
pointing surprise to the policy holders
in this city.
The crux of the company's conten-
ton is that Spokane must come TO It's
share of the rescue of the companies
that were hard hit by the San Fran
cisco disaster. Otherwise, says Mr..
Coleman. receivers will be the net
thing in order for the fire insurance
companies of the country.
The contemplated advance in rates
of 25 per cent will be a serious prop
osition when it is traced to the ulti-
mate. 1t will, of course, hit every
home-owner. Insurance rates are al
wavs figured by merchants as legiti-
mate fixed charges against the opera
ton of their stores. A rise, therefore
IN insurance Idlt0 "pNAN
added cost in the operation OF the
mercantile business and a correspond
ing rise in the price of merchandlst
carried. More than this, 1t woulc
mean increased cost of owning i'm
proved real estate, resulting in a sea
son Of high rents.
Cuts Board Rates 40 Per Cent.
AS evidence of the profitableness
carving risks at far less than TN
present rates the Northwestern Mu
tuaI Fire association of Seattle ha
entered this field with a promise
saving its policy holders 40 per cen
of the board rate premiums. In
circular letter, sent to a large mum
ber of prospective risks in this CITY
the company states that it collects
cash uayment upon the delivery of tn
policv equal to one-half the annua
hoard rate. In six months this com
many will pay a cash dividend an
collect another semi-annual premium
and so on throughout the term OF IN
policy. which, to save expense OF re
newal. Is issued for a term of nv
years. with a pro rata cancellatio
clause which may be used at any tim
How 1t Saves Money.
"For example" the letter read
"on policy Of $4,000, where II
board rate is per cent, we wou
charge YOU q cash payment Of Sl'
and in six months you would recei'
a dividend of $40, and then make a
other seim-annual payment OF SlO
and so on throughout the term OF u
policy II the policy IS cancelled
the end Of six months IT only COS
YOU $50. while other companies wou
charge you short rates, amounting
$40"
Some inquiry has been made Of Ia
into the liability assumed by t
policy holder when he pays ca
premium into a mutual company.
cording to the Northwestern Mutt
Fire association, the policy holder
sumes no liability whatever beyo
the payment Of the cash premiu
THE company cites the opinion Of
attorney generals office upon
subject. The portion Of the opin
hearing upon that subject is as
lows. when cash premiums are
cepted and provided for by the u
tees OF such company. as PROVIDED
law. the policy holder paying s
casb nremiums is not liable for
further payment in case OF ne
loss by the company.