East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-06-30

our company" continues the cir
cular letter, 'iS mutual only in the
sense that the policy holders own the
company and receive the profits The
company is protected in the fact that
ii collects in advance almost twice as
much as the amount needed for losses
and expenses. and should unusual
losses occur it would only affect the
amount of the dividend"
Earns Surplus.
That this method of carrying fire
insurance is profitable for the COM
pany is best known in the statement
of the Northwestern Mutual Fire as
sociation January /. 1906. This
shows that after a period of five
years existence the company had to-
tai assets amounting to $316,45S.O4
and total liabilities of s54.437.S2. leav-
ing net assets to the amount of s2B2,-
O20.22 and a net cash surplus of S47,-
219.1S. Losses paid for the year 1905
were S51,S70.2S. expenses $37,097.55,
or total of sSS.96LSS. The cost of
the same insurance in a stock COM
pany at their annual rates would have
been $17O.473.41, showing a net saw
ing to policy holders in the North
western of $S1,505.5S.
Still another feature, comparative
in its nature, of this company's re-
port is the statement that the COM
bined gross assets of all American
stock companies reporting to the New
York insurance department per 800
g,f; ;Y,esr a
sets of the Northwestern for each
500 are S2.35.
January, 1902, the Northwestern
showed a total saving up to date, as
compared with annual board rates,
with outstanding insurance amounting
to about s1,5OO,0O0 of s3,924.96.
This saving kept increasing year by
year in the proportion that the out
| standing insurance increased so that
January /, 1906, the insurance in force
was s13,471,570, while the savings to
the policy holders had increased tc
over s250,000.
Takes Limited Risks.
The Northwestern claims that II
| will accept only limited number oi
| risks in each city and that in Seattle
where it has the largest number ot
policies in force, ii would not be EN-.
barrassed were the conflagaration Of
1889 to be repeated. In such al
event, the company says, it would
only consume about one-fourth of Its
assets.
The board companies in raising
rates seem to be striving to protec
their stockholders pocketbooks at the
expense Of the holders of insuranc,
policies.
The above article calling the atten
tion of the people in Spokane anC
Washington to the fact that they arr
paying too much for their fire insur
ance applies to the people of our owl
state and this city.
A word regarding our own mutual
the Oregon Fire Relief association
At the close Of 1905 we had s22,130,
573 insurance in force; net gain o
s3,383,31O. Total amount writer
during year, $7,S64,627.
1t costs our members 65 cents pc
$1,000 insurance to carry on the busi
ness Of the association for the year
and represents a saving Of S164,20S
The Northwest Mutual Fire associa
tion of Seattle saves the policy holde
40 per cent of stock companies rate
} and is creating a large reserve fund
The Oregon Fire Relief association o
McMinnville, saves members nearl!
} so per cent of the stock companies
rates and have a constantly increas
ing reserve fund.
1t seems that the people of Oregon
and Washington contributed suffi
ciently to the relief OF San Francisc,
sufferers without now donating to tn,
, insurance companies.
, 1t will be but few months at tn,
! most, until anyone may readily Sc,
: which is the better company to lnsur
ina mutual or stock company.
: Anyone desiring information re
7 garding either of the above name,
! companies, or having become tired o
= excessive rates, will do well to call oi
Y T. L. Dunsmore. Room II Schmid
building. Pendleton, Oregon.