East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-06-27

"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
it 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 l, 1906. This
shows that after a period of five
years existence the company had to-
tai assets amounting to 1916, 6,45S.Oi
and total liabilities of S54 ,437.S2, leav-
ing net assets to the amount of S262,-
O2O.22 and a net cash surplus of s47,-
219.13. Losses paid for the year 1905
were S51,STO.2S, expenses $37, ,09T55,
or total of sSS,967sS. The cost of
the same insurance in a stock COM
pany at their annual rates would have
been S17O.473.41. showing a net saw
ing to policy holders in the North
western of sS1,505.5S.
: 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
t York insurance department per $10C
e of insurance are $1.03, while the as
sets of the Northwestern for eacf
$ s1OO are s2.35.
= January, 1902, the Northwestern
= showed a total saving up to date, "a
y compared with annual board rates
= with outstanding insurance amounting
: to about $1,500,000 of $3,924.9f
: This saving kept increasing year b.
:, year in the proportion that the out
n standing insurance increased, so tina
G January 1, 1906. the insurance in fore
i was s13,471,57O, while the savings t
e the policy holders had increased t
d over s250,000.
l. Takes Limited Risks.
/ The Northwestern claims that
will accept only a limited number {
risks in each city and that in Seattl
If where It has the largest number {
le policies in force, it would not be en-
l. barrassed were the conflagaration {
rs 1889 to be repeated. In such
of event, the company says, it woul
Mt only consume about one-fourth of i
a assets.
n The board companies in raisir
y, rates seem to be striving to prote
a their stockholders pocketbooks at Il
ne expense of the holders of insuran
al policies.
1d The above article calling the atte
m, ton of the people in Spokane al
he Washington TO the fact that they a
e. paying too much for their fire insu
We ance applies to the people OF our oV
on state and this city.
le. A word regarding our own mutu
the Oregon Fire Relief associate
1s At the close Of 1905 we had $22,13|
he 573 insurance in force; net gain
I'D s3.3S3.31O. Total amount writ
90 during year, s7,s64,627.
i've 1t costs our members 65 cents !
IN $1,000 insurance to carry on the bu
90 ness Of the association for the ye
no and represents a saving of $164,2
at The Northwest Mutual Fire assoc
sts ton Of Seattle saves the policy hole
MD 40 per cent of stock companies ra
to and is creating a large reserve fu
The Oregon Fire Relief association
ate McMinnville, saves members nea
the so per cent of the stock compan
ash rates and have a constantly incre
Ac- ing reserve fund.
nal 1t seems that the people of Ores
as and Washington contributed su
ond ciently to the relief of San Franci
nm. sufferers without now donating to
the insurance companies.
the 1t will be but a few months at
mon most, until anyone may readily
fol- which is the better company to ins
ac- ina mutual or stock company
rus Anyone desiring information
4 by garding either OF the above mar
such companies, or having become tired
any excessive rates, will do well to call
eayy r. L. Dunsmore. Room II Schn
building, Pendleton, Oregon.