East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-07-07
"Our company" continues the ci

"Our company" continues the cir
cular letter, sis 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 q period of five
years existence the company had to-
tai assets amounting to s316,45S.04
and total liabilities of s54,437.S2, leav-
ing net assets to the amount of $751;
02o.22 and n net cash surplus of S47,-
219.l3. Losses paid for the year 1905
were $51,S70.2S, expenses s37.097.55,
or n total OF sSS,967.SS. The cost OF
the same insurance in n stock COM
pany at their annual rates would have
been $170,473.41. showing net saw
ing to policy holders in the North
western OF sS1. .505.5S.
Still another feature, comparative
In it's 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 500
of Insurance are $1.03, while the as
sets OF the Northwestern for each
500 are s2.35.
Janratry, 1909. the Northwestern
show ! a total saving up to date, as
conipam Z with annual board rates,
with outstanding insurance amounting
to abont S1,50o,000 of s3,924.96.
This sar.ing kept increasing year by
year in dhe proportion that the out
standing insurance increased. so that
January I, 1906. the Insurance in force
was s1S,471,57O, while the savings TO
the policy holders had increased to
over s250!000.
Takes Limited Risks.
The Northwestern claims that 1t
sill accept only a limited number OF
risks in each city and that in Seattle,
wnere 1t has the largest number Of
policies in force, 1t would not be en-
bnrrassed were the coRflagaration of
1889 to be repeated. In such an
event the company says, 1t would
only consume about oue-fourth of its
assets.
The board companies in raising
rates seem to be striving to protect
their stockholders pocketbooks at the
expense of the holders of insurance
rolicie,
The above article calling the atten-
tion of the people In Spokane and
Washington to the fact that they are
paying too much for their fire insur-
ance applies to the people of our own
state and this city.
A word regarding our own mutual.
the Oregon Fire Relief association.
At the close of 1906 we had s22,i30,-
573 insurance in force: net gain of
s3,3S3.310. Total amount written
during year. S7,S64,627.
1t costs 0ur members 6b cents per
$1,000 insurance to carry on the busi-
1850 VI tiiC nSSVtiotioh iOT tnt year,
and represents a saving OF $164,20S.
The Northwest Mutual Fire associa-
ton of Seattle saver the policy holder
40 per cent of stock companies rates
and is creating a large reserve fund.
The Oregon Fire Relief association of
McMinnville, saves members nearly
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 Francisco
sufferers without now donating to the
insurance companies.
1t will be but few months at the
most, until anyone may readily see
which is the better company to insure
ina mutual or stock company.
Anyone desiring information re-
garding either of the above named
companies, or having become tired Of
excessive rates, will do we'll to call on
Y, l.. Dunsmore, Room II Schmidt
building, Pendleton, Oregon.