East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-06-30
FIRE INSURANCE
AT LOWER RATES
NORTHWESTERN MUTUAL OF Sc
ATTLE CUTS COSTS BY
10 PER CENT.
SAVES FORTUNES on POLICIES.
Interesting Disclosures in Connection
With Demand of Board Concerns
For Higher Charges.


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 Is,
the statement of ]. d. Coleman of
the Home Insurance company, that
the rates will be raised % 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-
lion is that Spokane must come to its
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 n'-t
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
neme-owner. Insurance rates are al
ways figured by merchants as legiti-
mate fixed charges against the opera
ton of their stores. A rise, therefore
. in Insurance rates would mean an
added cost in the operation of the
mercantile business and a correspond
ing rise in the price of merchandise
carried. More than this, 1t would
mean increased cost of owning inn
proved real estate, resulting in sea-
son of high rents.
Cuts Board Rates 40 Per Cent.
As evidence of the profitableness OF
carrying risks at far less than the
present rates the Northwestern Mu'
tual Fire association of Seattle ha!
entered this field with a promise oi
saving it's 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 payment upon the delivery Of tn
policy equal to one-half the annua
board rate. In six months this com
pany viii pay a cash dividend ant
collect another semi-annual premium
and so on throughout the term Of th'
policv. which, to save expense of re
newal. Is issued for a term of fiT'
years, with a pro rata cancellation
clause which may be used at any time
How 1t Saves Money.
For example" the letter reads
con a policy Of $4,000. where tn
board rate is per cent, we woul'
charge you a cash payment of $40
and in six months you would receiv
a dividend Of $40, and then make an
other seim-annual payment Of 500
and so on throughout the term of tn
policy. If The policy is cancelled a
the end Of six months IT only cost
YOU $50. while ,ther companies woul'
charge you short rates, amounting t
$40"
Some inquiry has been made Of lat
into the liability assumed by tn
policy holder when lie pays casl
premium into a mutual company. Ac
.cording to the Northwestern Mutua
Fire association, the policy holder a.
sumes no liability whatever beyon
the payment OF the cash premium
The company cites the opinion Of th
attorney generals office upon Oh
subject. The portion Of the opi1io
bearing upon that subject is as FOL
lows: when cash premiums are ac
cepted and provided for by the truS
tees of such company as provided
law. the policy holder paying sue
cash premiums is not liable for an
further payment in case of heay
loss by the company"