Devils Lake inter-ocean and Devils Lake free press. (Devils Lake, Ramsey County, N.D.) 1905-1909, 1907-07-26
ABLE PAPER
BY MCFADDEN
Continued from page 1.

by the stock companies, $685.
201.42 and losses paid $447,170.-
"a. For life insurance the pre-
miums collected were $780,
1O6.24, and losses paid $780,
1922. For the year 1905,
premiums collected were, fire
insurance $1,192,549.68; losses,
$384,324.63. Life insurance,
premiums collected, 81, 255,741,-
70; losses paid, $195,509.45. For
the year 1906, fire premiums col
lected were Slab, 955.53; losses
paid, $469,710.82. Life insur-
ance premiums, $1,336,361.16;
losses paid, $217,373.00, or
grand total for the three years
of $3,6O2,706.63. Fire insurance
premiums collected with losses
of $1,301,206.29 and So, 1913, 209.-
10. Life insurance premiums
collected with 1851 ,275.37 loss
es paid. These are interesting
figures, gentlemen. They show
that for the three years stock
company premiums collected for
fire and life insurance were $751;
548, 434.07 in excess of the losses
paid for these three years. This
vast sum, less the commission
paid local agents, went out of the
state. 1t is not difficult to under
stand how the great financial
centers of the east have been
created when you consider these
figures and take into account
the many other ways in which
we contribute to their growth
and greatness.
We cannot keep all of this
money at home, but you and |
can help to keep part of it in
the state by giving at least a
part of our insurance to our
home companies. Let me now
give you some figures with ref
erence to our state mutual COM
panies. In 1904 the mutual fire
companies of the state collected
premiums of SLAB, 865.53 and re-
turned in dividends to policy
holders $38,966.38. In 1905
premiums collected we're $780,
STOP and dividends returned to
policy holders, S59,914.53. In
1906 premiums collected, $780,.
339.42, and dividends to policy
holders, $72,834.85, making E
total of dividends returned tt
policy holders for the three years
of $171, 715.76. These state mu
tual companies carry only thu
classes of risks in which we arr
most interested, viz: farm risks
dwelling house risks and mer
: camille risks. The loss ratio will
them is therefore lower thar
with the stock companies, carry
ing all classes of risks, and tn
expense of operating them il
much less than stock compan.
expenses.
Now to go back to the figure
I gave you a moment ago. It i
not necessary to call your at
tention to the fact that a larg'
percentage of the 100000 il
excess of losses collected in ou
state by life insurance companie
during the last three years &C
tually belongs to their polio.
holders in North Dakota. In
surance must collect annually ;;
large amount in excess of actua
losses in order to be prepared t
meet an inevitable future. Al
men must die, but all building
and fire insurance risks do no
burn. Is there any good reasol
why the proportion of funds col
lected by the life insurance com
panies belonging to policy hold
ers in the state and held in re
serve by the companies shoul
not be invested in securities an
mortgages in this. state?
In Texas the state legislator
passed a bill requiring all insu1
ance companies doing. bushes
in the state to invest not les
than rs per cent of their reserv
belonging to Texas policy hold
ers in Texas securities, and tn
result was that all the easter
life insurance companies dom
business in Texas Withdrew
!. from the state. ,,,s H.. d
2 M: I.=5. lis it not also true that a Ger
tain percentage Of the funds co.
II lected by fire insurance compan
les belong to policy holders i
the state? The state 1nutus
companies recognize that fac
and return to policy holders i