Evening journal., 1907-11-07
BUSINESS MEN
IN INSURANCE co.
WiImingtOnianS Organize the
Delaware Mutual to Get
Lower Rates

Following the agitation because Of
the high fire insurance rates charged
by the stock companies in Wilmington,
the Delaware Mutual Fire Insurance
pany composed entirely of VIII
mington business men with three eX-
Ieeptions, they being nearby residents,
has entered the field her TO combat
the stock insurance companies The
real object of the Delaware Mutual in
entering the field is to give lower fire
insurance rates. which are declared
to be eXtortionate. The company has
received its certificate of authority to
do business from Insurance Co.nmis-
sioner George w. Marshall
The officers of the company are
President. Alfred Gawthroo; vice.
president John A. Cranston; treasurer,
Walter l.. Butler; secretary aud mana
ger, Charles ID. Cox; directors the
foregoing officers and John S. Mullin,
Jr., Howard ID. Ross, Millard f. Davis
Mayor Horace Wilson, William A. Jes-
ter of Delaware City, r. Lawrence
| Husbands, David Fox, James Meharg
Lewis Held, George w. Todd Henry
/ Wenninger. Minor c. Smith, Joseph II.
Mendinhall, Thomas H. Messinger,
Joseph G. Parker of Middletown. Norris
Levy j. Rankin Armstrong of Newark,
and Samuel Siessinger.
Says Rates Are Too High.
Manager Cox in speaking Of the COM
/ pa 1y'3 plans today said
/ That the present Stock Company
rates are too high in this state is evil
denced by the fact that out of each
one dollar in premium collected by
tham each year. for the last Eve years.
they have paid out in losses TO the
lpolicy-h no deIs of this state nut 80 to
36 per cent Stock companies are able
to pay ample dividends to their stock
holders when the losses equal so to 55
per cent on each 81 Of premium coll
lected
'rhe results to stock companies on
the city Of Wilmington business makes
plain that the fire deparhn ent OF this
city compares favorably with the fire
department Of any city of the same
size
Good Fire Department.
"The stock insurance companies
through their compact. aim to give
some good reason for advancing fire in
surance rates periodically. and one of
the reasons given for the most re-
cent advance was that Tho fire de-
lpartment Of this city was not efec-
tive. this based upon the impractical
tests made by theoretical experts. The
best evidence that their conclusions
are not correct is the fact that at every
opportunity the department has had to
practically demonstrate its efficiency il
has not failed TO prove that IL has
ample fire fighting equipment and that
the fire fighters themselves are able to
cope with any conditions ghat are
likely to arise quite as effectively as
that of any fire department in the
country
just so long as property owners place
all of their insurance in stock com
lpanies instead of gradually cutting
down their lines, just so long will such
property owners pay the high rate In
lsurance must be bought through prac-
tically the same methods as merchan-
disc is bought
Keep Money in State.
BY purchasing insurance Of the state
mutual companies the entire premium
remains in the state, and the profits
are divided among the policy holders
BY purchasing insurance Of stock COM
panies the commission alone remains
in the state. and no part of the profits
on the business is paid to policy
holders.
THE furnishing Of insurance by this
company is an incident of its business
lonly. The improvement Of risks and
the reduction Of the fire loss will be its
principal aim. Intelligent frequent in
lsDections will result in improving the
properties Of those people who wish tc
avoid fire. and who carry insurance only
to be paid for losses resulting from
unavoidable or accidental fires
Each risk will be rated upon It,
merits without regard to the rate oi
premium established by stock compan.
les The rate charged by stock com.
plnies is the same whether cares is use,
to avoid fire or not"