The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-09-18

In an anonymous advertisement APP
! pearing in tce columns of this paper
under the caption Court Held Them
. TO Be Liable appears statements Of
the most deceiving character, to which
| the writer was evidently ashamed to
attach his name.
The advertisement referred to evil
IDENTIFY emanates from the fire irsur-
ance combine in the effort to hold bus
Ices from reliable mutuals at the ex
pense of the public
, The advertisement has reference to
the defunct Pacific Era Insurance Co.
of Seattle and. contrary to the head
lines of this article, no court has ever
held that its policy holders were liza
BILE, but the whole scheme seems to be
a game of the stock companies to de
CeiVe the public. The only report ever
made by that company to the state
shows that it possessed only $l62OVU
in cash and 10 invested securities, and
IS failure was of too little Importance
% justify notice in a local paper, yet
many thousands of dollars have been
.pent by the stock companies to her
I'D its failure before the public from
the Atlantic to the Pacific More than
year has elapsed since receiver was
appointed for the concern. and this
receiver levied an asst ssment, notify
ing the policy holders that he would
bring suit to recover if net paid. The
receiver has been urg5d to Oring suit
but this has never been done, possibly.
for the reason that the stock com
panies could not longer use it to intim-
idate the people agai,s, insuring in a
substantial Mutual
The advertisements referred to we'll
says THAT those who would share in
the dividends # mutual fire irsur-
ance cGcIpaf .0lrt help assume its
liabilities, Ads perhaps never better il
lustra-c.! than in Size proceedings had
IN the tus., - -: I:.ssIfic Mutual of Sc
a:.'c' This = me true statement in
the advertisement for while this may
be the best illustration that can be OBJ
tanned it is certainly no evidence that
licves that this liability exists he has
certainly neglected his duty very seri-
orsly in not bringing SUIT. as he said
he would do almost 4 year ago !
Now. we challenge the writer of this
advertisement to come from under
and show us a single court decision in
the United States to the effect that a
mutual company Cannot issue a paid
~ worcestershire policy if there is
While the law of this state expressly
provides that a Mutual may issue a
paid Up and worcestershire policy. We
shall here cite to but one court de-
cision. but shall be pleased to furnish
more to any reader who desires them.
In Mygatt. y. Y Protection ms Co,
q \. Y, 52-65. the court said:
Indeed. much OF the difficulty on
the subject has been producec oy at
taching a meaning to the word mutual,
in its connection with insurance. which
does not belong to it. A mutual insur-
ance company is simply a company
whose fund for the payment of losses
and expenses consists not of capital
subscribed or furnished by outside par
tie, but of premiums mutually contrib
uted by parties insured. Angel says:
a mutual insurance company in its
origin was a body of persons each of
whom was DESTROYS of effecting an in
surance; and he agreed with 1.-The rest
Of the members to contribute the pre-
miums to 4 common fund, on the terms