The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-01-12
Convinced Commercial Club
Members System Was Good
But Not Superior to Old
Line Insurance.
CROWD SMALL BECAUSE
OF lNCLEMENT WEATHER
President Mccarthy Makes
Announcement That Club
Has No Intention of Enter.
ing Insurance Business.

Mutual fire insurance proposition
was outlined last evening by paper
on the subject read by r. Il. Perry Of
Indianapolis. Although the small
number of members present were pro-
badly satisfied that il was good
thing. yet the address failed to I'M
press upon them apparently that the
old line insurance was not satisfac-
tory.
The inclement weather nc doubt
was responsible for a large number
of the club members remaining at
home. The audience was largely made
up of fire insurance agents of this city
who were present in defense of their
business and also to prepare for the
meeting next Monday evening. al
which time p. +. McGregur of Chi
pute In the Windy City" will discuss
the advantages Of the old line insur-
ance.
President Mccarthy Talks.
DSioIC SNT. EeITH WAS C0lIeU uVOu
for his address President Mccarthy
spoke briefly on the insurance ques-
tion which the club has given its
most earnest and thorough attention.
He declared that it was not the In
tention of the club to go into the In
surance business or to advise IN to
which system was the best. II was
pointed out that the club began the
consideration OF the Insurance Ques-
tion at the time the Dean schedule
went into effect and which raised the
rates OF the majority Of local business
concerns.
Charles G. Carpenter was then in
troduced and he stated he had carried
mutual insurance for some 20 years
and found 1t satisfactory He intro
duced Mr.. Perry of indianapolis. After
giving general outline of the mutual
insurance system the latter said In
part:
Perry's Mutual Defence.
There are. then. what we call local
mutuals. confining their writings to
dwelling houses and store buildings In
the large cities and farm properties in
the country. the latter known as farm
mutuals- These companies have all
been successful. for they have been
more or less clannish and 1t has been
purely co-partnership proposition.
Few OF these companies fail.
we have what may be termed Q
| general mutual. one doing business
through agents and paying the regu-
lar agents commission and in other
ways subjecting itself TO the expen-
sive manner of doing business incl
dental to an agency company and
having no way of eliminating the NOR
al hazard. These companies are us
ually formed for the purpose OF meet
ing the demand for those in need Of
positions. or salaries. rather. and. as .
general proposition their organization
| throughout the west IL without regard
to safe conservative underwriting prin-
ciples. For our part. We have never
been able to understand what excuse
a mutual company doing IN agency
business had for being In the field.
The other companies referred to con-
duct their business direct with the
property owner and employ. almost
without exception. only salaried peo-
pie who have an object other than
commission. and have means of inves-
i tigating other than through their own
members concerning the local stand
ing Of the applicant for insurance. We
admit there have been a number Of
failures but principally among those
companies insisting on doing a bust
ness on the same lines and In the same
manner as the joint stock companies.
and. as before stated. We see no ex-
cuse for their existence These Agen-
cy mutuals We claim do not properly
represent those operating on the pure
~ mutual plan. yet. when one fails.
the whole mutual system is charged
with the failure.
MANY confuse the Cnderwritefs'
Association with mutual companies,
which il . mistake. as they are no
more to be compared than mutuala
with stock companies.
j Liability in Lieu capjtsl.
I'm mutual company the liability.
about which there has been 30 much
controversy. stands in lieu Of capital
in stock company. In other words.
it is merely . guarantee behind the
contract in case Of unforeseen or nn-
usual losses but bear In mind that in
ease Of mutual Insurance company
there Is NO capital stock ON which To
provide dividends. but In case Of earn
inss. after providing proper reserve,
Il