The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-08-10

Salt Lake City, April 10. l9ll.
Willard Done, lns. Commissioner,
Dooly Block, City.
Dear Sir:
We wish TO enter our most vigorous
protest against relicensing the North.
western Mutual Fire Association Of
Seattle, Wash, in this State current
year; and for the following reasons:
First-Bccause they have no guaran.
tee fund; without which it is impossi,
BILE for any Mutual Company to give
the right kind of indemnity to policy
holders; Alfred M. Best says so. and he
is 10 Insurance what Dun or Brad
street are TO Commercial Agencies; ac
cepted as authority everywhere.
Second-Because their net lines on
many risks exceed the maximum al
lowed by our law, and
Thrd-Because they admit they are
doing business unlawfully In number
of States, and have done so almost from
the beginning. In other words, they
write business in a score or more of the
Central, Western and Pacific Coast
States while they are licensed in but
three of these States.
In years past have had the privilege
of representing two Mutual Companies
in this State, considered TO be among
the best of their kind; that privilege
has cost me, personally, over four thou
sand dollars. and the end is not yeti
These were each safeguarded with a
Il L.,
last long; took the short cut into the
Receivers hands. Some years ago, be-
fore l knew the Northwestern Mutual
had no guarantee Fund behind its poll
cies and before had had four Thousand
dollars worth of experience with other
Mutuals, made application for Agency
appointment, this company; today, af-
ter an experience extending over seven
years, ! do not hesitate to say the
States that are wedding them out and
refusing to license them longer are do.
ing the right thing by thus protecting
and safeguarding their citizens from
fraud and deception.
Certain Mutuals. where they special
ize and write only on one class have
made money and have become perma-
nently established; but seldom, if ever,
where they write general lines and full
trying to do. The end is quick and
sure and always with Receiver in the
Secretary chair; each policyholder
then becomes n stockholder and may be
sued, by said Receiver. once, twice,
thrice or so long as dollar OF debt
remains against the institution.
The few Mutuals that survive, rein
corporate and get in on stock basis
Just as quickly as possible: no Mutual
Company remains n Mutual after it be-
comes strong enough. financially. to
walk alone; and why7 Because of the
prejudice existing, everywhere, against
the Mutuals, and yet If the Northwest
ern Mutual were to go on the Stock
plan tomorrow they could not show so
per cent of what the State requires rs
policyholder surplus from Stock COM
pauies in order TO qualify and do busl-
ness in this State; then why should
this Company be singled out for spe.
cial favor or be made an exception to
the rule in the. State of Utab-we pro
testl
Yours truly.
(Signed.) f. II. PIERCE.
I hereby certify that the foregoing
is true and correct copy of a letter of
protest against relcensing the North.
western Mutual Fire Association or
Seattle. Washington, received at this
Department.
IN WITNESS WHEREOF, ] have
hereunto set my hand and affixed the
Seal OF the Insurance Department, this
Seventeepth day of July. 1911.
(Signed.) WILLARD DONE.
90