The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1915-07-23
RECEIVERS FOR THE GRANGERS'
INSURANCE COMPANY
Incorporated December !, rsos-rs
Composed of Farmers of Fire Coun-
ties-Had 924 Policy Hblders.


ties-Had 81 Policy Hblders.
me 18th inst, JudgeE Brashears
signed decree appointing Francis
Neal Parke and Charles I'd. Clemson,
attorneys of the Westminster Bar, re-
ceivers OF the Grangers' Mutual Fire
and Storm Insurance Company of
their bond for the sum & 100000
corporate surety, $2O,OO0-P personal
This il a mutual company composed
of farmers OF Carroll, Frederick, Bal
timore, Montgomery anu Howard
counties mostly.
The company was incorporated De
cember i, 1906, was without capital
stock, formed for the PURPOSE OF i'm
suring, upon tn mutual OF assessment
plan, the property Of the members OF
said corporation against loss and
damage by storm" April S, 1908, by
Act of the Legislature The charter
was amended by permitting said cor
poration to take what I'LL known a.
mutual premiums a. defined by the
said Act of the Legislature in the
place and stead Of the usual premium
notes. The company wa not author
\ lied to do business until ft had mu-
tual premiums, aggregatingT One Hun
dred Thousand Dollars 100000
\ Numerous losses occurred Rn account
OF storms and to pay samG On assess
ment was levied against each policy
holder November 20, 1911. This wa
not sufficient, however, tS pay the
whole of the losses sO incurred and
the mutual premium assessments
were not collected i'm full, nearly $12,-
10000 being outstanding and unpaid
| for the 1912 and 1913 assessments
alone. During the years M912, 1913
and 1914 the losses due RRa% unpaid
tOtaIed $18,044.25 not including Court
costs and accrued interest. The loss
% for the year 1913 alone amounting
to $1O.T91-5O.
H The principal asset OF the Company
ID money due and unpaid for assess
ments levied in the years 1912 and
1918 and totals $12,886.49. During
the year 1914 only $940-6S was paid
out on pending claims. The judE-
ments obtained against the Company
total upwards Of $5,0O0.00 To $S,O00.OO
Messrs. Parke and Clemson, who
have recently been appointed rece1v-
ers, have been actively interested III
the investigation Of The affairs of this
Company for long time and, acting
! in behalf or their clients, brought the
matter to the attention OF the State
Insurance Commissioner, William
Mason Shehan, who ordered an ex-
animation made into the Company's
affairs, which examination was com
pleted before December 4, 1914, by H
IA. Joyce, Jr., Chief Examiner and a.
sistants.
Three assessments have been levied
the first one for four per cent Noyem-
Der. 29, 1911, the second Of ten pel
cent, October 21, 1912, and the third oi
Ten Der cent, October 20, 1913. ant
an assessment OF four per cent was
levied to cover possible loss from hal
and wind storm, occurring after Junt
.I2lst, none Of these assessments were
collected in full
On November 8, 1914, the date Of tht
beginning OF the examination by tht
State Insurance Commissioner
Office, there were 924 policies ant
ISL ,1SO,951 90 or insurance in force ant
Ia mutual premium basis of alt policie:
in force amounting To $97 1901 Of this
amount $14,419.OO OF insurance ans
mutual premiums OF $1,949-O4 W. or
fire policies. The officers OF the com
pany at the time the receivers were
appointed were mostly the same "A:
those who organized tle Company
and the management Of it, affairs
have been conducted by them
I'm the decree appointing Messrs
Parke and Clemson, Receivers of tht
Storm Insurance Company the Court
also annulled and vacated the charter
of TIM Grangers' Mutual Fire ant
Storm Insurance Company and all Nj
it, corporate powers and franchises
Immediately ceased md hencefortf
are void and ali Of the estate and Al
sets of every kind belonging to sa1t
corporation were vested in said Re-
ceivers, who were also appointed
trustees for TIM benefit of creditors
and policy holders of said corpora
tion and directed To proceed tot WING
up Ill affairs under the direction oi
the Circuit Court for Carroll County
and were given all necessary powers
for that purpose a. soon al possible
the Receivers will make an estimate
Ok the losses and an assessment WITH
~ made on the policy holders. tc
\ provide the money to pay same