Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1955-09-29

lCl was cllllSllucu III lOOO W dUlll-
orlze payment for losses resulting
from Lightning damage even
when there was no accompanying
fire. CThe original lower rate for
lightning rod equipped buildings
was later abolishedD Not until
1880 did the company expand COW
erage again, this time to include
windstorm damage, A policy pro-
viding payment for oil burner
smoke damage was first written
IN 1884. Windstorm policies were
extended to cover hail damage in
1886. Protection against "explo-
sions, riot, strikes, civil commo-
ton, aircraft, and vehicle damage
was first issued in 1887 in the ex-
tended coverage endorsement.
Last year $162, 3OS.56 was paid by
the company to policy holders for
losses resulting from Hurricane
Hazel.
Large Claims Noted
The largest claims ever paid by
the Mutual Fire Insurance Com
pany were from the old Rockville
High School and from Fulton
Lewis. The policy of inSurlng
only quality property, mention
ed by Mr.. Farquhar, has, no
uoubt, kept claims at a MINIMUM.
In the company early days pol
ICY acceptance was low. Today,
with inspectors on the staff, over
oUIo OF poncles requested are &C.
cepted. For over 10 years the
board of directors debated the ad-
visibility OF allowing steam oper-
ated threShlng machines on or
near insured property. In Oct. 5,
1886, the company refused to IN
sure the kindlIng Wood Factory
IN Rockville. "lne directors prob
ably thought that this would Durn
Ior sure, Chuckles President Far
quhar. In 1861, with the pestruc-
lIon of a civil war imminent, the
company ordered it's agents not
TO write any new pollcies. Actual
~ some CLAIMS resulting from war
damage were filed, but none men
toned the fighting specifically. In
the same year the directors vote.,
not TO insure ANY barn or barn
yard closer than $50 yards from
railroad line"
In general the mutual in the
company S name has correctly de-
Scrlbed the firms harmonious
operation. But in the 1905 was
fought its own civil war" In
1894 the board of directors decided
to raise the combined salaries OF
the three officers from $3,400 to
the "eXtravagant" sum OF So,3U>
and allow 1900 for clerical work.
On Jan. II, 1895 a huge meeting
of angry members met and voteu
new bylaws restricting the pow
ers of the Board of Directors, in
Guiding a provision limiting the
amount that could be spent IN one
year for salaries and clerIcaI W.
to $4,000.
The Board retaliated by declar-
ing the newly-voted bylaws I'm
operative, null, and void" The
Member s Committee brought suit
IN Circuit Court to test the lego.
ity of their new bylaws. The
court found in favor of the direc-
tors. The Maryland Court of APP
peals sustained the decision of the
lower court in November, 1897.
The Mutual Fire Insurance
Company did business from the
home of its first president until
1857 when a small, one-room
brick building was erected in
Sandy Spring. Land, construc-
ton, and furnishings cost the cor
poration SLIGO! In 1873 an add.
ton was built at a cost of $3.50
to accommodate the Savings In
stitution of Sandy Spring which
shared quarters with the insur-
ance company. The bank was
paid $25 per year rent. In 1879
$700 fire-proof vault and steel
chest were installed.
After the Savings Institution
had moved next door into its own
office, the insurance company de-
cided in Jan, 1904, to erect a
"statelier mansion. The old
building was torn down and in its
place arose a red.brick, white-pil.
Jared edifice "in keeping with the
size, prominence, prosperity, and
reputation of the Mutual Fire In.
surance Company of Montgomery
County" From the design of Bal.
timore's T. B. Ghequier, Richard.
son & Burgess erected the new
building at a cost of 81, 700. Gov.
ernor Edwin Warfield laid the cor.
nerstone June 25, 1901, and the
building was occupied in the fall
of that year. This building has
been remodclcd and expanded
several times, most recently in
January of this year when a wing
containing a new office for the
president, a new meeting room
and new Board room were ada
ed. The cost for this new wing
was three times that of the entire