OCR Text |
Show Fire Insurance Companies At- I tempt to Throttle Competition Effort to Drive Northwestern Mutual Fire Association From the State of I Utah Fails ,) A Representative of the Stock Company Interests Files Protest with the Insurance Department Against Re-licensing the Northwestern. . j CCOPY OF PROTEST) elnl ot utnh. with the result that the Insurance Commissioner was Instruct- j Salt Lake City, April 10, 1911. ed t0 )ggue icense. Wlllard Done, Ins. Comn.lsploner, t Third Iteason. That we are carrying Insurance ln states, In which the Dooly Hlock, City. company is not licensed. Under tho constitution of tho United States a pro-Dear pro-Dear Sir: - ' perty owner Is privileged to buy his insuranco wherever he chooses and We wish to enter our most vigorous protest 'against rellcenslng the no 8tate jnw cnn ,jeny j,ra that right. The stock company Interests have Northwestern Mutual File Association of Seattle, Wash., In this state, cur- Hivvays tried to prohibit this privilege, which in some states Is the only rent year; and for the following reasons: opportunity the citizens have to secure Insurance competition. This com- 1 First Because they hnvc no guarantee fund; without which it Is lm- pany Is merely an association of property owners nnd It will not deprive jg possible for any Mutual Company to give the right kind of indemnity to the citizens of any state, of Its services. n policy-holders; Alfred M. Ucst says so, and he Is to Insuranoe what Dunn or Fourth Iteason. The all-impelling reason for this protest Is not given I Brndstreet are to tho Commercial Agencies; accepted as authority everywhere. mlt wm (, quto ap,)arent to the reader, namely that n property owners' $ Second llecauso their net lines on many risks exceed the maximum allow organization like the Northwestern Mutual Fire Association, which returns i ed by our law, nnd all the profits to the policy holders, seriously Interferes with the tribute to $ Third Hefiiuse they admit they are doing business unlawfully in a uuni- 8tock companies would like to draw from these property owners. ?- ber of States, and have done so almost from the beginning, ln other words, The protestant claims to have lost heavily through two mutual com- j they write business In a score or more of the Central, Western and Pacific panles which he says wcro considered among the best of the kind. He i Const States while they are licensed in but three of these States. evidently, refers to the National Mutual of Omaha and the Liberty Mutual In years past I have had the privilege of representing two Mutual Com- 0f Philadelphia. If he had consulted with Mr. Hest, whom he quotes as au- jjj panles In this State, considered to be among the best of their kind; that prl- thorlty, he need not have lost anything by these two companies, ns neither jg vllege has cost me, personally, over four thousand dollars, and the end Is not one or them ever bad any standing among reliable mutuats. yet I These were each safeguarded with a guarantee fund; andyetthey didn't A COMPARISON laBt long; took the short cut Into the receivers hnnds. Some years ago, before THE FOLLOWING IS A 21 YKAItS' KKCOKD AND COMPARISON OF I knew the Northwestern Mutual had no guarantee fund behind Its policies MUTUAL FIRE INSURANCE COMPANIES AND STOCK FIRE INSUR- and before I had had four thousand dollar's worth of experience with other ANCE COMPANIES: mutuals, I made applcatlon for Agency appointment, this company; today, ,,, , , The first column below Is a list of all mutual compnnles doing bus!-after bus!-after an experience extending oevr seven years, I do not hesitate to say the ,, , IU , ,,. ..... ... , ,1C81' the year 1889 that had accumulated gross assets of not less than States are weeding them out and refusing to license them any longer are tonn nft.. .... ... . ,. ,. ,. , . . ,,.,,.,. $200,000, as shown by the United States Census report ror 1890. The second doing the right thing by thus protecting nnd Bare-guarding thplr citizens ..i,,,,,- , , , ,. , column Is a complete list of all stock companies of the State of Now York rrom frnud and deception. ,ii i.i .t. . .... uolng business that year which has not less than $200,000 paid-up capital Co. tain Mutuals, where they specialize and write only on one class addition to allother assets. have made money and have become permanently established; but seldom, All ,.,.,( ,,,, u. .... ,-,,,,.. A" companies thnt have gone out of business the past 21 years are In- U ever, where they write general lines and lull c BBslficatlons as the North- .n,,,....,! i... ,i, ,..,., .,, .. ,. ... . dlcated bj tho word "out" opposlto tho name. It will be observed that of the western Is trying to do. 'I he end Is quick and sure and always with a receiver ..q nintiinl mmm,,i ,ui. tnnn nnn ,. . .. ... , ' mutual companies with $200,000 gross cash assets all "still remain In busl- In the Secretary h chair; each policy-holder becomes a stockholder and may MSM .,.. h ,i,ik i. . , ness except the one which became a stock company, while of tho 62 stock bo sued by said receiver, once, twice, thrice, or so long as a dollar or debt companies only 20 remain to tell the tale. remains against tho Institution. ,,, ., v,, ., . ,,,,.' . . in New lork and Pennsylvania, stock companies have been more sue ' Tho few Mutuals that survive, reincorporate and get In on a stock basis ce8sfu, tlian In other statC8 Qf a those biigInega Jn I Just as quickly as possible; no Mutual Company remains a Mutual arte.- It December 31st. 1889. that had $200,000 capital and ovor. 40 percent ot them ' ' becomes stiong enough, financially, to walk alone; nnd why! Hecause of remaln. 0f other 8tate8 ()nly 3. pcr cent , - the prejudice existing everywhere, against the Mutuals. and yet If the North- the old and reliable companies. Of the younger companies that had $200 000 vv es.cn Mutual were to go-on the stock plan tomorrow they could not show paid-up capital only 14 per cent ot them I'emuln. Thero were at that time fifty per cent, of what tho state requires as a policy-holder surplus from 184 stock companies that had $200,000 capital or over. Notvvitstandlug the Stock compares in order to qualify and do business in this sUte; then why scores of company that havo since been organized the number has been should this company bo singled out for special favor or be mado an exception .educed to 1GC. Thero were at that time 39 mutual companies thnt had to the rule In the State of Utnh-wo protest! accumulated $200,000 In gross cash assets. All of theso remained on January MrarH truly. 1st. 1911. except the ono that became n stock company, and tho number (Signed ( E. II. PIERCE. has Increased from 39 to 85. I hereby certify that the foregoing Is a true nnd correct copy of a loiter Tho average ago of such stock companies now doing business is 41 of protest ngalnst rellcenslng the Northwestern MutunI Fire Association of years, 33 of them being umler 10 years old. The average a - 81" Seattle. Washington, received at this Department. mutual companies with gross assets of more 'than $200,000 Is H yeara'not IN WITNESS WHEREOF, I have hmeunto sot my hand nnd uftlxeuMho "nP of which Is under 10 years old and only two of which nro undor 15 years Seal ot the Insurance Department, this Seventeenth day or July, 1911. old. No mutual company has even yet failed arter reaching that point' (Signed) , WILLIARD DONE, These 85 mutual companies havo cash assets of $04,414 21C which" Is a SKAI:) Commlsloner of Insurance. little more than twice as much In proportion to Insurance' outstanding as I REASONS FOR PROTEST. the 10 largest stock companies In the United States. This certainly does no I Unit Reason. That no mutual company can give the right kind of In- 'k bb though they were struggling very hard" to get Into the stock com demnlty to policy holders without guarantee fund as Alfred M. Rest says so. l,a' column, as our protestant asserts. We will give Mr. Plerco or any one else n thousand dollars who will show WILL CONTINUE IN UTAH any such statement signed by Alfred M. Rest. None of tho most success. The labored efrort on tho part of the stock companies ful mutual comutnles in the United State have guarantee funds. tlve of the competition of this mutual organization' has ll" Second ReaBon. That wo have net lines exceeding limit allowed by Utah s,lu" continue to give tho property owners of Utah the in m , ' law. Full information and data on this subject was furnished to the exam, vice and competition. In this we trust we may havo vonr r.m . ,I T " ing board consisting of the (Jovernor, Secretary or State and Attorney (Jen- "Peratlon. V ym f'"1 ft"(1 co llartroid County Flio, Conn. Merrimack MutunI, Mass. Hufralo German, N. Y. " i ,,,,. 7s " Middlesex MutunI, Conn. mi,mi... . . . . Citizens (out) '"iy unit). Unlllmore Equitable, Md. Mutual, Mass. City rare (out) ''0,,B Mn W- Citizens Mutual Mass. - ul": J'uutual. Mass. Commerce, of Albany N Y Manufacturers and llulldem (out). Ulnghnm Mutual. Irnders & Mechanics, Mass. Commonwealth or N y' ' Nussau (out). Norfolk Mutual. Mass. Worcester .Manufacturers. Mass. Continental, N. -Y. ' National (out) Rucks County Mutual, Pn. Dutchess rum v v , . Fade Flm rnn Mutual Assurance, Pen... , ''"" 'f' Y- 0,pa,,,1!e1 ,, Ire Cltv fo , - NW Yrk "0Wery (oUt)' Philadelphia Contribu.lonshlp. Pa. 18-"'' bccn,n 8t0ck "uy "01. S'JTv N'W Yfk Eau,tab,e (ol,t' Pawtuckett Mutual, R. I. - Cincinnati Equitable, Ohio. f I L '. NeW Y''k F,ro (m,t)' Mutual Assurance, Vn. tlorninn Cincinnati. ', , ,?' Now Yor Mutual (stock) (out). Mr,rnVM- r r"r om' ils;' - sxT&.t T. Mutual lire, d. t. Farmers of York, Pa. Firemens (out). " inrifin m m v I Southern Mutual, fia. Rlnckstone K l n..rn,n a, V x, I nciric Mro, N. "i. Millers National III .V: ' ' American, Ny Y. Park Fire, (out). 1 v x, ,i, . , ,. Hreman's R. I. (lermnnln, N. Y. - Poonle's out) 1 Arkwright Mutual. Mass. nhoie ,tall.,, . ,. olons B N. Y Su (oS 1 Boston Mfrs. MutunI, Mass. stnte MutunI it I pi,,i. v v '' M Fall River Mass ' """''1U' Clone, N. . Consolidated with Fidelity. Voce bw Mutual MU. Mutua Fire, nermantown, Pa. Greenwich (out). v Prudential (out). I worccMu Mutual Mass. Agricultural. N. Y. . Ounrdlan (out). Rochester derman NY 9 Cambridge Mutual, Mass. Albany N Y it... xt J nocnesior uerninn, N. Y. m Dorchester Mutual. Mass. A Itanco I,',b Abb'oh fonti 11 v v ' Uutgors (out). iB Fltdiburg Mutual. Mass. Ame can n"ro fonti ' , Consolllated with Olobo. , llolyoke Mutual. Mass Am 1 i J 1, "J T? T', m Stuyvesant. N. Y. , Merchants ft Farmers. Mass. R dv ay (out) cWbockor (out). WeBtchester, N. Y. uroauwny (out). Dutchess County (out). Williamsburg City, N. Y. Northwestern Mutual Tire Ass'n. E. J. MARTIN, Secretary and Manager. Head Office: 208 Columbia St., Seattle Wash. Salt Lake Office: Judge Building. J. A. HENDRICKSON, Local Agent. |