and is limited to an amount not in excess of snob propor
tionate sum as the amount of liability carried by each sub-
scriber bears to the total amount guaranteed by all sub-
Separate accounts are kept with each subscriber and all
are open to their inspection.
The subscriber may revoke the authority given in the
power of attorney upon ten days' written notice, and is not
liable on any policies for loss accruing after the expiration
of such date. He is not, however, permitted to withdraw
any of the reserve fund credited to his account until the
liability under all policies in effect at the time of his
resignation has terminated.
All deposits and investments are made by and in the
name of the exchange, and are under the control of the
Savings are returned to subscribers annually, except that
the manager is authorized to set aside as a reserve fund
for all contingencies such amount as the Advisory Com
mittee shall determine as adequate, but not to exceed the
amount of one annual premium,
Its statement as of December 31, 1919. is as follows:
Admitted cash assets: Bonds and stocks owned (market
value). $50; cash 5n banks and office, $18,&60.43: premiums
or deposits outstanding not over three months due. $I,-
602.77; premiums or deposits outstanding about four
months due, $1,392.19; premium notes. $17,758.90: accrued
interest, $499.12; total cash assets, $40,163.41.
Liabilities: Losses in process of adjustment, $826.110;
resisted. $2,307.50; total, $3,133.60: reinsurance, $92.37:
net, $3,041.23; unearned premium deposits, $29,242.50; due
attorney-in-fact for administration expense, $925.61; total
liabilities, $33,209.34: net cash surplus. $6.954.07; total,
Cash Income, 1919.— Premium deposits written, gross.
$66,448.44: less return premium deposits. $7.784.95; less
reinsurance. $178.50; net, $58.484.99; interest, etc., $12.61;
salvage. $11.15; commission on reinsurance, $26.77: total
cash income. $58,535.52.
Cash Disbursements, 1919.— Losses paid, gross, $3,174.52;
less salvage, $11.15; net losses. $3,163.37: paid to attorney
in-fact for administration expense, $14.810.66: Advisory
Committee expense, $5.40; legal expense, $900; taxes, li
censes and fees, $65; other expenses. $460.72: total cash
In connection with this report, see important article in
troducing this section.