HARDW ARE UNDERWRITERS— Continued.
except legal and loss and adjustment expenses, State and Liabilities: Losses in process of adjustment, $135; un-
Federal taxes and fees and the expenses of the Advisory earned premium deposits, $54,949.20; due attorney-in-fact
Committee. for administration expense, $1,735.40; reinsurance, $13.46;
Each year one-half of the savings of subscribers is cred- total liabilities, $56,S36.06; net cash surplus, $116,037.56;
ited to their individual surplus and reserve accounts until total, $172,873.62.
such accounts amount to 125% of each annual premium Cash Income, 1919.- Premium deposits written, gross,
deposit. Thereafter all savings are paid to subscribers in $152,646.82; less return premium deposits, $13,594.96; less
cash. reinsurance, $1,416.93; net, $137,334.93; interest, etc., $4,-
- The liability of a subscriber or of the exchange may be 701.76; subscribers' surplus and reserve deposit, $3,867.82;
terminated by either giving the other the days' notice in subscribers' surplus and reserve deposits from savings,
writing. $23,630.76; other cash income, $61.94; total cash income,
The assets of the exchange are in the custody of the $169,597.21.
Advisory Committee and the attorney-in-fact is bonded for Cash Disbursements, 1919.— Losses paid, gross, $16.-
$25,000 for the faithful accounting of funds. 084.83; less reinsurance, $779.73; net losses, $15,305.10;
Reports to subscribers are made annually through printed paid to attorney-in-fact for administration expense, $21,-
matter and at the annual meeting of subscribers. 442.87; Advisory Committee expense, $613.80; legal ex-
It has never levied an assessment. pence, $779.99; taxes, licenses and fees, $2,982.16; unused
The attorney-in-fact and the superintendent of insur- premium deposits refunded to subscribers, $55,371.86; sub
anee of any State where licensed are authorized to accept scribers' surplus and reserve refunded, $4;396.53; other ex-
service of process binding upon all the members in the event penses, $567.09; total cash disbursements, $101,459.42,
of a dispute arising concerning any claim against the ex- Transactions Since Organization.—Premium deposits re-
change. ceived, gross, $440,896.89; less return premium deposits,
The exchange is licensed in Ill., Ky., Mo., Minn., Ia., $43,324.68; less reinshrance, $21,969.55; net premium de-
Ohio. Pa. and Tex. posits, $375.602.66; interest received on investments and
Advisory Committee.—This is selected by the members bank deposits. $9,463.63; other cash income, $161.80; sub-
at the regular annual meeting and for the current year is scribers' surplus and reserve deposit, $8,693.52; subscrib
as follows: C. R. Woodward, chairman. Carlinville, Ill.; ers' surplus and reserve deposit from savings, $58.255.67;
T. J. Matthews, vice-chairman, Mt. Vernon, Ill.; H. E. total cash income, $452,177.28. Losses and adjustment ex-
Gnadt, countersigning member and treasurer, Chicago, Ill.; penses paid, gross, $79,142.13; less reinsurance, $9,827.28;
William Bittel, Peoria, Ill., and A. E. Marcotte, Kankakee, losses and adjustment expenses paid, net, $69.314.85; corn-
all of whom are in the retail hardware business in missions paid to attorney-in-fact for administration ex-
their own cities. penses, $71.285,.63; other expenses paid, $9,161.33; total ex-
Its statement as of December 31, 1919, is as follows: penses paid, $80.44h.96; returned in cash to members, as
Admitted cash assets: United States Liberty bonds, $135.- savings, $131,594.15; total cash disbursements, $281,355.96.
554: interest due and accrued thereon, $777.12: cash in Estimated saving effected for members from organiza-
banks and office, $22,784.12; premiums or deposits outstand- tion as compared with tariff rates, $131,594.15.
ing not over three months due, $10,717.35; other cash In connection with this report, see important article in-
assets, $41; total cash assets, $172,873.62. troducing this section.