710   BEST'S INSURANCE REPORTS—FIRE AND MARINE.

MANUFACTURING LUMBERMEN'S UNDERWRITERS —Continued.

Its statement as of December 31, 1919, is as follows:
Admitted cash assets: Bonds and stocks owned (market
value). $1,082,974.70; interest due and accrued thereon.
$14,254.29; cash in banks and office, $401,214.28; premiums
or deposits outstanding not over three months due, $177,-
37.4.58: total cash assets, $1,675,817.85.

Liabilities: Unpaid losses, $31.850; unearned premium
deposits, $338,659.02; due attorney-in-fact for administra
tion expense, $39,132.41; total liabilities. $609,641.43; net
cash surplus, $1,066,176.42; total, $1,675,817.55.

Cash Income, 1919.— Premium deposits written, gross,
$1,654.232.91; lass return premium deposits, $275.776.35:
net, $1,378,456.56; interest, etc., $49,970.61: total cash in-
come, $1,428,427.17.

Cash Disbursements, 1919.—Net losses, $563,018.97:
paid to attorney-in-fact for administration expense, $263.-
173.96; Advisory Committee expense, $713.43; legal ex
pense, $12.035.98; taxes, licenses and fees, $12,121.61; in-
come tax, war tax and exchange, $15,273.9.2; savings re-
turned, $41,662.76; total cash disbursements, $908,000.63.

Transactions Since Organization.—Net premium de-
posits, $11,915,725.68: interest received on investments and
bank deposits, $487,691.99; transferred from L. I. U., $23,-
181.60; total cash income, $12,426,599.27. Losses and ad
justment expenses paid, net, $6,058,019.722; commissions
paid to attorneydin-fact for administration expenses, $2,-
673,428.22; legal, taxes. Advisory Committee and exchange,
$169,329.06; total expenses paid, $8,900.777: returned in
cash to members, as savings, $1,896,425.27; total cash dis
bursements, $10,797,202.27.

In connection with this report, see important article in
troducing this section.

MANUFACTURING WOOD WORKERS' CNDERWRITERS,
McCormick Bldg., Chicago, Ill.

After the 15% or 25% is distributed as above provided,
the excess savings are allowed to accumulate until they
amount to at least two annual premiums.

The assets of the exchange are in the custody ,of the Com
merce Trust Company, of Kansas City, Mo., as trustee,
and the attorney is bonded to the amount of $50,000 to
cover collections while in its hands before being turned over
to the Trust Company.

Any member may retire upon ten days' notice and the
pro rata accumulated surplus is returned. No provision
has been made to guarantee the members against assess
ment, but no assessment has ever been necessary.

Monthly trial balance and list of losses and changes in
membership are sent to members of Advisory Committee
each month. A firm of certified public accountants are em
ployed by the committee to make audits.

Service of process binding upon all members may be made
upon the attorney or upon the Insurance Commissioners
of the various States in which the exchange is licensed,
which are as follows: Ala., Ark., Fla., Idaho, Ky., Me.,
Mich., Minn., Mo., N. C., Ohio, Okla., Ore., Pa., S. C., Tenn.,
Tex., Va., Wash, and \\-is. It also operates in Canada.

Losses are adjusted by independent adjusters.

Advisory Committee.— C. F. Thompson, C. L. Gray Lum
ber Co., Chicago, Ill.; I. H. Fetty, Savannah River Lumber
Co., Savannah, Ga.; W. A. Pickering, W. R. Pickering Lum
ber Co., Kansas City, Mo.; H. S. Filson, Alexander Gilmer
Lumber Co., Remlig, Tex.; W. E. Bigwood, Graves, Bigwood
& Co., Toronto, Can.; E. V. Babcock, Babcock Lumber and
Broom Co., Pittsburgh, Pa.; C. H. Watzek, Crossett West-
ern Lumber Co., Wauna, Ore.; W. C. Winchester, Turtle
Lake Lumber Co., Grand Rapids, Mich., and D. W. Richard-
son, Goldsboro Lumber Co., Dover, N. C.

History.—This is an inter-insurance organization, which
began business early in 1909. On January 1, 1920, it had
504 subscribers.

It has an Advisory Committee consisting of ten of its
members. which committee has general supervision of all
the business of the exchange and investment or disburse
ment of its funds.

The exchange suffered a heavy loss in the Minnesota
forest fires of October, 1918, and an assessment of 40%
was made upon the members.

Management.— The attorney and manager is Lee Blake-
more, Chicago, Ill., who for a number of years was identi
fied with U. S. Epperson & Company, managers of the Lum
bernien's Underwriting Alliance of Kansas City, Mo.. a
very successful institution.

Mr. Blakemore is reported to be capable and reliable.
The operations of this exchange during 1919 showed
about 10% savings.

Net premiums written were $347,830.30, but the unearned
premiums increased from $97,487.66 at the end of 1918 to
$127.288.92 at the end of 1919, this increase being $29,-
801.26. Deducting this increase from the written pre
miums, the net earned premiums for the year are found to
have been $318,029.04.

The net losses paid aggregated $357.568.39, which, how-
ever, included a large amount of losses carried over unpaid

from the 1915 account, these losses having been incurred in
the conflagration following the Minnesota forest fire. The
reserve for unpaid losses at the end of 1918 was $205.004.41
as against $35,464.88 at the end of 1919, the decrease dur
ing the year being $169,539.53. Deducting this decrease
from the net losses paid during the year ($357,568.39) the
losses incurred are shown to have been $188,028.86, or.
59.1%, of the premiums earned. Adding the manager's
commission of 25% and the other expenses, which amounted
to about 6%, the total losses and expenses incurred were
about 90%.

The exchange bears a good reputation in the matter of
loss settlements.

Advisory Committee.— Jacob Mortensen, chairman, Chi
cago, Jacob Mortenson Lumber Co.; Perley Lowe, Chicago,
C. C. Collins Lumber Co.; C. H. Worcester, Chicago,
Worcester Lumber Co.; C. A. Goodman, Marinette, Wis.,
Goodman Co.; C. A. Dean, Seattle, Wash., Canyon Lumber
Co.; R. M. Hallowell, Elizabeth, La., Industrial Lumber
Co.; W. E. Bigwood. Graves-Bigwood Co.; A, T. Gerrans,
Roper Lumber Co.; G. F. Royce, J. J. Newman Lumber Co.;
W. H. Boner. Weyerhaeuser Timber Co.

The compensation of the attorney and manager is 25%
of the premium income, out of which he defrays all ex
penses,incident to business, except legal expenses, the cost
of adjustments and taxes, subscribers or members bearing