BEST'S INSURANCE REPORTS FIRE AND MARINE.   711

MANUFACTURING WOOD \WORKE11S' UNI)E1i\WRITERS-Costinaed.

their pro rata share of such expenses. The attorney and
manager may appoint a substitute to act for him with the
consent of the Advisory Committee.

Only first-class lumber and woodworking risks are in
sured. All risks are investigated by a representative of
the exchange, who makes reqular calls and inspections.

The liability of members is several and not joint, and is
limited to an amount equal to the sum paid for current
indemnity.

The maximum policy issued on a single risk is $50,000.
which is carried net, without reinsurance.

The exchange writes at rates based upon the experience
of the lumber industry,

Any savings over 25% are returned to subscribers at the
expiration of their policies. All savings under 25% are
accumulated until the individual surplus of . each member
equals the annual premium paid by him; this forms a re-
serve fund.

The exchange is licensed in Fla., Miss , Ark., Ill., A. C..
S. C., Va., Wis., Mich., Wash., Idaho, Minn., Ore. and Tex.

Its statement as of December 31, 1919, is as follows:
Admitted cash assets: Bonds and stocks owned (market
value), $115,184; interest due and accrued thereon. $1.-
515.01; cash in banks and office, $29276.87: premiums or
deposits outstanding not over three months clue. $45,586.50:
reinsurance due from other companies or associations. $22,-
169.42: bills receivable, $600; total cash assets, $214.331.80.

Liabilities: Losses, adjusted. not due, $360.32; in pro
cess of adjustment, $10,204.56; resisted, $24.900: total,
$35,464.88; unearned premium deposits, $127.288 92: due
attorney-in-fact for administration expense. $3,721.02: due

for borrowed money, $25,000; total liabilities, $191,474.52;
net cash surplus, $22.556.98; total, $214,331.80.

Cash income, 1919.- Premium deposits written, gross,
$427,756.38; less return premium deposits, $68,563.02; less
reinsurance, $11,063.06; net, $347,830130; interest, etc., $5,-
772.25: collateral loan, 25,000; total cash income, $378,-
602i.55.

Cash Disbursements, 1919.- Losses paid, gross, $399,-
981.01; less reinsurance, $42,412•.62; net losses, $357,568.39;
paid to attorney-in-fact for administration expense, $86,-
562 06: Advisory Committee expense, $80; legal expense,
$3,988.68; taxes, licenses and fees, $8,626.03; other ex
penses, $6,055.48; returned to subscribers, $41,908.98; total
cash disbursements, $504,7S9.62.

Transactions Since Organi_ation.—Premium deposits re
ceived, gross. $1,710,461.25: less return premium deposits,
$126,024.11; less reinsurance, $62.971.11; net premium de-
posits. $1,521.466.03: interest received on investments and
bank deposits, $34,157.87; reinsurance reserve deposits,
$107,049.30: total cash income, $1,662.673.20. Losses and
adjustment expenses paid, gross, $952.577.30; less reinsur
ance, $45,199.54; losses and adjustment expenses paid, net,
$904,377.76; commissions paid to attorney-in-fact for ad-
ministration expenses, $384.098.46; Advisory Committee,
legal and sundry, $33,445 69; taxes, fees, etc., $20,973.26;
total expenses paid, $438.517.41; returned in cash to mem
bers, as savings, $123.709.62: total cash disbursements,
$1.466,604.79.

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

\II':RCANTILE _MOTOR INSURAN('E EXCHANGE,
10 South La Salle Street, Chicago, Ill.

History.—This is a reciprocal exchange, which was estab
lished April 1, 1919, received its license from the insur
ance Department of Illinois, and began business on the
same day.

Management and Reputation.—The attorney-in-fact is
the Consolidated Insurance Agencies, Ind., a corporation
organized under the laws of Illinois with a paid-ill capital
of $100,000. The officers of the attorney-in-fact are:
President, Lucius Turner; vice-president, Archibald A.
McKinley; secretary, R. M. Ayres; treasurer,'J. W. Rankin.

The president has had long experience in the different
branches of insurance.

The vice-president is an attorney practicing law in Chi
cago, and was formerly attorney for the Illinois Insurance
Department.

The secretary is treasurer of the Western Alliance In
surance Company.

The treasurer has had no previous experience in the in
surance business.

Plan of Operation.— The exchange issues policies of in
denm•ity on automobiles against fire and theft, liability,
property damage and collision.

he membership is not limited to any particular line of
industry. The maximum liability assumed upon any risk
is $5,000 for one person in one accident, and $10,000 for
more than one person in the same accident, and $3,500 for
fire and theft.

Business will be accepted through brokers, to whom the
exchange will pay commissions.

The rates charged are, on fire and theft from 10% to
20',c below manual and 30% on liability, property damage
and collision.

The administration expenses are limited to 30% of the
premium income, from which the attorney-in-fact pays all
expenses, except license, fees, taxes of any kind, insurance
or reinsurance premiums, court costs, or attorneys' fees,
claim expenses, settling and adjusting of claims.

In the event of retirement of a subscriber, he is entitled
to his pro rata share of the savings at the time of the ex
piration of the policy after all liability under the policy
has been liquidated.

At the annual meeting held on the first Monday of De
cember of each year, the subscribers may vote to surplus
all or any part of the savings.

The assets of the exchange are in the custody of the Con
solidated Insurance Agencies, Incorporated. Complete de-
tailed report of the operation of the exchange is furnished
to the subscribers annually. Adjustments are made by
salaried representatives of the exchange..

Service of process may be made upon the attorney-in-fact
or upon the Insurance Commissioner of any of the States
in which the exchange operates.

The total maximum liability of each of the subscribers
is limited for ally one contract year to an amount not in

f