returned to the members annually, in cash, or applied on
account for the next annual premium.
The liability of any subscriber may be terminated at any
time by either party giving the other five days' notice in
writing, and thereupon the attorneys within thirty days
thereafter liquidate the account and return to the sub-
scriber any net surplus and reserve which has accrued to
his account, provided that there are no outstanding un
adjusted claims for losses. The assets of the exchange are
in the custody of R. Lee Kempner, who is also the cashier
of the Texas Bank and Trust Company. This institution
is a State bank and deposits are guaranteed. The attorneys
and managers are not bonded.
Reports to subscribers are made upon request and also
once a year after the annual statement is filed with the
insurance Department of Texas.
The Commissioner of Insurance and Banking, of Austin,
Texas, is authorized to accept service of process binding
upon all of the members in the event of a dispute arising
concerning any claim against the exchange. Losses are
adjusted by the representatives of the exchange, or by in-
dependent stock company adjusters.
It is licensed in Texas only.
Advisory Committee.— (At last advises) John Sealy. of
Hutchings, Sealy & Co., bankers, Galveston; J. H. W.
Steele, treasurer Texas Compress Co., Ocean Freights, Gal
veston; Lasker, of Texas Star Flour Mills, Galveston;
C. H. Moore, of Moore & Goodman Lumber Co.. Galveston:
Lock, Moore, & Co., Lumber Co., Lake Charles, La.; J. S.
Rice, president Bankers Trust Co., Union National Bank,
Great Southern Life Insurance Co.. Houston.
The financial statement includes among the assets and
liabilities an item of $175,060.94, which apparently repre
sents the assessment liability of members.
Its statement as of December 31, 1919, is as follows:
Admitted cash assets: Bonds and stocks owned (market
value), $9,929.60: interest due and accrued thereon, $62.02;
cash in banks and office. $41,66046; premiums or deposits
outstanding not over three months due. $32,445.01; guar
antee fund, $175.060.94: interest accrued on deposits in
banks. $1,050.30; cash in handy of managing attorney. $1,-
050; total cash assets, $261,258.33.
Liabilities: Losses in process of adjustment, $15,000;
unearned premium deposits, $48,348.81: due attorney-in
fact for administration expense, $9,733.50: reinsurance,
$1,622.25: contingent liabilities guarantee fund, $175,-
060.94: total liabilities, $249,765.50; net cash surplus, $11,-
492.83: total, $261.258 33.