720   BEST'S INSURANCE REPORTS-FIRE AND I ARI \ E.

NATIONAL LUMBER MANUFACTURERS'
of that company and also a greater part of the town.
In October, 1918, it again met with heavy losses of ap
proximately $75,000 in the Minnesota forest fire con
flagration.

It is in good repute in the matter of loss settlements.

Plan of Operation.—The exchange writes fire insurance
on high grade sawmills and lumber plants subject to in
spection by representatives of the exchange. Each sub-
scriber must be a manufacturer of lumber. The largest
amount written on a single risk is $40,000, which is also the
amount written in any limited area. The proprotion of lia
bility assumed by each subscriber under policies issued, is
determined by the premium deposit. Each member writes
a proportion of every policy issued. Premium deposits are
credited to subscriber's accounts.

The advisory rates fixed by board insurance companies.
are usually charged, but the exchange applies its own
tariff schedule which may or may not coincide with the
board rates.

The power of attorney provides that the attorney may
deduct an amount sufficient to pay all management ex
penses from the members' annual deposit. The expense is
not limited, but there is a provision that all disbursements
are regulated and controlled by the Advisory Committee.

Savings are credited to members' accounts at the end
of each policy year. The agreement with the subscribers
provides for the retention of two annual premiums as a
reserve fund. The assessment liability of members is limited
to an amount equal to one annual premium. deposit. The
exchange has never levied an assessment.

Any subscriber may retire upon cancellation of his policy
and his pro rata share of unexpended premium deposit is
returned.

No policies are written through brokers.

No provision has been made to guarantee members
against assessment.

The assets of the exchange are in the custody of the
advisory committee.

The power of attorney provides that an advisory com
mittee consisting of not less than twelve members, com
posed of subscribers of the exchange, shall be elected an
nually by the members. This committee is empowered to
select a treasurer and secretary, and is given power to
regulate and control the management of the exchange. All
disbursements are made by check signed by the attorney
and countersigned by the treasurer of the advisory com
mitted. The attorney and manager and the treasurer of
the advisory committee are bonded for the safety of the
funds and securities of the exchange. The advisory com
mittee has the power to discharge the attorney and man
ager in case of incompetency and to appoint a successor.

Advisory Committee for 1919-1920.—C. F. Wiehe, secre
tary Edward Hines Lumber Co.. Chicago, Ill.; F. C. Knapp,
president Peninsula Lumber Co.. Portland, Oregon: Fred W.
Reimers, gen. mgr.. Natalbany Lumber Co., Ltd., Hammond,

INTER-INSURANCE EXCHANGE — Conti vued,

La.; C. L. Harrison, secretary Himmelberger-Harrison
Lumber Co., Cape Girardeau, _MO,; D. O. Anderson, president
Anderson Lumber Corp., Marion, S. C.; W. A. Holt, vice-
president Holt Lumber Co., Ooouto, Wisconsin; E. A.
Se:fridge, Jr., president Northwestern Redwood Co., Willits,
Cal.; Chas. A. Bigelow, president Kneeland-Bigelow Lumber
Co, Bay City, Mich.; J. P. McGoldrick, president Mc-
Goldrick Lumber Co., Spokane, Wash.; O. O. Axley, man
ager Southern Lumber Co., Warren, Ark.; John L. Kaul,
president Kaul Lumber Company, Birmingham, Ala.; John
H. Kirby, president National Lumber Manufacturers' Asso
ciation, Houston, Texas; R. M. Weyerhaeuser, president
Northern Lumber Co., Cloquet, Minn.; E. G. Swartz, vice-
president Burton-Swartz Cypress Co., Perry, Fla.; J. S.
Gillies, vice-president Gillies Bros. Co., Ltd., Braeside, Ont.

Monthly reports are made to all members. The exchange
is licensed in Illinois, Arkansas, Washington, Mississippi,
No. Carolina and Oregon, and the superintendents of
insurance of those States and the attorney are authorized
to accept service of process binding upon all the members in
the event of a dispute arising concerning any claim against
the exehange.

Its statement ss of Dece+nrber 31, 1919, is as follows:
Admitted .cash assets: Bonds and stocks owned (market
value), $77,519.50; interest (Inc and accrued thereon, $1,-
452.33; cash in banks and office, $47.931.22; premiums or
deposits outstanding not over three months due, $25,710.72;
unexpired reinsurance, $131.21; office furniture and fixtures,
$2,000; total cash assets, $154,744.95.

Liabilities: Unpaid losses, $25,000; unearned premium
deposits, $84,651.75; total liabilities, $109,651.75: net cash
surplus, $45,09323; total, $154,744.98.

Cash Income, 1919.—Premium deposits written, gross,
$247,870.90: less return premium deposits, $23,978.64; less
reinsurance, $459.70; net, $223,432.56; interest, etc., $4,-
174; office furniture and fixtures previously charged to
expense, $1,580 55; total cash income, $229,187.11.

Cash Disbursements, 1919.—Net losses paid, $155,746.68;
administration expense, *44,815.57; advisory committee ex
pense, $170; legal expense and auditing, $400; taxes, li
censes and fees. $3,853.67; cash savings returned, $171.78;
total cash disbursements, $205,158.

Transactions Since Oryanization,—Premitnn deposits re
ceived, gross, $718,564.64: less reinsurance, $12,467.03; net
premium deposits, $706,097 61; interest received on invest
ments and hank deposits, $13,903.01; total cash income,
$720,000.62. Losses and adjustment expenses paid, net,
$402,647.87: administration expenses, $148,654.02; advisory
committee, legal, etc., $7,159.51; war revenue and income
taxes, $3,666.62; total expenses paid, $159,480.15; returned
in cash to members, as savings, $3,127.62; total cash dis
bursements, $565,255.64.

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