722   BEST'S INSURANCE REPORTS—FIRE AND MARINE.

NATIONAL MERCHANTS AND MANUFACTURERS INSURANCE EXCHANGE—Continued.

$57,126.94; less reinsurance, $2,849.85; net premium de-
posits, $166,585.71; interest received on investments and
bank deposits, $369.85; special deposit by attorney-in-fact,
$15,000; total cash income, $181,055.56. Losses and ad
justment expenses paid, gross, $116,717.78; less salvage,
$325.46; losses and adjustment expenses paid, net, $116,-
392.32; commissions paid to attorney-in-fact for adminis-

tration expenses, $39,158.46; legal expense, $438; other
expenses paid, $1,889.49; returned to attorney-in-faet, ac-
count special deposit, $6,000; returned in cash to members,
as savings, $14,947.67; total cash disbursements, $178,-
825.94.

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

NATIONAL UNDERWRITERS OF CHICAGO,
Chicago, Ill.

History.— This is an inter-insurance organization com
posed of lumbermen and manufacturers.

The organization was originally operated under the name
of the Lumbermen's and Manufacturers' Underwriters at
National Indemnity Bureau. In November, 1917, the name
was changed to the Lumbermen's and Manufacturers' Un
derwriters on November 15, 1919, by action of the trustees
and with the approval of the Insurance Department of the
State of Illinois the name was again changed to the Na
tional Underwriters. There are three separate departments
as follows: Shoe Dealers at National Underwriters; Lum
ber Dealers at National Underwriters; Various Dealers at
National Underwriters.

The first policies of the exchange were issued in October,
1914.

The business accepted is automatically reinsured in. six
responsible mutual companies having substantial cash as-
sets.

Management and Reputation.— The attorney and man
ager is James S. Kemper, who is in good repute, and who
for the past six years has been in Chicago as the western
manager of the Central Manufacturers Mutual and the
associated lumber ntutuals, consisting of the Lumber Mutual
Fire of Boston, Pennsylvania Lumbermen's of Philadelphia,
Lumberuien's Mutual of Mansfield, and Indiana Lumber-
men's of Indianapolis.

The officers are as follows: President. C. A. L. Par-
most, secretary Central Manufacturers Mutual Insurance
Company of Van 'Wert, Ohio; vice-president, Elmer H.
Adams, vice-president Marsh & Bingham Company, Chi
cago, general counsel Lumberman's Association, Chicago.
Fort Dearborn National Bank. Chicago, and Illinois Lum
ber & Builders' Supply Dealers' Association; secretary,
Edwin E. Hooper; treasurer, Frederick L. Brown, of
Crandall & Brown. Hardwood Lumber, Chicago, and vice-
president of the National Hardwood Lumber Association,
Chicago; manager, James S. Kemper, manager Lumbermen's
& Manufacturers' Insurance Agency, Chicago, and vice-
president Lumbermen's Mutual Casualty Company, Chicago.

Plan of Operation.—This exchange assumes risks of
$10,000, subject to one fire hazard, which are carried net.

The subscribers pay an initial premium deposit and the
additional liability of each subscriber is limited to a sum
equal to the annual deposit

The power of attorney provides that the board of di-
rectors shall, from savings credited to the subscribers' ac-
count, accumulate an adequate net surplus and reserve
fund; all other savings to be returned annually in cash.

The attorney-in-fact is authorized to deduct 25% of all

moneys received by him for the purpose of defraying all
expenses except losses, taxes, legal expenses and the ex
penses of directors.

The exchange is licensed in Illinois, Indiana, Michigan,
Ohio, Pennsylvania and «Wisconsin.

Its statement as of December 31, 1919, is as follows:
Admitted cash assets: Liberty bonds, $50,000; cash in
banks and office, $17,735.59; premiums or deposits out-
standing not over three months due, $4,202.06; other cash
assets, $15.28, total cash assets, $71,952.93.

Liabilities: Losses in process of adjustment, $75; rein
surance, $75; unearned premium deposits, $8,292.38; due
attorney-in-fact for administration expense, $12,05S•.16; re-
insurance, $1,041.84; other liabilities, $17.06; total lia
bilities, $21,400.44; net cash surplus, $50,5431.49; total,
$71,952.93.

Cash In-conic, 1919.—Premium deposits written, gross,
$107,644.86; less return premium deposits, $16,842.10; less
reinsurance, $83,330.54; net, $7,472.22; interest, etc.,
$197.40: guarantee fund, $110,059.04; commission from re-
insuring companies, $11.791.51; dividends from reinsuring
companies. $12,259.33; adjustment expense from reinsuring
companies, $395.67; total cash income, $142,176.07.

Cash Disbursements, 1919.— Losses paid, gross. $26.-
187.55; less reinsurance, $26,258.03; let losses, —$70.48;
paid to attorney-in-fact for administration expense, $8,-
S38.5S; advisory committee expense, $30.56; taxes, licenses
and fees, $1,911.71: dividends returned to subscribers, $9,-
135.92; expenses of adjustment of losses, $395.45; rein
surance of excess losses, $665.27; total cash disbursements,
$20.907.01.

Transactions Since Organization.—Premium deposits re
ceived, gross, $178,896.89; less return premium deposits,
$26,015.03; less reinsurance, $135,992.32; net premium de-
posits. $16,889.54: interest received on investments and
bank deposits, $280.2.5; guarantee fund, $135.059.94: com
mission from reinsuring companies, $18,058.98; dividends
from reinsuring companies, $17.890.01; total cash income,
$189,078.72. Losses and adjustment expenses paid, gross.
$38,687.28; less reinsurance, $38,672; losses and adjustment
expenses paid, net, $15.28; commissions paid to attorney
in-,fact for administration expense, $16,219.42: other ex
penses paid, $1,945.44; total expenses paid, $15,164.86; re-
turned in cash to members, as savings, $13,235.72; reinsur
ance of excess losses, $665.27; total cash disbursements,
$32,081.13.

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