the subscribers by whom paid, and each subscriber par
ticipates in losses in the proportion that his premium de-
posit bears to the aggregate premium deposits participating.
The compensation of the attorney and manager is 25%
of the premium deposits of members. This compensation
covers all expenses, except taxes, legal expenses and ex
penses of Advisory Committee.
The liability of members or subscribers to this exchange
for funds for excess losses and claims over and above the
actual resources of the exchange is reinsured by a stock
The fluids of this exchange are invested in high-class
Attention is called to the fact that no reserve was set up
in the statement below for unearned premium liability.
Its statement as of December 31. 1919, is as follows:
Admitted cash assets: Real estate mortgages, $15,000;
bonds and stocks owned (market value), $400,824.53; Bash
in banks. $390,852.01; net deposits in course of collection,
$32.207.85; total cash assets, $838,074 39.
Liabilities: Losses in process of adjustment, $8.000:
total liabilities, $8.000; net cash surplus, $830.974.39; total.
Business front Organisation.—Receipts: Net deposits
credited to subscribers, $4,555,196.76; net interest, less
taxes, Advisory Committee and legal expenses, $73.929.92;
guarantee fund, $478.,405; total receipts, $5.107.531.68.
Disbursements: Losses paid, $2,108,498.60; losses in
process of adjustment. $8,000; savings return in cash to
policyholders. $1,681.653.69; total disbursements. $3,798,-
Surplus, reserve and guarantee fund, $1,309.379.39.
In connection with this report. see important article in
troducing this section.