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REPORT OF TIlE COMMISSIONER OF INSURANCE.


Liabilities
Losses unadjusted and unpaid ..........................  $115, 500.00
Unpaid  underwriting  expenses ........................  7,477.66
Reserve for annual deposits amounting to $347,709.35,
less provision for expenses of 20%, at 50% accord-
ing to the insurance laws of Wisconsin for 1913....  139,083.74
Total liabilities except surplus and reserves . $262,061.40
Surplus and reserves belonging to subscribers .54,115.01
Total liabilities .$316,176.41
COMMENTS ON THE FINANCIAL STATEMENT
The items given in the financial statement are radically dif-
ferent from the results shown in the controlling ledger. In
fact, the records of the company are not adapted to express
the financial condition of the exchainge in terms of the conven-
tion blank. In order to illustrate the wide difference between
the system in vogue in the exchange and the one used in the
statement we beg to refer you to the report of the financial
condition of the exchange made, by Marwick, Mitchell,. Pleat
& Company, chartered accountants, Chicago, Illinois, as of the
date of the department examination. Messrs. Marwick, Mit-
chell, Peat & Company compiled a statement from the results
shown by the controlling ledger, and it is divided into the fol-
lowing divisions:
Exhibition A, showing assets and liabilities;
Exhibit B, surplus account.
Schedule 1.-Underwriting saving and loss of estimated
cost.
Schedule 2.-Comparative statement of saving and loss
of estimated cost.
The results shown in Exhibit A follow quite closely the re-
sillts obtained by the department, examiners, but; the items
shown in the income and disbursements of the department ex-
amination have no parallel in Exhibit B, nor in schedules 1
and 2.
From the above it will be seen that. the difficulty of prepar-
ing a financial statement along the lines of the convention
blank would be considerable. We earnestly recommend that
the present system be, modified or that a. subsidiary ledger and
trial balance bIe kept for statement purposes. The ledger titles