REPORT OF THE COMMISSIONER OF INSURANCE.           119
the, advisory committee.   This is usually done through the
countersignature of the treasurer. They also have the power
to adjust and settle losses, and employ attorneys in case of
litigation.
COMMISSION OF ATTORNEY
The attorney-in-fact receives a commission of 20 per cent
upon all moneys which pass through his hands.      This compen-
sation is in full for all. underwriting expenses and all other
expenses of the exchange, except legal expenses, taxes and ex-
penses of the advisory committee.
INSPECTIONS
In the literature, the attorney makes mention of the fact that
a prominent feature of the work of the exchange consists in its
inspection and surveys. Each risk is inspected at least six
times per year by different inspectors who are graduates of
engineering courses in colleges. We examined the inspection
files of the exchange, and we found that the inspections were
thorough, making many recommendations in regard to install-
ing of fire-prevention devices, the removal *of waste material
and the location of lumber yards in regard to the other build-
ings in the lumber manufacturing plants.
FINANCIAL STATEMENT
The financial condition of the exchange, as of Augnst 9th,
1913, was as follows:
Ledger Assets, December 31st, 1912:
Cash .................................  $31,970.74M
Bonds ............             ......  74,096.03
Uncollected premiums ......  ...........  23,325.11
$129,391.88
Income
Gross premiums written .......  ........... $130,153.39
Less return premiums .....................  27,172.10
Net premiums written ........    ..................  $102,981.29
Interest on bonds less $425.27 accrued interest on bonds
purchased ...............    ...................     1,787.23
Interest on deposits in Trust Companies and banks .....  1,200.71
Re-insurance return premiums .........................     429.14
Total income ...........    .......................  $106,398.37
Total footings .............................  $235,790.25