REPORT OF THE COMMISSIONER OF INSURANCE.


161


ing a fire insurance business that pay their attorney-in-fact a
commission of 25 per cent of all moneys received, and the local
agents also a commission of 25 per cent, making a total of 50
per cent, to which is. added the various items of taxes, legal
fees, and advisory committee expenses. Such exchanges leave
but little of the subscribers' funds with which to pay losses and
refunds to the subscribers. The, better exchanges do not, how-
ever, tolerate such business methods, and the expenses are
kept down to a reasonable sum.
It will also; be noticed in the financial statements of a few'of
the exchanges that an expenditure occurs for the American
Reciprocal Association. The legal head of this association is
Mr. Charles M. Howell, of Kansas City, Missouri. The object
of this association is to bring the'merits of the reciprocal plan
of insurance properly before the different insurance depart-
ments and the various committees having charge of insurance
legislation.' It also takes charge of all matters relating to the
admission of exchanges. to the various states, and protects the
'exchanges against legislation that is inimical to their interests.
Only exchanges of' the better class are admitted to this mem-
bership. An assessment against the gross premium   receipts
of these exchanges is levied each month to pay the expenses
of the association.  The work of the association has, done
much to bring the reciprocal plan of insurance to the atten-
tion of insurance men and especially of the various. depart-
ments of insurance. It is. at the present time endeavoring to
secure uniform legislation and rulings in regard to the super.
vision of reciprocal insurance.,
Inter-insurers associations strenuously object to the filing
,of the names of the various subscribers with the insurance de-
partments. They claim they have as much right to preserve
the secrecy of their lists of subscribers as the mutual com-
panies have of their lists of policyholders. They also claim
that it gives other competitors an undue advantage. They
further state that they have no objection to submitting their
lists to the insurance departments, but. not to filing the lists.
In this matter it would seem that their contention is just, and
that one class, of competitors should not be allowed to have
an undue advantage over those of another by means of any
special privilege.
k-Ins.-i