84       REPORT OP THE COMMISSIONER OP INSURANCE.


EMERGENCY F UND
The advisory committee reserves for each subscriber one half
of his annual deposits until the amount reaches the sum of
$100, after which all the savings are returned to the subscrib-
ers annually.
REINSURANCE OF EXCESS LOSSES
In order to make provision for excess losses, the advisory
committee is authorized by the power of attorney to levy an
assessment of $100 on each subscriber whenever this sum is
needed. In order to avoid an assessment for excess losses, the sub-
scribers may pay five per cent of their annual premium   de-
posits and the attorney-in-fact guarantees that there shall be
no such assessment levied against those who accept of this of-
fer. The attorney-in-fact reinsures this risk in the Equity
Fire Insurance Company, which is under the same management
as the Reciprocal Exchange. Mr. Dodson is the chief stock
holder and the manager of the company.
NO JOINT FUNDS
In this' exchange there are no joint funds but all moneys are
held separately for each subscriber. There is an individual
ledger into which are entered the financial standings in the ex-
change of all the subscribers. The attorney-in-fact has power
to bind the subscribers severally, but not jointly.
COMMISSION
The attorney-in-fact receives a commission of 25% of all mon-
eys received by him for credit to the account of the subscribers,
which is in full for defraying all expenses of the exchange ex-
c(pt those of taxes, legal expenses, and advisory com11nmittee ex-
penses. It has been the custom of the exchange to allow thMe
attorney 25%o not only of the premium, (leposits lbtl-It also of the
interest earnings.
NATURE OF RISKS
The risks in the brewers' division of this exchange are very
large still the amount of liability assumed upon any one