REPORT OF THE COMMISSIONER OF INSURANCE.


8,5


risk by a member of the exchange is comparatively small. Great
care is exercised in surveying and inspecting the risks accepted
in the exchange. This inspection goes into the subject of the
removal of waste, the installation of fire prevention apparatus,
and aid in building fireproof structures. Each risk is inspected
six times a year, by different inspectors, and the recommenda-
tions of the inspectors are sent to the subscribers and they in
return acknowledge their receipt with a letter stating whether
the recommendations of the inspectors have been carried out.
If any subscriber becomes recaleitrant and will not carry out
the recommendations of the inspectors, then he is dropped from
the list.
RATES
The exchange charges the full board rate or such a rate as
is agreed upon by the insured and the attorney-in-fact; and
after deducting the commission to the attorney and the cost of
insurance, the remainder is returned to the subscriber in the
form of savings. As will be seen by the financial stateinent,
the savings have been large and the exchange has been very
successful in reducing the fire loss through its inspection and
the hearty co-operation of its subscribers.
FINANCIAL CONDITION OF EXCHANGE
The financial condition of the exchange as of MIlay 31, 1913.
is shown by the following statement:
Ledger assets December 31, 1912, as follows:
Cash ............................... $178,191.00
Bonds ................  ............... 322,324.50
Mortgage loans ........   ..............  25,000.00
Bills  receivable  ........ ..............  687.50
Subscribers debit balance ...... .......  28,986.43
Total .........................................  $555,189.43
Income
Gross deposit premiums written ..... ...... $204,895.80
Less charge to subscribers for
reinsurance against excess
losses ..              ...   $5,084.83
And return deposit premiums   24,182.26
29,267.09
175,628.71
Interest received ............  ........................  3,343.39
Total income ...........   ........................  $178,972.10
Carried forward .......    ...................  $734,161.53