114      REPORT OF THlE COMMISSIONER OW INSURANCE.


COMMISSION OF ATTORNEY
rThe attorney-in-fact is allowed twenty per cent of the total
expense and guarantee fund as a commission, which is in full
for all expenses of carrying on the business of the exchange
except counsel fees, costs and expenses of litigation, taxes, li-
cense fees , expenses of fire patrol, and fees and expenses of the
advisory committee, and various other expenses connected with
the custody and investments of the funds of the subscribers.
ADVISORY COMMITTEE
There is an advisory committee of five members which repre-
sents the various subscribers and which has charge of all funds
of the subscribers. All disbursements are made by voucher
checks approved by the attorney and signed by at least two
members of the advisory committee.
INSPECTION AND SURVEYS
In common with all of these inter-insurance associations, the
survey and inspection of plants form a very important work of
t[e exchange. Each plant is carefully surveyed at the time of
the acceptance of the risk, and inspected at least six times each
year by different inspectors. The inspectors furnish the sub-
scribers with their recommendations and they in turn notify
the attorney if the recommendations have been carried -out.
If a member becomes obdurate and will not obey the in-
struction of the inspectors his name is dropped from the list,
his policy is cancelled, and his account is liquidated.
FINANCIAL CONDITION
The financial condition of the exchange as of June 30, 1913,
is shown by the following statement.
Ledger Assets as of December 31, 1912
Cash in banks .................      $301,057.01
Subscribers' balances .................  17,021.84
Total ..........................................  $318,078.85