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ASSETS Of ECONOMICAL MUTUAL FIRE INSURANCE C0. EXCEED ‘4,000,000.00 We M of Investment Holding: The seventy-fourth annual meet- ing of The Economical Mutual Ptre Insurance Company um hold in the head office ot the company on Wednesday afternoon. Feb. 18th. with an unusually Inge attendance of policyholders, agents and com- pany ofriciaU The President, Henry Knell in moving the adoption of the Dime- tor's report referred to the early beginnings of the company. and contrasted the fimuteiai sum ot the company m its any day: with us present proud position. It not has total assets of “.MMAI. with a total surplus tor the panac- tion of policyholders of $3.043.- 966.91. The bylaw eontirining the action of the directors in buying a site at the corner of Duke and Queen Streets for the erection of a new head office building, was passed by the meeting. Senator W. D. Euler, Vice-Presi- dent. in seconding the ttttr, of the Directors' Report, pai tt tri- bute to the memory of the late Bar- vey Sims, a director of the com- pany at the time of his death. He referred to C. N. Weber, who suc- ceeds to the vacant position on the Board, as a public-spirited citizen who would be an acquisition We directorate. Mr. Euler spoke of the splendid record of the company, which is in an absolutely sound position, with assets of over $4,000,000 for the protection of policyholders The company funds are soundly invest- ed. though Mr. Euler thought that perhaps the proportion of Govern- ment bmds. 67 per cent. of the to- tal, was it little high, and was high- el" than most companies. At the same time. Victory bonds were now selling above par, and if the com- pany desired to dispose of their bonds they could do so with a pro- tit of $100,000. _ He urged caution these days in accepting mortgages, with the high cost of building and materials, and suggestcd the agents urge policy- holders to increase their insurance coverage to take care of the in- creased cost of replacement, which today might be anywhere from 30 to 50 per cent higher. . Mr. Euler in speaking of the high cost of government taxes quoted figures on the national debt and national income, and questioned if the government would be able to make a very heavy cut in taxation. He pointed out that.no government can continue to borrow forever. There must come a time for repay- ing, and that can only be done out of revenue. Despite the present world out- look, the strikes and threats of fur- ther labor troubles, increased costs. do. Mr. Euler was optimistic as to the future of the company, and of the community. After all. although the profit from underwriting would be almost non-existent but for the income from investment, the pri- mary object of a mutual insurance company is to give protection at lowest cost. The company was for- tunate in having capable ofncem and a fine field force. and he ex- pected it to continue to grow and prosper. Thanks to the agents tor their loyalty and co-operation were ex- pressed by officials of the company and responded to by Carl Seibert on behalf of the agents A grant of $100 was made to the Kitchener Firemen's Benefit Fund m appreciation of the s lendid work in the prevention of KI' LOUIS o. BRErTHAUPT. up. veir which " the man or ’repav’ Re-electtsd Director for three year; ments made by the borrowers and Book Value of Real Emu owned or held for sale _.-........................................-....." 29.50000 Mortgage Loans on Real Estate, Brst liens.... 643,3S9,06 Agreement for Bale .r.._......9...0.........rr......m.F._.rr.t. 5,304.25 Book Value of Bonds and Debentures owned $850,293.07 Book Value of Stocks owned ...T.....__....__...q.r... 190,798,112 Cash on hand and in banks Fr............................ 91.01997 Interest and Dividends due Ind mterued......,. 32,391.95 AgtTta1tttut-rittenonorafteroetoher ------ Amotint duo from "We. on lou- nleri paid .................................................. Accounts eceivnblo ........6-.-.q.....-........... The E'coatootical Mutual Fire Insurance Co. To The “on” d The Economic-l Mutual Phe 1mm Company: " gives me a great deal of plea- sure to present the Directors' Re- port today, particularly when it is remembered that, while this is the Seventy-Fourth Annual Meeting ot the Company, the year 1946 marks our seventrMtth year in business. and it is appropriate that some ref- erence should be made to the founding of the Company so long ago. On a Saturday evening, June 24, 1821, in the Town Hall of what was then Berlin, Ontario, thirty-six lo- cal citizens met and contracted to etteet Fire Insurance in a Mutual Company to be formed and known as the Economical Mutual Fire In- surance Company of Berlin. By September Sth, 1871, the organiza- Aio.n was completed and from that ‘date the Company has proceeded Yon its way through good times and bad, by trial and error, squeezing through cottflagrations, withstand- ing wars. including rate wars, un- til in this fear 1946 it is in a posi- tion of great strength and consider- able importance in the insurance t1eld in Canada. l The Company's funds during the war years have been invested al- most exclusively in Victory Loan bonds. The total amount of Victory and War Loan securities purchased during the war amounted to $2.- 765,000.00 and the following table indicates the proportions that the various classes of the Company's assets bear to the whole: Dominion of Canada Bonds $2gm,201.08 83.2% Other Bonds _... 309,091.99 7AVT Stocks mr.Frm_mFr.r.... 196,798.32 4.8% Mortgages .._.r_r_m' 648.863.29 159r; Other Assets m... 348,742.74 857 [ Mortgages were reduced from $775,788.38 at the beginning of 1945 to $843,559:04 at the end of the same The business of the Company in the early ears was divided into a Farm Branch and a Village Branch. and policies were issued entirely or the premium note plan. We an: Iortunate in having preserved pro- licy No. 1, which insured a dwel. ling owned by Israel D. Bowman (who was then Clerk of the Coun- ty of Waterloo) located on the cor- ner of what is now Water and Short Streets. in the City of Kitchener. A study of this first policy brings out the'tnarked restrictions that were placed by the Company against the assured, and the policy could be voided by many acts of commission which are not eonsid- ered as peeing material today. When we review the figures for the year 1945 in comparison it will be seen trom the balance sheet that assets now total $4,080,697.42; that all liabilities aggregate $1,036,730.51 there now being a surplus for the protection of policyholders of $3,- 043,966.91. This surplus is consid- ered necessary in the light of va- rious formulae which are used as a basis in the establishment of in- surance reserve funds and it should be remembered that the amount at risk for tire insurance alone is nnw s116,338,000.00; there is a large po- tential liability with respect to the l20,000 automobiles insured, each one of which carries a minimum limit of $11,000.00; and also when the possible liabilities with respect to accident and sickness and other eaglalt! insurances are considered. The first printed Directors' Re- port and Financial Statement has also been preserved. The first An- nual Meeting of the Company was held on the 20th of December 1872 and the President, reporting on thirteen months of operations, in- formed the meeting that the total premiums for the period amounted to $1,596.94 while there were only two losses. one of $100.00 for fit-e and the other of $15.00 for light- ning. Cash carried over amounted to $879.56 so it will be seen that a large measure of good fortune was necessary in the early days to cn- atethe Company to. sur_vive. President who presided at the annual meeting. The Seventy-Fourth Annual Financial Statement DIRECTORS’ REPORT For the Year Ending December aut, 1945 MYKNELL $4,080,007.42 100.0% 164,283.08 lvery tew new W0 10.“ VIC made during the you. A number of ehnn‘. occur!“ l,, real estate holdings theough the ml: of all marrow“ which had bu n arquir under lowdown proceedmgs but further ted eqtate 'investment was and: by the le- qulsmun of property " the comet us Queen and Duke Streets in the City " Kitchener u a site for a nets Head Office buildin . A br- law will be introduced at ta, meet- 1'18 to ccmlirm the action at the Di- [ rectors m thir ryrgyyi. " is _te_lt that ‘cnlistruutlon of the lien? cake Etuxlding cannot proceed immedi- atcly due to the scarcity of build- img materials although additional space is now needed for Head 15trice purposes. A committee of Directors has been appointed to j=tudy the requirements for office space and due provision will be %ade tor the constant growth than gis anticipated during the years to jcome. It is most likely that I tull 're port on this subject will be pre- 15ented to the next Annual Meeting. FIRE DEPARTMENT tnis site is admirably suited tor the purpme due to Its proximity to the Post office, bank and businen Bee- tion of the City. It is also felt that rt mil be extremely convenient tor m: lucul agents of the Company who have given us such generous support. It is gnttcipejed tha‘t_the The experience of your Company in the transaction ot tire insurance during the year was unfavorable. Pm nuums written amounted to $732,658S2, an increase of 815.- '.72.73 over the previous year. The io2,s ratio on an earned basis was 57.7%. The experience of this class of bucinsss was favorable. Premiums writtrn amounted to $422,937.26 or ar increase of $79,700.04 over the guru: ycar The ratio of losses ircurrcd to premiums earned was 443': Shortly after the lifting of Li‘,~nll‘l“ Putioning. an increase in ra'r: was (frosted which brought the C," vtrr " low) of rates to a point my; My In ituV those in effect prior tr; tit, war. The hazard to which the Company is exposed at the present time is greater than in the tmrtwdiatc pre-war period due to the age and condition of the vehi- cles incured and also due to the grcalvr number of inexperienced drivers. pari'.eularly young people who \nrv precluded from normal training as a result of gasoline ra- ttortrru' The Increase in automo- hlo an “dams 1% a matter of nation- al imp, rtunce and steps should be taken yy the authorities to require nnnro ty:attt examinations of new drivrrs and stiffer penalties for A number of reasons can be ad- vanced for the experience of this (my to) w”: and ncgiigence. The rrLy ”no of rvr‘ryone should be to c:ass; the winter months of 1945 (s', we cCVCrt? with heavy snow falls v. ( new] which prevent Bre brigades "ir rating as efficiently as they A'Ullld if the condition did not exist. E‘Lwis are of lower quality resulting "T a greater frequency of furnace zip c, and values generally have in- L'IL‘ILw d 50 that in cases of under- Lccurunt?e there are more total loss- 1: than formerly. The principal union. hnwcvcr, for the increasing Icccs ratio is the fact that eompeti- tzwv. ha, resulted in very substan- tial dr creases in rates while at the who time the fire insurance con- mM of former year? has, by the Icccs ratio is the fact that competi- The attains of the Company have 1m ha, resulted in very substan- been ably directed by the Manag- tizil dr creases in rates while at the) mg Director, Mr. T. W. Snyder; m who time the fire insurance comirecognitlon of his services the tt'tw , of former years has, by theiBoard elected him to a Vice-Presi- a:i,il:ion of the supplemental con- deryty. MI; Snyder has spent his tract. provided insurance ihi'i'i'r)i,'iii'ii,'e buslness lifetime ot forty- hell against such perils as wind- ftve years m the company's service r,torrtt, hail. explosion, riot, impatient! it must be .a great source of by aircraft or vehicles. smoke dam- isatlsfachon to him as well as the VL' and water escape. The exper- ‘rest of us to observe the tremend- I'nC!‘ of your Company in tire in- ous progress referred to herein l PW.“ follows thatof many other tnroughout our long and success- crrmponirs in the same field and ful history. should it continue for any pro- The retiring Directors are Messrs. :(Hgtd length of time it can rea- F. W. Snyder, H. C. Krug and L. Kimmy be expected that an in- O.Breithaupt,all of whomareellg- Lrtnst- in rates will occur to bal- ible tor re-election, ance the protection atrorded against Respectfuny submitted the COSt. i uwnv - ' AUTOMOBILE DEPARTMENT Vic-Prtsidtmt, who seconded the adoption of the Directors' Report. SENATOR W. D. Em Total provisu n for unpaid claims r.......-.....' 23.75003 Total net rescve carried out at 00% ............ 063,900.58 Rescrvt and tr paid claims under unlicensed reinsurano unsecured .......'......ee........w.tr..e.. 10.31105 Agency and own r ”pants. due and accrued 4,823.51 Taxes due and accrued ..m.r...................rr.t........._ 30,000.50 Reinsurance balance: '_"....'.".............................. 35,970.00 Reserve for loss on lnvstmenb ......r..mrr.......... 00.00000 Reserve for return of premiums .e....m_....e......... 8.50.09 reinsurano unsecured .......'.0....qe........w.tr..e.. Agency and oth, r expenls. due and accrued Taxes due and accrued M..................................... Reinsurance balance: '_"'......-............................... Reserve for loss on Investment: ......r..mrr........p. Reserve for return of premium p..................... . 81.038.780.31 Surplus for pron Mom of policyholden ...r.... “HMO! reduce accidents and if concerted efforts could be made in this direc- tion by the nuthorties and insur- ance companies, it could be expect- ed that the cost of insurance would follow the trend. CASUALTY DEPARTMENT Casualty premiums written in- cluding Windstorm and personal property Boater amounted to 822t,- 43833 and loss ratio on an earned basis on all classes of this Depart- ment was 57.4%. There are eight main divisions of casualty insur- ance written by our Company most of which had favorable experience but the personal property Boater experience was poor due to the tre- quency of claims This class of in- surance is relatively new in Can- ada but enough experience has been gained by insurers to warrant a substantial Increase in rates and change in the form of cover which will become effective on March Ist, 1946. The volume of casualty busi- ness is growing satisfactorly, the increase in premiums over 1944 be- ing $47,085.72. . During the year the Company suffered a heavy loss in the passing of one of its Directors, Mr. H. J. Sims, KC, who died during the month of June. Mr. Sims had been a Director of the Company since 1927 and his wide experience in in- surance matters and law resulted in a very valuable contribution to the direction of the Company's af- fairs. The Board has appointed Mr. C.N. _Weber of Kitchener, Ontario, to complete the unexpired portion It is hard to express in new terms the appreciation of the Directors and staff for the wonderful contri- bution made during the year by our large staff of agents but the growth in premium volume of $131,108.29 indicates beyond any question that their loyal support has again been forthcoming not- withstanding that the Company is still unable to give them assistance through field inspectors as was our practice before the war. Now that that unhappy event is over, it is to be hoped that new appointments of inspectors can be made quickly to assist the agents in the selection, in- spection, and production of all classes of business. Redacted Direetdr' it} tues, years. Vice-Presidehi Rind Managing Di- rector. Re-elected as Director tar The retiring Directors are Messrs. F. W. Snyder, H. C. Krug and L. o. Breithaupt. all of whom are elig- ible tor re-election, HENRY C. “06 three-year term. P. w. "YDEN Respectfully submitted HEN}?! KNELL, President. thn Guide movements in Canada but the growth could and attgtuid be much greater This immedi- ate visunity IS one m which every citizen should be aroused to the need for such a branch of minim be our youth. It " true that I few belong to the movement in a neigh- bormg group but aponsors and lea- ders are needed right in the village to interest these teen-age and even younger boyo and gals in the pro- iir Use of [M " " ”are hours and the lralmng that only and) earned. dead”: can glut I We all realize tnat t :e boys and [girls of today mil be the titizens In - OJI 0-1951 bout Canada, February "Pg'tt,'l is ttt celebreted I ttl Rout and Gtr Guide Veek. Cube. Scouts. Raven. Guides and Renae-1, we any " luck to you. and may you con my» to puild good cumming We" realize Gare has beef; a Er.orttt in. both the Boy 'coyt artd " to-morruw. Accordingly we have the theme of this pedal week “It is thrir world andilet Ill prepare them for n"-tae kind , world in the fututu. will depend the smurny and purpose of the training “a v.33". our mys and girls toggy. _ _ We send our boys and girls to "r'nool and follow tneir progress with satistactr. m or aux.er as their reports indicate “nigh marks" or "low mark," m spelling or arith- metie or canlprhlliun Sometimes we wish “it could help them more ut we do bull or nothing and pass it off with tne remark. "We know so little of the way they teach these things nowudays." And right under our Lye; turn is going on another yroccss vi (due ton. in the home and :n their leisure hours outside the home, Not only must children be fitted to puss cxamina- tions but tz-y zim~t a hvlped to build life. A University President has becn quot " " \lymg mat a common waking, Maggi: vnung Maple 13-day Jr', thuir unwilling- ness tn Ctc"lrtsy icsponsitulsty. Education Icis had to advance to keep up with the ever-advancing march cf groans: It is true that all these yy l’ t: m, t something but it pays huge in turns on the in- tcattrint It'll tur rill ms who are to control the deiircs of our coun- try in the future must be intelli- gent and enlightend. It has bow -N, d Nut no move- ment in the \x‘uer i: :5 done more to prnmntc punt»,- and friendly co- oprratinn t'v.rounhout tho nations than that of M. Boy Scouts and Girl Guides. Thin» are five mil- lion of thee hoys and girls being trained in scans of countries throughout [an worid and of this nurcbes upymximdoly one hun- dred and vt v 'tV t (r wand am in Canada. Their Jaivs are tenfoid and to "o, ,' L [ 1- “1 1.tlg.c (mu must h; 1ruivorthy, loyal, help- 'ul, frumdly. courteous. kind, obe- dient. cheerful. thrifty and clean of body and mind Koch strut or guide mm". mks t.'its C/lowing promise 'On my ix-uwxr' I pram 'er 1 will do my best (I) to dn my duty to God and the Kin: (2: to huh) other peo- ule at ail times, (3) to obey the Scout or Guide 'ctw. The Scouts motto is "Be Pre- pared" and perhaps in no day or " In. tmreogi Din-old (Ch-chic 00W) BADEN WomYcu. tuse-neat-tir-let-tll-Ht-aa" 1atedea-Ptt-i.tHt-dtlMgtNo-tuttqlt1 orgnniaeroetttrtterttat-i-tt lawmaj.“ tgttul'glt2Ntrttt'tt. way-neat“! with-might laureate“? 'ttlieth.:",,":.',:,"':'?,?,",',',',""' niuopuun‘lh. M tetruetvrvcaoahUreetir& theinevitabreaettutu-The loch! committee a.“ heeouldnotnhurhcvhhthuflnflulufleipelinthom- andgoheteithe' “huh-to- m. of tube-lament. A vote of n.2memmumuMIMv/uumnd Unbound intutur-h-thq-:lrat-attheeonelusioetattt- 1tepLtet,,Pf2g'."edt,ti.idur"'. tllyLe1d,P?Pthttte1ettt site. Happineasdomete-fhtm', In M. Becker and daughter Me. Happiness death con. tour In M. Becker and Ine,,',, being rich. In! and; than bun; Rubin Ann and Mrs. Lloyd oot- succeallul in your use, an by net and Ian Robert of Kitchen! seU-indu1genee. One also to-rd were recent visitors with [in happiness is to make ,oursett hed- Leona Creunun and Mr. Gidoon thymdtuouwmmaboy. Bechtel. no that.rou_ern Ite m and lo _WeeVertd, any; at theftome ot ness," continued Lord Baden-Mo _n’s Nachos: by giving $311.1; pines to er people. leave this world I little better than you found it and when your turn comes to die you can die happy in feeling that " my rate you have not wasted your time but have done your best 'Be prepared in thie way to live happrand to die hap- py--stick to your Scout promises u'iways--even Stat have ceased to be a boy-and od help you to {0' it." Surely it can be aid that the above exerpt from this great Scout's letter shall ever be I liv- mg example of the training and in- struction which the boys of the Scout movement receive. May this week, designated and "st tft; , "Boy Scout and 3:1 Gui e ee "inqfueeverypu - minded citizen with the need for naming and the need for miners. ‘Izoys and girls ere ready end In- ‘luus to become and be my. nappy, helpful grid self-reliant. can .e.nkrr life when; you it; -d Come on men and women. tza an to provide laden he ities te., for this training. "it is their .orld, law them lot it." auxiliary - - The annual meeting of the Wo- mn's Auxiliary of St James Lu- Lcran Church was held last Tues- Jay evening at the home of Mn. Charles Help_el. A 7 The annual reports for the audit- ing committee were preeented by Miss Ethel Mai In. Chat Ieipel, treasurer, ave the ttnan- .11 report showing a man anlance of 336500 on hand. A Wendld report ot the put you“: \urk which was done by the sick :.d welfare committee 'll1"ghei. 'cnted by the converter. Mn. N. foster. During the business a ind the auxiliary passed I mo to adopt a student a the seminary t Waterloo College. The election ot when malted .n the following Mate being drawn .1 p: President, Mrs. Caper W. Ylect; lst vice-president. Mrs. Wal- ker Bechthold; 2nd vice-Meat, sirs. Clayton Miller; secretary. Miss Ethel Hunsberger; tinatteial secretary, Mrs. Chm Rebel; treasurer, Mrs. Charles Belpel; ot- "Bet than“. W 32% tteeri- Today more than a million Bell telephones are in operation--- but it's nil] not enough. Our main job ia overtaking deferred orders for service. That moan not terhrhooes akin. but buildings, nwilvln- boards, win and cable. We are moving full apeod ahead. A Our ploy-ammo for 1946--foe buildings, switch- boards, wire and cable. tmuerihere' equipment, long dint-no. and an] -a'oe---wilI coat upwards of 30 million. WE a. do.“ up (Ink-led order. for telephone. a quickly a It can be done. Over 50.000 telephone. have been added since " Dae-the incense in the In: four months of 1945 van greater than in the preceding eight Week-end guests at the home at Mr. and Mm. Chance Diamond were: In. Wm. R. Fauis of Ear- riston. Mr. and Mrs R. G. Punk of Edmonton, Alberta and Mr. Allan H. railis of the University of Tb- mnto. Mr. and Mrs Willard Shana at- tended the Waterloo County Junior Farmers' Skating Party in the Gait Ae.na on Thuedar evening. - Mr Albert Events. I returned veteran hasgurchased the Drug Store operat by the late Mr. Hat- ry Schumm and took posse-ion last week. "Allie's" host of friends wish him every success in " new venture. Vaginal. Party. A pleasant social evening was enjoyed by the teachers, pupils and parents of the Livingston Presby- terian Sunday School on Widae evening when a Valentine Social was held. Games were in charge of a committee, composed of Miss Emma Struth, Mrs. S. C. Kuhn, Mr. Cart L Ritchie and Mr. Clarence Diamond. Prizes were awarded winners of the various games and these were won by Mrs. Albert Everets. Mr. Stuart C. Kuhn, Rev. J. V. Mills, Miss Joan Bowling, Miss Lola Doerr. Miss Audrey Schagena. Miss Shirley Ritchie and Jimmir_Nidbet. Lunch was ar- ran ed by a commitidd flitâ€"Pose}- of gin. John Hoist, Mrs. ames Nisbet, Miss Shirley Ritchie and Miss Marjorie Biesel. Mr. Oliver Kelley and son John spent Sundaf’ with Mrs. John Iarng- man near A ma. Rev. and Mrs. Howard Bauman and family were Sunday visitors with Mr. and Mrs. Elias Brubacher at Elmira. Messrs. Amos and Ervin Martin and Misses Edna and Adeline Mar- tin of near Floradalc were Sunday visitors with Mr. and Mrs. Daniel Horst. Mrs. Allan Wagner, Mr, and Mrs. Edwin Bender and Ellen and Ruby Wagner attended the funeral of the late Mrs. Martin Mohr at North Easthope on Saturday. NORTH WOOLWICH I" In. chasm Sell-aid! (Chronicle (Zorro-Donia" S. F. LONG