financial records of the company are, however, defective. The treasurer keeps no cashbook and the annual statement seemed to be made largely from memory. I would recommend that a cashbook be kept which will show all income and disbursements of the corporation. Assessments Assessments are levied only when necessary to pay losses. It is the custom of the company to assess only for enough to meet the losses and pay past indebtedness. Assessments are levied according to the classification of the risk. Insurance in Force On December 31, 1918, there were 184 policies and $214,460 of insurance in force. Since that time, however, the company has lost considerable insurance, due to the fact that the fire losses in 1918 were unusually heavy and the members are gradually withdrawing from the company. Advance Payment The company charges in advance a percentage of ten cents for each $100 of insurance in force, on a five-year policy, and in addition a policy fee of $1. Bonds In spite of the provision of the by-laws requiring that the treasurer give a bond for the safe-keeping of the funds in his possession and a faithful performance of his duties, no such bond has been given. DELAWARE COUNTY PATRONS AND FARMERS FIRE RELIEF ASSOCIATION SIDNEY CENTER, N. Y. Examined to ascertain condition September 17, 1919. Report dated October 6, 1919. Examiner: J. H. Middleton. History This company was organized in 1881, and has transacted business since as a co-operative fire insurance corporation. It has been licensed by the department as a county assessment corporation and transacts business in the county of Delaware only. Financial Statement The assets and liabilities of the corporation on September 17, 1919, were as follows: The method by which the company transacts its business is fully set forth in the report of examination dated October 4, 1913, and no material change therein has been made. Records In accordance with the requirements of the by-laws, the secretary keeps a policy register and minutes of the meetings of the company and of the board of directors and executive committee, and all applications. Assessments Assessments are usually levied annually, about September 1st. The amount of the assessment is based upon the amount of losses which have been sustained. New members are assessed for their pro rata share of losses which have been incurred while they were members of the company. No charge for delinquency in payment of assessments is made. Insurance in Force On December 31, 1918, there were 901 policies and $1,773,465 of insurance in force. Advance Payment The company charges in advance a policy fee of $1 but no percentage. Bonds The secretary and treasurer have each given bond in the sum of $5,000 with two individuals as sureties. EMPIRE CO-OPERATIVE FIRE INSURANCE COMPANY MIDDLEBURG, N. Y. Examined to ascertain condition April 1, 1919. Report dated October 9, 1919. Examiner: J. H. Middleton. History This company was organized in 1894 as a co-operative fire insurance corporation. It has been licensed by the department as an advance premium corporation and is authorized to transact business in all of the counties of the State outside those comprised in the city of New York. Financial Statement The assets and liabilities of the corporation on April 1, 1919, were as follows: The principal asset of the corporation is the sum of $39,318.50 which has been loaned on bond and mortgage. As evidence of the value of the real estate on which the money has been loaned, the company has filed appraisal sheets signed by one or more of its officers or directors. As evidence of title the company has in each case filed affidavits by attorneys who have examined the titles, that the title in each case is well vested in the mortgagor and constitutes the first lien on the premises. The company has invested in Liberty Bonds the sum of $11,000. It has deposited in local banks to its credit the sum of $16,769.28. Of this sum $8,855.45 bears interest. These deposits have been verified in each case by the customary voucher. There was owed by the agents on April 1, 1919, the sum of $20,264.19. Of this sum $5,696.44 was represented by policies written more than three months prior to the date of the examination, and, therefore, not allowed as an asset, Liabilities The company owes for losses the sum of $6,449.25 of which amount $1,825 is contested. The principal liability is, however, for unearned premiums. Records In accordance with the requirements of the by-laws, the secretary keeps a policy register and minutes of the meetings of the members and of the board of directors and executive committee. These minutes have been read back to the previous examination. Conflagration Hazard The company has a number of maps of its principal agencies and an examination of several of these seems to indicate that the company is not exceeding the conflagration limitations as provided for by section 267 of the Insurance Law. Bonds The treasurer has given a bond in the sum of $10,000 with individuals as sureties. Expense of Management In the year 1918 the ratio of expense of management to premium income, after deducting from such expense of management any expenses incurred in the inspection of risks and the adjustment of losses and legal expenses connected therewith, was 35 per cent. FARMER'S CO-OPERATIVE FIRE INSURANCE COM- Examined to ascertain condition May 7, 1919. Report dated July 18, 1919. Examiner: J. H. Middleton. History This corporation commenced business in 1891, and has transacted business continuously since that time. Until April 1, 1917, |