Mutual Policy Holders Can Not Be Assessed

That policy-holders in the Northwestern Mutual X'ire Assoeiation of Seattle, which has entered California for the purpose of writing insurance on lumber property, are not liable for special assessments, is the subject of a special re' port recently made by the attorney-general of the state of 'Washington, copies of which report now are being circulated in California and Arizona.

It appears that false statements as to the liability of policy-holders in mutual insurance organizations recently have been issued in California and in the Northwest, but here is rvhat the attorney-general of 'Washington says:

"ft is our opinion that m,utual fire insurance companies which have complied with the proviso requiring deposit of $200,000 with the state insurance department, may issue policies, the holders of which will not be subject to liability to pay more than the amount of the premium, even though the company shoulcl thereafter become insolvent."

X'urther supporting this position is the following declaration by the representative of one of the leading stock companies at a reeent meeting in San Francisco:

"Under the laws of Washingtou, Idaho, Oregon and California the Northwestern Mutual Fire Association of Seattle, 'Washington, is entitled to issue a non-assessable policy, limiting the amount of liability of the policy-holtler to the premium paid and named in the policy. In these states then, lyhere a non-assessable policy is allowed under the state law, the stock companies and their representatives are precluded from attacking them on the point that has always been successful wherever Mutual competition has been met in the past, viz., on the contingent liability of policy-hold.ers."

PBOffiNENT SEATTLE SEINGLE III.,A,N IIERE

Cecil V. Gray, of the Gray Lumber ancl Shingle Co. of Seattle, has been in California for the last week. Mr. Gray's concern is one of the nost important distribbtors of red cedar shingles in the Northwest. IIe reports the demand. for shingles somewhat spotted with the market in certain sections of the country picking up substantially. The car shortage is a serious factor in the industry right now, he says, for both lumber and. shingles.

}IR. WEEELOCK IDIPROVINC

E. U. 'Wheelock, well-known l-ros Angeles wholesale lumberman. who was stricken with a severe illness on a recent visit to'San Francisco, now is gradually improving and ex' pects soon to be back at his desk.