ount of losses annually for many
years, companies are enabled so to fix the rates of insurance as to give
the stockholders a fair profit on their capital. The rates are not the
same on all kinds of property; a higher per centage is charged on that
which is deemed hazardous, or more exposed to fire, than on that which
is less exposed. The profits on the business of the company, or the
_dividends_, as they are called, are annually or semi-annually divided
among the stockholders, in proportion to the amount of their respective
shares.

Sec.14. There is another kind of insurance companies, which differ
materially from the _stock_ companies described in the preceding
sections. They are _mutual_ insurance companies. They are so called
because the members unite in insuring each other. Every person having
his property insured by such a company is a member of it. He has his
buildings and the property in them valued; and pays a certain rate per
cent. on such valuation. A fund is thus raised out of which any member
suffering loss by fire is paid the amount for which the property was
insured. When the fund is exhausted, it is again supplied by a tax
assessed upon the members in proportion to the amounts for which they
are respectively insured.

Chapter XXV.

The Militia.

Sec.1. It is the practice of governments to keep their respective countries
prepared to defend themselves against foreign enemies. For this purpose
all men liable to do military duty are enrolled, and are required to
meet on certain days every year for instruction in the art of war, in
order to be ready for actual service whenever it shall be required. The
body of soldiers thus enrolled are called the _militia_. There are other
words which are sometimes applied to bodies of soldiers; as _infantry_,
which means the soldiers or troops who serve on foot; _cavalry_, the
troops on horses; _artillery_, those who manage the cannon and other
heavy weapons of war. But all troops are comprehended in the general
term, _militia_.

Sec.2. The militia of a state, or a portion of them, may also be needed to
aid in executing the laws of the state, and in suppressing insurrection
or rebellion. An _insurrection_ is a rising against the public
authority, or the attempt of persons to prevent the execution of a law.
_Rebellion_ generally means nearly the same as _insurrection_; but more
properly it signifies a revolt, or an attempt to overthrow the
government to estab