side this sum, the loss will be met when it occurs without
disturbing the welfare of any. The machinery for such provision is called
an insurance company, and the separate payment of each house owner is the
premium or award expressing his share of the provision. This principle of
estimating losses and providing a definite way of meeting them is the same
in all forms of insurance. It has been recognized for hundreds of years,
but only recently has entered into the business life of the world in all
directions. For a long time false notions of reverence for the power that
wields destiny stood in the way of such distribution of misfortune; but
now the mass of people everywhere regard such foresight in united sympathy
as natural as the planting of crops.

_Various methods of insurance._--Satisfactory insurance rests upon certain
definite business principles which every insurer may wisely study. There
are various devices for accomplishing the same end. A body of men
sufficiently large to make the average of losses uniform may bind
themselves by a simple agreement to meet each loss as it occurs. To make
this plan satisfactory they will need efficient business men as officers
to devise means and methods for making the agreement effectual, for
estimating the actual loss in each case, and for distribution of the claim
by assessment sufficient to cover the loss and the expense of collections
and estimates, as well as the maintenance of the officers. These officers
must maintain the business standing of the organization in the community,
so that it shall continue for a long series of years to keep its numbers
large enough to maintain only the average loss.

This is a simple mutual insurance company, upon the assessment plan. Its
weakness lies in the comparatively slight interest taken by each member in
the selection of its officers, in the absence of security for the payment
of assessments when needed, in the long delay liable to attend
collections, and the uncertain interest of the officers in exact
adjustment of losses. Such companies are liable to be too small to give a
fair average of losses, and in any serious emergency to fail for want of
expert business ability and trustworthy character in officers.

If, instead of the assessment after losses, a definite percentage of
probable loss is paid in advance, the responsibility for use and
maintenance of such funds calls for a business character and ability in
the officers which us