ually secures better results. It especially avoids
the danger of slackness and failure on the part of the insurer. It leads
to closer scrutiny of actual losses, and helps the insurer to more
carefully measure his interest, since he already has an investment in the
business. Any overestimate of expected losses may be returned in dividends
to the insured, or may be retained as a surplus for security against
losses above the average of experience. The only weakness of this method
is in the power entrusted to individual officers, elected on the ground of
popularity by comparative strangers. Even when a board of directors chosen
from well-known business men is added to the machinery, the dangers from
incompetent and dishonest management are not avoided. Such directors are
too prone to consider their names their only contribution to the welfare
of the association.

A joint stock company, insuring with definite premium, is likely to bring
the best business management, the quickest though not always the fairest
adjustment of losses, and the confidence of the business community. Its
prosperity, however, is hindered somewhat by the common judgment that the
interests of the stockholders must be against the interests of the
insured. The actual cheapness of insurance depends not so much upon the
amounts paid from time to time as upon the actual quality of the insurance
purchased. Assessment companies of all kinds, without a legal lien upon
definite property, are decidedly lacking in quality, since their guaranty
of payment involves the financial credit of every person insured. No one
should be deceived by the promise of insurance at cost, until he knows
exactly how genuine that insurance will remain during the period of years
for which he desires it.

_Governmental control of insurance._--The essential importance of insurance
and the difficulties of providing against fraud and mismanagement have led
naturally to government inspection, and in some countries to government
control of insurance agencies. The laws of various states provide
differently for inspection and reports, and restrict the action of
companies in various directions. It is probable that time will develop the
necessity of greater uniformity of insurance laws and more definite
requirements in the way of published reports and expert inspection. At
present, insurance commissioners often have the confidence of neither
companies nor people, and no expert knowledge is deman