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SECT. 4. The capital stock of said corporation 2 shall be invested, at the discretion of the directors, in 3 loans secured by mortgages on unincumbered real 4 estate, of the value of at least fifty per cent. more 5 than the amount lent thereon, in stocks of the United 6 States, or of the Commonwealth of Massachusetts, of 7 any bank in this Commonwealth, or in loans to towns. 8 Said corporation may hold real estate to an amount 9 not exceeding ten thousand dollars, for the purpose of 10 securing suitable offices for the institution.

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SECT. 5. The directors of said corporation shall, 2 on the first Monday of June, annually, cause a state3 ment to be made, and a balance to be struck, of the 4 affairs of said corporation; and if there shall be any 5 ascertained profits, after paying all the losses and ex6 penses of the year preceding, and providing for out7 standing risks, they shall first set apart from said 8 profits, and divide among the stockholders, a sum not 9 exceeding six per cent. per annum, on the amount of 10 capital stock actually paid in, on the stock held by 11 them, if so much remain after paying said losses and 12 expenses, and providing for said risks; and in case of 13 said dividend not being paid in any one year, it may 14 be made good at a subsequent period, when the net 15 resources of the corporation shall be sufficient for the 16 purpose.

1 SECT. 6. After providing for risks, losses, and in2 cidental expenses, and dividend, as provided in the

preceding section, one half of the remaining profits, 4 if any there be, shall be reserved by the directors and 5 applied toward the payment of the capital stock, which

6 shall have been subscribed before the striking of the 7 balance of the affairs of said corporation as aforesaid; 8 and the other moiety of said remaining profits may 9 be divided among the stockholders and the insured, 10 one half among the stockholders, the other half among 11 the insured: provided, however, that said annual divi12 dends, applications of payments on capital stock, and 13 divisions of profits among stockholders, shall never 14 exceed eight per cent. per annum on the capital stock 15 actually paid in; but such surplus of profits over 16 eight per cent., if any, shall be divided among the 17 insured. But no dividend whatever shall be made, 18 whereby the capital stock of said corporation, sub19 scribed for and paid in, shall be reduced or impaired.

1 SECT. 7. All dividends remaining unpaid more 2 than one year after the same have been declared, 3 shall be advertised, by publishing the amount thereof, 4 and the names of the persons entitled thereto, for at 5 least three weeks, in some newspaper published in 6 Gloucester, or in the county of Essex; and if not 7 called for within one year from the date of such ad8 vertisement, shall be forfeited to the corporation.

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SECT. 8. The directors shall have power to require 2 every person subscribing to the stock of the corpora3 tion, to effect insurance therein, either upon his own 4 health or upon the health of some other person, for 5 such length of time as they shall prescribe; and every 6 person effecting insurance in said corporation, shall 7 have the privilege of subscribing for at least one share 8 of said stock, until the whole number of shares, au9 thorized by this act, shall be taken up. But insurance

10 may be made and risks taken, by said corporation, at 11 the request of applicants, without their becoming 12 stockholders.

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SECT. 9. Suits at law may be maintained by any 2 stockholder, or person insured, against said corpora3 tion, for losses or damages insured against by them, if 4 payment shall be withheld more than thirty days after 5 the same shall be due and payable by the terms of the 6 policy of insurance, and after said corporation shall 7 have been duly notified of such loss or damage; and 8 no stockholder, or person insured, not being in his 9 individual capacity a party to such suit, shall be 10 deemed incompetent as a witness.

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SECT.

SECT. 10. On some day within the first thirty 2 days after the expiration of two years from the time 3 when the said company shall issue their first policy, 4 and within the first thirty days after the expiration of 5 every subsequent period of three years, the directors 6 of said company shall cause to be made a general bal7 ance-statement of the affairs of said company, which 8 shall be entered in a book prepared for that purpose. 9 Such statement shall contain, first, the amount of pre10 miums received during the said period, and the amount. 11 of interest received from investments and loans; sec12 ond, the amount of the expenses of said company 13 during the same period; third, the amount of losses 14 incurred within said term; fourth, the balance remain15 ing with said company; fifth, the nature of the se16 curities in which the said balance is invested, and 17 the amount of cash on hand, and an account of the 18 existing policies. The president of the company

19 shall, within thirty days after said statement is com20 pleted, transmit a copy thereof, signed and sworn to 21 by the president and a majority of the directors, and 22 also by the treasurer, actuary, or secretary, to the 23 secretary of the Commonwealth, to be by him laid 24 before the legislature.

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SECT. 11. Nothing contained in this act shall be 2 so construed, as to authorize said company to engage 3 in life insurance, or in any thing save assurance upon 4 health; nor is it permitted to insure more than four 5 hundred dollars per annum on any one risk.

HOUSE.....No. 38.

Commonwealth of Massachusetts.

HOUSE OF REPRESENTATIVES, Feb. 19th, 1848.

The Committee on Mercantile Affairs and Insurance, to whom was recommitted the bill to incorporate the Bay State Mutual Fire Insurance Company, with instructions to report to the House the number of Mutual Fire Insurance Companies now incorporated within the Commonwealth, and where the same are located; the number of petitions pending before the legislature for further acts of incorporation for such companies; where the same are to be located; and whether, in the opinion of the committee, any or all of them are required for the convenience and safety of the public,-ask leave to

REPORT:

That they have no means of obtaining an entirely accurate list of the companies now in operation within the Commonwealth. As the result of their inquiries, they have learned that there are now in operation, within the Commonwealth, forty-six companies, and that they are distributed in the different counties as follows:-In Suffolk, 8; Essex, 15; Middlesex, 8; Worcester, 4; Hampshire, 1; Hampden, 1; Franklin, 1; Berkshire, 1; Norfolk, 3; Bristol, 2; Plymouth, 1; Barnstable, 1; Dukes County and Nantucket, none. The number of petitions for new companies now pending, is eight. Two are proposed

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