AFFILIATED ORGANIZATIONS 195 



The investment of the exchange associations in packing 

 houses and equipment amounts to a considerable sum. This 

 property offers an opportunity for an extension of coopera- 

 tion in the shape of mutual insurance against loss by fire. 

 Consequently, under the general control of the board of 

 directors of the California Fruit Growers Exchange, there 

 has been drawn up a Mutual Indemnity Compact whose 

 provisions about 100 of the associations have accepted. 

 This agreement follows the usual plans for mutual insur- 

 ance against damage from fire. Subscribers are rated ac- 

 cording to the value of the property and the character of 

 the hazard, and in case of loss incurred by any member 

 all of the subscribers, including the one suffering the loss, 

 agree to contribute toward the indemnification of the in- 

 jured party. The contribution from each member is as- 

 sessed according to the ratio which that member's insured 

 property bears to the total value of the property insured. 

 Rates at which each member is assessed for losses and for 

 ftmds to carry on the machinery of the compact vary ac- 

 cording to a point system, being proportionately more as 

 the risks are greater, and less as the character of the build- 

 ing and the available fire fighting apparatus warrant. Con- 

 siderable attention is devoted to the practice of "sweating," 

 and the rules are quite specific as to what may or may not 

 be done. This is proper, for by far the most likely cause 

 of fire is in connection with the sweat room. 



Packing houses and machinery may be insured at four- 

 fifths of their value, provided that the total liability under 

 the compact does not exceed $25,000. Regular inspections 

 are carried on under the immediate direction of the cashier's 

 department of the California Fruit Growers Exchange. 

 Since little machinery is necessary for these insurance 

 operations in addition to that already provided for by the 

 California Fruit Growers Exchange, the expenses of ad- 



