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SEC. 8. And be it enacted, That after applying
from these profits sufficient to cover the payment
of six per cent, per annum, upon the stock, semi-
annual payments, to the stockholders, as hereinbe-
fore provided, ten per cent, of the residue of the
profits of each year shall be reserved by the com-
pany as a surplus or reserved fund, and shall be
credited on the books of the company, to an account
to be called the reserved fund, said reserved fund
shall be liable for any excess of losses or expenses
of the company above the earned premiums of any
year and the whole of it shall be liable to be used
before the capital stock shall be encroached upon,
whenever such surplus or reserved fund shall ex-
ceed the amount of two hundred and fifty thousand
dollars, such excess and the portion of the profits
hereby appropriated to it, shall be paid to the
stockholders as an extra dividend on their stock;
one-half of the remainder of the profits, that is to
say: forty-five per cent, of the whole profits less the
interest on the cash capital, shall be paid to the
stockholders in cash, as a dividend on their stock,
and the other half of the remainder of the profits,
that is to say: forty-five per cent, of the whole
profits less the interest on the cash capital shall be
paid in cash to the persons or firms, who shall have
paid premiums to the company as a dividend pro
rata, on all premiums on risks which have termi-
nated without loss to the company or any claim
thereon which shall have been earned during the
year, but no person or firm shall receive a dividend
on earned premiums, unless such dividends shall
amount to ten dollars or more, and all such divi-
dends less than ten dollars shall be credited of the
reserved fund, hereinbefore mentioned.
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CHAP. 319.
Profits — how
applied.
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SEC. 9. And be it enacted, That should the
losses and expenses of the company in any one
year exceed the earned premiums of that year, and
the whole amount of the reserved fund before accu-
mulated, the capital stock shall be deemed to be de-
ficient to the amount of such excess; in case of such
deficiency the directors shall have power to levy an
assessment on the shares to make up the deficiency,
and after public notice is given in two daily papers
in the city of Baltimore for at least thirty days of
such assessment, and requiring its payment, the
directors may sell at auction the stock of any share-
holder, who shall neglect or refuse to pay such as-
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Assessment
on shares au-
thorised to
meet deficien-
cies.
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