Sec.13.  But from the average number and amount of losses annually for many years, companies are enabled so to fix the rates of insurance as to give the stockholders a fair profit on their capital.  The rates are not the same on all kinds of property; a higher per centage is charged on that which is deemed hazardous, or more exposed to fire, than on that which is less exposed.  The profits on the business of the company, or the dividends, as they are called, are annually or semi-annually divided among the stockholders, in proportion to the amount of their respective shares.

Sec.14.  There is another kind of insurance companies, which differ materially from the stock companies described in the preceding sections.  They are mutual insurance companies.  They are so called because the members unite in insuring each other.  Every person having his property insured by such a company is a member of it.  He has his buildings and the property in them valued; and pays a certain rate per cent. on such valuation.  A fund is thus raised out of which any member suffering loss by fire is paid the amount for which the property was insured.  When the fund is exhausted, it is again supplied by a tax assessed upon the members in proportion to the amounts for which they are respectively insured.

Chapter XXV.

The Militia.

Sec.1.  It is the practice of governments to keep their respective countries prepared to defend themselves against foreign enemies.  For this purpose all men liable to do military duty are enrolled, and are required to meet on certain days every year for instruction in the art of war, in order to be ready for actual service whenever it shall be required.  The body of soldiers thus enrolled are called the militia.  There are other words which are sometimes applied to bodies of soldiers; as infantry, which means the soldiers or troops who serve on foot; cavalry, the troops on horses; artillery, those who manage the cannon and other heavy weapons of war.  But all troops are comprehended in the general term, militia.

Sec.2.  The militia of a state, or a portion of them, may also be needed to aid in executing the laws of the state, and in suppressing insurrection or rebellion.  An insurrection is a rising against the public authority, or the attempt of persons to prevent the execution of a law. Rebellion generally means nearly the same as insurrection; but more properly it signifies a revolt, or an attempt to overthrow the government to establish a different one.  As it is the duty of an executive to see the laws executed, power is given by the constitution to the governor to call out a sufficient military force for this purpose.