Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-07-25

the companies, to confer with the owners of
sWashburn Al Upon their return they re-
ported that
COMPROMISE HAD BEEN EFFECTED,
but the following circular letter from Gov
Washburn, senior member of the firm, would
appear to dispel any hope of compromise
and abatement of the amount of the in
surance.
The circular letter referred to will, how
ever, speak for itself. It is verbose and
goes into details, but as an indication of the
amount of labor and talk which both parties
to this controversy are bestowing upon the
question at issue, it is success.
THE LETTER.
MINNEAPOLIS, July -, l878.-S. II. SOUTH
WICK, Esq, Chicago-Dear Sir: received this
P. NJ. letter from R. B. Carson, adjuster of
the Royal Canadian, from which extract the
following, viz: by the report of a committee
appointed by the companies represented on
your mill loss. I find that you estimate the
value ut the mill at the time of fire at $685.
02S.77. You also admit loss by explosion at
$lO4, 654.9O; loss by fire, $147,373.o7." I in
fer from this letter that Mr.. Carson gathered
from your report that had made the admis-
sion that my loss by explosion before the fire
was the amount stated by him. made
to recapitulate, SO far as l can, what took place
at the different interviews had with you; Mr..
Covington and Mr.. st. John, comprising the
committee visiting here the latter part of June,
as am satisfied that there had been some mis-
representation by some one, which / ought to
correct.
You met me by appointment at the house of
w. D. Washburn, in the afternoon of June "a.
Mr.. Covington stated that you had come here
as committee representing companies whose
policies held, amounting to $4,000, to see if
compromise could be effected with me. He
said that the companies represented were those
which had no agencies in the State, and a few
others whose names we're not given me. He
said that you were authorized to offer me 60
per cent. of their policies. The proposition
was not entertained by me for instant. 1t
was said by you all that the companies claimed
| that they were
ONLY LIABLE FOR DAMAGES DONE BY FIRE
after the explosion. That position 1 denied,
! and said to you that you knew perfectly well
that my mill was on fire several minutes before
| any explosion, and that the mill would have
! unquestlonably burned up had there been no
explosion whatever. said to YOU that the ex-
| plosion was the result of fire and the rapid
combustion of -four dust, which every mill
contains in greater or less degree. That its
| inhammable character was we'll known to in
surance men and was one of the principal rea-
sons why insurance Touring mills sc
high. But, said I, conceding that your con.
/ struction Of the question of your liability was
the correct one (Which always denied), assure
| you that can demonstrate before any court
and jury, if there had been no fire after the
explosion, the machinery would have beer
worth more than it was insured for, and
showed why such would be the fact. The forty
run Of stones, the finest ever set up on THU
continent, had shown in my proofs to b.
| worth 81, 900 per run, but which in my sched
ule were only set down at the cost, as it wal
not necessary to put them at their actual value
as my loss was SO much in excess of m,
insurance.
| The reason why they were of such grea
value stated to you. and also my belief tina
they would not have been injured by the ex
plosion. By the fire they were totally de
stroyed. Gould they have been saved from tn
ire, they would have been worth $50. 0OO Tn
other machinery, if it had been simply throw
down would have been worth sum, greatl,
exceeding in the aggregate, all my insuranc
on machinery. which was $1l7, O3i. We thel
ran over the schedule showing the cost of tn
building, which was $77,078.63, and insure,
for $5S,577. Insisted that no man could ga
what the material of the building would b.
worth after the walls had been thrown down
butwe ran over the items and guessed at wha
the material might be worth if thrown dow,
and not burned up. We made it between $21,
600 and $22,000.
a, LESS THAN THE INSURANCE.
insisted that If I should admit all the
claimed in regard to the liability Of the com
panies they could not possibly reduce my in
surance more than twelve per cent, and that
thought it rather small business for these CON
panies, very few of which had policies of owe
1000, to make point on me, as no case ha
been shown me where insurance companies ha
. avoided liability from a fire in a figuring mi
from a similar cause.
This closed the interview on that afternoon
and no result was arrived at or approached. B
request, met you that evening at the Nicolle
house, and the ground was again gone over wit
like results. Mr.. Covington said, during tn
evening, that it had always been his opinio
that the companies should pay me seventy -fv
per cent, and he thought that they would d
SO, if would take that. ] then told you tina
q it was useless to waste any more time in tall
ing; that there was one way, and but one wa,
to settle with me, and that was to pay me, 8
legally and in honor bound to do, the face {
my policies, and took my leave, but agreein,
at your request, to meet you again the nea
day in the afternoon. To make this narratio
, complete, should say that between our fir
, and second interviews, I received a letter frol
N, Muir & Son, proprietors Of the Tradestor