The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-04-28
THE SUIT FOR INSURANCE.
A FULL EXPLANATION OF THE DIFF
FERENcEs BETWEEN PRINCIPALS.
Mr. 8. M. McCallun, of the Mansfield
Drug Company, Defines the Basis of
the Suit and His Company's Position
Some Correspondence.

Drug Company and the insurance COM
panies excites considerable interest
among business men, and particularly
with the insurance companies. All OF the
foreign companies interested in the risk
have been sued in the United States Cir
cult Court. Seeing Mr. s. NJ. McCallum,
the president OF the Mansfield Drug Com
dany, representative OF The APPEAL
asked him why the local insurance COM
panies were not sued. He replied:
ave suppose the local companies will
promptly pay their policies on the same
terms that the foreign companies are ro-
ouired to pay 10y the United States Court.
II the Judgment OF that court on the Tor
eipn policies reduces our claim we will re-
duce in the same proportion the policies
In the home companies, and II our Claim
is allowed in full We will expect them TO
and no doubt they will-seitlo with US
in full. There seems to be an understand
ing between the home companies and the
foreign companies that they will stand
together and whatever the foreign com
panies do, or are required to do, they will
do"
'ls il true, MIR. McCullum," asked the
reporter that the Mansfield Drug Com.
pany has refused to arbitrate It's differences
with the insurance companiesY'
at is not true The truth Is, we have
always been anxious and wiling 10 settle
all matters and differences on any fair
basis. Our principal difference Is on the
meaning OF our policies, and not in respect
10 value. We have always been willing to
refer to impartial arbitralOrs any difference
that might arise rs 10 the value OF the
property destroyed liut We have in
sisted, aud still Insist, that any difference
rs TO the meaning OF the policies should be
referred TO the courts or TO some impartial
and competent lawyer 10 conslruc the pol
icies. We have repeatedly offered before
instituting the suits to do this Now that
the suits have been instituted, we propose
10 let the law take its course
''ls II truo that YOU have been offered 4
settlement OF these policies by the insur.
ance companies"
eyes, that Is true Onr insurance
amounted 10 $50, S)0 and they ~ first OF.
fercd ~ in full settlement 1000, and az.
terwarl they Offered u settlement amounts
ing TO $50 We declined both oilers.
This thing is a matter OF principle with ~.
We Try To do u Legitimate business; insur.
nncc Is expensive, and u Is not 20 our in
terest 10 take out ovei.inuraucc. Our objac
in taking out the insurance was TO secure
indemnify against loss, and We know that
the insurance we hal viii not indemnify
US for the loss we sustained. Honestly b..
licving this, VIC do not intend to yield 10
the insurance companies q dollar that
Justly belongs 10 "a. We had one policy of
$4,000, being the largest single policy on
our property. This policy was Ia the
Druggists Mutual FIRE Insurance Com
pany, OF Philadelphia. This company
deals almost exclusively with the druggists
Of the United States, and u In better po.
siti0n than any other company 10 apprr-
ciatc aud estimate the loss We sustained.
II Is gratifying 10 - that Il promptly paid
this large policy and took no part with
the other insurance companies IN COM
bina,on 90 reduce our insurance. II yon
dcsrc TO du 20, YOU can publish in TuE
APPEAL the correspondence We had with
this company ri the umc they paid the
policy"
Mr. McGallum furnished the reporter
wnh the following letters which explain
themselves
Muuis Tenn. Apfl o. $50
Dm'rti. Mutual firc lntufurc Company no
toiih fuuuh strcct Philadelphia. Pa
Gvndcmcn- Your prompincss In set.
Ting our loss. In the face Of the contest
nbuutwhich We wrote you some weeks since,
u exceedingly gratifying Ia Us, and We take
this method of thanking you lot the same.
You may rest assured OF the fact that when
We eau throw anything In your hands that
We will do a., and We will also promia
20 20 out Of our way for the purpose OF
showing our appreciation oi your kindness,
IL " ccftainlya gratifying showing Tor YOU
Company when We reflect upon the fact
that You wcrn the first 10 settle with thg
Rchaulson Drug Company aa we'll rs our
selves We must Eiy that the pickering
that have been instituted blythe insurance
companies In connection with our lose, an,
alfo that OF the Richardson Drug Company
will NO doubt have a tendency 10 dis, url
the confidence which has heretofore cX
listed on the part OF business men IN ihl
policy oil insurance. We do not bcliev,
that there WIS ever clearer proof OF los
than the ono which We sustained, vet 10
the face OF this fact. tho insurance adjust
orr. who represent the various companic
IN which We were insured. have not Onll
the audacity 10 nsk us 10 settle Tor SD, 81
Ices than our los. but, to all appearances,
ar going 90 force ~ into the United state.
Court la order that We may obtain our
dues. Your uuy,
MANSFIELD DguO CourANY.
nnuoGisIs' NuIrAt TinE iSsunAscr CourAsx.
iiii ApEiIliiA. Pa, Apul q. isgi.
hfnsaeld Drug Company. Memphie. rcnu4
Gentlemen Your kind favor Of ihu
10Th inst. h. received. IL Is exceedingly
gratifying TO have ~ frank an appreciation
OF our efforts 90 promptly aud Uonscicnti
ously redeem our policies upon receipt @
What We consider clear aud conclusive
evidences OF loss. The officers and Boar,
Of Directors OF our company arr made al
Of men identified With the drug business
They recognize that the primary object a
The organization Of the company was 10
The benefit OF that particular branch @
Trade. While the late unprecedented cpl
deinic 81 drug fires las, ipr the present
ahaied Us hoped Tor showing that drul
nsks.ver not dcscrycdly chargvab.o will
Tie high ralcs OF pfcmIums prevailing il
many sections, our company can 90 Teas
tci the example Of manlully meeting III
obligations IL management, whilo caro-
fui OF the trust committed to their care
arc convinced that al Of those who's,
money ia Invested in the company wuul,
prefer prompt and cheerful payment O
all Losses that show upon their proofs NJ,
honest aud careful scheduling. They al
rcaiz3 how serious On embarrassment an,
business loss Gre involves, without th
added distress OF contention with the In
Guganco companies. Yours very truly,
l.. r. lluNr, Secretary
This correspondence u complimentary,
10 the Mansfield Drug Company. an,
would seem TO show that they we're full,
justified In the course they have taken
nhnu nfn NJ lnaal La nnrnn.l and u-lI an.